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.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
