Emily Star Development Approved, Capital Guidance Updated
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17 JULY 2026
EMILY STAR DEVELOPMENT APPROVED, CAPITAL GUIDANCE UPDATED
Hillgrove Resources Limited (Hillgrove or the Company) (ASX: HGO) is pleased to announce that the Board has
approved commencement of Emily Star development as the third underground mining front at the Kanmantoo
Copper Mine (Kanmantoo) in South Australia.
• Emily Star development approved
o Drilling to date confirmed geological continuity and no material geotechnical risks were identified.
o Capital requirement of $20 - $22 million to completion, with $6.5 -7.5 million to be spent in H2 2026.
o Updates to Emily Star Resource will be included in the December Quarter Mineral Resources and Ore
Reserve (MROR) update.
o Stoping is scheduled to commence in H2 2027.
• 2026 Major Capital Guidance increased to $15 – 17 million to reflect Emily Star development and Mutooroo
Stage 1 Pre-Feasibility Study (PFS) work.
Figure 1 Emily Star development and stoping plan based on 2024 Emily Star Mineral Resource Estimate
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Commenting on Emily Star development approval, 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 hasvalidated ourgeological model and given us the confidence toproceed
with development. Emily Star provides an additional mining front, strengthens operational flexibility, and
supports sustained copper production over the life of mine.
Importantly, this investment can be funded from operating cashflows, reflecting the robustness of the
Kanmantoo operation. We look forward to advancing development and continuing to build momentum through
2026.”
Emily Star Development Overview
Drilling across the upper levels of Emily Star has confirmed geological continuity and grade distribution consistent
with the existing block model. The drilling results will be incorporated into the December Quarter MROR update.
Geotechnical logging and structural interpretation indicate variable ground conditions typical of the Kanmantoo
system, but no geotechnical risks have been identified that would prevent development or future stoping. Mine
planning assumptions have incorporated conservative ground‑support and decline‑advance parameters.
Once online, Emily Star is anticipated to displace a portion of lower‑level Kavanagh production whilst achieving a 2
million tonne per annum run rate at Kanmantoo. As throughput increases through the processing plant, fixed costs
will be absorbed over a larger production base, thus lowering the unit All-in Sustaining Cost (AISC).
Stoping is planned to commence in H2 2027, following completion of decline development and establishment of the
required level accesses. Average stope size is approximately 35,000 tonnes, consistent with the broader Kanmantoo
underground mining profile.
The Emily Star development will progress under the existing Programme for Environment Protection and
Rehabilitation (PEPR), with the full PEPR update scheduled for submission later in the year. Approval of the updated
PEPR is expected to be in place ahead of commencing stoping.
2026 Major Capital Guidance Update
Capital required to bring Emily Star into production is estimated to be $20 - 22 million, in addition to the $2.9 million
already spent on drilling and early development. The capital profile is slightly higher than Nugent primarily due to the
additional ventilation raise bore and access infrastructure required. The development of Emily Star will be fully
funded from the Company’s operating cash flow.
With the commencement of Emily Star development and the progression of Mutooroo PFS Phase 1, the Company
has revised its 2026 Major Capital Guidance to $15 - $17 million, which remains fully funded from operating cash
flow.
2026 Major Capital Guidance $8 – 10 million
Updated 2026 Major Capital 15 – 17 million
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Authorised for release by the Board of Hillgrove Resources Limited.
Engage with this announcement at the Hillgrove Resources Investor Hub.
For more information contact:
Mr Bob Fulker Mr Luke Anderson
Chief Executive Officer & Managing Director Chief Financial Officer & Joint Company Secretary
T: +61 (0)8 7070 1698 T: +61 (0)8 7070 1698
Ms Jane Brunton
Head of Investor Relations & Growth
T: +61 (0)8 7070 1698
E: info@hillgroveresources.com.au
Forward Looking Statement
This Report contains or may contain certain forward-looking statements and comments about future events, that
are based on Hillgrove's beliefs, assumptions and expectations and on information currently available to
management as at the date of this presentation. Often, but not always, forward-looking statements can generally be
identified by the use of forward-looking words such as "may", "will", "expect", "plan", "believes", "estimate",
"anticipate", "outlook", and "guidance", or similar expressions, and may include, without limitation, statements
regarding plans, strategies and objectives of management, anticipated production and production potential,
financial forecasts, product quality estimates of future Mineral Resources and Ore Reserves. Such statements are
only expectations or beliefs and are subject to inherent risks and uncertainties which could cause actual values,
results or performance achievements to differ materially from those expressed or implied in this announcement.
Where Hillgrove expresses or implies an expectation or belief as to future events or results, such expectation orbelief
is expressed in good faith and on a reasonable basis. No representation or warranty, express or implied, is made by
Hillgrove that the matters stated in this presentation will in fact be achieved or prove to be correct. Except as required
by law, Hillgrove undertakes no obligation to provide any additional or updated information or update any forward-
looking statements whether on a result of new information, future events, results or otherwise. Readers are
cautioned against placing undue reliance on forward-looking statements. These forward-looking statements are not
guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other
important factors, many of which are beyond the control of Hillgrove, the directors, and management of Hillgrove.
These factors include, but are not limited to difficulties in forecasting expected production quantities, the potential
that any of Hillgrove's projects may experience technical, geological, metallurgical and mechanical problems,
changes in market prices and other risks not anticipated by Hillgrove, changes in exchange rate assumptions,
changes in product pricing assumptions, major changes in mine plans and/or resources, changes in equipment life
or capability, emergence of previously underestimated technical challenges, increased costs, and demand for
production inputs.
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Competent Persons Statement
As an Australian company with securities listed on the Australian Securities Exchange (ASX), Hillgrove is subject to
Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX.
Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral
resources in Australia comply with the 2012 edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the JORC Code).
The information in this report that relates to the 2025 Kanmantoo Mineral Resource Estimate and the 2025 Ore
Reserve is extracted from ASX release titled ‘Hillgrove Delivers Ore Reserve Extension at 1.0% CuEq”, released on
30 October 2025 and is available to view at www.hillgroveresources.com.au. The Company confirms that it is not
aware of any new information or data that materially affects the information included in the original market
announcement and that all material assumptions and technical parameters underpinning the Mineral Resource
Estimate and Ore Reserve in the relevant market announcement continue to apply and have not materially changed.
The Company confirms that the form and context in which the Competent Person's findings are presented have not
been materially modified from the original market announcements.
The information in this report that relates to the 2024 Kanmantoo Mineral Resource Estimate is extracted from ASX
release titled “Maiden Kanmantoo Underground Ore Reserve And 96% Increase In Copper Mineral Resource
Endowment” dated 18 October 2024 and is available to view at www.hillgroveresources.com.au. The Company
confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcement and that all material assumptions and technical parameters underpinning the
Mineral Resource Estimate and Ore Reserve in the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context in which the Competent Person's findings are
presented have not been materially modified from the original market announcements.
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APPENDIX A – 2025 KANMANTOO MINERAL RESOURCE ESTIMATE
Mine Area
JORC
Classification
Tonnage Cu Au Ag Cu Metal Au Metal
(kt) (%) (g/t) (g/t) (kt) (koz)
Kavanagh (including Spitfire)
Measured 4,200 0.80 0.11 2.7 33 15
Indicated 2,700 0.72 0.13 2.5 19 11
Inferred 1
5,800 0.65 0.14 2.5 38 26
Sub-Total 12,700 0.72 0.13 2.6 91 53
North Kavanagh
Measured - - - - - -
Indicated 180 0.78 0.12 3.4 1.4 0.7
Inferred 2
200 0.74 0.29 2.8 1.5 1.9
Sub-Total 380 0.76 0.21 3.0 2.9 2.6
Nugent
Measured 550 0.83 0.38 2.3 4.6 6.7
Indicated 2,300 0.75 0.37 2.0 17 28
Inferred 3
2,800 0.78 0.26 1.9 22 24
Sub-Total 5,700 0.77 0.32 2.0 44 59
Valentines
Measured - - - - - -
Indicated 200 0.65 0.07 1.3 1.3 0.5
Inferred 4
340 0.55 0.05 1.2 1.9 0.5
Sub-Total 540 0.59 0.06 1.2 3.2 1.0
Emily Star
No change to 2024
Measured - - - - - -
Indicated - - - - - -
Inferred 2,600 0.77 0.08 1.6 20 7
Sub-Total 2,600 0.77 0.08 1.6 20 7
TOTAL 22,000 0.74 0.17 2.3 160 120
Notes:
1. Due to effects of rounding, total numbers may not sum.
2. Inferred 1 – includes Kavanagh high grade Inferred; Central Kavanagh, North Kavanagh and Valentines Categorical Indicator Kriging
(CIK) Inferred.
3. Inferred 2 – includes North Kavanagh high grade Inferred only
4. Inferred 3 – includes Nugent high grade and CIK Inferred
5. Inferred 4 – includes Valentines high grade Inferred only
6. Reporting criteria are: Measured, Indicated and Inferred material (RESCAT = 1 or RESCAT = 2 or RESCAT = 3), Cu >= 0.40% (CU_PCT
>= 0.4), in-situ (VOIZONE = 0) with reasonable prospects of eventual economic extraction envelope (MREZONE = 1), Reasonable
Prospects for Eventual Economic Extraction (RPEEE=1).
7. Tonnage and metal are rounded to the nearest 1,000 tonnes, grades are rounded to two significant figures.
8. Mineral Resource is reported at a 0.40% Cu cut-off grade for all mine areas.
9. Mineral Resource is depleted for mining to 30 June 2025.
10. Mine depletion refers to the current Kanmantoo underground operation, and historical Giant, Nugent and Emily Star open pits.
The information is extracted from the report entitled ‘Hillgrove Delivers Ore Reserve Extension at 1.0% CuEq’. released on 30 October
2025 and is available to view on the Hillgrove Website https://www.hillgroveresources.com.au/announcements. The Company confirms
that it is not aware of any new information or data that materially affects the information included in the original market announcement
and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue
to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are
presented have not been materially modified from the original market announcement.
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APPENDIX B – 2025 KANMANTOO ORE RESERVE ESTIMATE
Mine Area Classification Tonnes (kt) Cu (%) Au (ppm)
Cu Eq
(%)
Ag
(ppm)
Cu Metal
(kt)
Au Metal
(koz)
Kavanagh Proved 1,500 0.96 0.11 1.0 2.8 14 5
Probable 900 0.89 0.19 1.0 2.9 8 5
Sub-Total 2,300 0.93 0.14 1.0 2.8 22 10
Nugent Proved 360 0.73 0.37 1.0 1.9 3 4
Probable 1,300 0.73 0.34 0.9 1.9 9 14
Sub-Total 1,600 0.73 0.35 0.9 1.9 12 19
Total Ore
Reserves
Proved 1,800 0.92 0.16 1.0 2.6 17 9
Probable 2,200 0.79 0.28 1.0 2.3 17 19
Total 4,000 0.85 0.22 1.0 2.4 34 29
Notes:
1. Dry metric tonnes.
2. Stope cut-off grade 0.8% CuEq (Copper Equivalent) to define development limits, 0.6% CuEq for stopes along defined
development. Development cut-off grade 0.4% Copper.
3. Approximately 40,000 tonnes of Measured Mineral Resource has been converted to Probable Ore Reserves. The tonnes
are in Nugent Mine Area and are contained in a region with high water inflows from intercepting diamond drill holes.
Further work is required to determine a strategy to profitably mine these tonnes.
4. Reported Ore Reserves do not include any diluting Inferred or Unclassified material. The mine schedule includes 277kt
at 0.2% Cu of non-Reserving material that is mined as unavoidable dilution.
5. Reported grades are rounded to two decimal places, copper equivalent to one decimal place. Tonnes are rounded to
two significant figures. Minimum stoping widths of 5m true width.
6. Reported grades are rounded to two decimal places. Tonnes are rounded to two significant figures.
7. Any minor apparent discrepancies for sums in the table are due to rounding.
8. The period of economic extraction is from July 2025 to April 2028.
9. Ore Reserves are converted from Mineral Resources based on October 2025 Mineral Resources, reported herewith.
10. Competent Person: Mark Hamilton MAusIMM (#221080).
11. Over 18 months of mining actual demonstrates very good ground conditions. It is expected that this will continue, with
Geotech modelling demonstrating stability over modelled life of mine.
CuEq calculation takes into account all material cost drivers that differentiate value derived from copper and gold, expressed
as copper grade in-situ. Drivers applied are concentrator recoveries, metal payability and metal prices. Silver (Ag) is not
included in CuEq calculation due to immaterial value contribution. The following formula is used to calculate CuEq: CuEq =
Cu% + (Au g/t / 31.1034 x Au Rec x Au Pay x Au Price) / Cu Pay / Cu Price / Cu Rec.
Driving values used for 2025 ORE: Metal prices: Cu Price = US$3.85/lb, Au Price = US$3,000/Oz. Metallurgical recoveries: Cu
Rec = 94.5%, Au Rec = 55% Payability: Cu Pay = 95%, Au Pay = 90%. It is Hillgrove’s view that all metals within this formula
will be recovered and sold. Metallurgical recoveries are based on current plant performance. Metal payability is based on
current concentrate quality and contracted marketing terms.
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The information is extracted from the report entitled “Hillgrove Delivers Ore Reserve Extension at 1.0% CuEq”. released on 30
October 2025 and is available to view on the Hillgrove Website https://www.hillgroveresources.com.au/announcements. The
Company confirms that it is not aware of any new information or data that materially affects the information included in the
original market announcement and that all material assumptions and technical parameters underpinning the estimates in the
relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and
context in which the Competent Person’s findings are presented have not been materially modified from the original market
announcement.
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