Hillgrove Resources has officially marked a significant milestone with the commencement of copper production at the Kanmantoo mine in South Australia. This achievement follows the successful commissioning of the processing facility, with the plant commissioning and copper production both accomplished within the targeted timeframe of the first quarter of 2024. The company now stands as one of the few pure-play copper producers on the ASX, anticipating its first revenues from the sale of copper concentrate to be realized this week.

The establishment of mains power to the underground operation is a noteworthy development, resulting in a substantial reduction of approximately 65% in power usage costs. This reduction sees a decrease from around AUS$0.40 per kilowatt-hour to approximately AUS$0.13 per kilowatt-hour. Additionally, the connection to the South Australian power grid, supplied by over 70% renewable energy generation, significantly contributes to reducing Kanmantoo’s carbon footprint.

Lachlan Wallace, the CEO and Managing Director of Hillgrove, conveyed his thoughts on the significant moment in the company's journey, stating that the initiation of copper production from the Kanmantoo underground operation and the transition to cashflow generation represent a watershed moment for the company. He highlighted the significance of this transition, emphasizing that it positions Hillgrove Resources among the select copper producers on the ASX. The rapid achievement of this milestone within eight months underscores the company's capability to deliver on its stated objectives.

In a forward-looking statement, Wallace outlined the upcoming steps for Hillgrove, indicating that over the following months, there is an expectation for the mine output and copper production to increase as the planned additional work areas are established underground. He emphasized the importance of consolidating operations at Kanmantoo as they move toward steady-stage production. The focus will then shift to growing the business by capitalizing on future exploration and development opportunities.

The Kanmantoo project is strategically positioned to benefit from the anticipated growth in copper demand, driven by the global trend of decarbonization through electrification. rephrase the news content in indirect speech. He highlighted the company's exploration target of 60 – 100 million tonnes in close proximity to the underutilized processing plant, including the recently discovered Kanmantoo Deeps target.

The successful commencement of copper production at the Kanmantoo mine signifies a transformative phase for Hillgrove Resources, propelling it into the ranks of prominent copper producers on the ASX. The company's focus on sustainability, cost reduction, and strategic exploration positions it to play a significant role in the evolving landscape of copper production and meet the demands of a decarbonizing world. As Hillgrove progresses from exploration to steady production, its journey reflects the broader industry's commitment to responsible resource extraction and growth.