Hillgrove Resources Strikes Major High-Grade Copper-Gold Extensions at Kanmantoo Mine
Hillgrove Resources (ASX:HGO) has delivered exceptional drilling results from its underground exploration program at the Kanmantoo Copper Mine in South Australia, with multiple high-grade intersections significantly expanding the known mineralisation boundaries. The company's extensional and infill drilling campaign from the 750 Diamond Drill Cuddy has uncovered substantial copper-gold mineralisation, including standout results of 25m @ 1.82% Cu and 14m @ 2.44% Cu, marking some of the highest-grade intersections achieved to date.
The drilling program has successfully extended the East Kavanagh zone whilst providing crucial geological understanding of the broader Kavanagh system. With 50,140 metres of drilling completed year-to-date and nearing the 60,000-metre target for 2025, Hillgrove is systematically expanding its underground resource base ahead of the 2026 Mineral Resource update.
Underground Drilling Delivers Outstanding Copper-Gold Results
The latest Hillgrove Resources Ltd Kanmantoo drilling results from the underground program showcase the exceptional grade and continuity of the Kavanagh mineralisation system. Furthermore, the company has identified multiple high-grade copper intersections that demonstrate significant extensions to the known ore body.
Key High-Grade Intersections Include:
| Hole ID | Zone | Intersection | Copper Grade | Gold Grade | Significance |
|---|---|---|---|---|---|
| 25KVUG0672 | Kavanagh East | 25m from 89m | 1.82% Cu | – | Largest intersection to date |
| 25KVUG0648 | Kavanagh Central | 14m from 126m | 2.44% Cu | – | Highest grade intersection |
| 25KVUG0643 | Kavanagh Central | 9m from 129m | 1.92% Cu | 0.48g/t Au | Strong copper-gold credits |
| 25KVUG0645 | Kavanagh East | 10m from 58m | 2.4% Cu | – | High-grade near-surface |
| 25KVUG0620 | Kavanagh Central | 9.29m from 208.6m | 1.46% Cu | 0.39g/t Au | Deepest Central intersection |
The drilling program has achieved remarkable consistency, with multiple holes returning significant copper intersections above 1% Cu over substantial widths. In addition, the East Kavanagh zone has emerged as a particularly promising target, with several holes delivering exceptional grades and demonstrating the zone's expansion potential.
CEO Bob Fulker commented: "Drilling across the Kanmantoo system continues to deliver strong results, particularly from the expanding East Kavanagh zone. It's encouraging to see this mineralisation grow, and we look forward to incorporating these excellent results into the 2026 Kanmantoo Mineral Resource Estimate."
Understanding Copper Equivalency: A Key Valuation Metric
For investors new to copper-gold mining projects, understanding copper equivalency is crucial for evaluating the true value of mineralisation. Copper equivalency combines the value of both copper and gold into a single metric, allowing for easier comparison and resource evaluation.
How Copper Equivalency Works:
• Combines copper and gold grades based on their relative metal prices
• Provides a single grade figure representing total metal value
• Essential for mine planning and economic evaluation
• Helps investors compare different mining projects
Why This Matters for Investors?
The Hillgrove Resources Ltd Kanmantoo drilling results show strong copper grades complemented by gold credits, particularly in intersections like 9m @ 1.92% Cu + 0.48g/t Au. However, when combined using copper equivalency calculations, these gold credits can add 15-25% additional value to the copper mineralisation, significantly improving project economics and providing investors with enhanced exposure to both metals.
Systematic Expansion Through Strategic Drilling Campaign
Hillgrove's drilling strategy targets both resource definition and systematic expansion of the known mineralisation boundaries. Moreover, the company has completed 7,324 metres of diamond drilling in September alone, maintaining strong operational momentum toward its annual target.
Drilling Program Highlights:
• 50,140 metres completed year-to-date against 60,000-metre annual target
• 15,675 metres drilled since the August resource database closure
• Focus on Nugent, Spitfire, and deeper Kavanagh zones
• Third underground rig demobilised following record productivity
Target Areas and Strategy:
| Zone | Objective | Progress | Next Steps |
|---|---|---|---|
| East Kavanagh | Resource expansion | Material extensions confirmed | Northern and vertical extent drilling |
| Kavanagh Central | Infill drilling | Deepest intersection achieved | Continued depth exploration |
| Nugent & Spitfire | Resource definition | Active drilling program | Resource confidence building |
The systematic approach ensures maximum value extraction from each drill metre whilst building confidence in the underground resource base. Nevertheless, the company's decision to demobilise the third rig reflects operational efficiency gains and cost optimisation.
Strong Investment Case Built on Resource Growth and Operational Excellence
Hillgrove Resources presents a compelling investment opportunity in the copper sector, underpinned by consistent high-grade drilling results and systematic resource expansion. The company's focus on underground mining provides several advantages over open-pit operations, including higher-grade ore access, reduced environmental impact, and extended mine life potential.
Key Investment Strengths:
• Consistent high-grade results with multiple intersections exceeding 2% copper
• Expanding resource base with significant extensions to known mineralisation
• Strategic location in South Australia's established mining region
• Dual commodity exposure to copper and gold markets
• Operational efficiency demonstrated through record drilling productivity
Resource Growth Trajectory
The 2026 Mineral Resource update will incorporate 15,675 metres of additional drilling completed since the August database closure. Based on current Hillgrove Resources Ltd Kanmantoo drilling results, investors can expect material increases in both resource tonnes and average grades, particularly in the expanding East Kavanagh zone.
Market Position Analysis:
| Factor | Hillgrove Advantage | Industry Context |
|---|---|---|
| Grade Quality | 1.5-2.5% Cu average | Industry average 0.6-1.2% Cu |
| Resource Growth | Active expansion program | Many peers facing resource depletion |
| Operational Control | 100% owned project | Reduced sovereign risk |
| Infrastructure | Established mining operations | Lower development capex requirements |
Why Should Investors Track Hillgrove Resources?
Hillgrove Resources has established itself as a significant underground copper-gold producer with exceptional resource expansion potential. Furthermore, the company's systematic drilling approach continues to deliver outstanding results, with the East Kavanagh zone emerging as a major new growth driver for the operation.
Upcoming Catalysts for Investment Consideration:
• 2026 Mineral Resource Estimate incorporating recent high-grade drilling results
• Continued resource expansion drilling in northern and vertical extensions
• Mine life extension potential from deeper Kavanagh exploration
• Operational optimisation opportunities from improved understanding of ore body geometry
The combination of high-grade copper-gold mineralisation, systematic resource expansion, and operational excellence positions Hillgrove as a standout opportunity in the Australian mining sector. With copper prices supported by global electrification trends and gold providing portfolio diversification, the dual commodity exposure offers investors balanced exposure to key precious and base metals markets.
The latest Hillgrove Resources Ltd Kanmantoo drilling results continue to demonstrate the significant potential for resource growth at the operation. Management's systematic approach to exploration and development, combined with the high-grade nature of the intersections, suggests investors should closely monitor upcoming resource updates and continued drilling campaigns.
In addition, the company's ability to maintain operational efficiency whilst expanding its underground drilling program indicates strong technical capabilities and cost management. This operational discipline, combined with the exceptional grades being intersected, creates a compelling investment narrative for those seeking exposure to high-quality underground copper-gold operations in a stable mining jurisdiction.
Key Investment Takeaway
Hillgrove Resources has demonstrated exceptional drilling success at Kanmantoo, with recent results confirming significant high-grade copper-gold extensions. The company's systematic approach to resource expansion, combined with operational excellence and strategic positioning in South Australia, creates compelling value for investors seeking exposure to high-grade underground mining operations.
With major resource updates pending and continued drilling success, Hillgrove represents a key growth story in the Australian copper sector. The exceptional grades achieved, particularly the 25m @ 1.82% Cu intersection, highlight the substantial mineralisation potential that continues to be unlocked through the company's disciplined exploration approach.
Ready to Discover the Next Major Mining Breakthrough?
Discovery Alert's proprietary Discovery IQ model provides instant notifications when companies like Hillgrove Resources announce significant copper-gold discoveries, helping subscribers identify actionable investment opportunities before the broader market reacts. Start your 30-day free trial today to position yourself ahead of major mineral announcements that could deliver substantial returns.
