Hillgrove Resources has secured options to acquire a 70% shareholding in five companies that own nine exploration licences (IUPs) over the Landak and Tayan South bauxite projects, covering 1400sqkm in West Kalimantan.
Hillgrove has, in turn, agreed to transfer these options to its 85%-owned subsidiary, InterMet Resources. InterMet will refocus its activities around the bulk commodities of bauxite, coal and iron ore in Australia and Indonesia.
The region is a recognized bauxite province with the Indonesian major, PT Antam, owning the Tayan bauxite deposit, between the Landak and South Tayan projects. The licences are also adjacent to established transport networks.
Hillgrove’s managing director David Archer says, “Our work on the Landak bauxite deposit shows that high grade, alumina production quality bauxite can be produced with favourable recoveries from the deposits so far identified.
“Hillgrove’s strategy is to identify and secure quality projects with clear potential to host substantial resources capable of supporting long-life mining operations. The company believes the projects in Kalimantan meet all these criteria in terms of scope and size and will provide an ideal nucleus for InterMet to participate in the buoyant bulk commodities space.
“We are confident in the long-term global aluminium consumption trends and see Indonesia as a key provider of raw and refined products, particularly to the nearby Chinese market.”
“The company will start a rigorous exploration program over the IUPs, with the aim of defining a bauxite resource base capable of justifying the establishment of an alumina refinery”.
Hillgrove has already completed several months of due diligence involving mineral industry consultants Snowden Group, Independent Metallurgical Operations, METS and Aluminpro Aluminium Industry Professionals, and has conducted site surveys, test pitting and detailed metallurgical evaluations.
Metallurgical test work has been undertaken on bauxite sourced from eight test pits excavated by Hillgrove across the project area at Landak.
Test work confirmed the bauxite as gibbsitic and typified by low reactive silica levels.
It has also confirmed the amenability of bauxite to upgrading to high grade product via simple wet screening.

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