Hillgrove in its present form has operated since February 2003 when it was reinstated to official quotation on the Australian Stock Exchange (ASX: HGO) following a restructuring and capital raising.

The original viewpoint worked to in establishing Hillgrove was that the resources sector was one that had been largely ignored for a number of years. The board of Hillgrove believed there were opportunities in this sector which were undercapitalised, under funded, under explored or generally unappreciated and which, if secured, would form the basis of a medium sized mining group. This was reflected in the diminishing number of resources companies, the declining level of exploration and generally suppressed commodities prices.

Hillgrove’s focus is on opportunities that have a demonstrated a head start and which could be brought quickly into production. Each of Hillgrove’s major projects is characterised by having clearly defined value adding steps that can result in above average total returns to shareholders

The company’s projects can be split into three main areas:
Advanced Development – Gunnedah Coal Bed Methane Gas Project, PEL 238, New South Wales;
Brownfield Development – Copper-Gold, Kanmantoo Mine, South Australia; and
Exploration – Gold, Mt. Rhine, South Australia; Silver, Lead, Zinc, Mt. Torrens, South Australia and Copper-Gold, Alford, South Australia.

Hillgrove sold its 32.5% interest in the Gunnedah Gas Project, an advanced coal bed methane (CBM) project located in the Gunnedah Basin in northern NSW in October 2006 for a 19.9% stake in the project managers, Eastern Star Gas (ASX:ESG). The project comprises PEL 238 which covers an area of 9,100 kms². Estimated to contain one of the largest onshore accumulations of natural gas in Australia the project has been significantly advanced with over $43 million being spent on it to date. Hillgrove and its joint venture partners are undertaking a production testing programme aimed at establishing a significant P1 reserve of gas around which gas contracts can be negotiated and a pipeline established.

The Kanmantoo Project was announced in October 2003 when Hillgrove  secured the right to earn up to 90% of Exploration License 2663 covering an area of 497 kms² in the Mount Lofty Ranges in South Australia. This is an area identified as one of the most prospective in the State and the area has now become a key focus for Hillgrove.

Hillgrove further consolidated its holdings in the area with the acquisition of Mining Lease 5776, which covers the now abandoned Kanmantoo Mine that was the subject of a medium sized copper operation from 1971 to 1976 by what was then part of the CRA group. 

Exploration activities commenced in December 2003 at the Emily Star Prospect which is approximately 400 metres south of the Kanmantoo Mine. An 18 hole drilling programme was completed in April 2004 and some outstanding intersections were recorded, the best being 27 metres at 3.94% copper including 12 metres at 0.31g/t gold.

The aim is to prove up sufficient reserves to justify recommencing mining operations at Kanmantoo. This project is expected to evolve rapidly as it is more in the nature of a ‘brownfields development’ being close to road, rail and power infrastructure and is to the Port of Adelaide.

The Kanmantoo Project holds the potential for Hillgrove to be one of the few emerging producers to be selling copper concentrate in the current commodities upturn.

Hillgrove is also pursuing other exploration projects in South Australia including the Alford Copper-Gold Project and the Mt. Torrens Copper- Gold Project.

Each of the two major projects holds the promise of being a company maker whilst the other exploration projects hold good potential for meaningful discoveries.