Hillgrove mines first Nugent copper ore as development exceeds expectations

• Hillgrove’s Nugent development rates exceed expectations
• The 1020 cross cut has intersected the Nugent orebody, leading to the delivery of first ore for processing
• Mining of this development ore has occurred much earlier than anticipated

Special report: Development at Hillgrove’s Nugent underground mine in South Australia is better than expected, resulting in the early intersection of the orebody and delivering first copper ore for processing.

Mining of the development ore has started ahead of schedule, beating the previous December quarter of 2025 timeline.

Hillgrove Resources (ASX:HGO) CEO and managing director Bob Fulker said the milestone marked a significant advancement in its strategic plan to accelerate ore production and throughput at the Kanmantoo operations.

“The early delivery of Nugent ore represents a key milestone in the ramp-up of Hillgrove’s copper production profile, providing additional operational flexibility as the company prepares for increased mill throughput from the current 1.4Mtpa run rate to 1.7 to 1.8Mtpa run rate in the first half of 2026,” he said.

“We have deliberately prioritised development at Nugent to establish multiple mining fronts and unlock greater operational flexibility over the next six months.

“In addition to this, stoping has been affected due to a combination of the development focus and the high-grade stopes being deferred through oversize and low-grade dilution.

“While this will lead to lower near-term output, with June production estimated at approximately 750 to 800 tonnes of copper, the approach is positioning us for a stronger, more consistent performance in the second half of the year and beyond,” Fulker added.

“We continue to maintain our stated annual guidance of 12,000 to 14,000 tonnes of copper production for 2025.”

Background on Kanmantoo

The Nugent deposit is within the wider Kanmantoo copper project in South Australia’s Adelaide Hills, just 55km from Adelaide and only 3km from the main dual carriageway to Port Adelaide.

Not only is Kanmantoo fully permitted for mining, with a significant starting resource and a fully permitted tailings storage, it also has all existing infrastructure including a 3.6Mtpa processing plant.

The accelerated development of the Nugent deposit is aligned with the company’s strategy to boost production by about 25%, increasing from 1.4Mtpa to around 1.8Mtpa, with the uplift anticipated in the first half of 2026.

What’s next?

By prioritising development at Nugent and deferring high-grade stopes, HGO expects June copper production to range between 750 and 800 tonnes, setting the stage for stronger and more consistent output in the second half of the year and beyond.

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.