PERTH (miningweekly.com) - Copper miner Hillgrove Resources has extended the life-of-mine expectancy of its Kanmantoo copper project, in South Australia, to 2023 and its ore processing target from 2.4-million tons to 2.8-million tons.

The miner recently revised its life-of-mine (LoM) plan for the Kanmantoo operation, which included a long-term pit optimisation, which provided what Hillgrove considered a “reasonable basis” for future planning, resulting in the extension of the project’s mine life.

“The extension of the LoM is a significant development for Hillgrove, with the update extending the estimated period of operation up from 6.5 years to 10 years,” said CEO Russell Middleton.

“Not only do we have an extended life-of-mine potential through to 2023, but we also now have an improved understanding of the resource and have increased confidence about the mine production profile in terms of total mining movements over this period.”

Middleton noted that, in addition, the outlook for regional exploration around Kanmantoo continued to be stronger than ever.

The new LoM plan contains a total production target of between 30-million and 32-million tons, grading between 0.7% and 0.8% copper, for some 190 000 t of recoverable copper.

Hillgrove said on Wednesday that the company would now look to update its mineral resource and ore reserves, based on the near-mine exploration drilling completed during 2012.

An updated Joint Ore Reserves Committee-compliant mineral resource was anticipated during the second quarter of the year, with reserve estimates due in the third quarter.

Meanwhile, Middleton noted that the ore processing throughput at Kanmantoo was also forecast to increase to 2.8-million tons a year during the second quarter of this year, as a result of the installation of a new primary jaw crusher, scheduled to be commissioned during April.

The increased throughput and extended LoM was set to have a positive impact on Kanmantoo’s cash generation and overall value.

“Over the past quarters, the company has focused intensely on growing cash-flow, managing expenses and consolidating operational gains at Kanmantoo to achieve the targeted annual production levels projected for the mine and resulting revenue,” said Middleton.

“To be able to deliver an extended LoM for Kanmantoo in this context is particularly rewarding for the board and management, and good news for all shareholders.”