Hillgrove notches record 2,952t copper production quarter

Hillgrove Resources has recorded its best quarter yet at the Kanmantoo copper mine in South Australia with another deposit to come online.

The company has seen continual operational improvement quarter on quarter. Pic: Getty Images.

• HGO reports record 2,952t produced at Kanmantoo copper mine in SA

• Company on track for 2025 guidance of 12,000-14,000t

• Nugent deposit expected to boost production

 

Special report: Hillgrove Resources has delivered record quarterly copper production of 2,952 tonnes from the Kanmantoo mine in South Australia.

This was 12% higher than the previous quarter and represents the highest quarterly production since processing from underground operations began in February last year.

The Kanmantoo mine operated as a series of open pits from 2010 to 2020, producing around 137kt of copper and more than 55koz of gold.

The company restarted operations in 2023 with underground mining commencing in May 2023 and first copper production in February 2024.

The December quarter saw 316kt of ore processed at a grade of 0.99% copper and 94.2% recovery.

“It was pleasing to see the operation hit its stride and continue the upward momentum from 2024, with a record quarter achieved for the key physical metrics,” Hillgrove Resources (ASX:HGO) CEO and managing director Bob Fulker said.

“These records, leading to a record quarterly production of 2,952 tonnes of copper, came at an opportune time with copper prices at elevated levels.

“We have set ourselves up well for the rest of 2025, particularly with the development metres achieved in March.”

Listen: Opening a third front for red metal riches

On track for 2025 guidance

The company remains on track to achieve 2025 production guidance of 12,000-14,000t of copper, and is expected to grow further into 2026 with the accelerated development of the Nugent deposit by the end of this year.

Nugent is being fast tracked into production and is expected to boost the mining and processing rate by 25% to 1.8Mtpa in H1 2026.

This in turn is expected to boost project economics due to economies of scale while de-risking operations due to having more than two sources of ore.

Providing further confidence of potential resource growth are the latest diamond drilling results highlighting up to 1.79% copper and 0.75g/t gold.

Fulker said mining activity would lift significantly in the coming quarters, with contractors commencing at the Nugent development later this month.

This will see increased development metres and tonnes mined in the next 12 months.

“In addition to this, with the oversubscribed SPP, we can commence a focused exploration program beyond Kanmantoo,” Fulker said.

“In April, we expect to be mining through a low-grade stoping zone. Despite this, the copper production for the June quarter will be higher than the March quarter.”

Drilling is continuing for stope definition and resource expansion along the Nugent copper-gold mineralisation system.

This article was developed in collaboration with Hillgrove Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.