Hillgrove Resources Ltd (ASX:HGO) has updated the copper resource estimate for Kavanagh deposit of the Kanmantoo Underground Mine in South Australia, increasing it by 13% to 61,000 tonnes at 1.10% copper.
Some 77% of the Kavanagh resources are now classified as indicated or greater, including 14% of the mineral resource now classified as measured, the classification with the most certainty.
Hillgrove says Kavanagh’s resource estimate is still constrained by drilling efforts rather than geology and should offer more potential for growth both along-strike and down-dip.
“Noteworthy achievement”
Commenting on the resource update, Hillgrove CEO and managing director Lachlan Wallace said: “The latest drilling has increased the Kavanagh mineral resource estimate in both size and geological confidence.
“We expect the mining inventory to grow as these results are incorporated into the mine plan. The upgrade in resource classification reflects the increased drill hole density in the upper levels of Kavanagh.
“Increasing the geological confidence in this area is a noteworthy achievement as these levels are mined early in the plan and determine the recommencement of processing and early cash generation.
“Importantly, the resource is constrained only by the extent of the drilling and remains open along strike and down-dip, providing an excellent opportunity to further increase the resource with further drilling.”
Supports economic potential
Hillgrove says the updated Kavanagh resource continues to confirm the economic potential for an underground operation using the investing capital in Kavanagh underground operations and Kanmantoo Processing Plant.
The total mineral resource at Kanmantoo – which includes both the Kavanagh and Nugent deposits – is now nearing 70,000 tonnes of copper at an average grade of 1.09%.
The company’s next steps will be to complete an updated economic assessment based on the 2022 resource estimate, update the Nugent mineral resource estimate to incorporate recent drilling (24 holes) and continue drilling to expand the mineral resource for continued mine growth.