Name of the Project
Kanmantoo underground project – Stage 1.

Location
Adelaide Hills, South Australia.

Project Owner/s
Australian mining company Hillgrove Resources.

Project Description
Hillgrove is producing from the Kanmantoo underground mine which has a mineral resource of 19.3-million tonnes grading 0.77% copper and an ore reserve of 2.8-million tonnes grading 0.91% copper. Underground mining rates are targeted to be between 1.2-million tonnes a year and 1.4-million tonnes a year.

Kanmantoo has quickly ramped up to a copper production rate of about 12 000 t/y. The mine is well capitalised with a 3.6-million-tonne-a-year processing plant and has multiple opportunities to increase production rates, grow the resource base, and extend mine life.

The project includes the Kavanagh and Nugent mineral resources.

Potential Job Creation
About 130 jobs are expected.

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
The 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
Commercial production was declared in July 2024.

Latest Developments
Hillgrove Resources has started production from the Nugent deposit.

Production blasting and stope extraction have started ahead of schedule, with the first stope ore expected to be processed before the end of October.

The transition from development to production at Nugent adds a new high-quality ore source to the Kanmantoo underground operation. Together with the nearby Kavanagh mineralisation, Nugent is expected to lift the mine’s annualised production rate from 1.7-million to 1.8-million tonnes a year in the first half of 2026.

Hillgrove has said the addition of Nugent will increase mining rates, improve margins by lowering unit operating costs, and enhance efficiency by easing underground congestion and providing greater operational flexibility. 

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

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