Name of the Project
Kanmantoo underground project – Stage 1.

Location
Adelaide Hills, South Australia.

Project Owner/s
Australian mining company Hillgrove Resources.

Project Description
Hillgrove is producing from the Kanmantoo underground mine which has a mineral resource of 19.3-million tonnes grading 0.77% copper and an ore reserve of 2.8-million tonnes grading 0.91% copper. Underground mining rates are targeted to be between 1.2-million tonnes a year and 1.4-million tonnes a year.

Kanmantoo has quickly ramped up to a copper production rate of about 12 000 t/y. The mine is well capitalised with a 3.6-million-tonne-a-year processing plant and has multiple opportunities to increase production rates, grow the resource base, and extend mine life.

Potential Job Creation
About 130 jobs are expected.

Net Present Value/Internal Rate of Return
The project has an estimated net present value of A$165-million and an internal rate of return of 231%, with a payback of nine months.

Capital Expenditure
The economic assessment published in February 2023 estimated that the project could be brought online at a capital cost of A$25-million.

Planned Start/End Date
Commercial production was declared in July 2024.

Latest Developments
Hillgrove Resources has reported a new high-grade copper/gold discovery, with early drilling suggesting potential for near-term additions to mine inventory.

The newly identified Saddle zone, located between the existing Kavanagh and Nugent mining areas, returned 14 m at 2.67% copper and 0.36 g/t gold from 136 m in hole 25KVUG0567, 10.2 m at 1.28% copper and 0.18 g/t gold from 138 m in hole 25KVUG0569, and 10.5 m at 1.01% copper and 0.03 g/t gold from 170.5 m in the same hole.

Additional drilling from Nugent and Kavanagh also produced positive copper and gold intercepts, including 4 m at 1.03% copper and 2.32 g/t gold from 348 m, and 15 m at 0.93% copper and 0.11 g/t gold from 402 m in hole 25KVUG0568.

Hillgrove CEO Lachlan Wallace has said the results reinforce the strong exploration potential at Kanmantoo. The Saddle zone was not included in the existing mineral resource; these first intercepts suggest it has the potential to be a significant addition to the resource base and that it be quickly brought into the mine plan.

Key Contracts, Suppliers and Consultants
Pybar (exploration decline).

Contact Details for Project Information
Hillgrove Resources, tel +61 8 7070 1698.