Hillgrove Resources (ASX: HGO) has engaged specialized contractors to commence early works activities in preparation for the commencement of underground development at the Kanmantoo Copper Mine in South Australia.
• This includes geotechnical remediation of the pit walls, haul road preparation and pit dewatering.
• This early preparation enables underground development to commence immediately on mobilization. Contracts for equipment, personnel and services for the development are nearing finalization.
• The mine is already very well advanced, with a fully permitted and operational processing plant, tailings storage facility, and all necessary infrastructure at portal, including power, water, and ventilation.
• Underground development to access ore is scheduled to commence next quarter.
• The underground development and restart of the Kanmantoo Copper mine represents Australia’s next copper producer, with first copper sales on track for early 2024.
“Following the successful capital raise earlier this month, we have wasted no time in commencing work towards both the underground development at Kanmantoo to get back into production as well as mine life expansion drilling. Over the coming weeks we expect to finalize supply and service contracts and commence mobilization,” CEO and Managing Director, Lachlan Wallace, said.
“We are working towards a smooth mine ramp up, ensuring that as equipment arrives we can immediately commence mine development. With the portals already established, our miners can walk in on day one and take development cuts.
“We remain on track to commence copper production in early 2024, making Hillgrove Australia’s next copper producer.
The company continues to advance a number of opportunities for organic growth around the Kanmantoo infrastructure, namely the down-dip extensions of the dominant copper-gold lodes previously mined within the Giant and Nugent open pits. The first figure below is a plan view of the open pit grade-control copper grades showing the plus 1% Cu samples as continuous zones potentially suitable for underground mining.
In 2017 an Exploration Target of 5-10Mt @1.7-2.2% Cu, 0.4-1.0g/t Au was announced.
Diamond drilling and development studies are now being progressed to evaluate the Kavanagh lodes and the Nugent lode as two separate entities for underground production.
For further information please visit: https://www.hillgroveresources.com.au/
