Hillgrove Resources Limited (Hillgrove, the Company) (ASX: HGO) is pleased to provide the following drilling update at its Kanmantoo Mine Lease located at Kanmantoo 55kms southeast of Adelaide in South Australia.

In total, nine diamond holes have been drilled to the end of January 2023 for 2,759.9 metres of drilling. Overall, the 2022-23 drilling is very successfully increasing the mineralisation footprint around the Kavanagh lode system upon the Kanmantoo Mine Lease. The Emily Star mineralisation is located approximately 600 metres west of the Nugent Cu-Au zone and has been previously mined by a shallow open pit by Hillgrove in 2013-2015.

These drill results (KTDD232-233) affirm the down dip continuity of multiple Cu-Au zones previously mined at Emily Star open pit and justify further drilling to determine the extent of these Cu breccia zones. The objective of the Kavanagh drilling (KTDD234 and 234_W1) is to assess the northern continuation of the Central Kavanagh Cu-Au system. The two drill holes affirm that the Kavanagh alteration zone continues to the north hosting narrow zones of higher-grade copper breccia mineralisation. The North Kavanagh Cu-Au zone intersected in five drill holes (KTDD235 to KTDD238) is located approximately 190m west of the proposed Kavanagh underground development and is mineralisation that is in addition to the West, Central and East Kavanagh Cu-Au zones that have been previously reported and inform the May 2022 Kavanagh Mineral Resource Estimate. These drill holes indicate that the North Kavanagh Cu-Au mineralised zone has at least 100m strike length and is open to the north and down plunge

Commenting on the drilling results, Hillgrove CEO and Managing Director, Lachlan Wallace said: 'The latent capacity in the processing plant and tailings storage facility offers an opportunity to expand the annual production rate by incorporating additional work areas for relatively low incremental cost. The recent drilling program at Emily Star and North Kavanagh demonstrates the mineralisation envelopes in both areas extend at depth. Further drilling will be undertaken with view to establishing maiden underground resource estimates for both lodes, and pending results, adding into a future mine plan.'

Contact:

Tel: +61 (0)8 7070 1698

Competent Person's Statement

The information in this release that relates to the Exploration Results is based upon information compiled by Mr Peter Rolley, who is a Member of The Australian Institute of Geoscientists. Mr Rolley is a full-time employee of Hillgrove Resources Limited and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code)'. Mr Rolley has consented to the inclusion in the release of the matters based on their information in the form and context in which it appears. The information in this report that relates to past Exploration and Drilling Results on the Kanmantoo project were initially reported by the Company to ASX on 26 May 2016, 10 October 2019, 3 September 2020, 3 May 2021, 6 May 2021, 24 June 2021, 26 August 2021, 1 September 2021, 21 March 2022, and 6 May 2022. 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 Exploration Results and the Resource Estimate 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.

(C) 2023 Electronic News Publishing, source ENP Newswire