Hillgrove Resources Limited announced that a drill rig has been secured from DRC Drilling to continue drilling at South Hub and the Kavanagh Deeps. Hillgrove and DRC have been working together on diamond drilling programs since 2019 completing approximately 40km of drilling, over 122 separate drill holes during that time. This enduring relationship has resulted in site experienced operators with an understanding of site drilling conditions allowing for the successful completion of technically complex drill holes.

The upcoming drill program will focus on South Hub and Kavanagh Deeps targets, aiming to increase the overall resource base. Additional mineralised zones can assist to increase the number of potential working areas, and may provide additional project value through more efficient utilisation of the existing processing capacity at Kanmantoo. Currently all resource estimates are constrained by the extent of the drilling and not by the geology, in both the strike and dip directions.

HIGHLIGHTS: A drill rig has been secured to continue exploration on the Kanmantoo Copper Project. Drilling will target both mine life extension opportunities down dip of the existing mine design, and additional lodes which may enable increased annual production. All Mineral Resource Estimates remain open at depth and along strike, and limited by the extent of drilling, not geology.

With circa 6,000 tonnes of Resource currently not in the mine plan, a Resource upgrade pending in the June Quarter and the new drilling program, Hillgrove will be looking to extend the current 4 year mine life. This may provide significant upside leverage to the circa $200m in after tax free cash flow generation outlined in the Updated Economic Assessment. Drilling to target extensions of Kavanagh Deeps and South Hub with previous intersections including: Kavanagh Deeps: KTDD203_W5: 3.0m @ 1.11% Cu, 5.02 g/t Au from 794m: (equal deepest hole at Kavanagh at 800m below surface and open) - KTDD198_W5: 11.0m @ 1.59% Cu, 0.05 g/t Au, from 393.0m downhole and 17.3m @ 1.18% Cu, 0.09 g/t Au, from 541m downhole - KTDD189_W8: 10.45m @1.12% Cu, 0.07% Au From 496.3m downhole - South Hub - Emily Star: KTDD233 - 28.75m @ 0.73% Cu including; 5.75m @ 1.96% Cu, 0.19 g/t Au from 181.6m downhole, and 5.85m @ 1.13% Cu, 0.10 g/t Au from 159.25m downhole.

The rig is scheduled to be on site in late March and will commence drilling immediately.