Australian company Hillgrove Resources (ASX:HGO) has approved development of its Kanmantoo copper and gold mine in the Adelaide Hills.
As per Paul Holloway the South Australian Mineral Resources Minister this would be the second mine to be approved in the Mt Lofty Ranges since 2002. Mr Holloway also said that the Kanmantoo mine was good news for the South Australian Economy.
The mine is located 60 km south of Adelaide and is expected to have a 10 year life. It will also employ around 180 people when during construction phase. Construction of the $121 million copper and gold mine will start on November 1, 2010. When in production phase the mine will employ around 150 people.
The Kanmantoo Copper Mines project. Image Credit: Hillgrove Resources Limited
Hillgrove managing director Drew Simonsen said that it was a big day for everybody in the company as they had been working towards this for a long time. The length process to finance the project and the global financial crisis caused delays along the way. All approvals had now been obtained by the company and it was ready to begin work on the mine.
As per the Hillgrove Resources, the potential for further discoveries and growth of the global copper/gold resource at Kanmantoo is high. The deposit appears to remain open along strike and down dip where additional drilling could materially increase the resource inventory. The Project's regional prospects range from grass roots in nature to those with significant intercepts and resources, which it is hoped will also add additional resources. Further additions to the Mineral Resources at depth and along strike of the open pit, if converted to Ore Reserves, would result in expansion of the open pit or subsequent or concurrent underground mining and increases in the mining rate.
In addition, extensive garnet mineralisation is associated with the copper/gold resource at Kanmantoo. This garnet by-product has the potential to add another revenue stream to potential future cash flows thereby maximising the use of the resource and making the South Australian mine potentially one of the three largest industrial garnet producers in the world. Studies are yet to be undertaken, but it is believed the deposit could support annual garnet production between 100,000 to 200,000 tonnes per annum.