Hillgrove Resources has secured three drill rigs for the next stage of exploration at its Kanmantoo Underground project in SA – with the first rig scheduled to arrive and kick off drilling on 18 October.

 The drilling will be completed by DRC drilling and will focus on Nugent, SW Kavanagh, Spitfire, and North Kavanagh lodes.

The aim is to increase the resource base ahead of a final investment decision in 2022 to recommence mining at the project.

The company says that increasing the number of potential working areas – and thus the annual copper production opportunity – will provide additional project value through more efficient utilisation of the existing processing capacity at Kanmantoo.


Progressing exploration off the back of $10m placement

Hillgrove Resources (ASX:HGO) recently raised a tidy $10 million via a placement at 5.2 cents per share to fund drilling at the project. It is also in the process of completing a Share Purchase Plan to raise up to an additional $2 million, due to close on 14 October 2021.

“I am pleased to have secured multiple drill rigs so quickly after the successful completion of the $10m placement, as it enables us to compress the drilling program as we target FID by mid-2022,” CEO and managing director Lachlan Wallace said.

DRC Drilling at Kanmantoo earlier in the year.


Mineral resource update expected shortly

Over 17km of drilling in the first half of 2021 focused predominantly on the Kavanagh lodes below the base of the main Giant Pit and demonstrated that the mineral lodes extend up to 500m below the base of the pit and remain open at depth.

That drilling also intersected several mineralised zones both along strike and down dip of the existing 2020 resource model.

And those results have been incorporated into an updated mineral resource estimate that is expected to be completed in several weeks.

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.