en.Wedoany.com Reported - Hillgrove Resources (ASX:HGO) has achieved significant progress in the deep extension drilling at the Kavanagh zone of the Kanmantoo Copper-Gold Mine in Australia, with hole KTDD248_W5 intersecting 24 meters at 1.69% copper and 0.47 g/t gold from 816 meters downhole. The company has been gaining momentum since transitioning to underground mining in early 2024, and these results support its strategy to expand resources and extend mine life.
Mining activities are now fully underway at the Kavanagh and Nugent zones, including blasting, stope extraction, and processing. This deep discovery is significant because it lies beneath an operating mine with existing underground development and a built 3.6 million tonnes per annum processing plant. Since February, Hillgrove Resources has been testing the deep extensions of Kavanagh, using surface directional drilling to efficiently evaluate the system's deep plunge. This approach allows the company to drill a single parent hole and multiple daughter holes from the same drill pad, targeting deeper extensions of the mineralized corridor in a focused manner.
The latest results show that hole KTDD248_W5 intersected 5 meters at 4.7% copper and 1.37 g/t gold from 819 meters. Other results include: hole KTDD248_W2 intersected 13 meters at 0.73% copper and 0.11 g/t gold from 798 meters; and hole KTDD248_W1 intersected 8 meters at 0.50% copper and 0.31 g/t gold from 817 meters.
Hillgrove Resources CEO Bob Fulker stated that these results confirm the growth potential of Kavanagh and highlight the opportunity to continue expanding the resource base. He said that every step forward lays the foundation for a longer-life operation, and the company remains committed to projects that can extend mine life and unlock the full value of Kanmantoo.
Drilling has confirmed mineralization more than 100 meters below the previously known mineralization in the East Kavanagh lode. KTDD248_W5 represents the deepest significant mineralized intersection at Kanmantoo to date, located more than 250 meters below the current ramp level. The company stated that drilling has identified alteration corridors at depth, with mineralization types consistent with those in the areas currently being mined. Holes without significant mineralized intersections still add geological value by helping define fluid pathways, alteration, structural features, and the plunge and strike of the system.
Drilling is ongoing, with KTDD248_W6 (the planned final daughter hole) currently being drilled to test further deep extensions in the area. Surface drilling will guide future infill drilling from underground platforms. The results are expected to be incorporated into Hillgrove's 2026 Mineral Resource estimate update, scheduled for release in the December quarter.
For Hillgrove, the strategic objective is not just to find more copper-gold mineralization, but to find it near an operating mine, active underground development, and existing processing infrastructure. Resource growth near existing development can be more valuable than isolated discoveries, provided follow-up drilling converts these opportunities into recoverable reserves. As underground production ramps up, Hillgrove plans to increase annual mine output to 1.7-1.8 million tonnes, with the Nugent ramp breakthrough directly providing additional ore sources. This offers Hillgrove greater flexibility in ramping up mining production and testing whether Kanmantoo can continue to extend its mine life within its existing mining lease. The timing is also opportune, as copper demand continues to be supported by electrification, renewable energy, grid investment, and the growing needs of power-intensive data centers and artificial intelligence infrastructure.
