Hillgrove Resources has commenced production of its first copper concentrate from the Kanmantoo mine in South Australia, following the successful completion of the processing facility; both milestones were met within the company’s target timeframe of Q1 2024.
The transition from explorer to producer makes Hillgrove Resources one of only a few copper producers on the ASX.
Hillgrove Resources CEO and Managing Director Lachlan Wallace said: “Operations will be bedded down at Kanmantoo as we ramp up to steady stage production and our attention will turn to growing the business by converting future exploration and development opportunities.”
“The project is well-positioned to take advantage of the anticipated growth in demand for copper as the world continues to decarbonise through electrification.”
Recent drilling results from the company include:
- 36.6 m @ 3.35 per cent Cu from 43 m downhole in East Kavanagh
- 45.4 m @ 1.19 per cent Cu and 0.12g/t Au from Spitfire from 428.5 m downhole
- 40 m @ 1.27 per cent Cu from 43 m downhole in central Kavanagh
- 33.23 @ 1.46 per cent Cu from 42 m downhole in East Kavanagh
Main power has also now been established for the underground operation resulting in approximately 65 per cent cost reduction — from around $0.40 per kilowatt hour to $0.13 per kilowatt hour.
Further connection to the South Australian power grid — supplied by the generation of over 70 per cent renewable energy — will continue to reduce the project’s carbon emissions.
The Kanmantoo Underground project is located approximately 55 kilometres from Adelaide.
