Larvotto Resources Limited (ASX:LRV) has announced the results of its Definitive Feasibility Study (DFS) for the Hillgrove Antimony-Gold Project in NSW, demonstrating compelling economics and a clear path to production in 2026. The DFS outlines an initial 8-year mine life, with anticipated extensions from adjacent deposits. Key highlights include a post-tax NPV of $280 million at a base case, which jumps to $694 million at a mid-range price scenario with an IRR of 102%. The all-in sustaining costs (AISC) are projected at $477/oz AuEq, dropping to a negative $-1,367/oz AuEq at mid-price.
Average annual production is expected to reach 40,566 ounces of gold and 4,878 tonnes of antimony. At the mid-price scenario, the project boasts an average LOM EBITDA of $250 million per annum, with post-tax free cash flows of $128 million per annum and a payback period of just 11 months.
The DFS incorporates an upgrade of the existing plant capacity from 250,000 tpa to 525,000 tpa, processing both open-pit and underground ore sources. The project benefits from significant existing infrastructure, including a 66kV grid connection and water supply. Project finance discussions are progressing, with term sheets presented and subject to DFS approval. A seven-year offtake agreement and $6 million prepayment for antimony concentrate have been secured with Wogen Resources.
The study utilized conservative metallurgical recoveries, leaving potential for upside. The base case uses US$2,400/oz gold and US$25,000/t antimony prices. Resource expansion through near-mine exploration remains a key focus. With rising demand for critical minerals, particularly antimony, Hillgrove is positioned to become a globally significant supplier. Managing Director Ron Heeks highlighted the project’s high margins and rapid pathway to production, stating that Hillgrove is poised to become Australia’s largest antimony producer.
