Photo by: Hillgrove Resources
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 significant opportunity to expand the mine life.
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
Hillgrove has loaded its first shipment containing 10 099 wet metric tonnes of concentrate from the Kanmantoo underground mine.
The company achieved its first shipment in less than 12 months since operations at the South Australian mine started.
Hillgrove CEO and MD Lachlan Wallace has said that the timing could not be better, with copper prices recently hitting all-time highs.
“The higher price not only results in greater revenue from the existing plan, but potentially enables mineralisation that was previously subeconomic to be brought into an expanded mine plan, resulting in more copper being produced and sold into the higher price environment,” he adds.
The inaugural shipment is the accumulation of production since processing started in February. The frequency of shipments will increase as Kanmantoo ramps up to the planned rate of production.
Key Contracts, Suppliers and Consultants
Pybar (exploration decline).
Contact Details for Project Information
Hillgrove Resources, tel +61 8 7070 1698.