Hillgrove Resources begins copper production at Kanmantoo Mine in Australia
Hillgrove Resources, a prominent name in the mining sector listed on the ASX, has achieved a significant milestone by initiating copper production at the Kanmantoo Mine. This pivotal moment comes after the successful commissioning of the processing facility, marking a transition from exploration to full-scale production within the targeted timeframe of Q1 2024. The commencement of copper concentrate production not only positions Hillgrove as one of the select few pure play copper producers but also signifies the start of revenue generation from the sales of copper concentrate, anticipated this week.
The Kanmantoo Mine, nestled approximately 55km from Adelaide, has been under Hillgrove’s operation from 2010 to 2020, during which it produced approximately 137k tonnes of copper and 55k ounces of gold through a series of open pits. The transition to an underground operation, initiated in 2020 following exploration and economic studies, represents a strategic move to extend the mine’s life and enhance its production capacity. The recent commencement of copper production heralds a new era for Hillgrove, with the company now focused on ramping up mine output and copper production as it establishes additional work areas underground.
A key aspect of Hillgrove’s operation is its commitment to sustainability, notably through the connection of the Kanmantoo mine to the South Australian power grid, which is powered by over 70% renewable energy. This shift has led to a significant reduction in power usage costs and the mine’s carbon footprint, aligning with global efforts towards decarbonization through electrification.
Lachlan Wallace, CEO and Managing Director of Hillgrove, expressed optimism about the future, stating, “First copper production from the Kanmantoo underground operation, and the transition to cash flow generation, is a watershed moment for the Company.” He highlighted the company’s rapid progress from explorer to producer and its plans to leverage this success by expanding the mine life and annual copper production through exploration.
With a substantial JORC Exploration Target of 60 – 100Mt at 0.9% to 1.2% Cu and 0.1g/t to 0.2g/t Au, alongside promising drilling results, Hillgrove is well-positioned to capitalize on the growing demand for copper. The company’s focus on converting exploration and development opportunities into tangible outcomes is expected to drive its growth in the coming years.
The commencement of copper production at the Kanmantoo Mine by Hillgrove Resources represents a significant achievement in the mining industry, marking a seamless transition from exploration to production. This development is particularly noteworthy given the global push towards decarbonization and the increasing demand for copper in electrification initiatives. Hillgrove’s strategic approach to leveraging renewable energy sources for mining operations sets a benchmark for sustainable practices in the industry, highlighting the potential for mining operations to contribute positively to environmental goals. The company’s exploration efforts and commitment to expanding mine life and production capacity underscore its potential for long-term growth and its role in the global copper market.