Hillgrove ramps up Kanmantoo copper production in May by 17% to 840t
All operational metrics such as throughput, mined grade and copper recover have also increased
High copper prices and increased output expected to deliver positive returns in June quarter
Special Report: Hillgrove Resources has increased Kanmantoo mine copper production by 17% in May.
The latest increase in production continues a trend that started when company reopened the mothballed mine in January this year.
Kanmantoo produced ~137,000t of copper and ~55,000oz of gold from a series of open pits between 2010 and 2020 before the 3.6Mtpa process plant and tailings storage facility were placed on care-and-maintenance.
Subsequent work by Hillgrove Resources (ASX:HGO) confirmed its belief that the mined lodes continued at depth below the open pit, paving the way for the company to proceed with a restart using underground ore.
Current operations are expected to deliver between 12,000t and 15,000t of copper per annum over the next four years, production that is likely to have no trouble finding buyers given that Bloomberg Intelligence had flagged late last year that an additional 6 million tonnes of copper capacity could be needed by 2032 to fill demand.
Considerable success has also been made with exploration to further extend mineralisation at Kanmantoo with recent underground drilling extending the continuity of the Spitfire and South West Kavanagh mineral systems.
Operational metrics improving
Besides the increase in copper production to 840t, HGO also noted that all operational metrics have continued to increase.
These include an increase in throughput from 81,426t in April to 84,789t in May, copper grades rising from 0.98% to 1.09% and copper recovery inching up by 0.7% to 90.7%.
“I am pleased to report that our copper production at Kanmantoo continues to increase. Importantly, we are achieving steady increases in all key operating metrics, including production, feed grade and recovery,” managing director Lachlan Wallace said.
“With the appreciation of the copper price, along with the increased production profile, it is planned that May’s revenue will exceed costs, providing the first positive period since operations commenced in June 2023.
“To achieve this financial outcome in less than 12 months from final investment decision is a remarkable effort by the team.
“We look forward to reporting the cash position and June results in the quarterly report on or around the end of July, after which we will revert to quarterly reporting in line with standard practices.”
This article was developed in collaboration with Hillgrove Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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