Hillgrove Uncovers New High-Grade Copper-Gold Zones, Boosting Kanmantoo Growth
Hillgrove Resources has reported significant new copper-gold mineralisation at its Kanmantoo Copper Mine, with drilling confirming extensions at Nugent and Nugent East. Development progress and positive cash flow underpin ambitious production targets.
- High-grade copper-gold intersections at Nugent and Nugent East zones
- Over 11,000 meters of drilling completed to date in 2026
- Emily Star Exploration Drive development advancing on schedule
- Cash-positive operations supporting growth and resource extension
- Targeting throughput increase to 1.7–1.8 million tonnes per annum by June quarter
New Discoveries Extend Kanmantoo’s Mineral Footprint
Hillgrove Resources Limited (ASX:HGO) has unveiled promising exploration results from its Kanmantoo Copper Mine in South Australia. Recent underground drilling has intersected new high-grade copper-gold mineralisation at the Nugent and emerging Nugent East zones. Notably, drill hole 25KVUG0816 returned an 8.5-meter intercept grading 3.28% copper, alongside gold and silver credits, while 25KVUG0817 delivered 5.8 meters at 1.41% copper with elevated gold content.
These results not only confirm the presence of robust mineralisation but also extend the known footprint of the Nugent system. The identification of Nugent East as a distinct zone highlights the ongoing potential to expand resources within the mine lease, supporting Hillgrove’s strategy to refine and grow its mineral resource model.
Drilling and Development Progressing to Plan
Hillgrove’s 2026 drilling campaign is well underway, with over 10,800 meters of underground drilling and 551 meters of surface drilling completed by the end of February. The surface program focuses on depth extensions of the Kavanagh lode system, aiming to better understand structural controls and mineralisation geometry at depth.
Meanwhile, underground development is advancing steadily, particularly the Emily Star Exploration Drive, which has progressed 161 meters as of mid-March. This new drive will facilitate more targeted drilling in the June quarter, designed to close information gaps and support future resource growth. Preparations for Emily Star’s full development, including portal location evaluations and study work, are also in progress.
Operational Strength Fuels Growth Ambitions
Hillgrove’s CEO, Bob Fulker, emphasised the company’s positive operating cash flow as a key enabler for growth initiatives. The company remains on track to increase throughput to between 1.7 and 1.8 million tonnes per annum by the end of the June quarter, with aspirations to exceed 2 million tonnes per annum subsequently. This operational momentum is critical as Hillgrove seeks to capitalise on its expanding resource base and optimise mine life.
The company’s disciplined approach to sampling, assay verification, and adherence to JORC reporting standards underpins confidence in the reported results. While some assay results remain pending, the current data supports a constructive outlook for Kanmantoo’s near-term production and longer-term resource potential.
Looking Ahead
Hillgrove’s ongoing exploration and development activities at Kanmantoo signal a pivotal phase for the company. With new mineralisation zones emerging and infrastructure development progressing, the next quarters will be crucial in translating these findings into tangible production growth and shareholder value.
Bottom Line?
Hillgrove’s expanding mineral footprint and steady development progress position Kanmantoo for a robust growth trajectory, but upcoming assay results will be key to confirming this momentum.
Questions in the middle?
- How will pending assay results influence the updated Nugent resource model?
- What are the capital expenditure implications of advancing Emily Star’s full development?
- Can Hillgrove sustain its cash-positive operations while scaling throughput beyond 2 million tonnes?
