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 has confirmed the project’s “excellent” potential.

The project has estimated mineral resources of 5.7-million tonnes grading at 1.1% copper and 0.3 g/t gold, with additional drilling under way.

The project has a three-year mine plan of 3.3-million tonnes, targeting production of 36 000 t of copper and 10 000 oz of gold.

The existing infrastructure and the short distance from the portal to the copper lodes position Kanmantoo as one of the lowest capital intensity copper development projects in Australia.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated net present value, at an 8% discount rate, of A$166-million and an internal rate of return of 389%, with a payback of seven months after the completion of preproduction works.

Capital Expenditure
The project requires only $26-million of development capital, owing to the existing processing facility and tailings storage infrastructure, both of which are being maintained in a ready-to-restart condition.

Planned Start/End Date
First copper sales are expected within seven months of a final investment decision.

Latest Developments
Hillgrove Resources is fully funded to complete the current 16 000 m drilling programme and the initial 500 m of decline, after which it expects to be in a position to make a final investment decision.

In parallel, Hillgrove has started discussions with potential funding partners.

Key Contracts, Suppliers and Consultants
None stated.

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