Larvotto Resources (ASX: LRV): Hillgrove DFS Clears the Deck for Antimony Mining Announcement
- Noel Ong
- 3 days ago
- 6 min read
Updated: 2 days ago
Announcement:
When it comes to development-ready assets, timing is everything. Larvotto Resources has just released a highly compelling Definitive Feasibility Study (DFS) for its Hillgrove Antimony-Gold Project in New South Wales—and it’s arrived at the right time. Gold prices are flying. Antimony prices are surging. Even tungsten is starting to catch a bid. Hillgrove is set to become a key player in a world hungry for critical minerals and strategic metals.
What makes this story more exciting is the maturity of the project. Hillgrove isn’t a greenfield dream. It’s a brownfield reality with a strong foundation: existing infrastructure, an 8-year initial mine life, and an offtake agreement already in place. With production slated for 2026, this DFS doesn’t just tick boxes but opens the gate to mining.
The Role of the DFS: A Statement of Readiness
Larvotto’s DFS is more than a technical milestone—it’s a validation that Hillgrove is ready to move. The study confirms the economic and operational viability of expanding the current plant capacity from 250,000 tpa to 525,000 tpa. This study isn’t just about engineering—it’s about de-risking.
The purpose of the DFS is to provide investors, financiers, and stakeholders with a credible roadmap. This includes everything from metallurgical recovery, mine planning, and tailings redesign to operating cost models and risk metrics. What’s clear is that the project economics are robust, and the upside is real.
Project Location: Tapping into History
Hillgrove sits approximately 25 km east of Armidale in northern New South Wales. It’s a region with a mining history that goes back to the 1850s. Over 750,000 ounces of gold and 40,000 tonnes of antimony have been produced here—testament to the region’s mineral endowment and operational continuity. This isn’t a remote site—it’s within reach of highways, rail, power, and skilled labour (Figure 1).
Figure 1: Hillgrove Projection Location Map (source: Larvotto Resources)
DFS Highlights: Strong Margins and Quick Payback
Annual production (LOM average): 85,000 oz AuEq
Gold production: 40,500 oz/year
Antimony production: 4,878 tonnes/year
Post-tax NPV (8%): A$280M (Base) → A$694M (Mid Case)
IRR: 48% (Base) → 102% (Mid Case)
Payback: Just 11 months (Mid Case)
Capital cost: A$139M
Start of production: Q2 2026
What’s particularly impressive is the upside at spot pricing: post-tax free cash flow of A$1.6 billion, IRR of 153%, and a payback in just 8 months. This project has genuine torque on commodity prices.
Project Site and Infrastructure
Larvotto is not starting from scratch. The site already hosts a sulphide concentrator, electrowinning facilities, pressure oxidation plant, and extensive underground development—all in care and maintenance. This dramatically reduces the execution risk compared to a greenfield build (Figure 2).
Figure 2: Hillgrove Gold Antimony Project Site (source: Larvotto Resources)
The DFS outlines both underground (3.5Mt) and open pit (350Kt) mining operations, supported by a hired fleet and contract development teams. Combined with existing grid power (66kV), water supply, and tailings infrastructure, this sets up Hillgrove for a low-capital-intensity restart.
Plant Upgrade: Ready for the Future
The flowsheet has been modernised to enhance recoveries and throughput. Testwork shows metallurgical recoveries of ~87% for antimony and ~84% for gold, exceeding historical levels. The inclusion of dry-stack tailings and updated filtration systems reflects Larvotto’s commitment to environmental responsibility (Figure 3).
Figure 3: Plant View of Hillgrove Process Plant Layout (source: Larvotto Resources)
Managing Director Ron Heeks commented on the DFS:
“The completion of the DFS marks a major milestone. Hillgrove is a high-margin critical minerals project with a rapid path to production.
With production set to commence in 2026, Hillgrove is poised to become Australia’s largest producer of antimony—supplying 7% global demand at a time of tightening supply and strategic urgency.
This DFS is just the first stage. We still have significant resource potential to unlock at Bakers Creek and Garibaldi-Brackins Spur. Hillgrove is a unique asset with strong long-term upside.”
Larvotto’s Share Price: A Market Reawakening
Larvotto’s share price tells its own story (Figure 4). After a long period of consolidation through late 2022 and 2023, the stock began to stir in mid-2024. As confidence in the Hillgrove strategy grew and exploration progress gained attention, the market responded. The significant re-rating in late 2024 and early 2025, where the price surged past $1.00, coincided with key project milestones and rising antimony prices.
While it has since pulled back to around $0.61 (as of 29th May 2025), the elevated price levels reflect renewed investor belief in the company’s trajectory and the strategic value of Hillgrove. The current market capitalisation of the company of AUD $251M is still not very high for a potential antimony and gold producer.
Figure 4: Larvotto Share Price Chart as of closing 29 May 2025 (source: commsec).
Samso’s Concluding Comments
DFS announcements are often formulaic. Over the years, I have learnt that there is a point in the journey of a project where certain key deliverables, like a DFS, are required for the market to understand the lay of the land in terms of what it means for the maturity of the project.
I think Larvotto is a point where clarity and conviction are explained. At this stage, the DFS is saying that the Hillgrove Project is more than just a feasibility case—it’s a project with legs. It has geology. It has infrastructure. It has offtake and commercial alignment. Most importantly, it’s entering the market when the pricing for gold and critical minerals is showing strength.
Antimony is not a metal that gets daily headlines, but its strategic value cannot be overstated. I have been a firm believer in this metal for a long time. It looks like the timing for Antimony to take the stage may have arrived. If I sound uncertain, that is because metals like Antimony are very hard to gauge. It is a "China-controlled" metal, and one statement from China to say, We relax the ban, and the market falls over.
In a world focused on battery security, defence supply chains, and energy resilience, a Western supply of antimony is a rare thing. If the market continues to have this narrative, then Hillgrove offers that and adds gold production to the equation.
For investors who value timing, execution, and relevance, Larvotto’s DFS shows that the company is not waiting for the cycle. It’s stepping into it. This is not just a study. It’s a statement: Larvotto is ready to mine.
As much as I have made the statement in the last paragraph, and as I have just mentioned, I am also eagerly concerned that the tightness of the market is easily undone. As a betting person, I do think that there may be more legs to the ban, but I don't trust politicians, especially entrepreneur-type Presidents.
One other caution in my thinking is the valuation of AUD $251 at this stage. Feels a bit on the low side if you believe the antimony lack of supply story.
Happy Investing and remember, definitely always DYOR.
To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018.
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
Share to Grow: Your Bonus
Samso has just released an eBook: How to Add Value to your Share Portfolio
A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook.
If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au.
Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.
Comments