Hillgrove announced on 3 November 2003 that it had acquired a 40% interest in EL 2663 and is earning a further 50% interest by funding exploration activities on the tenement. EL 2663 covers an area of 496 km² to the along strike to the north and south of the Kanmantoo Mine and is regarded as having prime potential for the delineation of resources to support the redevelopment of mining at Kanmantoo. In addition, it applied for the grant of an Exploration License totaling 4 km² around the former copper and base metal workings around the Wheal Ellen Mine. This Exploration License Application lies immediately to the south of EL 2663.
These initiatives consolidate the tenements held by Hillgrove within the Kanmantoo Trough and allow it to conduct an integrated programme of exploration in the area.
The Kanmantoo Trough is an axial zone which hosts numerous former base metal and copper-gold mines and has been the subject of sporadic mining activity of both vein and replacement style deposits since the mid 1800’s.
Hillgrove believes the area that it has consolidated is a prime target for economic copper-gold mineralization and gold mineralisation. With little contemporary exploration conducted on the project area, field exploration activities commenced in December 2003 with targets defined for drilling commenced in February 2004.
On 13 April 2004 Hillgrove announced it has received the first 10 drill holes from the 18 hole reverse circulation drilling programme recently completed at the Emily Star Prospect. Significant results recorded to date have included 27m at 3.94%Copper (including 14m at 6.77% Copper, KTRC008), 16m at 1.12% copper (KTRC002) and 15m at 1.19% copper (KTRC006).
Drilling targeted both the down dip and strike extents of two broad zones of high-grade copper-gold mineralisation identified in the recent rock chip and channel sampling. Mineralisation was intersected in all holes with widths up to 40m in some holes. The mineralisation intersected was generally a combination of chalcopyrite, malachite, azurite and lesser pyrite, varying in concentrations from 1-2% of the rock up to 60% in some places.
These drilling results correlate well with the previously announced channel sampling results and are highly encouraging. A full interpretation of the drilling results will be reported when the results from the final 8 holes have been received.
The medium term aim is to expand the company’s exploration of the area around ML 5776 where it will concentrate on the Emily Star Prospect. O’Neil’s Lode and their southern strike extents and to potential mineralization in and around the Kanmantoo pit.
In July 2004 Hillgrove commenced a second more extensive drilling programme totaling between 10,000 and 15,000 metres of both reverse circulation (RC) and diamond drilling to identify open-pit mineralisation both along strike and down dip to augment the existing resource.
On 13 December 2004 Hillgrove announced an Indicated and Inferred Resource of 18.37Mt at 1.1% Copper and 0.2g/t Gold calculated by Resource Evaluations Pty. Ltd. for Kanmantoo Project. This resource estimate more than doubled the previous estimate of 8,452,000t to 18,371,000t andrepresented a discovery cost of $1.2M or 0.5 cents/pound copper, using a copper price of USD$1.36 per pound.
In December 2004 a dril programme commenced with the objective to discover further mineralization at Emily Star, O’Neil Zone, South East and North East zones, which all remain open both along strike and down dip. Following structural studies, an Induced Polarisation (IP) survey in 2005 and an airborne magnetic survey completed in April 2006 this programme was concentrated and expanded to include additional propsective areas.
In March 2005 Hillgrove advised that it had identified extensive garnet mineralisation, which is associated with the already identified copper/gold resource at Kanmantoo. Garnet mineralisation, hosted in garnet-andalusite schist, is visible at the Kanmantoo Open Cut Mine to depths of 120 metres below the surface. The mineralisation is approximately one kilometre wide and five kilometres long with the garnet content in the local rock ranging from 10% - 60%, with higher content associated with the copper/gold mineralisation.
The garnet by-product has the potential to add another significant revenue stream to potential future cash flows from copper and gold thereby maximising the use of the resource and making the South Australian mine potentially one of the three largest industrial garnet producers in the world. The deposit could support annual garnet production between 100,000 to 200,000 tonnes per annum.
On 16 May 2006 Hillgrove announced a new Indicated and Inferred Resource of 25.375Mt at 1.0% copper and 0.2g/t gold calculated by Resource Evaluations Pty. Ltd.
Drilling continued utilising IP Survey information and increased the resource to 28MT at 0.94% copper and 0.2g/t gold in October 2006. Another 19% was added to the resource in May 2007 increasing it to 34.44MT at 0.9% copper and 0.2 g/t gold with total contained copper metal of 290,000 tonnes and 216,900 ounces contained gold. Drilling continues in the hope to grow the resource further, with Hillgrove focusing on bringing the Kanmantoo Mine back into production supported by satellite deposits such as Emily Star.
With the Definitive Feasibility Study completed in December 2007 the Board gave the 'green light' to continue seeking government licensing and arrange the project finance, both of which are expected to be completed in April 2008.
Please view current ASX and Press Releases under Investor Information for the latest drilling results.