New Discovery at Kanmantoo Raises Questions on Resource Expansion Pace
Hillgrove Resources has announced the discovery of a new high-grade copper-gold mineralisation zone, the 'Saddle' Zone, at its Kanmantoo Copper Mine, promising near-term resource growth with minimal infrastructure needs.
- Discovery of the 'Saddle' Zone between Kavanagh and Nugent mining areas
- Multiple strong drill intersections with high copper and gold grades
- Potential for near-term resource expansion with existing infrastructure
- Ongoing drilling to define size, shape, and continuity of new zone
- Results to be included in December quarter Mineral Resource and Ore Reserve updates
Discovery of the Saddle Zone
Hillgrove Resources Limited has revealed a significant new high-grade copper-gold mineralisation zone at its Kanmantoo Copper Mine in South Australia. Dubbed the 'Saddle' Zone, this discovery lies strategically between the existing Kavanagh and Nugent mining areas, an area previously undrilled despite nearly two decades of exploration activity at Kanmantoo.
The initial drill results from the Saddle Zone are compelling, with multiple intersections showing strong copper grades accompanied by encouraging gold values. Highlights include a 14-metre intercept grading 2.67% copper and 0.36 grams per tonne gold, and other substantial intercepts exceeding 1% copper. These results suggest the Saddle Zone is not an isolated occurrence but part of a broader mineralised system warranting further investigation.
Strategic Location and Operational Advantages
One of the key advantages of the Saddle Zone is its proximity to existing mining infrastructure. Located centrally within Hillgrove’s operational footprint, the zone offers potential for near-term access to additional ore inventory with minimal additional development or capital expenditure. This could accelerate the timeline for resource conversion into production, enhancing the mine’s overall value proposition.
Alongside the Saddle discovery, ongoing resource definition drilling at the Kavanagh and Nugent areas continues to yield positive results, reinforcing confidence in the Kanmantoo mineral system’s robustness and growth potential. Notably, high-grade intersections at depth in these zones support the geological model of a structurally controlled mineralised corridor with variable widths and grades.
Next Steps and Market Implications
Hillgrove’s geology team is preparing follow-up drilling programs aimed at delineating the size, shape, and continuity of the Saddle Zone. These efforts will feed into an updated Mineral Resource and Ore Reserve statement scheduled for release in the December quarter of 2025. The company’s CEO, Bob Fulker, emphasised that exploration success at Kanmantoo continues to translate rapidly into new production opportunities, underpinning the mine’s long-term growth trajectory.
With underground drilling on track to reach 60,000 metres by year-end, Hillgrove is well-positioned to refine its resource base and optimize mine planning. The discovery of the Saddle Zone adds a fresh chapter to Kanmantoo’s story, potentially extending mine life and enhancing shareholder value.
Bottom Line?
The Saddle Zone discovery could redefine Kanmantoo’s production outlook, but its full potential hinges on upcoming drilling and resource updates.
Questions in the middle?
- What is the estimated size and grade continuity of the Saddle Zone after follow-up drilling?
- How quickly can the Saddle Zone be integrated into existing mining operations?
- What impact will the new resource have on Hillgrove’s production guidance and valuation?
