Kanmantoo Underground

The successful mining ramp up and plant commissioning at the Kanmantoo Copper Mine established a solid platform for delivery in the calendar 2025 year. Group copper production is expected to increase significantly in 2025 to 12,000 to 14,000 tonnes of copper due to a combination of increased quarterly production rates and a full 12 months of production and All-in Costs are planned to improve to 3.40 - 3.90 (US$/lb) as the year progresses as further efficiencies are realised and mining rates continue to ramp up. ¹

Overview

The Kanmantoo underground mine is located just out of Adelaide and operated as a series of open pits from 2010 to 2020, producing around 137kt of copper and over 55k oz of gold. Mining from the underground commenced in May 2023, with commercial production declared in July 2024.

In 2024, 8,971 tonnes of copper and 1,813 ounces of gold was produced.

Kanmantoo Mineral Resources as at 30 September 2024 were 150,000 tonnes of copper (19,300kt grading 0.77% Cu) and 83,000 ounces of gold (19,300kt grading 0.14g/t Au).

The mine is well capitalised with significant infrastructure in place including a 3.6Mtpa processing plant, and a tailings storage facility with 7.0Mt of permitted capacity. It is connected to market via Port Adelaide which is only 70km away. At port we transfer ownership and receive 95% of the sales proceeds, helping to keep working capital requirements low.

Our key achievements in 2024 were:

• Robust Operational Performance: Successfully produced 8,971 tonnes of copper and 1,813 ounces of gold in 11 months of operation
• Significant Resource Growth: A 96% increase in contained copper and a 138% increase in contained gold within the 2024 Mineral Resource estimate at Kanmantoo, alongside the release of a maiden Ore Reserve estimate
• Exploration Advancement: Our exploration programs in 2024 resulted in significant resource expansion. Our next suite of exploration targets will be drill tested in 2025 by a 19,000-metre underground drilling program, targeting new exploration opportunities, including down-dip extensions to known mineralisation
• Operational Excellence: Continued focus on operational predictability and cash flow generation, ensuring we are in a strong position to support future growth

Tier 1 location

The Kanmantoo project is approximately 55km from Adelaide. It is connected to market via Port Adelaide which is only 70km away. At port we transfer ownership and receive 95% of the sales proceeds, helping to keep working capital requirements low.

We have a State Government that understands the value that the resources industry brings to the economy and actively facilitates investment. This was recognised in the 2023 Fraser Institute report that ranked South Australia as the 9^th most attractive mining investment jurisdiction in the world.

Kanmantoo’s position in the majestic Adelaide Hills, makes Hillgrove very attractive employer of choice. Our predominantly residential employees can return home to their families every night and also have access to everything that Adelaide has to offer, including;

• high class education;
• a thriving economy;
• entertainment, including music, arts, sports;
• the best wineries in the World; and
• the cost of living being favourable to cities on the East Coast or Perth.

All of this has resulted in a strong interest in being part of the Kanmantoo underground, where we are building a great culture with a mix of experienced mining professionals and local residents entering the mining industry for the first time. If you are interested in learning more about employment opportunities, take a look at our careers page.

Infrastructure already in place

3.6Mtpa processing plant has been restarted successfully

The tailings storage facility has approved capacity of approximately 7.0Mt

An established four bay workshop which was developed for the open pit is capitalisted well beyond the current needs of the mine

The open pit which was mined to a depth of 360m is a key part of the mine’s infrastructure. The ramp inside the pit wall allows for quick, low cost access to two portals to establish declines to open up multiple working areas in the underground mine.

Mining

Underground mining ramped up on plan since commencing in May 2023. Ground conditions are very competent which assists in achieving high rates of productivity.

Lodes are very close to the pit wall with high grade copper being mined a short distance from the portals in the early years of the mine plan.

1. CY2025 production and All-in Cost guidance is extracted from ASX release titled “Hillgrove Resources Limited (ASX: HGO) report for the quarter ended 31 December 2024“ dated 21 January 2024