Larvotto Resources Limited (ASX:LRV) has announced the results of its Definitive Feasibility Study (DFS) for the Hillgrove Antimony-Gold Project in NSW. The study demonstrates compelling economics for the project, especially under the mid-range pricing scenario. At base prices of US$2,400/oz gold and US$25,000/t antimony, the project yields a post-tax NPV of $280 million and an IRR of 48%. However, at mid-range pricing (US$2,850/oz gold, US$41,000/t antimony), the post-tax NPV soars to $694 million, with an IRR of 102% and a payback period of just 11 months. Spot prices are even more lucrative.
The DFS outlines an initial 8-year mine life, with plans to expand resources in adjacent deposits. The project targets annual gold production of 40,566 ounces and 4,878 tonnes of antimony. With existing plant capacity expanding from 250,000 tpa to 525,000 tpa, the project expects an average LOM EBITDA of $250 million per annum under the mid-case pricing.
Project financing discussions are well underway, with term sheets presented and subject to DFS approval. Production is slated to commence in Q2 2026. The project is uniquely positioned to become a major Western supplier of antimony and gold concentrates, producing 7% of global antimony supply. A seven-year offtake agreement and $6 million prepayment with Wogen Resources provide commercial certainty.
The study incorporates conservative metallurgical recoveries and concentrate grades. Base-case parameters include a pre-production capital of $139 million, all-in sustaining costs (AISC) of $477/oz AuEq, and payback within 26 months post-production. The mid-price case displays a negative AISC of $-1,367/oz AuEq, underscoring strong margins. Expansion plans target Bakers Creek and the Garibaldi-Brackins Spur corridor. The project’s financial outcomes depend on commodity prices and exchange rates.
