THE DRILL SERGEANT: Hillgrove Resources (ASX: HGO) is undertaking an underground study at the company’s Kanmantoo Copper Mine in the Adelaide Hills region of South Australia.
Hillgrove Resources is evaluating a possible underground mining development below the Giant Pit at Kanmantoo that may be able to work in conjunction with the company’s Pumped Hydro Energy Storage (PHES) development.
The company’s objective for the underground development is to extract value from the Kanmantoo Exploration Target of 5 to 10 million tonnes at 1.7 per cent to 2.2 per cent copper and 0.4 grams per tonne to 1g/t gold, whilst AGL review the potential of the PHES project.
As part of this evaluation an exploration drilling program will commence on 24 June to confirm the depth extension, grade and continuity of the central Kavanagh copper-gold lode below the Giant Pit.
Hillgrove anticipates the drilling to take approximately two months.
“If the drilling successfully intersects the copper-gold mineralisation of significant grade and continuity, then this drilling information will be used to assist Hillgrove to estimate an Indicated Resource and thereby enable the company to assess the viability of establishing an underground mine before the potential PHES project is commissioned,” Hillgrove Resources said in its ASX announcement.