Hillgrove Resources Encounters Strong Kavanagh Copper

THE DRILL SERGEANT: Hillgrove Resources reported on four recent diamond holes drilled into the Kavanagh mineral zone, part of the underground development at the company’s Kanmantoo copper mine in South Australia.

Hillgrove Resources said the holes all intersected strong copper-gold mineralisation, returning highlights including:

KTDD208_W2
36.5m at 1.76 per cent copper, 0.29 grams per tonne gold from 367.7m downhole;

KTDD208_W4
17.85m at 1.46 per cent copper, 0.08g/t gold from 395.5m downhole;

KTDD208_W3
13.8m at 0.89 per cent copper, 0.04g/t gold from 505.3m downhole – part of a wider zone of sulphide mineralisation of 103.6m at 0.63 per cent copper; and

KTDD208_W1
15.3m at 2.15 per cent copper, 0.21g/t gold from 471m downhole – part of a wider zone of sulphide mineralisation of 97m at 0.69 per cent copper.

“It is a very predictable mineral system to drill, with every drill hole since May 2021 yielding significant intersections of copper,” Hillgrove CEO and managing director Lachlan Wallace said in the company’s ASX announcement.

“The recent drilling results continue this trend, with multiple high-grade zones being delineated within wider zones of copper mineralisation of around 100 metres in downhole length.

“As these holes are incorporated into the geological model, it is expected the resource estimate will grow both in size and in geological confidence.

“The broader mineral zones in holes KTDD208 W1 and W4 complement previous drill results in 2021, including 170 metres at one per cent copper and 166 metres at 0.9 per cent copper, and demonstrate the presence of a large copper system at Kanmantoo.

“These wide mineralised zones provide a significant opportunity to increase annual copper production above the Stage 1 plan presented last year, which forecast almost $200 million of free cash flow in the initial three years, at prices below current spot, and only requires $26 million of working capital.

“With ample processing and tailings storage capacity already on site, any increase in copper production will not require additional capital or permitting and would be expected to reduce the average all in sustaining cost per tonne of copper produced.

“On the back of the continuing strong copper demand and the expectation that debt funding for the entire restart capital will be secured in the near term, we are bringing forward potential copper production by accelerating the decline development through a short-term mining contract using traditional drill and blast practices.

“The Komatsu MC51 mechanical cutting machine continues its trial by cutting the second portal for the ventilation circuit, providing valuable infrastructure development which will also assist in realising earlier copper production.

“Kanmantoo remains a unique proposition as one of the few ASX listed developers that can ramp into production quickly and at low cost to take advantage of the record copper price environment.

“With funding discussions advancing to documentation stage, and the contract tender process underway, we remain firmly on track to commence operations in 2022.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@hillgroveresources.com.au

 

Web: www.hillgroveresources.com.au