Larvotto Resources says it has executed a binding agreement with PYBAR Mining Services Pty Ltd, owned by Perenti, for the underground development contract at the company’s 100%-owned Hillgrove antimony-gold project in New South Wales, Australia.
Larvotto selected PYBAR following a competitive tender process to undertake approximately 20 km of additional underground development over a four-year term, with an option to extend. The contract, it says, marks a significant milestone in the recommencement of underground mining operations at Hillgrove, which are
scheduled to begin in the December quarter of this year.
Larvotto said: “PYBAR brings over 30 years’ underground mining experience and a proven track record of rapid mobilisation and performance delivery. The scope of work includes decline and lateral development, rehabilitation, ground support installation and haulage activities across the Metz, Garibaldi and Clarks Gully underground zones.”
PYBAR will provide a full-service development solution including equipment, personnel and statutory supervision under its Safety and Health Management System.
The Hillgrove project is expected to produce approximately 40,500 oz of gold and approximately 14,000 t of antimony concentrate for some 5,000 t of antimony metal annually, contributing up to 7% of global antimony supply.
The underground development contract complements Larvotto’s broader construction and processing plant upgrade program, which is already underway under the separate engineering, procurement and construction management agreement with MIQM.
The award of both contracts has followed the successful completion of a A$70 million ($45.6 million) equity raise and a $105 million senior secured bond issue, which together fully fund the capital expenditure and working capital requirements for the development of Hillgrove.
Larvotto Resources Managing Director, Ron Heeks, commented: “We are delighted to formalise our partnership with PYBAR, a contractor with deep experience and a collaborative ethos that aligns with our values. This agreement positions Larvotto to deliver on our development schedule and bring Hillgrove into production as Australia’s next major antimony supplier in 2026.”
