Hillgrove Resources is set to undertake on-ground exploration of two recently granted Indonesian gold tenements with particular focus on its Bird’s Head project in West Papua .

Bird’s Head is part of an advanced exploration portfolio of 5128sqkm in world-class copper and gold terrains.

Exploration efforts are targeting porphyry copper-gold and epithermal deposits and the company hopes to discover a world-class ore body.

Hillgrove is an Australian resources company focused on developing its Indonesian, South Australian and Queensland base and precious metals projects.

Its most advanced project is the Kanmantoo copper-gold property in South Australia, which hosts a mineral resource of 32.2 million tonnes, including 2.3 million tonnes measured, 22.5 million indicated and 7.4 million inferred, grading 0.9% copper and 0.20 grams/tonne gold, containing 292,200 tonnes copper, 191,100 ounces gold and 3,313,600 ounces of silver.

With production targeted for 2010, Kanmantoo will be a 2 million tonnes/year open-cut mine producing about 17,000 tonnes of copper in concentrate and 8000 ounces of gold/year.

The project, which is less than 60km from Adelaide , is moving closer to licensing and development and the company is seeking a joint venture partner.

Hillgrove’s managing director David Archer says, “Our near term objective for Kanmantoo is to team with a well credentialed joint venture partner to assist the development, subject to financing and licensing.

“Kanmantoo is very well positioned to be in production at the front end of the next major metals price rally and has thus met with a great deal of investor interest.”

Hillgrove also has a strategic, fully diluted, direct 20.6% shareholding in the New South Wales coal seam gas company, Eastern Star Gas.

www.hillgroveresources.com.au