Hillgrove Resources has announced production of first copper concentrate from the Kanmantoo mine in South Australia, following successful commissioning of the processing facility.
Hillgrove Resources has announced production of first copper concentrate from the Kanmantoo mine in South Australia, following successful commissioning of the processing facility.
Highlights:
- Plant commissioning and production of copper achieved within targeted timeframe of 1Q24.
- Hillgrove is now positioned as one of the few pure play copper producers on the ASX with first revenues from sales of the copper concentrate to be received this week.
- Mains power has now been established to the underground operation resulting in a substantial circa 65% cost reduction to power use from circa AUS$0.40 per kilowatt hour to circa AUS$0.13 per kilowatt hour. Further, connection to the South Australian power grid, which is supplied by over 70% renewable energy generation, substantially reduces Kanmantoo’s carbon footprint.
Commenting on the commencement of copper production, Hillgrove CEO and Managing Director, Lachlan Wallace, said: “First copper production from the Kanmantoo underground operation, and the transition to cashflow generation, is a watershed moment for the company. Over the next few months, the mine output and copper production are expected to ramp up as the planned additional work areas are established underground.
Completing this transition from explorer to producer makes Hillgrove Resources one of only a few copper producers on the ASX, and doing so in eight months highlights the Company’s capability to deliver on stated objectives. Operations will be bedded down at Kanmantoo as we ramp up to steady stage production, and our attention will turn to growing the business by converting future exploration and development opportunities.
The project is well positioned to take advantage of the anticipated growth in demand for copper as the world continues to decarbonise through electrification. To leverage our position as a copper producer into the future, we are actively seeking to grow both the mine life and the annual copper production profile through exploration, starting with our substantial 60 – 100 million t exploration target within in close proximity to the underutilised processing plant, including the recently discovered Kanmantoo Deeps target.”