Photo by: Bloomberg
PERTH (miningweekly.com) – The board of ASX-listed Hillgrove Resources has taken a final investment decision on Stage 1 of the Kanmantoo underground copper mine, in South Australia.
First copper concentrate production is expected in the first quarter of 2024, the company said on Monday.
“The formal decision to commence mining at Kanmantoo is an exciting milestone for the company. It comes on the back of completing a A$38-million placement and share purchase plan, which was strongly supported by existing and new shareholders, and positions the company to commence development without any debt,” said MD Lachlan Wallace.
“This, in turn, de-risks the project by providing operational flexibility, and enables the mine to be developed with a focus on delivering project value, rather than a debt repayment schedule potentially influencing operational decisions.”
The Stage 1 project is expected to produce 43 500 t of copper in concentrate over an initial four years. Mining would be focused on two of the nine known mineral lodes on the mining lease that were either drilled or mined as part of the openpit operations.
All infrastructure at the mine, including a 3.6-million-tonne-a-year processing plant and operational tailings storage facility is already in place.
“In anticipation of a positive investment decision, a great team has been established with a high level of underground experience, and they have wasted no time in getting the underground development underway. The first underground blast occurred in May and the development rate has quickly ramped up to planned levels. Ore intersected in the primary decline and ventilation drive is being stockpiled ahead of first copper production, which is planned to occur in the first quarter of 2024,” said Wallace on Monday.
“A further 130 new jobs will be created as we ramp up towards full production over the next six months.”
He noted that drilling over the past three years has successfully increased the mineral resource estimate by 600%, to almost seven-million tonnes, and with an exploration target of a further 10-million to 20-million tonnes at 0.9% to 1.3% copper and 0.1 g/t to 0.3 g/t gold in close proximity to the processing plant, there was a great opportunity to expand the mine life further.
“In addition, within 10 km of the mine site, there are a number of exploration opportunities which have the potential to leverage the existing processing and tailings infrastructure. We look forward to providing regular updates on the status of works in the coming weeks and months,” Wallace said.