Hillgrove acquires options on Indonesian bauxite projects June 22, 2010

Hillgrove Resources Limited (ASX: HGO) advises that it has secured options to acquire a 70% shareholding in five companies that own nine exploration licenses (IUPs) over the Landak and Tayan South Bauxite Projects, covering 1,400km² in West Kalimantan, Indonesia.

Key points:

• Options secured over 70% of companies controlling 1,400km² of granted bauxite exploration licenses in West Kalimantan in Indonesia.
• Licences adjacent to large, established bauxite resources and active bauxite mining operations.
• Bauxite occurrences confirmed over widespread areas within the licences, with values in augur drilling to 55% Al2O3.
• Bauxite confirmed as gibbsitic and typified by low reactive silica levels.
• Site and laboratory test work confirmed amenability of bauxite to upgrading to high grade product via simple wet screening.
• Licenses adjacent to established transport networks.
• Targeting alumina production quality bauxite resources to supply nearby Chinese demand.
• Benefit of options to be transferred to Hillgrove subsidiary InterMet Resources Limited at cost.

Hillgrove has, in turn, agreed to transfer these options to its 85% owned subsidiary, InterMet Resources Limited subject to InterMet shareholder approval. InterMet will refocus its activities around the bulk commodities – bauxite, coal and iron ore both in Australia and Indonesia.

The region is a recognised bauxite province with the Indonesian major, PT Antam, owning the Tayan bauxite deposit, located between the Landak and South Tayan Projects.

Click here to view the full announcement.

For further information, please contact:

Mr David Archer
Managing Director
Hillgrove Resources Limited
Telephone: +61 2 8211 0404
Mobile: 0414 737 767