Key Highlights

  • Hillgrove Resources (ASX:HGO) reported multiple high-grade copper-gold drill intersections at Kavanagh.
  • The company’s shares rose 2.13% to AUD0.048 on 14 May 2026.
  • Recent drilling extended mineralisation beyond the current Kavanagh Mineral Resource Estimate.
  • Underground drilling identified deeper intersections at both Kavanagh Central and Kavanagh East.
  • Hillgrove expects the new results to contribute to its planned 2026 Mineral Resource Update. 

Hillgrove Resources (ASX:HGO) attracted investor attention after reporting additional high-grade copper-gold drilling results from the Kavanagh deposit at the Kanmantoo Copper Mine in South Australia.

The company’s shares rose 2.13% to AUD0.048 on 14 May 2026 as the market responded to results that management said continue extending the mineralised footprint beyond the current Mineral Resource Estimate.

According to Hillgrove, recent underground drilling intersected several high-grade copper-gold-silver zones at depth, with grades exceeding the average grade of the existing Kavanagh resource.

Management described the drilling campaign as an important step toward growing the resource base and potentially extending mine life at Kanmantoo.

Drilling delivers high-grade copper-gold intersections

The latest underground drilling campaign returned multiple notable intercepts across both Kavanagh Central and Kavanagh East.

Among the stronger results, hole 26KVUG887 intersected 15 metres grading 2.05% copper, 0.07 grams per tonne gold and 4.5 grams per tonne silver from 152 metres downhole.

Another significant result came from hole 26KVUG0906, which intersected 14.5 metres grading 2.02% copper along with associated gold and silver mineralisation.

Additional intersections included 11.8 metres grading 1.99% copper and 18 metres grading 1.55% copper from separate drill holes within the broader Kavanagh system.

The company noted that these results exceeded the average grade of the current Kavanagh Mineral Resource Estimate and further expanded the known mineralised footprint.

For underground Mining operations, high-grade extensions at depth can materially influence future production planning and mine Economics.

Mineralisation expands beyond current resource limits

Hillgrove stated that the current drilling program has expanded both Kavanagh Central and Kavanagh East beyond the extents defined in the 2025 Mineral Resource Estimate.

The drilling campaign targeted northern extensions from the 750-metre Relative Level underground drill platform, which is currently the deepest available underground drilling position within the mine.

According to the company, Kavanagh Central has now been intersected down to 490 metres Relative Level in hole KVUG0922, representing the deepest underground intersection recorded at Kavanagh so far.

Management also indicated that the interpreted geometry of Kavanagh East has been materially updated through the latest drilling, with increases in both strike length and mineralised width relative to the current resource model.

The results are expected to be incorporated into Hillgrove’s planned 2026 Mineral Resource Update scheduled for completion during the December quarter.

Surface and underground exploration continues

In addition to underground drilling, Hillgrove confirmed that surface drilling targeting deeper Kavanagh extensions remains ongoing, with assays currently pending.

The company also said underground drilling activities have shifted partially toward the Spitfire and Emily Star prospects, where further exploration work is underway.

A total of 4,617 metres of drilling was completed during April across the company’s exploration platforms.

Management highlighted upcoming assay results from the Emily Star drilling program as another key milestone for the broader Kanmantoo operation. Hillgrove expects the Stage 2 Emily Star Investment decision to occur during the second half of 2026.

CEO Bob Fulker stated that the company sees potential for Kanmantoo to evolve into a two-million-tonne-plus operation over time.

Kanmantoo remains central to Hillgrove’s strategy

The Kanmantoo Copper Mine has become the centrepiece of Hillgrove’s broader copper growth strategy in South Australia.

The company has increasingly focused on expanding underground mineralisation beyond the original mine plan through drilling at Kavanagh, Emily Star and nearby targets.

Copper remains one of the most closely watched commodities within the resources sector due to its importance in electrification, renewable energy infrastructure and industrial Manufacturing.

Projects capable of demonstrating resource growth and operational scalability continue attracting investor attention amid expectations of longer-term copper Supply constraints.

About the Company

Hillgrove Resources (ASX:HGO) is an Australian copper producer and exploration company focused on the Kanmantoo Copper Mine in South Australia. The company is advancing underground resource growth and exploration activities across the broader Kanmantoo district.

Industry trends and market context

Copper continues to play a central role in global electrification trends, renewable energy infrastructure and industrial development. Demand forecasts linked to electric vehicles, grid expansion and energy transition technologies have supported ongoing interest in copper exploration and production Assets.

Mining companies with established operations and nearby exploration upside have increasingly focused on extending mine life through underground resource growth. High-grade underground discoveries can improve operational flexibility and support long-term production planning.

At the same time, copper projects remain exposed to Commodity price Volatility, operational performance and Capital cost pressures across the mining sector.

Investment risks and challenges

Hillgrove Resources remains exposed to operational and exploration risks associated with underground mining and resource expansion programs. While the latest drilling has extended mineralisation beyond the current resource model, further work will still be required to confirm continuity, mineability and economic viability.

The company also faces risks linked to commodity price movements, mining costs, permitting and future capital requirements associated with project expansion activities. Pending assays from ongoing drilling programs may not replicate the grades reported in the latest update.

From a bullish perspective, investors may view the deeper high-grade intersections and expanding mineralised footprint as supportive indicators for future resource growth and mine life extension. From a bearish perspective, the company still needs to convert exploration success into sustainable long-term operational performance and economic outcomes.