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Hillgrove Resources gets Kanmantoo Copper-Gold Project MARP approved

Hillgrove Resources (ASX: HGO) has advised that its Mining and Rehabilitation Program (MARP) for the Kanmantoo Copper-Gold Mine Project in South Australia has now been fully approved by the Department of Primary Industries and Resources SA (PIRSA).

David Archer, Hillgrove Resources’ Managing Director, said “with the PIRSA licensing process now complete efforts will be concentrated around concluding the financing of the project as the final component prior to making the final investment decision (FID)."

“Meanwhile, the project continues to move along strongly. The dismantling of the Pillara ore processing facility is well underway and early engineering design will allow for a rapid start up of the site works after the FID,” he added.

Hillgrove’s flagship development is the Kanmantoo Project, located less than 60km from Adelaide in South Australia.

Kanmantoo currently hosts a Mineral Resource of 32.2Mt (2.3Mt Measured, 22.5Mt Indicated and 7.4Mt Inferred) grading 0.9% copper and 0.20g/t gold, containing 292,200 tonnes of copper, 191,100 ounces of gold and 3,313,600 ounces of silver.

With completion of construction targeted for the first quarter of 2011, the company said Kanmantoo will be a 2Mt p.a. open-cut mine producing approximately 17,000 tonnes of copper in concentrate and 8,000 ounces of gold per annum.

Disclosure: The author holds no positions in the company