PERTH (miningweekly.com) – Base- and precious-metals developer Hillgrove Resources’ Indonesian partner PT Akram Resources has been granted an exploration mining business licence (IUP) by the Governor of West Papua.
The IUP has a term of seven years, and covers an area of 99 230 ha or 992,3 km2 in the Indonesian province of West Papua.
The exploration licence encompasses highly prospective ground, which has been shown to contain identified zones of copper and gold mineralisation and paves the way to drill testing in 2010, Hillgrove said in a statement.
Hillgrove has an 80% economic interest in the IUP Eksplorasi.
The exploration IUP gives PT Akram Resources the right to continue its exploration programmes and, subject to positive feasibility studies, is convertible into a production IUP for an initial period of 20 years and extendable for a further 20 years.
Hillgrove said that the grant of the IUP provided the company with long-term security of tenure.
“With our partners, we now hold almost 2 000 km2 under IUPs over the Bird’s Head and Sumba projects which contain some of the most prospective exploration ground in Indonesia. Both these projects will be the subject of extensive drilling campaigns in 2010,” said Hillgrove MD David Archer.
The granting of the IUP follows the proclamation in 2009 of the new law on mineral and coal mining in Indonesia. The new law removes the historical restrictions on direct foreign ownership in Indonesian mines and represents an important step forward for foreign investment in the Indonesian mining industry, where foreign investors have historically sought to obtain benefits from mining operations through cooperation arrangements with local shareholders rather than through direct ownership.
“It also clears the way to drill testing of the very promising West Delta prospect close to the coast where Hillgrove has identified a potential copper/gold porphyry target,” said Archer.
Source: miningweekly.com
