- Hillgrove Resources (HGO) makes a final investment decision to proceed with the stage one development of its Kanmantoo underground copper mine in South Australia
- The project is being fully funded by a recent $38 million placement and share purchase plan
- Stage one aims deliver 43.5 thousand tonnes of copper in concentrate over the initial four-year schedule
- Hillgrove remains on track for first copper concentrate production in the first quarter of 2024
- Shares in HGO is up 3.64 per cent, trading at 5.7 cents at 12:30 pm AEST
Hillgrove Resources (HGO) has made a final investment decision to proceed with the stage one development of its Kanmantoo underground copper mine in South Australia.
The company’s underground development of Kanmantoo started in May in anticipation of a positive investment decision.
The project is being fully funded by a recent $38 million placement and share purchase plan, providing the company with adequate funding to reach sustainable copper production in stage one and also continue exploring to increase the mine’s life and production.
HGO Managing Director Lachlan Wallace said the final investment decision marked an “exciting” milestone for the company.
“Drilling over the past three years has successfully increased the mineral resource estimate by 600 per cent, to almost seven million tonnes, and with an exploration target of a further 10 to 20 million at 0.9 to 1.3 per cent copper and 0.1 to 0.3 grams per tonne (g/t) gold in close proximity to the processing plant, there is a great opportunity to expand the mine life further,” he said.
Hillgrove announced that stage one would look to deliver 43.5 metric tons of copper in concentrate over the initial four-year schedule.
The company also reported it has entered underground mining contracts and appointed key employees to guide the underground development, with the company on track for first copper production in the first quarter of 2024.
“It’s fantastic to see the Kanmantoo copper mine reaching financial investment decision and on track to produce first copper early next year,” Minister for Infrastructure, Transport, Energy & Mining Hon. Tom Koutsantonis said.
“Copper is arguably the most important critical mineral as the world looks to decarbonise.
“Mines such as this stand to help address the copper deficit while stimulating the state and local economy.”
Hillgrove said with all infrastructure, including a 3.6 million tonne per annum processing plant and operational tailings storage facility already in place, the cost and risk to first copper production remained relatively low.
Shares in HGO was up 3.64 per cent, trading at 5.7 cents at 12:30 pm AEST.