Hillgrove Resources has reported a 138 per cent increase in contained gold and a 96 per cent increase in contained copper at its Kanmantoo copper mine in South Australia.
The mineral resource estimate (MRE) for Kanmantoo now sits at 19.3 million tonnes (Mt) grading at 0.77 per cent of copper and 0.14 grams per tonne (g/t) of gold, containing 150,000 tonnes of copper and 82,000 ounces (oz) of gold.
The updated MRE accounted for the Emily Star and North Kavanagh copper deposits for the first time, providing a 2.9Mt increase from the 2022 MRE.
A total of 1183 drillholes were utilised in the estimation. Hillgrove credited the increase in drillholes to recent underground diamond drilling, additional surface exploration diamond drilling conducted in 2022 and 2023, and the inclusion of reverse circulation drilling conducted before 2019 at the transition of the open-pit to the underground mining areas of Kanmantoo.
Hillgrove also released its maiden ore reserve for 2024, which amounted to 2.8Mt grading at 0.91 per cent of copper and 0.15g/t of gold, including 1.1Mt proved at 1.01 per cent copper and 0.04g/t of gold.
“This update clearly demonstrates the enormous opportunity we have in front of us at Kanmantoo,” Hillgrove managing director and chief executive officer Bob Fulker said.
“The maiden ore reserve provides a solid base for the mine plan. When combined with the 96 per cent increase in contained copper in the mineral resources, it is clear that there is strong geological potential for the conversion of mineral resources to ore reserves, which will extend the mine life at Kanmantoo.”
The upped MRE follows many milestones hit at Kanmantoo this year, including Hillgrove producing its first copper concentrate at the site in February.
Since then, Kanmantoo has experienced steady increases month by month. Most recently, the mine produced 2584t during the June 2024 quarter, with a little over 1000t being produced in the month of June alone.
Based on its recent growth, Kanmantoo is expected to produce around 12,000t of copper up to 2026.
“The goal next year is to continue the drill program to convert additional mineral resources into ore reserves,” Fulker said.
“Pleasingly, we are finding the grade improves as we improve the geological classification. Our focus continues to be on reliable delivery, building cash, and earning the right to grow. We remain on track in these areas.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
