Hillgrove Resources receives positive final investment decision for Kanmantoo

Hillgrove Resources (ASX:HGO) has received formal positive final investment decision (FID) to proceed with stage one development of the Kanmantoo underground copper mine in South Australia.

Ove its initial four-year schedule, stage one is expected to deliver 43.5kt of copper in concentrate.

Stage one will focus on two of the nine known mineral lodes at Hillgrove that were either drilled or mined as part of the open pit. These lodes remain open at depth and along strike with drilling underway to expand mine life and annual copper production.

The project is fully funded through a $38m placement and share purchase plan and is without debt.

In anticipation of a positive investment decision, underground development began in May with initial cuts validating the productivity and ground support assumption rates.

Managing director Lachlan Wallace said the decision to begin mining is an exciting milestone for Hillgrove.

“The formal decision to commence mining at Kanmantoo is an exciting milestone for the company,” he said.

“In anticipation of a positive investment decision, a great team has been established with a high level of underground experience, and they have wasted no time in getting the underground development underway.

“The first underground blast occurred in May and the development rate has quickly ramped up to planned levels.

“Stage one represents the first step in developing the Kanmantoo asset and surrounding region.”

With all infrastructure — including a 3.6mtpa processing plant and operational tailings storage facility — in place, copper production is on track for early 2024.