Hillgrove proceeds with new underground mine front at Kanmantoo, proposes name-change

The development requires between $20-million and $22-million of capital, with about $7-million planned to be spent in the second half of this year.

Hillgrove plans to have stoping start in the second half of 2027, while updates to the Emily Star resource and reserve estimate will be published in the last quarter this year.

Hillgrove CEO and MD Bob Fulker says the board's approval of Emily Star marks another important step in unlocking the full value of the Kanmantoo system.

"The drilling completed to date has validated our geological model and given us the confidence to proceed with development. Emily Star provides an additional mining front, strengthens operational flexibility, and supports sustained copper production over the life-of-mine.

"Importantly, this investment can be funded from operating cashflows, reflecting the robustness of the Kanmantoo operation. We look forward to advancing development and continuing to build momentum through 2026," Fulker adds.

Hillgrove has updated its capital expenditure guidance for the full year from between $8-million and $10-million to between $15-million and $17-million to include the works at Emily Star.

Once online, Emily Star is anticipated to displace a portion of lower‑level Kavanagh production while achieving a two-million-tonne-a-year run rate at Kanmantoo. As throughput increases through the processing plant, fixed costs will be absorbed over a larger production base, thereby lowering the unit all-in sustaining cost of the Kanmantoo operation.

Meanwhile, Hillgrove will soon seek shareholder approval in respect of a name change to Kantra Copper, as well as for the consolidation of the company's shares on a 15 to 1 basis.

These resolutions are meant to align the company's market identity with its core focus on copper production and development, and to ensure the capital structure is appropriate for the next phase of growth.

Besides, the company's current name has long been confused with the Hillgrove mine in New South Wales, and no longer represents the company's identity as a disciplined copper-focused operator at Kanmantoo, nor its modern operating culture or growth ambitions.

"Kantra" combines "Kan" for Kanmantoo copper mine with "tra", a variation of terra which is Latin for "earth". This creates a name that is grounded in the company's heritage while signalling a broader, future-facing outlook, Fulker explains.

Moreover, Hillgrove says the share consolidation will remove unnecessary confusion in the market and will not alter any shareholder's proportional ownership. Its purpose is to place the company's share price within a more conventional range and to align the register size with sector norms, thereby improving clarity, credibility and market accessibility.