Ann: Extensional Drilling Identifies New Mineralisation, page-4

Investor Summary

Update: New Copper-Gold Intercept at Kanmantoo Mine (22 April 2025)

What’s Happened

Hillgrove has struck a new zone of copper and gold mineralisation beneath the old Valentine open pit at its Kanmantoo Mine in South Australia.

• A key drillhole (25KVUG0529) intersected:

  • 2.25m at 0.99% copper and 0.16g/t gold

  • Located 180m below previous workings and 300m from existing underground access

• This is a new zone within the existing Mining Lease and was previously unexplored from underground.

Why It Matters

• The discovery opens up a new target area close to existing mine development and infrastructure.

• The copper grades are economically attractive, especially given the proximity to Hillgrove’s 3.6Mtpa processing plant, which currently has excess capacity.

• A third underground drill rig is now on-site to accelerate exploration.

Opinion – What This Means for Investors

This is a positive step in Hillgrove’s strategy to extend the life and scale of the Kanmantoo underground operation.

While the intercept is narrow, the grade is strong, and its location is ideal — near established access and within trucking distance of a ready-to-go plant. Importantly, this zone may just be the start of a larger system, as alteration and structural controls suggest further mineralisation nearby.

Hillgrove is clearly serious about growth, committing to 60,000m of drilling in 2025 and deploying more rigs. If follow-up holes build on this intercept, we could see a material upgrade in resource base and mine plan flexibility.

✅ Bottom Line

This result is encouraging. It's early days, but if this new zone holds together, it could unlock additional copper production at low capital cost — a compelling proposition in a strong copper market.

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