THE DRILL SERGEANT: Hillgrove Resources (ASX: HGO) reported on recent drilling activity undertaken at the company’s Kanmantoo Mine Lease southeast of Adelaide in South Australia.

Hillgrove Resources carried out underground diamond drilling to map the grade continuity of the main Kavanagh mineral system, which has returned results within the underground mining footprint.

The underground diamond drilling commenced in May 2022 from the Exploration Decline for 12 holes, and then re-commenced in July in 2023 as production activities started.

In total, Hillgrove completed 96 UG drill holes completed by 1 October 2023 for more than 10,000 metres of drilling.

The latest results include:

23KVUG064
36.6 metres at 3.35 per cent copper (uncut) from 43m downhole in East Kavanagh, including 2.1m at 24.76 per cent copper (uncut) from 53m downhole;

23KVUG072
40m at 1.27 per cent copper (uncut) from 91m downhole in Central Kavanagh; and

23KVUG083
33.23m at 1.46 per cent copper (uncut) from 42m downhole in East Kavanagh.

Hillgrove interpreted the infill underground diamond drilling results to have demonstrated exploration drilling results previously reported for the Kavanagh and Spitfire mineral zones are being confirmed.

“It is always pleasing to see trays full of high-grade drill core, such as this run of 36.6 metres at 3.35 per cent copper,” Hillgrove Resources CEO and managing director Lachlan Wallace said in the company’s ASX announcement.

“The infill drilling increases the geological data density, enabling individual stope designs to be completed as we prepare for the commencement of copper production early next year.

“The geological reconciliation of the early stopes which are relied upon for first revenues remain the priority target for infill drilling.

“These areas will be drilled as the decline advances and additional underground drill platforms are established.

“Additional drilling capacity has been mobilised to accelerate the drilling information from the early stopes as drill locations become available.

“The additional drilling capacity is also following up on the recent step out hole at Spitfire, which recorded 45.4 metres at 1.19 per cent copper and 0.12 grams per tonne gold.

“This intersection was more than 100 metres away from the nearest hole, providing an opportunity for increased mineral resources in this area with further drilling.”

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

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

THE DRILL SERGEANT: Hillgrove Resources owned up to an error the company made in its recent announcement regarding the maiden Underground Mineral Resource Estimate for the Central and East Kavanagh underground area at the company’s Kanmantoo copper mine in South Australia.

Hillgrove Resources acknowledged that dot point 2 on page 1 of its ASX release of 30 October 2019 is not in accordance with the JORC Code, whereby the reporting of Exploration Targets cannot be streamlined.

As a result, the company was required to re-iterate the Competent Person Statement and the Exploration Target as a range of tonnes and grade as previously provided in its ASX release of 27 May 2017 for the West Kavanagh Exploration Target of:

0.8 to 1.6 million tonnes at 2 per cent to 2.5 per cent copper, 0.01 grams per tonne to 0.05g/t gold, 2g/t to 2.5g/t silver.

The company stressed the Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource, adding that it is uncertain if further exploration will result in the determination of a Mineral Resource under the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code” (JORC 2012).

The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve.

Web: www.hillgroveresources.com.au

THE DRILL SERGEANT: Hillgrove Resources (ASX: HGO) completed a JORC Code 2012-copliant Mineral Resource Estimate for the Central and East Kavanagh underground area at the company’s Kanmantoo copper mine in South Australia.

Hillgrove Resources said the underground Mineral Resource Estimate has incorporated 2019 diamond drilling results with the earlier 2006 diamond drill results.

Source: Company announcement

The company said the copper grade of the resource estimate indicates that the grade and dimensions of the orebodies may be suitable for underground mining.

“The resource estimate only covers a portion of the Central and East Kavanagh areas and there is considerable opportunity to increase the resource with further drilling on Central and East Kavanagh and drilling of the identified West Kavanagh Exploration Target,” Hillgrove Resources said in its ASX announcement.

Hillgrove indicated the Mineral Resource Estimate will now be subjected to mine design, optimisation and feasibility studies, as permitting, finance and an agreement with AGL over mine life are finalised.