Multiple High-Grade Zones Expand Resource Potential at Hillgrove Resources
The copper discovery at Hillgrove Resources Ltd has delivered exceptional results through recently completed drilling at the Nugent deposit within its Kanmantoo Copper Mine. This program, conducted from the 1010 Diamond Drill Site and 1040 Nugent Drill Site, has revealed multiple outstanding mineralisation zones that strengthen the company's near-term production outlook.
Standout intercepts from this copper discovery at Hillgrove Resources Ltd include impressive results such as:
- 21m @ 0.85% Cu + 0.98g/t Au from 136m downhole
- 15m @ 0.91% Cu + 0.29g/t Au from 161m downhole
- 11.5m @ 0.99% Cu + 0.79g/t Au from 145.5m downhole, including 4m @ 1.93% Cu + 1.14g/t Au
- 5m @ 1.43% Cu + 0.34g/t Au from 194m downhole
These results are particularly significant as they reveal higher gold grades in the southern extent of Nugent than previously understood, enhancing the overall gold endowment of the deposit.
Gold Distribution Exceeds Previous Expectations
The drilling results have dramatically improved understanding of the gold distribution throughout the Nugent orebody. Previous drilling had suggested lower gold grades in the southern extent, but these new results demonstrate otherwise, pointing to potentially higher overall precious metal credits within the resource.
Hillgrove CEO and Managing Director, Bob Fulker, expressed enthusiasm about the findings: "It is encouraging that each time we test a geological theory we continue to identify additional mineralisation and gain a better understanding of the controls on mineralisation. These results are very exciting, as they provide a greater understanding of the Gold distribution throughout Nugent."
The copper discovery at Hillgrove Resources Ltd comes at an opportune time as the company prepares for first production from the Nugent deposit.
Approaching First Production with Enhanced Understanding
The timing of these discoveries is particularly advantageous as Hillgrove readies for production. The company has announced that the Nugent 1020 Southern Ore Drive will commence stoping in the December quarter this year, with these new drilling results directly informing mining plans.
Furthermore, the dual-purpose drilling program has successfully delivered both grade control data for immediate mining purposes and resource definition for longer-term planning. This approach confirms high-grade continuity and improves understanding of the mineralisation geometry.
Record-Breaking Drilling Progress
August delivered a company record of 8,114.6 meters of diamond drilling for Hillgrove. Year-to-date, an impressive total of 42,816.2 meters has been drilled, putting the company on track to achieve its target of 60,000 meters by the end of the calendar year.
This aggressive drilling campaign supports an updated Resource estimation scheduled for release in the December quarter 2025, incorporating drilling results up to mid-August.
Understanding the Geological Context
What makes this deposit unique?
The copper discovery at Hillgrove Resources Ltd exists within a specific geological context that provides important insights for investors. The Kanmantoo copper-gold mineralisation occurs as an epigenetic system of structurally controlled veins and disseminations. In simpler terms, the minerals formed in pre-existing rock structures, rather than during the original rock formation.
The primary minerals include:
- Chalcopyrite (copper iron sulfide)
- Pyrrhotite (iron sulfide)
- Pyrite (iron sulfide)
- Magnetite (iron oxide)
These minerals occur within a quartz-biotite-andalusite schist host rock, sometimes accompanied by garnet, chlorite, and staurolite. This mineralogical makeup is typical of metamorphic rocks that have undergone intense heat and pressure.
How is gold distributed in the system?
A particularly notable aspect of this deposit is the gold distribution. Gold particles in the system are extremely fine, measured on the micron scale, and appear to overprint all other mineralisation events. This characteristic has important implications for processing and recovery methods.
Structural studies suggest the mineralisation occurs within brittle structures that have been reactivated over time, creating pathways for mineralising fluids. This understanding helps geologists target areas with the highest potential for additional mineralisation.
Investment Implications: Growth Through Exploration
The recent copper discovery at Hillgrove Resources Ltd continues to demonstrate the expansion potential of its Kanmantoo Copper Mine through successful exploration. The consistent discovery of new high-grade zones beyond the current resource boundaries suggests significant upside potential remains.
Key factors for investors to consider include:
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Near-term production catalyst: With stoping at Nugent set to commence in the December quarter, the company is positioned for increased production rates and potential cash flow improvement.
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Resource growth potential: Each round of drilling continues to identify additional mineralisation, suggesting the ultimate size of the resource may be substantially larger than currently defined.
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Improving economics: The higher-than-expected gold grades could significantly improve the overall economics of the operation through precious metal credits.
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Operational momentum: The record drilling pace indicates strong operational execution, with the company on track to achieve its exploration targets.
Why Hillgrove Resources Warrants Attention
Hillgrove represents a compelling copper-gold story at a time when both metals are in high demand, with copper particularly critical for the global energy transition. The company's combination of existing production, near-term development, and ongoing resource expansion creates multiple potential value catalysts.
With first production from Nugent approaching and drilling results consistently exceeding expectations, the copper discovery at Hillgrove Resources Ltd is positioning the company as an increasingly significant player in the Australian copper-gold sector. The upcoming resource update in December 2025 will provide further clarity on the full extent of the company's growing mineral inventory.
The technical success at Nugent demonstrates both the geological potential of the broader Kanmantoo system and the company's exploration expertise in effectively targeting and defining new mineralisation zones – a critical skill for creating shareholder value through resource growth.
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