Hillgrove Resources Limited's goal is to become a mid-tier gold and copper/gold resources group. Hillgrove's growth will come from the Kanmantoo Copper Mine operation in South Australia and exploration discoveries from its highly prospective greenfield exploration projects.
Kanmantoo Copper Mine
The Kanmantoo Copper Mine is a copper and gold producer around a medium grade orebody which has excellent potential for further expansion. The mine highlights the technical and commercial capabilities that Hillgrove brings to its projects and is an example of how the mining industry can undertake innovative community, social and environmental initiatives.
The project's location, 55 kilometres from Adelaide, the capital city of South Australia, means it enjoys capital cost advantages being close to road, rail, power infrastructure and Port Adelaide. The use of recycled water and grid power provides the project with significant operating cost advantages. This is supplemented by the project's desirability as an employment destination being located both close to Adelaide and within the attractive Adelaide Hills' setting.
Resource drilling has defined a 2016 Mineral Resource Estimation for the Kanmantoo Coper Mine of 34.5Mt at grades of 0.6% copper, 0.1g/t gold and 1.2g/t silver using a cut-off grade of 0.20% copper.
The Kanmantoo processing plant was commissioned and started production in November 2011. Initially configured to be a 2.4Mt p.a. open cut mine to support an initial mine life of 6.5 years, the project's life of mine increased to some ten years following the new February 2013 Resource and increased to over 2.8Mt p.a. through put following work on the crusher circuit. The project is expected to produce approximately 100,000 tonnes of concentrate, containing up to 20,000 tonnes of copper in concentrate and associated gold and silver per annum over the current life of mine.
Hillgrove launched a major initiative into Indonesia in late 2008, as the company saw enormous potential in the Pacific 'Rim of Fire', by securing ground comprising two major projects - the Bird's Head Project on the north western tip of the eastern Indonesian province of West Papua and a project area on the island of Sumba, west of Timor.
The Bird's Head Project (Hillgrove 80%) offers an excellent opportunity to explore for large scale epithermal and porphyry style mineralisation within a geological setting that has been proven to host world class deposits. The 992.3 square kilometre area covered is in a favourable geological setting for the discovery of copper gold mineralisation. Bird's Head offered a further advantage: a data package of extensive exploration and drilling information developed by Normandy in the 1980-90's, which allowed exploration work to be fast-tracked and Hillgrove to plan drilling (permits pending), with its local partner P.T. Akram Resources. A site office was established in the township of Sorong, a base camp constructed at the village of Warmandi and field exploration recommenced.
The Sumba Project (Hillgrove 80%) sits within a set of islands that host numerous large scale copper/gold porphyry systems and epithermal gold deposits, including Newmont's Batu Hijau Mine on the nearby island of Sumbawa. The Project offers Hillgrove a foothold in a zone of previously identified gold mineralisation that was not followed up due to the difficult economic conditions of the late 1990's. An IUP, awarded to Hillgrove's Indonesian partner PT Fathi Resources, covers 999 square kilometres that is split into two main project areas coinciding with the volcanic basement. The Sumba Project is shaping up to be an exciting exploration initiative with a socialisation programme completed, a base camp and core staff established, and field exploration and sampling producing some highly encouraging results.
Strategic FocusWith construction completed and Kanmantoo now a copper producer the Company is looking to define additional resources within its Australian Mining Lease, a highly prospective 500km2 exploration area within the Kanmantoo Trough.
Hillgrove hopes to extend the Kanmantoo Copper Mine’s life to beyond 10 years as it has defined the potential for an Exploration Target of >50Mt of resources at similar grades to the current Resource. However, it is important to note this exploration target is conceptual in nature as there has been insufficient exploration to date and it is uncertain how it will affect the determination of an increased mineral Resource.