Hillgrove Resources Scores Healthy Drill Results From Kanmantoo Deposit

THE DRILL SERGEANT: Hillgrove Resources (ASX: HGO) provided an update on progress of drilling underway at the company’s Kanmantoo Underground copper mine development in South Australia.

Hillgrove Resources is undertaking the drilling a as part of the evaluation of a possible underground mining development below the Giant Open Pit that would work in conjunction with the Pumped Hydro Energy Storage (PHES) development.

Hillgrove initiated a drilling program in late June to confirm the down-dip depth extension, grade and lateral continuity of the higher-grade sections of the Kavanagh copper-gold lodes.

A total of 12 diamond drill holes has now been completed to increase geological confidence for resource estimation, underground mine planning and evaluation.

Assays for all holes have been received with every drill hole intersecting copper-gold mineralisation.

The company declared the intersections clearly demonstrate the down dip and lateral continuity of the higher-grade copper mineralisation on the Kavanagh copper-gold lodes.

Highlights from the drilling include:

14.55 metres at 1.9 per cent copper, 0.08 grams per tonne gold, 4.4g/t silver from 442.45m downhole

16.37m at 3 per cent copper, 0.21g/t gold, 7.8g/t silver from 434.73m downhole

20.0m at 2.1 per cent copper, 0.26g/t gold, 6.8g/t silver from 421m downhole

20.15m at 1.5 per cent copper, 0.1g/t gold, 4.1g/t silver from 393.25m downhole

14.0m at 2.4 per cent copper, 0.3g/t gold, 6.7g/t silver from 420m downhole

22.5m at 2.5 per cent copper, 0.11g/t gold, 6.9g/t silver from 372m downhole

10.3m at 2.7 per cent copper, 0.27g/t gold, 8.1g/t silver from 390.7m downhole

7.5m at 1.9 per cent copper, 0.53g/t gold, 5.6g/t silver from 461m downhole; and

18m at 2.3 per cent copper, 0.16g/t gold, 7.8g/t silver from 367m downhole.

Hillgrove indicated its next steps for the potential Kanmantoo underground development, which are being progressed in unison with the drilling program, to be as follows:

Completion of a Mineral Resource Estimate;
Completion of final designs and feasibility study, and conversion to an Ore Reserve;
Execution of an agreement with AGL to provide a guaranteed minimum period for mining;
Completion of the mining approvals process; and
Securing funding for working capital requirements.


Web: www.hillgroveresources.com.au