As Larvotto Resources powers ahead with a definitive feasibility study at its flagship Hillgrove antimony-gold project in New South Wales, the company has thrown open the doors to its brand-new community hub in the regional city of Armidale.
Larvotto says its aptly named Hillgrove Hub will deliver on its commitment to keep locals in the loop by offering a front-row seat to the project’s progress, while fostering open dialogue with the community.
The hub is set to officially open next week and was designed for locals to directly engage with Larvotto on employment and business opportunities as the mine edges closer to go-time.
Larvotto Resources managing director Ron Heeks said: "The Hillgrove Hub reflects our long-term commitment to local engagement and regional growth. As the project progresses - with the DFS nearing completion and exploration activities ongoing - we’re proud to be creating employment opportunities, supporting local businesses and delivering critical minerals that will contribute to both the regional and national economy.”
With a strong focus on environmental best practice, Larvotto has tweaked its project design by moving away from a wet tailings storage system to a dry-stacked facility.
Although the change has delayed its definitive feasibility study by a few weeks, the company says the move is expected to bring long-term efficiency and rehabilitation wins. The switch is also likely to substantially shorten the environmental approval lead time.
Larvotto’s Hillgrove project, which hosts an ore reserve of 606,000 ounces grading 6 grams per tonne (g/t) of gold equivalent, is shaping up as a standout operation, with more than $150 million worth of processing infrastructure already in place.
With production slated to fire up by the end of the year, Larvotto is eyeing annual output of 41,000 ounces of gold and a massive 5400 tonnes of antimony or nearly 7 per cent of global supply.
Last year’s prefeasibility study flagged a hefty $93M EBITDA per annum over a seven-year mine life, using price assumptions of US$2000 (A$3225) per ounce gold and US$15,000/t (A$24,200) antimony.
Although the definitive feasibility study is now being modelled on modestly higher commodity prices of US$2400 per ounce gold and US$25,000/t antimony, it is still a far cry from current stunning spot prices of more than US$3200 per ounce and US$60,000/t, respectively.
Add in an all-in sustaining cost projected to fall deep into negative territory when antimony credits are factored in and Larvotto looks highly likely to recoup its $73M capital outlay in well under a year.
Meanwhile, the drill rigs are humming at Hillgrove. Four diamond rigs are running double shifts using a 30-strong crew to lift the quantum of drilling metres and a fifth rig is on the way.
Recent holes at the company’s Bakers Creek and Eleanora-Garibaldi prospects returned rich intersections at depth and close to existing underground workings at Hillgrove.
The new mineralised zone could be the perfect kicker to Larvotto’s early mining plans by providing immediate access to low-cost, high-grade ore.
Best results included 0.6m grading a whopping 183g/t gold equivalent at 493m depth from Bakers Creek and 8.3m grading 10.39g/t gold equivalent from 408.7m. The hits backed up an earlier intercept of 31m grading 65.8g/t gold at the prospect.
Larvotto also hit paydirt at its Eleanora-Garibaldi prospect with standout gold-antimony numbers and has added a further 120m of down-dip extension.
A highlight intercept pulled in 2.9m at a sizzling 20.13g/t gold equivalent, within a 5m hit going 8.38g/t from 310.9m deep. Another hole lit up the core with 5m at 8.38g/t gold equivalent inside a broader 20.7m stretch grading 3.49g/t from 146m.
Garibaldi currently holds an inferred and indicated resource of 2.35Mt at 6.6g/t gold equivalent, packing 372,000 ounces of gold and 17,000t of antimony.
With community engagement firing, exploration heating up, feasibility work nearing the finish line and booming metal prices, Larvotto appears to be building serious momentum across the board.
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By James Pearson
