Hillgrove boosts Kanmantoo copper Mineral Resource Estimate by 96pc

Hillgrove Resources reports a 96pc jump in copper endowment at its Kanmantoo mine in South Australia from the 2022 resource estimate.

Hillgrove is confident resources can be grown through extensional drilling. Pic: via Getty Images

• Hillgrove Resources reports resource estimate update to 19.3Mt containing 150k copper and 82koz gold at Kanmantoo

• Maiden ore reserve of 2.8Mt grading 0.91% copper and 0.15g/t gold also released

• The company achieved first copper production at the mine in Feb 2024 and produced 2,923 tonnes of copper in the September 2024 quarter.

 

Special Report: Hillgrove Resources’ resource estimate at the Kanmantoo copper mine in South Australia has seen a whopping 96% increase in copper endowment from 2022.

This increases the estimate to 19.3Mt grading 0.77% copper and 0.14g/t gold containing 150kt of copper and 82koz of gold. These estimates are net of depletion as the company has been producing at the mine since February this year.

The new estimate also represents a 138% increase in contained gold compared to 2022, and includes maiden estimates totalling 2,979kt for Emily Star and North Kavanagh.  A contribution to the increases came from resource definition and exploration drilling, which resulted in a 3,235kt increase in resource tonnes.

Plus, a review of economic factors and model changes – including updating copper price assumptions for current market conditions – resulting in the lowering of the cut-off grade, which led to an addition of 6,825kt resource tonnes.

Graph: Kanmantoo mineral resource tonnage changes (2022 to 2024). Source: HGO

Additionally, the company released a maiden Ore Reserve of 2.8Mt grading 0.91% copper and 0.15g/t gold containing 26kt of copper and 14koz of gold – including 1.1Mt proved at 1.01% copper and 0.04g/t gold.

Resources to extend mine life

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.

Operations restarted in 2023 with underground mining commencing in May 2023 and first copper production in February 2024.

Looking ahead, the company is confident opportunities remain to grow the resources through extensional drilling.

“This update clearly demonstrates the enormous opportunity we have in front of us at Kanmantoo,” Hillgrove Resources (ASX:HGO) CEO and managing director Bob Fulker said.

“The maiden ore reserve provides a solid base for the mine plan.

“When combined with the 96% increase in contained copper in the mineral resources, it is clear there is strong geological potential for the conversion of mineral resources to ore reserves, which will extend the mine life at Kanmantoo.

“The goal next year is to continue the drill program to convert additional mineral resources into ore reserves.

“Pleasingly, we are finding the grade improves as we improve the geological classification.

“Our focus continues to be on reliable delivery, building cash, and earning the right to grow. We remain on track in these areas.”

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.

Originally published as Hillgrove boosts Kanmantoo copper Mineral Resource Estimate by 96pc