Hillgrove Project Targets 85,000 Oz AuEq Annually with $518M Capex

Project Overview and Economics

Larvotto Resources Limited (ASX:LRV) has delivered a comprehensive Definitive Feasibility Study (DFS) for its 100%-owned Hillgrove Antimony-Gold Project in New South Wales, Australia. The DFS confirms a technically sound and economically compelling project with an initial 8-year mine life, combining underground and open-pit mining operations. The processing plant is planned to be upgraded to handle 525,000 tonnes per annum, producing gold doré and antimony concentrate for export and domestic refining.

Key financial metrics at the base case commodity prices (gold US$2,400/oz, antimony US$25,000/t, AUD/USD 0.65) include a post-tax net present value (NPV) of AUD 280 million, an internal rate of return (IRR) of 48%, and a payback period of 26 months after first production. At the mid-price scenario, which remains conservative relative to current spot prices, the post-tax NPV jumps to AUD 694 million with an IRR of 102% and payback in just 11 months, underscoring the project's robust economics.

Mining and Processing Details

The DFS outlines an average annual production of approximately 85,000 gold-equivalent ounces over the life of mine, peaking at 102,000 ounces in year two. Mining will be sourced from an underground inventory of 3.5 million tonnes and open-pit mining of 350,000 tonnes over three years. The project benefits from conservative metallurgical recoveries of around 87% for antimony and 84% for gold, with upside expected from actual processing performance.

Larvotto plans to restart and expand the existing processing facility, incorporating new crushing circuits, upgraded grinding and flotation circuits, and the installation of Jameson cells to improve concentrate quality. A key innovation is the shift to a Dewatered Tailings Landform (DTL), replacing conventional slurry tailings storage with a dry stack system, which offers improved environmental and safety outcomes, reduced water consumption, and progressive rehabilitation potential.

Infrastructure, Permitting, and Social License

Hillgrove benefits from significant existing infrastructure, including a 66kV grid connection, water supply, processing plant, and underground development. The project holds a comprehensive suite of current mining leases and environmental permits, with modifications and new consents underway to support the expanded mine life and processing capacity. Larvotto maintains active engagement with local communities, regulatory bodies, and stakeholders to ensure social license and compliance with environmental and heritage legislation.

Project Financing and Offtake

Larvotto has secured a seven-year antimony offtake agreement with Wogen Resources, a leading global trader, covering the initial years of production. The company is in advanced discussions with multiple parties regarding project financing, with indicative term sheets presented subject to DFS approval. The project targets first production in the second quarter of 2026, aligning with rising global demand for critical minerals, particularly antimony, which is essential for battery, solar, and defense applications.

Risks and Opportunities

While the DFS presents a strong foundation, Larvotto acknowledges risks including commodity price volatility, permitting timelines, and geological uncertainties related to inferred resources, which constitute about 19% of the production target. The company is actively pursuing exploration upside in near-mine areas such as Bakers Creek and the Garibaldi-Brackins Spur corridor, aiming to extend mine life and enhance resource confidence. The shift to dry tailings management and the use of Jameson flotation cells represent operational improvements that could further enhance project returns.