Hillgrove Resources’ Indonesian partner, PT Akram Resources, has been granted an Exploration Mining Business Licence (IUP Eksplorasi) for its Bird’s Head Project in West Papua.
The licence, which was presented by the Governor of West Papua, is a follow on title from its original Kuasa Penambangan (KP) and has a term of seven years.
Hillgrove has an 80% economic interest in the IUP Eksplorasi, which covers an area of 992.3sqkm and is close to the maximum area for such a licence under the new Indonesian mining laws promulgated in January 2009.
The Exploration IUP gives PT Akram Resources the right to continue its exploration programs 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. The grant of the IUP provides the company with long term security of tenure.
The IUP Eksplorasi encompasses highly prospective ground which has been shown to contain identified zones of copper and gold mineralization and paves the way to drill testing in later this year.
Hillgrove’s managing director David Archer says, “With our partners, we now hold almost 2000sqkm under IUP’s 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.”
“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.”