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Hillgrove Resources Ltd.
Summary
| Project: | Kanmantoo | |
|---|---|---|
| Deposit: | Kanmantoo | |
| Location: | Australia | |
| Commodities: | Copper-Gold-Silver | |
| Date: | 3/15/2018 | |
| Report Code: | JORC | |
| Report Type: | Resource Estimation | |
| Project Stage: | Active Mining & Production | |
| Report details: | 15-3-2018: Hillgrove Resources Ltd. announces a Resource Estimation report for its Kanmantoo deposit at the Kanmantoo project. Annual mineral resource and ore reserve statement. We have come a long way since the first quarter of 2016, when Hillgrove criti | |
| Resources: | (Reserve, P+P): 6.1Mt @ 0.6% Cu, 0.1g/t Au, 1.1g/t Ag for 37Kt Cu contained | |
| CP/QP: | [Resources]: Peter Rolley (Internal) | |
| ABSTRACT: | We have come a long way since the first quarter of 2016, when Hillgrove critically assessed the past performance of Kanmantoo. The depressed copper prices at the time and the deferred copper production associated with the new Mineral Resource Estimate (announced in May 2016), when factored into mine plans and financial projections, were combining to cause a looming cash shortfall throughout 2016 and 2017. Facing this challenge as a real and imminent threat led to an extraordinary effort to successfully implement a wide range of initiatives. To put our operations on a sounder footing, a number of measures were undertaken. These included negotiation of lower charges (and deferred payment terms) with our main contractors, introduction of a 10% wages deferment (now being repaid) for our workforce, deferring price participation with our offtake buyer, completing an infill drilling programme and targeting gold production during a high price period. An important financing initiative was the unwinding of the forward sold copper hedges to realise substantial cash surpluses. This enabled the Company to fully repay the USD debt early without breaching covenants or defaulting on that debt. It should be noted that, had these positions not been closed, the subsequent copper price increase would have led to a negative monetary hedge book value of a similar amount. | |
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