Hillgrove Extends High-Grade Copper Zones at Kavanagh and Expands South Australia Tenements

Kavanagh Drilling Reveals Deeper, Higher-Grade Mineralisation

Hillgrove Resources Limited (ASX:HGO) has reported a series of high-grade copper-gold intersections from its underground drilling at the Kavanagh deposit within the Kanmantoo Copper Mine in South Australia. Notably, recent drill holes have returned grades exceeding the average copper and gold concentrations of the current 2025 Mineral Resource Estimate (MRE). Highlights include 15 metres at 2.05% copper plus 0.07 g/t gold from 152 metres downhole and 14.5 metres at 2.02% copper with 0.07 g/t gold from 132.5 metres, signalling robust mineralisation at depth.

The drilling program has pushed the known mineralised footprint deeper, with Kavanagh Central now intersected down to 490 metres Relative Level (RL), marking the deepest underground drill intersection to date. This extension beyond previous limits suggests potential for resource growth and a longer mine life, with all new results slated for inclusion in the 2026 Mineral Resource Update expected in the December quarter.

Ongoing Drilling and Strategic Project Development

Surface drilling targeting even deeper extensions of Kavanagh continues alongside underground efforts, which have recently shifted focus to the Spitfire and Emily Star zones. Underground drilling completed 4,617 metres in April, with further assay results anticipated in the coming months. These activities come as Hillgrove prepares for a key Stage 2 investment decision on the Emily Star project in the second half of 2026, a milestone expected to underpin Kanmantoo’s ambition to evolve into a 2-million-tonne-plus operation.

The company’s CEO, Bob Fulker, emphasised the significance of these results, stating that the high-grade intersections provide early evidence of resource expansion potential. This aligns with Hillgrove’s recent efforts to ramp up underground production, having achieved record copper output and improved cash flow earlier in 2026, supporting growth initiatives at Kanmantoo and surrounding prospects.

Expansion of Regional Exploration Footprint

Complementing the drilling success, Hillgrove has been granted two new exploration tenements in South Australia’s highly prospective geological provinces. EL7130 covers 373.57 square kilometres in the Gawler Craton near Mabel Creek, approximately 85 kilometres southwest of Coober Pedy, while EL7131 spans 44 square kilometres near Olary. These tenements enhance Hillgrove’s brownfield and greenfield growth pipeline, supporting its strategy to build near-mine and regional opportunities alongside ongoing development at Kanmantoo.

These new holdings add to Hillgrove’s existing tenement portfolio and are expected to facilitate further exploration campaigns targeting copper-gold mineralisation in underexplored zones. The company’s approach reflects a balanced focus on resource extension at Kavanagh and regional exploration, aiming to sustain and grow its asset base over the medium term.

Technical Rigor and Forward Outlook

The underground drilling program follows stringent sampling and assay protocols, with core recoveries averaging over 98% and assays conducted by ALS Adelaide using industry-standard four-acid digestion and fire assay methods. Quality control measures, including certified reference materials and blanks, underpin confidence in the data driving resource updates and mine planning.

Hillgrove’s upcoming 2026 Mineral Resource Update will integrate these new drilling results, potentially revising the mine’s resource base and informing strategic decisions. This update will be closely watched given the company’s recent operational momentum, including its first full year of underground copper production and record quarterly output earlier this year, which have helped reverse prior losses and boost cash reserves.

As Hillgrove advances toward the Stage 2 Emily Star investment decision later this year, the market will be attentive to how these exploration successes translate into expanded production capacity and longer mine life. The company’s dual focus on resource growth and regional exploration positions it to maintain a pipeline of opportunities amid a competitive copper market.

Hillgrove’s latest results build on its recent operational strides, following its record quarterly copper production and 2025 profit turnaround that have underpinned confidence in Kanmantoo’s growth trajectory.