Larvotto Resources (ASX: LRV) has produced its first gold and antimony concentrate at the Hillgrove mine in New South Wales, advancing a project expected to become Australia’s largest antimony producer as global supplies tighten.
Hillgrove is expected to produce about 4,900 tonnes of antimony and 40,500 oz. of gold annually over an initial eight-year mine life. Larvotto has secured binding offtake agreements with Wogen Resources for antimony and Glencore (LON: GLEN) for gold concentrate.
“With the successful production of first concentrate, we now move into the delivery phase of the offtake agreements we have secured, namely the antimony offtake with Wogen Resources and the gold concentrate offtake with Glencore,” managing director Ron Heeks said.
The mine is expected to supply about 7% of global antimony requirements, giving Hillgrove strategic importance as Western governments seek new sources of the critical mineral amid constrained global supply.
Ramp-up begins
First concentrate from the processing plant followed the commissioning of Hillgrove’s flotation circuit and concentrate filter presses, part of an extensive redevelopment and plant upgrade program at the operation.
“These partnerships are significantly important, providing Larvotto with established access to global commodity markets and supply chains,” Heeks said.
Larvotto is now focused on ramping Hillgrove up to its nameplate capacity while pursuing plans to extend the operation well beyond its initial mine life.
“Our focus remains on ramping up Hillgrove to nameplate capacity and growing the project into a multi-decade critical minerals operation,” Heeks said.
The start of production comes as antimony has gained greater strategic importance because of its role in industrial and defence applications and concerns about the concentration of global supply. Hillgrove gives Larvotto exposure to both the critical-minerals market and gold while providing a new Australian source of antimony.
