Hillgrove Resources has announced board approval for the development of the Emily Star underground mining front at its Kanmantoo Copper Mine in South Australia.
The project is set to become the third underground operation at the site.
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The company has estimated the capital required to complete the development at A$20m ($14m)–22m, with A$6.5m–7.5m allocated for expenditure in the second half of 2026 (H2 2026).
Recent drilling across the upper levels of Emily Star has indicated geological continuity and a grade distribution that aligns with the existing block model.
No material geotechnical risks were identified during assessments and mine planning assumptions have included conservative ground support and decline development measures.
The resource estimates for Emily Star will be included in the December quarter’s update to the mineral resources and ore reserves.
Stoping at Emily Star is scheduled to start in H2 2027, once development and level access works are completed.
The average stope size is expected to be around 35,000t, consistent with other underground areas at Kanmantoo.
The company plans to fund the Emily Star development entirely with operating cash flow.
With the addition of Emily Star and the ongoing work on the Mutooroo stage one pre-feasibility study, Hillgrove has revised its 2026 major capital guidance to A$15m–17m.
The Emily Star development will take place under Hillgrove’s current environment protection and rehabilitation programme.
An updated version of this programme is scheduled for submission later in the year, with approval anticipated in advance of the start of stoping activities.
The company added that once online, Emily Star is expected to replace some output from the lower-level Kavanagh area, while maintaining a two-million-tonne annual run rate at Kanmantoo.
Hillgrove CEO and managing director Bob Fulker said: “The board’s approval of Emily Star marks another important step in unlocking the full value of the Kanmantoo system.
“The drilling completed to date has validated our geological model and given us the confidence to proceed with development.
“Emily Star provides an additional mining front, strengthens operational flexibility and supports sustained copper production over the life of mine.”
In January 2026, Hillgrove and Heavy Minerals signed a tailings processing agreement to extract and sell garnet from the Kanmantoo process tailings and tailings storage facility in South Australia.
