Larvotto Unveils High-Grade Drilling and $30M Capital Raise to Accelerate Hillgrove Project
Larvotto Resources has reported robust progress at its Hillgrove Antimony-Gold Project, highlighted by exceptional drilling results and a successful $30 million capital raise, positioning the company for production by late 2025.
- High-grade gold and antimony intercepts extend Clarks Gully resource
- Definitive Feasibility Study (DFS) underway, targeting Q1 2025 completion
- Successful $30 million equity raise strengthens balance sheet to $28 million
- Binding antimony concentrate offtake agreement secured with Wogen Resources
- Membership accepted into US Defense Industrial Base Consortium enhancing strategic positioning
Strong Drilling Results at Clarks Gully
Larvotto Resources Limited (ASX: LRV) has delivered a compelling update on its Hillgrove Antimony-Gold Project in New South Wales, showcasing outstanding high-grade drilling results from the Clarks Gully deposit. The recent 59-hole reverse circulation drilling program revealed significant gold and antimony intercepts, including standout intervals such as 22m at 9.87 g/t AuEq and 16m at 10.63 g/t AuEq. These results confirm that mineralisation extends beyond the current resource boundaries both along strike and at depth, underpinning plans for an updated Mineral Resource Estimate (MRE) in early 2025.
The drilling has refined the geological model, identifying stacked, sub-parallel veins and a steeply plunging southeast-trending zone of high-grade mineralisation. This zone remains open, presenting further exploration upside. Larvotto’s focus on Clarks Gully is integral to early feed for the planned 500,000 tonnes per annum processing plant, which is currently undergoing optimisation studies.
Advancing the Definitive Feasibility Study
In October 2024, Larvotto appointed MACA Interquip Mintrex (MIQM) as the Study Manager for the Hillgrove Definitive Feasibility Study (DFS), targeting completion in the first quarter of 2025. MIQM brings extensive engineering and construction expertise, overseeing metallurgical testwork aimed at improving gold and antimony recoveries beyond historic levels. The DFS will incorporate the latest drilling data and process plant optimisation, setting the stage for a robust development plan.
Strategic Capital and Offtake Agreements
Larvotto’s corporate position has been significantly bolstered by a successful $30 million two-tranche placement at $0.52 per share, attracting strong support from both domestic and offshore sophisticated investors. This capital raise, combined with $9.6 million from option exercises and a $4 million prepayment facility linked to a binding offtake agreement with Wogen Resources Limited, leaves the company with a healthy cash balance of approximately $28 million at quarter-end.
The offtake agreement with Wogen, a global commodity trading house with over 50 years of experience, secures exclusive rights to Hillgrove’s antimony concentrate for the first seven years of production. This arrangement not only provides financial certainty but also aligns Larvotto with a partner capable of accessing critical global markets.
Market Context and Strategic Positioning
Larvotto’s timing is fortuitous amid tightening global antimony supply. Following China’s December 2024 ban on antimony exports to the United States, China being the dominant supplier of approximately 60% of global antimony, the metal’s price surged to over US$40,000 per tonne in early 2025, nearly tripling the US$15,000 per tonne price used in Larvotto’s August 2024 Pre-Feasibility Study. Hillgrove is positioned to supply around 7% of global antimony production upon first output targeted for late 2025 or early 2026.
Further enhancing its strategic profile, Larvotto was accepted into the US Department of Defense-funded Defense Industrial Base Consortium (DIBC), granting access to collaborative research and commercial opportunities. This membership underscores Hillgrove’s importance as a secure western source of critical minerals amid geopolitical supply chain shifts.
Exploration and Operational Readiness
Beyond Clarks Gully, Larvotto has initiated infill and extensional drilling at Bakers Creek and Garibaldi, targeting high-grade gold and antimony zones with promising early signs such as visible gold occurrences. These programs aim to expand resources and support future mine planning.
Operationally, Larvotto is building its underground mine team and preparing for early site works, including mill expansion, while securing long-lead items and recruiting operational readiness personnel. These efforts align with the company’s ambition to commence production within the next 18 months.
Leadership and Governance
Post-quarter appointments of Phillip Fox as Group Exploration Manager and Scott Duncombe as Exploration Manager at Hillgrove strengthen Larvotto’s technical leadership. Meanwhile, the company navigated a board change with the resignation of Director Anna Nahajski-Staples, ensuring continuity as it advances its development agenda.
Bottom Line?
With robust drilling results, strategic partnerships, and a strong balance sheet, Larvotto is poised to become a key western supplier of antimony amid a shifting global supply landscape.
Questions in the middle?
- How will the updated Mineral Resource Estimate at Clarks Gully impact Larvotto’s mine plan and valuation?
- What are the key outcomes expected from the upcoming Definitive Feasibility Study in Q1 2025?
- How might ongoing geopolitical tensions and antimony supply constraints influence Larvotto’s market positioning and pricing power?
