Larvotto says the latest findings appear to point the way to a significant near-mine growth opportunity and a key ingredient in the company’s fast-moving push to expand its Hillgrove resource.
Larvotto Resources managing director Ron Heeks said: “Drilling at Eleanora continues to demonstrate the potential to deliver meaningful intersections, while Golden Gate is starting to show real continuity with multiple lodes developing.”
Larvotto has pivoted to fresh ground as drilling at Eleanora and Golden Gate nears a close due to construction of the onsite processing plant.
At its Metz prospect, the drill bit will be focused on the intersection of the Blacklode and Syndicate lodes, 2 kilometres west of Eleanora, which the company sees as low-hanging fruit that could add near-term ounces.
At the Freehold prospect, 1.2km from the Hillgrove plant, first-pass drilling has started to probe ground outside the current resource envelope that previously caught the old timers’ eyes.
Last month, Larvotto fired the starter’s gun on its $140 million Hillgrove antimony-gold project, locking in a final investment decision just 18 months after scooping it up for a bargain $8 million.
The company was recently backed by a hefty US$105 million (A$161 million) bond issue and a $60 million equity raising, and is due to kick off production in the second quarter of 2026. This achievement would arguably mark one of the savviest deals struck on the ASX in the past two years.
The project is now on track to become the only new source of antimony outside China for the next four years, which is significant given demand is soaring after Beijing cut exports and sent prices quadrupling.
A May definitive feasibility study showed Hillgrove is a high-margin powerhouse. It forecast a $694 million net present value, $251 million in annual EBITDA and $128 million in free cash flow every year for 8.2 years.
The study assumed a modest US$2850 (A$4357) per ounce price for gold and US$41,000 (A$62,700) per tonne for antimony. Replacing those numbers with the current spot prices sees the net present value explode to a jaw-dropping $1.269 billion, with EBITDA rocketing to $354 million and an annual free cash flow reaching $198 million.
With dazzling drill hits stacking up at Eleanora and Golden Gate, fresh exploration already underway at Metz and Freehold and construction momentum building, Larvotto appears to be fast transforming Hillgrove into a rare Aussie gold-antimony powerhouse.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
