Hillgrove Resources Limited (HGO) has officially sanctioned the development of the Emily Star underground mining front at its Kanmantoo copper project in South Australia. This decision follows successful drilling campaigns that confirmed geological continuity and established confidence in the site’s potential to serve as a critical component of the mine’s broader extraction plan. By adding a third underground mining front, the company aims to enhance operational flexibility and improve unit efficiency.

"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."

— Bob Fulker, Hillgrove CEO and Managing Director

Development of Emily Star is expected to require between $20 million and $22 million in capital, with a significant portion of this expenditure planned for the latter half of 2026. Management has noted that these costs, alongside ongoing work for the Mutooroo Pre-Feasibility Study, have necessitated an upward adjustment to the company’s 2026 major capital guidance, which now sits at $15–$17 million. Notably, the project will be fully funded through existing operating cash flows.

Technical planning indicates that once the decline is established and stoping activities commence, Emily Star will help displace lower-level production from the Kavanagh area while maintaining a 2 million tonne per annum throughput rate. This scale is expected to support a lower all-in sustaining cost per pound by spreading fixed costs across a larger production volume.

The project is now moving through key regulatory and technical milestones. The company is currently preparing an update to its Programme for Environment Protection and Rehabilitation, with a full submission expected later this year. Additionally, management intends to integrate the latest data from Emily Star into the scheduled Mineral Resources and Ore Reserve update in the December quarter. While development proceeds, the company remains on track for the commencement of stoping in the second half of 2027.

Read the full announcement: Emily Star Development Approved, Capital Guidance Updated