High grade drill results from Wheal Ellen

Hillgrove Resources Ltd’s recent RC drill program at the company’s wholly owned....

  Hillgrove Resources Ltd’s recent RC drill program at the company’s wholly owned Wheal Ellen Prospect, within the highly prospective Kanmantoo Trough has intersected further high grade polymetallic mineralisation.Results from ten of 22 RC holes have now been received. Better results include:• 5m at 4.55% lead, 4.94% zinc, 103g/t silver and 1.69g/t gold in WHRC031.• 4m at 4.23% lead, 5.98% zinc, 120g/t silver and 1.21g/t gold in WHRC032. Thisincludes 1m at 10.7% lead, 14.69% zinc, 363g/t silver and 1.57g/t gold.• 8m at 3.55% lead, 7.41% zinc, 92.13g/t silver and 1.52g/t gold in WHRC033. This includes 2m at 9.46% lead, 20.64% zinc, 356.5g/t silver and 4.39g/t gold.Commenting on the results, Hillgrove’s Managing Director David Archer said: “We are consistently recording intersections over good widths with grades ranging from 10% to 30% lead plus zinc with excellent gold and silver credits. The mineralisation 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 program 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.” The drilling program comprised 22 RC holes for a total of 1,856m and was designed to follow up high grade results obtained in the previous drilling program and to begin exploring beneath the Spence Shaft stope which is located at the northern end of the prospect. According to the company, results from the drilling have been highly encouraging and at this stage point to a sub vertical plunge of the known high grade shoots. Grades beneath the Scotts Shaft Stope appear to be improving at depth with the best results coming from the deeper holes, including some of the highest individual assays up to 21% Zn, 11.1% Pb, 4.5g/t Au and 384g/t Ag (not same sample). Preliminary metallurgical tests have begun to identify mineral associations and flotation characteristics of the ore. It is anticipated that a detailed resource drilling program will commence in the coming months, along with continued exploration in the surrounding area in an attempt to define additional shoots.Assay results from the remaining 12 RC holes will be reported when they come to hand. With the full production start up of the Angas mine (3.04Mt at 8.0% zinc, 3.1% lead, 34.0g/t silver, 0.5 g/t gold and 0.3% copper) in mid 2008 and Kanmantoo (33.4Mt grading 0.9% copper and 0.20g/t gold, containing 290,000t of copper and 216,900oz of gold) nearing completion of its Definitive Feasibility Study, the region is fast capturing its mantle as a significant mining centre within South Australia.The Wheal Ellen Prospect (EL 3232, Hillgrove 100%) is located 40km east south east of Adelaide and 8km north of Strathalbyn, and 7km along strike from the Angas silver-lead-zinc mine.