A drill programme at Hillgrove Resources" Wheal Ellen Prospect in the highly prospective Kanmantoo Trough, South Australia, has intersected high grade polymetallic mineralization.

Results include: 5m @ 4.55% lead, 4.94% zinc, 103 grams/tonne silver and 1.69 grams/tonne gold; 4m @ 4.23% lead, 5.98% zinc, 120 grams/tonne silver and 1.21 grams/tonne gold, including 1m @ 10.7% lead, 14.69% zinc, 363 grams/tonne silver and 1.57 grams/tonne gold; and 8m @ 3.55% lead, 7.41% zinc, 92.13 grams/tonne silver and 1.52 grams/tonne gold, including 2m @ 9.46% lead, 20.64% zinc, 356.5 grams/tonne silver and 4.39 grams/tonne gold.

Hillgrove's managing director David Archer says: "We're consistently recording intersections over good widths with grades ranging from 10% to 30% lead plus zinc with excellent gold and silver credits. The mineralization is open at depth and seems to be getting richer.

"Wheal Ellen looks to have all the hallmarks of another Angas style deposit so we will be fast tracking our drilling programme to develop an initial JORC resource.

"We are very excited with the potential of Wheal Ellen with its coarse grained, stratabound massive sulphides. We see significant upside potential given that it is less than 7km along strike from Terramin's Angas Lead Zinc Mine to the south, and about 15km from our proposed Kanmantoo Copper Gold mine development to the north.

"The proximity to these mine developments, established infrastructure and Adelaide, underscore the low cost development setting for any potential project in the area.

"With the full production start up of the Angas mine in mid 2008 and Kanmantoo nearing completion of its Definitive Feasibility Study, the region is fast capturing its mantle as a significant mining centre within South Australia," David Archer says.

Wheal Ellen is 40km south-east of Adelaide, 8km north of Strathalbyn, and 7km along strike from the Angas silver-lead-zinc mine.

http://www.hillgroveresources.com.au/