Larvotto Resources has peeled off another impressive set of drill results from its Eleanora-Garibaldi zone at its Hillgrove antimony-gold project in New South Wales. The company has notched up standout intercepts such as 30m at 3.29g/t gold equivalent and 5.4m at 11.99g/t gold equivalent, with several zones still open at depth. The hits are expected to underpin upcoming resource and reserve upgrades.
Larvotto Resources Hillgrove gold and antimony project in NSW would appear to be the gift that just keeps giving after the company tabled some more stellar thick, high grade drill hits at the project.
The new hits are from the company’s Eleanora-Garibaldi prospect that appears to be shaping up well.
One standout hit came in at a blistering 30m grading 3.29 grams per tonne (g/t) gold equivalent from 104m including a solid 4.1m slice going at 8.42 g/t gold equivalent from 116m. Lower down the same hole, the drill bit cut 5.4m grading 11.99g/t gold equivalent from 151.6 m, including a 4m section running at a cracking 15.89 g/t gold equivalent.
A second hole also delivered well with a 16.1m hit going 3.52g/t gold equivalent from 100m, including a 7.5m section grading 6.74g/t gold equivalent, while a third returned 10m intersection graded 3.85g/t gold equivalent from just 41m, including 4.5m at 7.77g/t gold equivalent.
These are the kinds of hits that would demand attention no matter where they land, however, landing them right on the doorstep of Hillgrove’s existing mine infrastructure makes the story even more compelling.
The drilling is virtually in the shadow of the existing mill, with rigs operating in areas still open during construction, which bodes well for a rapid development pathway once resources are upgraded.
The Garibaldi deposit, which includes both the Eleanora and Garibaldi zones, currently hosts a resource of 2.7 million tonnes grading 6.6g/t gold equivalent for 396,000 ounces of gold and 19,000 tonnes of antimony.
Larvotto has now brought the curtain down on the hefty 11,200 m diamond drilling blitz, setting the stage for a new resource estimate and reserve upgrade once the fresh data has been fed into the modelling pipeline.
Earlier scout drilling already hinted at a continuation of the lode to the northwest of Eleanora-Garibaldi and it seems the old timers only skimmed the cream near surface, where they were chasing the richest veins and it would appear they have left plenty of untouched high-grade ground behind.
Larvotto now looks ready to pounce on that opportunity, with a new drilling campaign lined up to target fresh high-grade zones at depth where the system remains wide open and brimming with potential.
Parallel to the drilling, Larvotto is planning geophysical programs across its broader exploration package to sharpen its targeting of new mineralised zones.
Larvotto Resources managing director Ron Heeks said: “It is very encouraging to see our drilling program at Eleanora-Garibaldi continuing to produce high-grade drill results. These results highlight the opportunity to define significant additional mineralisation adjacent to the historic workings.”
Beyond Eleanora-Garibaldi, Larvotto isn’t taking its foot off the pedal. Four diamond rigs are ready and waiting as the company turns its sights to a string of other high-priority targets across the Hillgrove project.
At Metz, the drill bit is set to target the convergence of two key structures, dubbed Blacklode and Syndicate, which is a geological sweet spot with serious potential. Meanwhile, first-pass drilling is underway at Freehold, just 1.2km east of the plant and extensional drilling has kicked off at Clarks Gully, another of Larvotto’s eye-catching growth plays.
Meanwhile, construction at Hillgrove is in full swing. Earlier in the week Larvotto signed up seasoned plant builder, MACA-Interquip-Mintrex, to refurbish and upgrade the plant to a 525,000 tonne-per-annum throughput.
On site, Larvotto is clearing out old equipment, doing earthworks and getting ready for the arrival of key new gear. The main transformer has now been fixed up, allowing for stable high-capacity power to be piped to site, while all the long-lead items have been ordered.
Fully funded by a US$105 million (A$161 million) senior secured bond issue and a fresh $60 million equity raising, the $140 million flagship project is expected to be completed and ready for first production in the second quarter of 2026.
Once the plant is up and running, the company is forecasting to produce about 40,500 ounces of gold and 4,878 tonnes of antimony each year for eight years from the 606,000 ounce reserve grading 6g/t gold equivalent.
An updated definitive study in May, based on assumed spot prices of US$3500 (A$5300) for gold and US$60,000 (A$92,000) for antimony, calculated a whopping net present value of $1.269 billion for the project, generating $354 million of EBITDA and $198 million in free cash flow every year.
However, since then the gold price has continued to boom and is currently trading at more than US$4000 (A$ 6040) per ounce, making those earlier spot prices look somewhat pale. It is anyone’ s guess as to how much more the project is now worth.
Larvotto’s Hillgrove Project is shaping up as a near-mine, high-grade growth story with serious development tailwinds. With thick, high-grade intercepts landing right beside infrastructure and multiple targets still in play, the company looks well placed to build both ounces and optionality fast.
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