Hillgrove tables new Kanmantoo copper exploration target as the South Australian shows its growth potential

The company’s fresh line up of exploration targets focus on down dip extensions to known open pit mined resources at the Kanmantoo asset.

Hillgrove Resources has identified new exploration targets at Kanmantoo with potential for extensions. Pic: Getty Images

• Hillgrove has identified the next series of near mine exploration opportunities at Kanmantoo

• These areas include four targets down dip of the 2024 resource and five untested targets for underground potential

• Over 19,000m of diamond drilling is planned for the Kanmantoo underground

Special Report: After nearly doubling contained copper and a 138% increase in contained gold during its September 2024 resource update, Hillgrove Resources has prioritised the next drilling targets at the Kanmantoo project in South Australia for future resource growth.

The key step for Hillgrove Resources (ASX:HGO) highlights the enormous potential to expand what remains an underexplored copper province in South Australia, one of the few substantial producers of the critical red metal in the country.

Four targets down dip of the 2024 resource and five untested targets with underground potential – including three with surface expression – are included in the new exploration target for the Kanmantoo area of between 25-40Mt grading at 0.7% to 1.4% copper and 0.05 to 0.5g/t gold.

The new estimate is based on drilling results and geological knowledge of the deposit, with all targets sitting within 500m of the Kanmantoo processing plant.

This current exploration target also now includes Stella and Kanmantoo South and, importantly, does not take into account the resource estimates at Kavanagh, Nugent, Emily Star and North Kavanagh.

Over 19,000m of diamond drilling is planned from the Kanmantoo underground to test the exploration targets with a third diamond drill rig to be mobilised during Q2 in addition to the grade control drilling, which will occur continuously utilising two drill rigs.

Kanmantoo’s copper growth

Hillgrove acquired then resumed exploration at Kanmantoo in 2004, with drilling success leading to a decade of open-pit operations from 2010 to 2020 before being put on care and maintenance.

But Hillgrove quickly found a million-tonne resource in underground lodes beneath the main pit, leading to more drilling, a four-year mine plan, a final investment decision and a return to production.

Hillgrove’s last update almost doubled its resources, and it secured a $10m debt facility in October to continue its ramp-up with eyes also on drilling for a major new discovery on ~4200km2 of surrounding exploration ground that remains startlingly underexplored.

The project sits within South Australia’s mining heartland between Callington and Kanmantoo and is fully connected to the South Australian power grid, which is supplied by more than 70% renewable energy generation, reducing the asset’s carbon footprint.

New resource and ore reserve in Q4

“Our team have identified and prioritised the next drilling targets at Kanmantoo from the numerous exploration targets available,” HGO CEO and managing director Bob Fulker said.

“The new exploration targets focus on down dip extensions to known open pit mined resources and near mine discovery opportunities at Stella and Kanmantoo.”

Upcoming drilling will focus on targeting mine life extensions down dip of the existing mine design on the Nugent and Kavanagh lodes, including testing strike extensions to known lodes and testing lodes such as Valentines, Critchley and Paringa which are located close to planned mine infrastructure.

Information collected during the drilling campaigns will feed into Hillgrove’s annual resource and ore reserve statement planned for release in Q4, 2025.

This will also include the results of drilling conducted in 2024, but those which didn’t make the cut off for the underground reserve and resource upgrade presented to the market in October last year.

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 tables new Kanmantoo copper exploration target as the South Australian shows its growth potential