Hillgrove says Papua drilling program hampered by forestry permit

Australia-listed exploration firm Hillgrove Resources Limited reported on Tuesday that drilling at its West Papua gold prospect has been delayed due to lengthy process in getting permit from ministry of forestry.

?Although all planned target holes are located outside protected forest, the laws of Indonesia stipulate the requirement for ?Pinjam Pakai? to undertake drilling. The process is proving to be an opaque, time consuming exercise, and has delayed planned exploration investment, and local benefits arising therefrom. The project is at drill ready status but cannot proceed without the required permit, which to date has not been forthcoming despite a complete lack of objection to the proposed very low impact drilling programme and the full support of the local landowners, local community and Governor of West Papua, and the Department of Mines and Energy,? the company said.

Hillgrove is an 80% beneficial shareholder in PT Akram Resources which holds a mining license in the Bird?s Head region of West Papua. Hillgrove is responsible for the sole funding and management of all exploration and development activities up to a decision to mine. The license covers 992.3km? and is valid until March 2017.

?Like many other applicants in Indonesia, including other Australian companies, slow progress is being made, and under the circumstances, patience is necessary. Permits are being issued, so the system is not broken, but it is groaning under the weight of several thousand pending applications, and the resultant and continuing delays are very frustrating. ?We believe permitting will be forthcoming, but cannot specify when. In the meantime, surface exploration continues. Drilling will commence once the permit is granted,? the company said. (alex)