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Highlights
- (ASX:HGO) initiates over 19,000 meters of diamond drilling to uncover additional copper and gold resources.
- Nine high-priority underground targets identified to enhance the project's resource potential.
- Project benefits from South Australia’s 70% renewable energy grid, reducing its environmental footprint.
(ASX:HGO) is ramping up exploration at its Kanmantoo copper project in South Australia, launching a significant underground drilling program aimed at expanding its resource base. With over 19,000 meters of diamond drilling planned, this initiative is set to unlock additional copper and gold deposits, reinforcing Kanmantoo’s position as a key player in the region’s mining sector.
This strategic move follows a recent resource upgrade, which nearly doubled the project's contained copper and boosted its gold content by 138%. The revised estimates highlight the growing potential of the deposit, making it a focal point for future development.
Comprehensive Drilling Strategy for Resource Expansion
The upcoming drilling program will target nine key zones, including four down-dip extensions of the existing resource and five previously untested underground targets. Three of these new targets exhibit surface expressions, indicating strong exploration potential. The total estimated resource size ranges between 25 to 40 million tonnes, with copper grades of 0.7% to 1.4% and gold grades between 0.05 to 0.5 grams per tonne.
All drilling sites are located within a 500-meter radius of the processing plant, ensuring efficient extraction and processing operations. By leveraging past geological insights and drilling data, (ASX:HGO) is positioning itself for further resource growth and potential long-term production increases.
A Rich Mining History with a Strong Future Outlook
Kanmantoo has a well-established mining history, with operations dating back to 2004 when (HGO) revived the site. Between 2010 and 2020, the company successfully ran an open-pit operation before shifting focus to underground resources. Renewed drilling efforts have since identified significant high-grade zones beneath the former open pit, leading to upgraded resource estimates and continued expansion plans.
To support its exploration and development initiatives, (HGO) recently secured a $10 million debt facility, ensuring financial stability as it advances its ambitious drilling program.
Sustainability and Long-Term Growth Plans
Beyond resource expansion, (HGO) is committed to environmental sustainability. The Kanmantoo project benefits from South Australia’s renewable energy infrastructure, with 70% of the power supply coming from clean sources. This not only lowers operational costs but also aligns the company with responsible mining practices.
Looking ahead, (HGO) is set to release an updated resource and ore reserve statement in Q4 2025, incorporating results from ongoing drilling campaigns. The findings could further solidify Kanmantoo’s long-term viability and strengthen its position in the global copper and gold markets.
With a strong focus on exploration, sustainability, and growth, continues to push forward, unlocking new opportunities and reinforcing its role in Australia’s mining industry.
