Name of the Project
Kanmantoo underground project – Stage 1.

Location
Adelaide Hills, South Australia.

Project Owner/s
Hillgrove Resources.

Project Description
A project economic assessment (PEA) has confirmed the project’s “excellent” potential.

The project has estimated mineral resources of 5.7-million tonnes grading at 1.1% copper and 0.3 g/t gold, with additional drilling under way.

In February 2023, an updated PEA concluded that the project could produce 43 500 t of copper and 11 500 oz of gold over an initial 45-month mine plan.

The existing infrastructure and short distance from the portal to the copper lodes position Kanmantoo as one of the lowest capital-intensity copper development projects in Australia.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value of A$165-million and an internal rate of return of 231%, with a payback of nine months.

Capital Expenditure
An economic assessment published in February 2023 estimated that the project could be brought online at a capital cost of A$25-million.

Planned Start/End Date
The project remains on track to start copper production in early 2024.

Latest Developments
Hillgrove has announced that specialised contractors have been engaged to start early works activities in preparation for the start of underground development, which is targeted for the next quarter.

“Following the successful capital raise earlier this month, we have wasted no time in commencing work towards . . . the underground development at Kanmantoo to get back into production, as well as mine life expansion drilling,” Hillgrove MD and CEO Lachlan Wallace has said.

The company expects to finalise supply and service contracts and start mobilisation in the next few weeks. It is working towards a smooth mine ramp-up, ensuring that as equipment arrives, it can immediately start mine development.

Hillgrove contends that, with the portals already established, the company’s employees can start development and take development cuts from “day one”.

Key Contracts, Suppliers and Consultants
Pybar (exploration decline).

Contact Details for Project Information
Hillgrove Resources, tel +61 8 7070 1698.