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.

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.

Mining will be focused on two of the nine known mineral lodes on the mining lease that were either drilled or mined as part of the openpit operations.

All infrastructure at the mine, including a 3.6-million-tonne-a-year processing plant and operational tailings storage facility, is already in place.

Hillgrove has reported that drilling over the past three years has successfully increased the mineral resource estimate by 600%, to almost seven-million tonnes. With an exploration target of a further 10-million to 20-million tonnes at 0.9% to 1.3% copper and 0.1 g/t to 0.3 g/t gold in close proximity to the processing plant, there is a great opportunity to expand the mine life further.

Potential Job Creation
An estimated 130 new jobs will be created as the project ramps up towards full production.

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
First copper concentrate production is expected in the first quarter of 2024.

Latest Developments
The first stope blast at Kanmantoo has been completed.

Subsequent blasts have increased in size as the void around the initial raisebore hole opens and post-blast ground conditions are assessed.

Haulage from the production level is under way, with the ore stockpile increasing in preparation for the first copper production campaign.

First copper production remains on track for early 2024.

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

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