Hillgrove Resources (ASX: HGO) has reported multiple ‘high-grade’ copper hits within a broader 100m+ zone of copper mineralisation from underground drilling at its Kanmantoo Project in South Australia.
All four new diamond holes at the Kavanagh mineral zone intersected strong Cu-Au mineralisation, with standout results including:
- Hole KTDD208_W2:
- 36.5m @ 1.76% Cu, 0.29 g/t Au from 367.7m downhole
- Hole KTDD208_W4: 17.85m @ 1.46% Cu, 0.08g/t Au from 395.5m downhole
- Hole KTDD208_W3:
- 13.8m @ 0.89% Cu, 0.04 g/t Au from 505.3m downhole
- (part of a wider zone of sulphide mineralisation of 103.6m @ 0.63% Cu)
- 13.8m @ 0.89% Cu, 0.04 g/t Au from 505.3m downhole
- Hole KTDD208_W1:
- 15.3m @ 2.15% Cu, 0.21 g/t Au from 471.0m downhole
- (part of a wider zone of sulphide mineralisation of 97m @ 0.69% Cu)
- 15.3m @ 2.15% Cu, 0.21 g/t Au from 471.0m downhole
The company’s Kavanagh surface drilling program is now complete with drilling continuing at Nugent.
Addressing the results, Hillgrove CEO and Managing Director Lachlan Wallace said: “It is a very predictable mineral system to drill, with every drill hole since May 2021 yielding significant intersections of copper. The recent drilling results continue this trend, with multiple high-grade zones being delineated within wider zones of copper mineralisation of around 100m in downhole length. As these holes are incorporated into the geological model, it is expected the resource estimate will grow both in size and in geological confidence.
“It is a very predictable mineral system to drill, with every drill hole since May 2021 yielding significant intersections of copper”
The broader mineral zones in holes KTDD208 W1 and W4 complement previous drill results in 2021, including 170m at 1.0% Cu and 166m at 0.9% Cu, and demonstrate the presence of a large copper system at Kanmantoo. These wide mineralised zones provide a significant opportunity to increase annual copper production above the Stage 1 plan presented last year, which forecast almost $200m of free cash flow in the initial three years, at prices below current spot, and only requires $26m of working capital. With ample processing and tailings storage capacity already on site, any increase in copper production will not require additional capital or permitting and would be expected to reduce the average all in sustaining cost per tonne of copper produced.”
A total of four diamond holes were drilled in late-2021 into the Kavanagh copper-gold mineral system, completing the surface drilling program in this area. All four holes intersected ‘strong’ mineralisation, demonstrating the confidence the company has in the geometry and tenor of mineralisation at Kavanagh.
Cross section displaying hole KTDD208 and associated wedgesHillgrove Resources had commenced drilling the underground copper-gold opportunity in 2019, with assays for 72 holes received to date axcross Kavanagh, Nugent, Spitfire, and South-West Kavanagh.
These 72 drill holes yielded 100 copper-gold intersections greater than 3m in width and with over 0.6% Cu.
Importantly, every drill hole completed since May 2021 updates has delivered a copper-gold intercept, confirming the underground opportunity at Kanmantoo.
With surface drilling now completed, the Hillgrove has indicated that it will continue with further underground drilling at Kavanagh. Upon completion of drilling at Nugent, Hillgrove is also expects to update the Mineral Resource Estimates for the Kavanagh and Nugent lode systems. These are expected to deliver upgrades in both size and geological confidence.
Images: Hillgrove Resources Limited
