1 September 2016
INFERRED RESOURCE INFILL DRILLING RESULTS
Hillgrove Resources Limited (ASX:HGO) advises that the Company has completed ten RC drill holes within the Giant Pit area to infill gaps in the drill hole coverage identified by the 2016 Mineral Resource Estimate. These drilling gaps have resulted in the mineralisation being categorised as Inferred. In the December quarter, a revised Mineral Resource Estimate and Ore Reserve Estimate will be prepared to incorporate the drilling results. Highlights of the drilling include 1;
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KTRC1004: 53m @ 0.8% Cu, 3g/t Ag from 1m
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KTRC1005: 91m @ 0.5% Cu, 2g/t Ag from 59m including; 8m at 2.3%Cu, 4ppm Ag from 70m
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KTRC1008:; 45m @ 1.4% Cu, 2 g/t Ag from 18m including; 14m at 2.6%Cu, 4ppm Ag from 48m
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KTRC1010; 72m @ 0.7% Cu, 2g/t Ag, from 55m including; 8m at 2.2%Cu, 3.6ppm Ag from 68m
Geology
The Kanmantoo copper operation is located approximately 55km east-south-east of Adelaide, South Australia on Mining Lease 6345 held 100% by Hillgrove. The mine site is fully permitted and has been operational since 2011.
Copper mineralisation at Kanmantoo typically occurs as a complex system of structurally and stratigraphically controlled veins, disseminations and sigmoidal bodies within an intense quartz, biotite, chlorite, garnet and +/- magnetite alteration zone. The central portion of the Giant Pit exhibits strong spatial continuity and intense alteration and mineralisation over broad widths. However, as the alteration intensity weakens with distance from the epicentre, the mineralisation becomes more discontinuous with multiple small layers/zones of intense mineralisation within broad zones of very weak alteration. Primary mineralisation is characterised by coarse grained chalcopyrite, pyrrhotite, pyrite, and minor native gold and native bismuth.
1 All distances are downhole, true width is unknown. Primary intersection is calculated as ≥ 4m downhole > 0.2% Cu, the higher grade intercept is calculated as ≥4m downhole > 0.8% Cu
IIII
5-7 King William Road, Unley SA 5061, Australia T +61 8 7070 1698 F +61 8 8538 5255
The Mineral Resource Estimate released on 26 May 2016 identified significant areas along the western side of the Giant Pit that were not well drilled by the Company due to the pre-existing 1970's open pit. These areas include both the Central Kavanagh and West Kavanagh mineralised zones. Figure 1 shows the Company's past drilling in blue and the location of the 2016 RC drill holes of this report within the Central and West Kavanagh mineralised zones.
Figures 2 to 4 show cross sections through the new 2016 RC drilling in the areas of low drill density. It is clear that the 2016 RC drilling has identified additional mineralisation not previously intersected by the Company which will now be able to inform new areas of the Mineral Resource Estimate.
The drilling results are tabulated in Table 1 based on 0.2% Cu cut-off grade. Table 2 provides the drilling details.
Table 1 RC Drill Intercepts
Area
|
HoleId
|
Minimum 4m > 0.2% Cu
|
From
|
To
|
Down Hole Length
|
Cu%
|
Ag ppm
|
NW Giant
|
KTRC1001
|
16
|
40
|
24
|
0.3
|
1.8
|
NW Giant
|
KTRC1002
|
88
|
101
|
13
|
0.2
|
1
|
NW Giant
|
KTRC1003
|
16
|
38
|
22
|
0.66
|
1.3
|
Kavanagh Central
|
KTRC1004
|
1
|
54
|
53
|
0.75
|
2.9
|
Kavanagh Central
|
KTRC1005
|
59
|
150
|
91
|
0.53
|
1.6
|
Kavanagh West
|
KTRC1006
|
8
|
12
|
4
|
1.37
|
4.6
|
Kavanagh West
|
KTRC1007
|
56
|
67
|
10
|
0.97
|
2.3
|
Kavanagh West
|
KTRC1007
|
116
|
120
|
4
|
0.32
|
1.5
|
Kavanagh West
|
KTRC1008
|
1
|
9
|
8
|
0.48
|
0.7
|
Kavanagh West
|
KTRC1008
|
18
|
63
|
45
|
1.43
|
2.4
|
Kavanagh West
|
KTRC1009
|
21
|
31
|
10
|
1.05
|
3
|
Kavanagh Central
|
KTRC1010
|
25
|
33
|
8
|
0.56
|
1.8
|
Kavanagh Central
|
KTRC1010
|
55
|
127
|
72
|
0.69
|
1.5
|
Kavanagh Central
|
KTRC1010
|
133
|
138
|
5
|
1.36
|
3.7
|
Figure 1 Plan of the Giant Pit showing the location of the 2016 RC drill holes
Figure 2 RC holes in West Kavanagh mineralisation
Figure 3 RC holes in Kavanagh mineralisation in North-West Giant Pit