What's Happening?
Hillgrove Resources has received board approval for the development of the Emily Star underground mining front at its Kanmantoo Copper Mine in South Australia. This project is set to become the third underground operation at the site. The company estimates
the capital required for the development to be between A$20 million ($14 million) and A$22 million, with a portion allocated for expenditure in the second half of 2026. Recent drilling has shown geological continuity and a grade distribution that aligns with the existing block model, with no significant geotechnical risks identified. The development is expected to start stoping in the second half of 2027, with the average stope size anticipated to be around 35,000 tonnes. Hillgrove plans to fund the Emily Star development entirely through operating cash flow.
Why It's Important?
The approval of the Emily Star development is significant for Hillgrove Resources as it strengthens the company's operational flexibility and supports sustained copper production over the life of the mine. This development is part of Hillgrove's strategy to unlock the full value of the Kanmantoo system, providing an additional mining front and maintaining a two-million-tonne annual run rate at the site. The project is also aligned with Hillgrove's environment protection and rehabilitation program, ensuring that the development is conducted responsibly. The successful implementation of this project could enhance Hillgrove's position in the copper mining industry, potentially leading to increased revenue and market share.
What's Next?
Hillgrove plans to submit an updated version of its environment protection and rehabilitation program later in the year, with approval anticipated before the start of stoping activities. Once operational, Emily Star is expected to replace some output from the lower-level Kavanagh area. The company will continue to focus on its Mutooroo stage one pre-feasibility study, which, along with Emily Star, has led to a revision of its 2026 major capital guidance to A$15 million to A$17 million. The development's progress will be closely monitored by stakeholders, including investors and environmental groups, to ensure compliance with regulatory standards and the achievement of projected outcomes.
