Larvotto powers into plant upgrade for antimony-gold production

Larvotto Resources has launched a bold refurbishment of key infrastructure at its Hillgrove processing plant near Armidale in New South Wales, as the company looks to ramp up commissioning of the facility in July next year.

Refurb works have officially kicked off at the company’s antimony-gold project, marking the start of a comprehensive plant upgrade to transform the historic processing facility into a modern production powerhouse. 

With a mineral resource of 1.7 million gold-equivalent-ounces grading at an eye-raising 7.4 grams per tonne (g/t) gold-equivalent, the company is in the box seat to bang into production when the refurb has transformed the old plant into a modern beauty.

An ore reserve of 636,000 gold-equivalent-ounces running at 6.6g/t gold-equivalent provides for peace of mind in the quality of the renowned deposit.

Larvotto has tasked leading construction firm MACA-Interquip-Mintrex (MIQM) with the transformative upgrade, awarding the firm the engineering, procurement and construction management role for the coveted gig. MIQM has mobilised equipment and personnel to site to begin weaving its magic. Construction works are slated to run through until the end of June next year.

Bulk earthworks are being undertaken in designated secondary crushing and tailings filter areas, along with the removal of redundant plant equipment. Management says procurement of long-lead items is well advanced, and detailed civil works are expected to begin next month. 

As outlined in Larvotto’s recent definitive feasibility study (DFS), the high-powered upgrade will include the installation of new crushing and regrind circuits, flotation cells, improved concentrate handling facilities and a state-of-the-art filtered tailings facility. The tailings facility will enable environmental rehabilitation in step with refurb works and production activities.

The message is this isn't a rebuild from scratch, it's a savvy resurrection of an asset purchased dirt-cheap, enabling Larvotto to slash its potential capital expenditure by up to 40 per cent. The upgrade fast-tracks the company to producer status in a jurisdiction rich with infrastructure, such as the New England Highway and Armidale airport. The project is just 23km east of the northern New South Wales town.

Larvotto Resources managing director Ron Heeks said: “Partnering with MACA-Interquip-Mintrex is a critical step in ensuring the Hillgrove upgrade is delivered correctly, safely and on time. The construction program will carry us through to mid-2026, culminating in commissioning and the restart of production.” 

Heeks said Hillgrove is on course to re-emerge as a strategic supplier of antimony and gold, which are both currently trading at record prices.

The company nabbed the project from the hands of administrators for peanuts back in December 2023, picking it up for a song at $8 million, which included $5 million to replace a NSW environmental bond. An estimated $200 million was ploughed into the project during its life prior to Larvotto’s canny acquisition.

Hillgrove is Australia’s largest antimony deposit and ranked in the top 10 globally.

China shocked the metals markets when it started imposing export restrictions on various in-demand metals, such as antimony, in September 2024, citing national security concerns. 

The United States is desperate for reliable western supplies of critical minerals, including antimony, which is used in many industrial applications such as defence, the semiconductor sector and green energy technologies.

Larvotto expects to pump out 40,500 ounces of gold and 4878 tonnes of antimony when production is fully motoring. This is equivalent to more than 80,000 gold ounces, based on an eight-year life-of-mine from underground and open-pit operations. The DFS projects an 11-month payback period, a phenomenal internal-rate-of-return of 102 per cent and a net present value of $694 million using an 8 per cent discount rate. 

With its dual-commodity project, Hillgrove is uniquely positioned to become Australia’s leading antimony producer, while reaping heady financial rewards from gold's enduring allure.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au