Hillgrove on track for first Nugent copper-gold this year

Hillgrove is targeting first ore from the Nugent deposit at Kanmantoo this year as drilling flagged resource growth potential.

The company says the new intersections also highlight the resource growth potential at the deposit. Pic: Getty Images.

• HGO fields more high-grade copper-gold at Nugent deposit

• Nugent expected to boost production at Kanmantoo copper mine in SA

• Company targeting first ore from lode in December 2025

 

Special Report: New high-grade copper-gold results for Hillgrove Resources from Nugent deposit at the Kanmantoo copper mine in South Australia have extended the mineralisation footprint.

The latest results bode well for the company’s plans, with Nugent being fast tracked into production and first ore targeted to be processed through the mill by the end of 2025.

The diamond drilling results include:

• 4m at 1.79% copper and 0.65g/t gold from 184.5m in 25KVUG0527;
• 5m at 1.2% copper and 0.35g/t gold from 267m in 25KVUG0530; and
• 25m at 0.96% copper and 0.75g/t gold from 135.75m 25KVUG0502.

Hillgrove Resources (ASX:HGO) says hole 25KVUG0530 is the deepest intersection at Nugent to date, reinforcing the growth potential of the deposit.

“The intersection in 25KVUG0530 is very encouraging, as it represents the deepest mineralised zone identified to date at Nugent, approximately 45m below the closest drill hole and 270m below the Nugent Pit, reinforcing our confidence in the significant resource growth potential at Nugent and Kanmantoo,” CEO and managing director Bob Fulker said.

“We have a significant exploration budget earmarked for CY 2025 and we look forward to reporting further exploration success as drilling continues.”

Watch: How Hillgrove achieved its record month

Fast tracking production

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.

Now, the promising Nugent lode is being fast-tracked for production by the end of the year, with Nugent to boost the mining and processing rate by 25% from 1.4Mtpa to 1.8Mtpa in H1 2026.

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

Watch: A rising tide for red metal

“The recent drilling results further confirm the continuity and depth potential of the Nugent copper-gold mineralisation system,” Fulker said.

“The results continue to be higher than the resource grade at Nugent, which is of course one of the reasons why we are fast tracking production from Nugent.

“We are targeting first Nugent development ores to go through the mill in December.”

Drilling is continuing for both stope definition and resource expansion drilling 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.

Originally published as Hillgrove on track for first Nugent copper-gold this year