Hillgrove Resources Limited ('Hillgrove', 'the Company') (ASX:HGO) is pleased to provide the following Exploration Target update at its Kanmantoo Mine and near surrounds located at Kanmantoo, 55 kilometres southeast of Adelaide in South Australia.
KEY POINTS
High potential Explorational Targets identified with excellent potential for down dip extensions to mineralisation and the discovery of new lodes which can be added to the mine plan: i Four targets down dip of the 2024 Mineral Resource Five untested targets for underground potential including three with surface expression All targets are within 500 metres of the Kanmantoo processing plant Over 19,000 metres of diamond drilling is planned from Kanmantoo Underground testing Exploration Targets Third underground diamond drill rig to be mobilised during Quarter 2
Commenting on the new Exploration Targets, Hillgrove CEO and Managing Director, Bob Fulker said: 'Following the successful near doubling of contained copper and 138% increase in contained gold in the September 2024 Kanmantoo Mineral Resource Estimate, the team have identified and prioritised the next drilling targets at Kanmantoo from the numerous Exploration Targets available. Our new suite of Exploration Targets focus on down dip extensions to known open pit mined resources and near mine discovery opportunities at Stella and South Kanmantoo.'
Hillgrove has approximated an Exploration Target for the Kanmantoo area of between 25 to 40 million tonnes with a target grade of 0.7% to 1.4% copper and 0.05 g/t to 0.5 g/t gold based on exploration drilling results, relevant operational experience and geological knowledge of the deposit. The grade range estimates are in line with the parameters used to generate the domain models for the 2024 Mineral Resource Estimate. The Exploration Target herein replaces the Company's previous Exploration Target releases and excludes the 2024 Mineral Resource Estimate (MRE) at Kavanagh, Nugent, Emily Star and North Kavanagh1.
The Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource under the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code' (JORC 2012). The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve estimate. Included in this release is an approximation of the Exploration Target at Stella and South Kanmantoo. Mineralisation has been affirmed at both targets by Hillgrove's exploration drilling. See ASX releases titled 'New Gold Discovery Confirmed at Stella' dated 26 August 2021 and 'Kanmantoo Brownfields Exploration Drilling Results' dated 2 June 2010 for drilling results. Both targets are located on an Exploration Licence (EL 6526) held 100% by Hillgrove and within 500 metres of the Kanmantoo processing plant.
The Kanmantoo orebody has excellent potential for down dip extensions to mineralisation and the discovery of new lodes, as shown in Figure 3 and demonstrated by a 96% increase in the recently reported Kanmantoo Mineral Resource3 achieved through organic growth. In addition to this, the Geology team have identified the next series of near mine exploration opportunities utilising the underground development of new diamond drill platforms allowing for targeting new areas of Valentines, Critchley and Matthew below previous surface expressions identified. To test these areas, the Company will be mobilising a third underground diamond drill rig to facilitate the continued drilling of these near mine targets, alongside resource expansion and grade control targets. It will focus on targeting mine life extensions down dip of the existing mine design on the Nugent and Kavanagh lodes - including testing strike extensions to known lodes and testing lodes such as Valentines, Critchley and Paringa which are located proximal to planned mine infrastructure.
Approximately 19,000 metres of drilling is planned for these areas in 2025 and is in addition to the grade control drilling which is planned to occur continuously utilising two drill rigs. Information collected during the drilling campaigns will be used to further understand the structural controls on the Kanmantoo Mineralisation system and mineralogy associations with specialised data collection planned. This drilling will be incorporated feed into Hillgrove's annual Mineral Resource and Ore Reserve Statement planned for release in the fourth quarter of 2025. This will also include the results of drilling conducted in 2024 but not yet incorporated into the announcement dated 18 October 2024.
Method of Assessment
Over the region of the Kanmantoo Copper Mine that falls outside of the current mine plan and existing mine voids (pit and underground), eleven potential higher-grade copper-gold target zones have been identified which will be the focus for future exploration efforts. The identification and location of the target zones is predominantly based upon reviewing depth, width and strike extensions of known copper gold zones that have been mined within the open pit or been intersected by drilling undertaken by Hillgrove. A review of the Company drill hole database containing the drilling undertaken by Hillgrove over the past 21 years down to a depth of 800 metres, in conjunction with the operational information from both the open pit and underground operations, and the geological knowledge gained from the years of mining shows several higher-grade copper-gold zones do extend to depth beneath or within the surrounds of the Giant, Nugent and Emily Star open pits. The grade range estimates are in line with the parameters used to generate the domain models for the 2024 Mineral Resource Estimate. The analysis of the drill hole database also shows there is a lack of drilling below and along strike of the open pits to assess these higher-grade zones.
Contact:
Mr Bob Fulker
CEO & Managing Director
Tel: +61 (0)8 7070 1698
Forward Looking Statement
This release contains or may contain certain forward-looking statements and comments about future events, that are based on Hillgrove's beliefs, assumptions and expectations and on information currently available to management as at the date of this presentation. Often, but not always, forward-looking statements can generally be identified by the use of forward-looking words such as 'may', 'will', 'expect', 'plan', 'believes', 'estimate', 'anticipate', 'outlook', and 'guidance', or similar expressions, and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production and production potential, financial forecasts, product quality estimates of future Mineral Resources and Ore Reserves. Such statements are only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values, results or performance achievements to differ materially from those expressed or implied in this announcement. Where Hillgrove expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by Hillgrove that the matters stated in this presentation will in fact be achieved or prove to be correct. Except as required by law, Hillgrove undertakes no obligation to provide any additional or updated information or update any forward-looking statements whether on a result of new information, future events, results or otherwise. Readers are cautioned against placing undue reliance on forward-looking statements. These forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Hillgrove, the directors, and management of Hillgrove. These factors include, but are not limited to difficulties in forecasting expected production quantities, the potential that any of Hillgrove's projects may experience technical, geological, metallurgical and mechanical problems, changes in market prices and other risks not anticipated by Hillgrove, changes in exchange rate assumptions, changes in product pricing assumptions, major changes in mine plans and/or resources, changes in equipment life or capability, emergence of previously underestimated technical challenges, increased costs, and demand for production inputs.
About Kanmantoo Copper Mine
The Kanmantoo Copper Mine is located approximately 55 kilometres from Adelaide, South Australia. The mine operated as a series of open pits from 2010 to 2020, producing around 137,000 tonnes of copper and over 55,000 ounces of gold. The operation is fully permitted and has significant infrastructure including a 3.6 million tonne per annum processing plant and a tailings storage facility with approximately 7.0 million tonnes of permitted capacity. Operations restarted in 2023 with underground mining commencing in May 2023 and first copper production in February 2024.
Competent Person's Statement
The information in this release that relates to the Exploration Targets is based upon information compiled by Caitlin Rowett, who is a Member of The Australasian Institute of Mining and Metallurgy. Caitlin Rowett is a full-time employee and holds equity in Hillgrove Resources Limited and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)'. Caitlin Rowett has consented to the inclusion in the release of the matters based on their information in the form and context in which it appears. The information in this report that relates to the 2024 Kanmantoo Mineral Resource Estimate is extracted from ASX release titled 'Maiden Kanmantoo Underground Ore Reserve and 96% Increase in Copper Mineral Resource Endowment' dated 18 October 2024 and is available to view at www.hillgroveresources.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Mineral Resource Estimate in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.
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