Hillgrove’s Nugent Expansion Raises Stakes Amid Operational and Market Risks
Hillgrove Resources has initiated production blasting at the Nugent deposit, accelerating its expansion plans for the Kanmantoo copper mine and aiming to increase mining throughput by early 2026.
- First production ore mined from Nugent deposit ahead of schedule
- Kanmantoo mine expansion on track with Nugent now operational
- Annualised mining rate expected to rise to 1.7–1.8 million tonnes by H1 2026
- Increased mill throughput from 1.4Mtpa to sustained 1.7–1.8Mtpa
- Operational efficiencies to reduce unit costs and ease underground congestion
Hillgrove Advances Nugent Production Milestone
Hillgrove Resources Limited (ASX – HGO) has marked a significant operational milestone with the commencement of production blasting and stope extraction at its Nugent deposit, part of the Kanmantoo underground copper mine in South Australia. This development signals a transition from the development phase to active production, positioning Nugent as a vital contributor to the mine’s expansion strategy.
Scaling Up Mining Capacity and Efficiency
The Nugent deposit is expected to underpin an increase in the annualised mining rate to between 1.7 and 1.8 million tonnes per annum by the first half of 2026, up from the current throughput of 1.4 million tonnes per annum. This uplift is not merely about volume; it is anticipated to unlock latent mill capacity, thereby lowering unit operating costs and enhancing overall operational flexibility. By alleviating underground congestion, the expansion also promises smoother logistics and improved efficiency across the Kanmantoo operation.
Strategic Importance for Hillgrove’s Growth
Hillgrove’s CEO, Bob Fulker, highlighted the strategic significance of Nugent’s first stope ore, describing it as a core contributor to the company’s growth plans. The increased mill throughput is expected to strengthen Hillgrove’s copper production profile, supporting its ambition to scale output in a competitive market environment. This expansion aligns with prior capital raising efforts, including a $16 million placement and share purchase plan announced earlier in 2025, aimed at boosting production capacity.
Looking Ahead – Opportunities and Risks
While the commencement of production at Nugent is a positive development, Hillgrove’s forward-looking statements caution investors about the inherent risks and uncertainties typical of mining operations. Factors such as geological challenges, equipment performance, and fluctuating market conditions could influence actual outcomes. Nonetheless, the current progress suggests that Hillgrove is on a promising trajectory to enhance its operational scale and cost competitiveness.
Bottom Line?
Nugent’s production ramp-up could redefine Hillgrove’s operational scale, but execution risks remain closely watched.
Questions in the middle?
- Will Hillgrove sustain the targeted 1.7–1.8Mtpa mining rate beyond H1 2026?
- How will the increased throughput impact Hillgrove’s overall cost structure and margins?
- What contingencies are in place if underground congestion or technical issues arise?
