Hillgrove Resources is accelerating its Nugent project following a $16 million capital raise.
The Nugent deposit within the Kanmantoo copper mine in South Australia is set to undergo underground development next month, with the aim of expanding the processing rate from a 1.4 million tonnes per annum (Mtpa) run rate to 1.8Mtpa of throughput by the first half of 2026.
Hillgrove has contracted Redpath Mining to be the primary labour provider for Nugent’s development, with PJL, who are no stranger to Kanmantoo, to supply and maintain mining equipment.
Hillgrove chief executive officer and managing director Bob Fulker said he has high hopes for Nugent.
“On the back of the recent positive drilling results at the Nugent deposit as well as the successful capital raising, I’m excited to announce that the people and equipment are in place for us to begin the acceleration of the Nugent development,” he said.
“This is expected to lead to material financial benefits in the form of reduced unit costs as well as increased copper production and revenue. I would like to credit our technical team, who have been able to put all of this into place so soon after the capital raising.”
Hillgrove recently announced drilling results at Nugent, with hits of up to 18.55m at 5.69 per cent copper and 1.02 grams per tonne gold.
Earlier this month, the Kanmantoo mine brought in record copper production of 1105 tonnes (t), processing 116,000t of ore at a grade of 1.01 per cent copper and a 94.2 per cent recovery rate.
Key contractors will accelerate underground development in April 2025 with first ore expected to be processed through the mill in December quarter 2025.
Hillgrove is also advancing 60,000m of additional drilling this year.
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