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Hillgrove Resources (ASX:HGO) begins next phase of Kanmantoo drilling

Mining
ASX:HGO      MCAP $157.0M
02 February 2021 16:20 (AEST)
Hillgrove Resources (ASX:HGO) - CEO & MD, Lachlan Wallace

Source: The Lead South Australia

Hillgrove Resources (HGO) has begun the next phase of drilling at the Kanmantoo Copper Mine in South Australia.

The aim of this drilling is to test the depth extensions of high-grade copper-gold zones encountered in August along strike and at depth.

This work successfully intersected multiple high-grade copper-gold zones, with grades peaking at 3.95 per cent copper and 25.9g/t gold.

These results indicate that extensive gold mineralisation is present at Kanmantoo with gold occurring in discrete gold systems that have not been targeted during previous exploration.

Hillgrove will use $2.4 million received from a recent placement to undertake and fast-track this drilling program.

Additionally, two more rigs are expected to arrive on site later in the month to speed-up work.

“The commencement of this drilling phase is an important milestone in the Kanmantoo Underground project. The program is expected to expand the mineral resource estimate and advance the technical and economic studies towards a final investment decision,” Managing Director Lachlan Wallace said.

“I am confident that the planned works will create value for Hillgrove through the potential recommencement of copper and gold production at Kanmantoo, which will enable us to unlock the value of the region through further advancement of the near mine and regional exploration projects,” he added.

Hillgrove is steady on the market and shares are trading at 3.5 cents at 3:14 pm AEDT.

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