Reinstated producer Hillgrove Resource is looking to further grow its copper resources Pic via Getty Images.
Mining
Special Report: In a milestone achievement for Hillgrove Resources, the company has been reinstated as an Australian copper producer after producing first concentrate from its Kanmantoo underground operation in South Australia.
Hillgrove Resources (ASX:HGO) completed the final critical path activities required to enable stoping in December, paving the way for the production to resume from the historical Kanmantoo copper mine, just 55km from Adelaide.
From 2010 to 2020, HGO operated a series of open pits at Kanmantoo, producing ~173,000t of copper and ~55,000oz of gold before the 3.6Mtpa process plant and tailings storage facility were placed on care-and-maintenance.
Underground development started in mid-2023 following a period of exploration and economic studies to determine the next best move for the project.
Commissioning of the plant and production have now been achieved as HGO positions itself as one of the few copper producers on the ASX with significant upside potential to extend mine life with continued exploration.
Recent drilling results from the reborn miner include:
Mains connections have been established to Kanmantoo underground, resulting in a circa 65% cost reduction to power use from circa $0.40 per kilowatt hour to circa $0.13 per kilowatt hour.
The company also connected itself to the South Australian power grid, which is supplied by over 70% renewable energy generation and substantially reduces the project’s carbon footprint.
“First copper production from the Kanmantoo underground operation is an important milestone for the company,” HGO chief executive Lachlan Wallace says.
“Over the next few months, the mine output and copper production are expected to ramp up as additional work areas are established underground.
“Completing this transition from explorer to producer makes us one of only a few copper producers on the ASX, and doing so in eight months highlights the company’s capability to deliver projects.
“Operations will be bedded down at Kanmantoo as we ramp up to steady stage production, and our attention will turn to growing the business by converting future exploration and development opportunities.”
This article was developed in collaboration with Hillgrove Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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