Hillgrove Mines First Ore at Nugent Ahead of Schedule, Boosting June Copper Output
Hillgrove Resources has accelerated development at its Nugent underground copper deposit, intersecting the orebody earlier than planned and delivering first ore to the Kanmantoo mill ahead of schedule. This progress supports a June copper production estimate of 750 to 800 tonnes while maintaining full-year guidance.
- Nugent development outpaces original expectations
- First development ore delivered to Kanmantoo mill ahead of schedule
- June copper production forecast at 750-800 tonnes
- Annual 2025 copper production guidance maintained at 12,000-14,000 tonnes
- Mill throughput targeted to increase to 1.7-1.8 Mtpa in first half of 2026
Accelerated Development at Nugent
Hillgrove Resources Limited has reported a significant operational milestone with the early intersection of the Nugent orebody via the 1020 level crosscut. This development has outperformed initial expectations, allowing the company to deliver its first development ore to the Kanmantoo processing mill ahead of the previously communicated December 2025 timeline.
Strategic Prioritisation and Production Outlook
The company has deliberately prioritised Nugent development to establish multiple mining fronts, aiming to unlock greater operational flexibility over the coming months. While this focus has deferred high-grade stoping activities, due to oversize and low-grade dilution challenges, it positions Hillgrove for a more consistent and stronger production profile in the second half of 2025 and beyond.
June copper production is now estimated between 750 and 800 tonnes, reflecting the early development ore contribution but also the temporary reduction in stoping output. Despite this near-term dip, Hillgrove maintains its full-year copper production guidance of 12,000 to 14,000 tonnes for 2025.
Looking Ahead – Throughput Expansion and Operational Flexibility
Hillgrove plans to increase mill throughput from the current 1.4 million tonnes per annum to between 1.7 and 1.8 million tonnes per annum in the first half of 2026. This ramp-up is expected to enhance the company’s copper production capacity and operational efficiency. The early delivery of Nugent ore is a key step in this strategic ramp-up, providing additional feedstock to the Kanmantoo mill and supporting the company’s growth ambitions.
CEO Bob Fulker emphasised the importance of this milestone, highlighting how it advances Hillgrove’s strategic plan to accelerate ore production and increase throughput. The company’s approach reflects a balance between short-term production trade-offs and long-term operational gains.
Investor Considerations
For investors, the early intersection of the Nugent orebody and the prioritisation of development activities signal a proactive management approach to maximise asset value. However, the deferral of high-grade stopes and the resulting lower near-term output introduce some short-term production variability. Monitoring the execution of throughput expansion and subsequent production consistency will be critical in assessing Hillgrove’s operational momentum.
Bottom Line?
Hillgrove’s early Nugent ore delivery sets the stage for a stronger copper output profile, but near-term production nuances warrant close attention.
Questions in the middle?
- How will deferred high-grade stopes impact cash flow and margins in the near term?
- What operational risks could affect the planned mill throughput increase in 2026?
- How might market copper prices influence Hillgrove’s production strategy going forward?