KANMANTOO BROWNFIELDS EXPORATION DRILLING RESULTS

Transcription

1 Wednesday, 4 June 2010 KANMANTOO BROWNFIELDS EXPORATION DRILLING RESULTS (ASX:HGO) advises that recent exploration drilling to the south of ML6345 at the Kanmantoo Copper/Gold Project has intersected new areas of copper-gold mineralisation within close proximity to the proposed Kanmantoo copper ore processing facility (Figure 3). Highlights include: Wheal Fortune 2.50% Cu and 0.80g/t Au and 30.88g/t Ag from 13m. Emily Star South KTRC % Cu and 0.35 g/t Au from 48m KTRC g/t Au and 0.36% Cu from 24m. Figure 1. RC drilling rig on site at Emily Star South The drilling was designed to test two potential satellite mineralisation targets in the Southern Mine Corridor akin to Hillgrove s original Emily Star discovery. The program comprised 14 RC holes for a total of 1,688 metres. Eleven holes targeted historical workings south of Emily Star and a further three holes targeted historical Wheal Fortune workings. The Emily Star South targets were selected on the basis of the proximity to the Kanmantoo Mine, the presence of ACN Level 41 Australia Square Tower, 264 George Street, Sydney NSW 2000 Tel: Fax:

2 2 garnet-andalusite-biotite schist (identical to the Main Zone schist), a coincident IP and soil anomaly, and gold rock chips up to 16g/t making this a key target. The Wheal Fortune target was selected on the basis of the historic workings, outcropping copper oxide mineralisation together with coincident soil and IP anomalies. Significant results from the program are detailed in Table 1 and hole locations displayed in Figure 4. The following cross sections (Figures 2 and 5) show the proximity of the mineralisation to the surface and the potential for growing the Project s overall resource with follow-up drilling. Figure 2. Section 19620N from Emily Star South with interpreted zones of mineralisation The identification of new zones of copper-gold mineralisation within 2km of the proposed Kanmantoo mine development highlights the excellent potential to further expand the existing resource and reserves base; and has the potential to extend the current planned mine life for Kanmantoo. A follow up drilling programme is now being designed. About Hillgrove Hillgrove is an Australian mining company listed on the Australian Securities Exchange (ASX: HGO) focused on developing its Indonesian, South Australian and Queensland base and precious metals projects. The Company is targeting the discovery of world class epithermal gold and porphyry copper/gold deposits in Eastern Indonesia.

3 3 Hillgrove s flagship development is the Kanmantoo Copper Mine, 55km from Adelaide in South Australia. Kanmantoo currently hosts a Mineral Resource of 32.2Mt (2.3Mt Measured, 22.5Mt Indicated and 7.4Mt Inferred) grading 0.9% copper and 0.20g/t gold, containing 292,200 tonnes of copper, 191,100 ounces of gold and 3,313,600 ounces of silver. With completion of construction targeted for the first quarter of 2011, Kanmantoo will be a 2.4MTPA open-cut mine producing approximately 20,000 tonnes of copper in concentrate and 10,000 ounces of gold per annum. The information in this report that relates to Exploration Results is based on information compiled by Mr.Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bradey is the Kanmantoo Project Geology Manager for Hillgrove Resources and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resource estimates is based on information compiled by Mr Paul Payne, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Payne is a fulltime employee of Runge Limited and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. For more information contact: David Archer Cam Schubert Managing Director General Manager Kanmantoo Tel: Tel: Mobile: Mobile: Table 1. Collar Details for Near Mine Exploration Program, Kanmantoo, 2010 HoleID Prospect East MGA North MGA Azimuth Local Dip Total Depth (m) KTRC742 Wheal Fortune KTRC743 Wheal Fortune KTRC744 Wheal Fortune KTRC750 Emily Star South KTRC751 Emily Star South KTRC752 Emily Star South KTRC753 Emily Star South KTRC754 Emily Star South KTRC755 Emily Star South KTRC756 Emily Star South KTRC757 Emily Star South KTRC758 Emily Star South KTRC759 Emily Star South KTRC760 Emily Star South Note: KTRC = RC Drill Holes, Datum: GDA 94, Zone 54. Collar locations and downhole surveys are subject to final surveying

4 4 Table 2. Summary of Anomalous Drill Hole Assay Results Hole Id Title Depth From Depth To Interval KTRC742 Cu>0.3% Note: o Exploration Results Intersections (not outlined in bold) calculated using 0.3% copper cut off grade with maximum thickness of 4m internal dilution. o High Grade Intersections (outlined in bold) are calculated using 0.8% copper cut off grade with maximum thickness of 2m internal dilution. o Anomalous grades reported in table for Gold >0.10g/t and Silver >1g/t. o Results highlighted in Orange are depicted on Figure 1. o Some check assays are still to be received, so some results may change slightly when checks are averaged in. o All widths refer to down hole intersections. Cu % Au gpt Ag gpt incl Cu>0.8% incl Au>0.5gpt Cu>0.3% KTRC743 Cu>0.3% KTRC744 Cu>0.3% KTRC750 KTRC752 Cu>0.3% & Au>0.5gpt Cu>0.3% & Au>0.5gpt KTRC756 Cu>0.3% KTRC757 Cu>0.3% incl Cu>0.8% Cu>0.3% Cu>0.3% incl Cu>0.8% incl Au>0.5gpt incl Au>0.5gpt incl Cu>0.8% KTRC758 Cu>0.3% KTRC759 Au>0.5gpt incl. Cu>0.3% Cu>0.3% Cu>0.3% Cu>0.3%

5 5 Figure 3. Prospect Location Plan

6 6 Figure 4. Drillhole Location Plan

7 7 Figure 5. Section 19660N from Emily Star South with interpreted zones of mineralisation