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Hillgrove Resources increases Kanmantoo copper throughput to 2.8Mtpa

Published: 10:50 11 Apr 2013 AEST

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Hillgrove Resources (ASX: HGO) has completed the installation and commissioning of the new primary crusher circuit for the Kanmantoo Copper Mine, increasing throughput from 2.4 million tonnes per annum to 2.8 million tonnes per annum.

Importantly, the circuit is now operating in line with expected performance and the increased throughput is expected to produce around 80,000 dry metric tonnes of copper concentrate per annum.

Installation of the new primary crusher circuit and removal of surplus equipment is expected to result in an estimated monthly operational cost reduction of $400,000.

Replacement of the previous circuit was required following an assessment by Hillgrove that the crusher circuit failed to perform to expected levels during ramp-up of the processing plant in 2012.

The circuit arrangement constrained overall performance at the mine and required temporary work-around solutions to maintain throughput levels.

The project is progressing steadily towards its goal of extending the estimated period of operation from 6.5 to more than 10 years.

With Kanmantoo now achieving increased annual production levels for the mine, the new life of mine plan, along with the improving copper feed grade to the mill, will consolidate and increase Kanmantoo’s positive cash generation, over the expected 10 year period of operation.

The new plan contains a total life of mine production target of 30 to 32 million tonnes at 0.7% to 0.8% copper for about 190,000 tonnes of recoverable copper.

Hillgrove is currently finalising updates to its Resource and Ore Reserve based on the exploration drilling completed during 2012.

An updated JORC Resource will be released in the current June quarter and an updated JORC Ore Reserve is slated for release in the September quarter.

Hillgrove held cash of around A$27.4 million, or $0.026 per share, at the end of December 2012.


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