Larvotto Resources Ltd (ASX: LRV) (FRA: K6X) just cleared a major regulatory hurdle at its flagship gold-antimony mining project in New South Wales, Australia.
The nation’s Department of Planning, Housing and Infrastructure has given the company the green light to proceed with mining and processing activities at the prolific operation. Low commodity prices and operational challenges among previous operators have largely stalled activities at the project since 2016.
Thankfully for Larvotto, the value of antimony (Sb) has been skyrocketing while gold has been on a steady incline ever since the company decided to acquire it.
“In the 12 months since LRV acquired the Hillgrove gold and antimony mine the price [of antimony] has more than quadrupled from <US$10,000 per tonne to over US$40,000!!” Chair Mark Tomlinson highlighted in late January.
It hasn’t stopped going up either, and is now valued at about US$60K per tonne.
“With formal approval now secured, we can immediately finalize financing and move towards a 2025 restart of operations,” Managing Director Ron Heeks highlighted in the company’s ASX announcement, “demonstrating Hillgrove’s true potential as a globally strategic antimony and gold asset.”
Production will commence in 2026. The site will have an eight-year initial mine life with extension potential. It is the top antimony resource in the country, expected to be capable of catering to 7 per cent of global demand.
Hillgrove’s antimony deposit is estimated to hold 90,000 tonnes of the metalloid. The project will also kick out approximately 48,000 ounces of gold every 365 days.
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Approval builds on high-grade core assays & sharp looking DFS
As mining in Australia requires strict government permits, the approval is a major milestone for the company. Now, the Aussie miner is seeking an additional authorization to boost the site’s processing capacity and permit dry stack tailings on-site.
The news follows Larvotto reporting juicy drill results from the property earlier this month, including a 1-metre section with 111.27 grams per tonne gold equivalent (AuEq) within a 48 metre core containing 28 g/t AuEq throughout.
It also follows the release of a definitive feasibility study that was well-received by investors. It showed that the operation has an after-tax net present value of C$620.79 million and is expected to yield yearly EBITDA of C$224.5 million with annual free cashflow of C$114.5 million.
The site has a lengthy history dating back to 1857. It has historically produced more than 730,000 ounces of gold and over 50,000 tonnes of Sb.
Warriedar Resources Ltd (ASX: WA8) (FRA: 2KI0) holds the second-richest antimony deposit under development in the country. It is contained within the Golden Range project in Western Australia.
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