Kavanagh Drilling Yields 13m at 2.24% Copper, Deepest Hit at 238m

New Depths Explored at Kavanagh

Hillgrove Resources Limited (ASX – HGO) has announced encouraging results from its underground drilling campaign at the Kavanagh deposit within the Kanmantoo Copper Mine in South Australia. The recent drilling, conducted from the deepest underground drill site to date, the 750 Diamond Drill Site, has intercepted copper and gold mineralisation well below the current Mineral Resource Estimate (MRE), including the deepest recorded intersection at Kavanagh West.

Specifically, hole 25KVUG0597 intersected 2.4 metres grading 0.9% copper and 0.04 grams per tonne gold from 238.6 metres downhole, approximately 200 metres beneath the existing stoping horizon. This discovery highlights a new vertical extension target that could materially expand the known resource if further drilling confirms continuity.

Supporting Evidence from Multiple Intercepts

Beyond this deepest intercept, the drilling program has delivered several other significant results. Notably, hole 25KVUG0607 returned a high-grade intercept of 13 metres at 2.24% copper and 0.13 grams per tonne gold from 109 metres downhole. Additional positive intersections include 2.0 metres at 1.19% copper and 0.17 grams per tonne gold, and 9.0 metres at 0.79% copper and 0.28 grams per tonne gold, among others.

These results reinforce the continuity and geometry of the Kavanagh ore body, supporting the existing resource model while also providing new insights into the lode’s plunge and internal structure. The ongoing drilling is designed to both define stoping areas and explore resource expansion opportunities within the broader Kanmantoo system.

Operational Momentum and Future Outlook

Hillgrove’s CEO and Managing Director, Bob Fulker, expressed optimism about the early-stage drilling results, emphasizing their role in underpinning confidence in the resource base and identifying new targets. The company has also reported record development advance, which is enabling the expansion of the Kavanagh operational footprint, including the first stope fired at South Kavanagh West in June.

Drilling is progressing steadily, with over 5,900 metres completed in May alone across three underground rigs. Hillgrove plans to continue drilling through the coming months, aiming to complete a total of 60,000 metres. An updated Mineral Resource Estimate is expected in the fourth quarter of 2025, following a mid-year data close-off.

Implications for Kanmantoo and Beyond

The discovery of mineralisation at greater depths than previously recorded at Kavanagh West could extend the mine’s life and enhance its production profile. While some intercepts are narrow, the presence of consistent copper and gold grades above current averages suggests potential for meaningful resource growth. This aligns with Hillgrove’s strategy to leverage underground drilling to both delineate and expand its resource base, supporting long-term operational planning and value creation.

Investors and analysts will be watching closely for further assay results and the upcoming resource update, which will provide a clearer picture of the scale and quality of the extensions. The ongoing drilling success also underscores the technical expertise and operational capability Hillgrove is deploying at Kanmantoo, a key asset in its portfolio.