Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (May 2017)
26 slides from Hillgrove Resources's shareholder meeting presentation, May 25, 2017
Slide 1: Annual General Meeting Company Update
For personal use only ANNUAL GENERAL MEETING COMPANY UPDATE STEVEN MCCLARE IIIII CEO & MANAGING DIRECTOR 25 MAY 2017
Slide 2: Building on Foundation of Kanmantoo
BUILDING ON FOUNDATION OF KANMANTOO For personal use only KANMANTOO IS THE FOUNDATION • Updated Geological Model performing • Cashflow challenge being managed • Progressive Rehabilitation • Investment phase near complete • Cash generation will commence • Organic Growth • Post Closure opportunities
Slide 3: Kanmantoo – Giant Pit
KANMANTOO – GIANT PIT For personal use only 3
Slide 4: Kanmantoo Infrastructure
KANMANTOO INFRASTRUCTURE For personal use only 4
Slide 5: Kanmantoo Progressive Rehabilitation of Tailings
KANMANTOO PROGRESSIVE REHABILITATION OF TAILINGS For personal use only 5
Slide 6: Progressive Rehab and Offset Planting
PROGRESSIVE REHAB AND OFFSET PLANTING For personal use only 6
Slide 7: Updated Geological Model Performing
UPDATED GEOLOGICAL MODEL PERFORMING For personal use only 7
Slide 8: Cash Shortfall Managed
CASH SHORTFALL MANAGED Cash Shortfall - managed through Initiatives For personal use only • SA Government - loan & bond • Salary reductions and deferrals • Asset sales • Hedge Book • Geological Model updated • Capital raising • Electranet bond • PetroBond • Emeco transaction • Supplier negotiation
Slide 9: Cutback Progress
CUTBACK PROGRESS For personal use only ACTUAL May 2017 LOM PLAN 1064 834 1004 9
Slide 10: Reducing Strip Ratio
REDUCING STRIP RATIO For personal use only January 2017 Giant Pit LOM average Strip Ratio 5.5:1 10
Slide 11: Cash Generation
CASH GENERATION Tough second quarter For personal use only Rebuilt primary excavators Rock slip on east wall requiring interim ramp Multiple floor levels Improving third quarter Neutral cash projected Guidance remains Fourth quarter step up unchanged for 2017 Increasing revenue Cre
Slide 12: Mining Inefficiency in the Second Quarter
MINING INEFFICIENCY IN THE SECOND QUARTER For personal use only Multiple Levels reducing efficiency East wall rock slip 12
Slide 13: Organic Growth
ORGANIC GROWTH For personal use only Organic Growth Existing infrastructure Significant exploration potential Kanmantoo Underground Kanappa Mt Rhine Targeting minimal capital requirement 13
Slide 14: Organic Growth
For personal use only ORGANIC GROWTH PETER ROLLEY IIIII CHIEF GEOLOGIST 25 MAY 2017
Slide 15: Copper Gold Organic Growth Opportunities
COPPER GOLD ORGANIC GROWTH OPPORTUNITIES For personal use only HGO has several copper- gold projects that have the potential to provide significant organic growth Underground at Kanmantoo Copper Mine Kanappa Exploration Mt Rhine Exploration 15
Slide 16: The Extension of High Grade Copper-Gold at Kanmantoo
THE EXTENSION OF HIGH GRADE COPPER-GOLD AT KANMANTOO For personal use only HGO has demonstrated the extension of several high grade copper-gold zones beyond the final pit design Resulting in an Exploration Target1 of 5-10Mt @ 1.7-2.2% Cu, 0.4-1.0g/t Au Refer to ASX Release 25 May 2017 for further
Slide 17: UG High Grade Cu-Au to Leverage Present Infrastructure
UG HIGH GRADE CU-AU TO LEVERAGE PRESENT INFRASTRUCTURE In summary the Exploration Target; For personal use only suggests the potential for significant underground resource opportunity at Kanmantoo beneath and in the wall of the existing final pit suggests that an increase in mine life may be pos
Slide 18: Kanappa Copper Gold Exploration Project
KANAPPA COPPER GOLD EXPLORATION PROJECT For personal use only HGO has completed a soil sampling and rock chip sampling program at Kanappa; 3.7km long by 0.6km wide copper- gold zone Peak rock chips at surface of 34% Cu 4g/t Au Over 100 sites with outcropping Cu Similar to Kanmantoo Refer
Slide 19: Mt Rhine Copper Gold Exploration Project
MT RHINE COPPER GOLD EXPLORATION PROJECT For personal use only HGO has completed a rock chip sampling program at Mt Rhine resulting in; Peak rock chips at surface of 7.1% Cu 49.8g/t Au Channel trenches of 6m @ 15.9g/t Au 6m @ 15.4g/t Au 6m @ 13.1g/t Au 8m @ 5.4g/t Au Strong similar
Slide 20: Planned Activities to Progress Organic Growth Opportunities
PLANNED ACTIVITIES TO PROGRESS THESE ORGANIC GROWTH OPPORTUNITIES HGO plans to progress these three growth For personal use only opportunities through low cost exploration activities, utilising the significant resources within HGO; Kanmantoo UG Exploration Target Finalise structural studies and
Slide 21: MD Presentation (Continued)
For personal use only MD Presentation (Continued)
Slide 22: Post Closure Options
POST CLOSURE OPTIONS Post Closure Options For personal use only Utilisation of existing assets/resources Pumped Hydro Solar Industrial Hub Agriculture 22
Slide 23: Summary
SUMMARY Kanmantoo is the Foundation For personal use only – Resource Model performing – Cashflow challenge managed – Investment phase near complete – Cash generation to commence – Organic Growth opportunities – Post Closure options 23
Slide 24: Q&A
| HILLGROVE RESOURCES Q&A
Slide 25: Statement
STATEMENT No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this docum
Slide 26: Competent Person Statements
COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2016 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag For personal use only Classification (Mt) (%) (g/t) (g/t) Hillgrove is an Australian mining company listed on Measured 10.6 0.6 0.1 1.4 the Australian Securities Exc