Hillgrove Resources encouraged by drilling near Kanmantoo mine

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THE DRILL SERGEANT: Hillgrove Resources (ASX: HGO) has reported encouraging hits from one of the first exploration drill holes to be drilled on a Mining Lease, 200 metres to the north of the current resource profile at the company’s Kanmantoo copper mine, located in the Adelaide Hills.

The 433 metre deep reverse circulation (RC) hole returned the following assays at a depth of 300 metres below surface:

28 metres at 0.61 per cent copper, 0.14 grams per tonne gold and 2.6g/t silver at a 0.2 per cent copper cut off – within a broader mineralised zone of:

39m at 0.47 per cent copper, 0.11g/t gold and 2.1g/t silver at a 0.1 per cent copper cut off, from 324m downhole.

Hillgrove reported the 28 metre intersection included:

A higher grade zone of 10 metres at 0.88 per cent copper, 0.18g/t gold and 3.2g/t silver; and

A peak one metre interval of 2.86 per cent copper, 0.8g/t gold and 9.4g/t silver.

The company explained the intersected mineralisation is down dip of existing shallow level mineralisation to the north of the main ore zones and Giant pit, in an area where no previous deep drilling has taken place.

Hillgrove has interpreted the location and tenor of the mineralised intersection to indicate:

It is within the same geological domain and along strike of the main ore zones in the Giant pit, approximately 200m north of the edge of the current mineralisation at the same depth;

The intersection location is coincident with a density target Hillgrove identified during detailed gravity surveys undertaken in late 2014, which it has previously announced to the market; and

Mineralised intersection copper and gold grades are similar to current mining areas within the Kavanagh/Giant pits, with similar copper/gold ratio.

“This is the first stage of a targeted program aimed at extending the life of the Kanmantoo mine, and was designed to test a pronounced coincident gravity, magnetic and electromagnetic (EM) target,” Hillgrove Resources said in its ASX announcement.

“Next steps for this area north of the Giant pit will include a downhole EM survey, a plan for six follow up holes along strike and based on downhole EM further up-dip drilling will be planned.”

Website: www.hillgroveresources.com.au