Hillgrove Resources Ltd (ASX:HGO) has advanced the primary decline at Kanmantoo Underground Copper Mine in South Australia to a position suitable to establish the first underground drilling platform.
With this milestone achieved, the company has engaged DRC Drilling to undertake a 1,200-metre drilling program.
This is aimed at stope definition drilling of the Spitfire lode that is planned to be mined in the early stages of the mining plan for the underground project restart.
Decline halted for drilling
While this drilling is carried out Hillgrove has ceased the decline advance and contractor Pybar has, therefore, demobilised equipment and people during this period.
Komatsu has concluded the government funded Komatsu MC51 continuous mechanical cutting machine trial as planned and will commence demobilisation next week.
This work has seen the start of portal development for the ventilation drive.
By the time the drilling is complete, the company expects that the successful mining contractor will have been engaged and ready to commence, pending a positive investment decision.
Meantime, the company has advanced funding discussions for the Kanmantoo Underground restart to definitive agreements stage.
March quarter progress
In the company's March quarter report, CEO and managing director Lachlan Wallace said: “Another excellent quarter for the company and the Kanmantoo site, which has seen us continue to advance the underground project on all fronts: exploration drilling, decline development and funding.
"The drilling returned further multiple high-grade zones being delineated within wider zones of copper mineralisation of around 100 metres in downhole length.
"As these holes are incorporated into the geological model, it is expected the mineral resource estimate will grow both in size and in geological confidence. Drilling continues in Nugent, with results anticipated in the next quarter.
"The primary decline continued with the Komatsu MC51 for most of the quarter.
"With the copper price maintaining record prices and project finance discussions proceeding to definitive documentation stage, we engaged an underground mining contractor to ramp up the decline development using traditional drill and blast methods.
"This is expected to bring forward the potential timing of first copper production.
"In addition, we continued the trial with the Komatsu MC51 which has now commenced the portal development for the ventilation drive.”
Upcoming work
Wallace went on to say, "Over the next quarter, we plan to complete the drilling program in Nugent and update the mineral resource estimate for Kavanagh.
"As the geological information is updated, we will continue to refine the mine plan, and select a mining contractor for the initial Stage 1 plan, whilst in parallel we seek to complete the debt funding package.
"Once these activities are concluded the board will be in a position to make a final investment decision.”