Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (December 2009)
48 slides from Hillgrove Resources's investor presentation, Dec 15, 2009
Slide 1: Australian Junior Resources Blue Chip
For personal use only Australian Junior Resources Blue Chip 15 December 2009
Slide 2: Disclaimer
Disclaimer For personal use only This ppresentation should not be relied upon p as a representation p of anyy matter that a ppotential investor or their adviser should consider in evaluating the Company. Potential investors must make their own independent assessment and investigation of the matters
Slide 3: Key Assets: Australian Mine with Asian Growth Pipeline
Key Assets Australian Mine with Asian Growth Pipeline p For personal use only Mining Kanmantoo : oxide copper heap leach – 100% Development Kanmantoo a a too Coppe Copper/Gold /Go d Mine: e 2.0MTPA -> 3.0MTPA – 100% Exploration Bird’s Head, Indonesia: gold and copper/gold – 80% Sumba, Indone
Slide 4: Metals Outlook: Copper on the Move
Metals Outlook Copper pp on the Move For personal use only “Right Commodities at the Right Time” Macquarie M i Bank B kC Commodities, diti 9 JuneJ 2009 – “Looking further out, in our view, copper has the best fundamentals of any of the base metals, and should go into an economic upturn with low stoc
Slide 5: Metals Outlook: World Industrial Production & Commodity Prices
Metals Outlook World Industrial Production & Commodityy Prices For personal use only Core of argument g for secular reversal of the long term decline of real commodity prices 4
Slide 6: Kanmantoo Project: South Australian Region
Kanmantoo Project South Australian Region g For personal use only • South Australia is one of the most prospective terrains in the world ¾ Home of the Big One; Olympic Dam • Historically neglected and vastly under explored. • Initial project at Kanmantoo will produce cash flow to fund Hillgrove’s ex
Slide 7: Kanmantoo Copper/Gold Mine 2009
Kanmantoo Project Kanmantoo Copper/Gold pp Mine 2009 For personal use only 6
Slide 8: Kanmantoo Project: Ore Body
Kanmantoo Project Ore Bodyy For personal use only 7
Slide 9: Kanmantoo Project Snapshot
Kanmantoo Project Snapshot p For personal use only • Kanmantoo was operated by NBH/ SBH/EZ as their first open cut mine from 1971-1976, mining around 4.1Mt of copper ore. • Hillgrove commenced work in 2003, and plans to start mining 2010 / 2011. • Low risk access to critical water, power and transpo
Slide 10: Kanmantoo Project Summary
Kanmantoo Project Summaryy For personal use only Resources: 292,700 tonnes copper @ 0.9% 194,700 ounces gold @ 0.2g/t 3,326,300 ounces silver @ 3.2g/t Mining Stage 1: Oxide heap leach operation 450tpa contained copper Mining Stage 2: 2.0Mtpa sulphide float operation to produce ~20,000tpa 20,000tpa c
Slide 11: Kanmantoo Project: Low Risk Features
Kanmantoo Project Low Risk Features For personal use only • Operational histor history significantly significantl de-risks de risks the project • Known, simple metallurgy with excellent recoveries • Large database of exploration, mining and processing information • Capital cost per tonne of annual c
Slide 12: Pillara Plant/Heap Leach Operation
Kanmantoo Project Pillara Plant/Heap p Leach Operation p For personal use only Pillara Mine’s process plant and associated equipment and buildings Oxide ore heap leach processing operation 11
Slide 13: Exploration Focus: Kanmantoo Near Mine Prospects
Exploration Focus Kanmantoo Near Mine Prospects For personal use only 12
Slide 14: Kanmantoo Project: Uniquely Positioned
Kanmantoo Project Uniquely q y Positioned For personal use only • Onlyy Australian mid-cap p copper pp developer p with p production p planned to start in 2011: 9 $98 million capex 9 Mining Lease 6345 granted 9 MARP approval almost complete 9 All feasibility studies, metalurgical testing completed 9
Slide 15: Regional Pipeline – Indonesia
Regional Pipeline – Indonesia Highly g y Prospective p Advanced Gold Exploration p For personal use only 14
Slide 16: Bird's Head Project: Regional Setting
Bird’s Head Project Regional g Setting g For personal use only Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’ 15
Slide 17: Bird's Head Project: Historical Drainage Anomalies
Bird’s Head Project Historical Drainage g Anomalies For personal use only Stream Sediment Anomalies by Gold Work by Normandy and past explorers highlighted 16 high order anomalies, with Bird’s Head containing 10 of these 16
Slide 18: Delta Prospect: West Delta Area
Delta Prospect West Delta Area For personal use only 17
Slide 19: Bird's Head Delta Prospect: Gold Rock Geochemistry
Bird’s Head Delta Prospect p For personal use only Gold Rock Geochemistry • Confirms large corridor of mineralisation • Peak value of 205g/t gold • Peak values 205g/t gold, 471g/t silver, 17.9% copper, 6.3% lead, 7.5% zinc (not same sample)
Slide 20: Bird's Head Delta Prospect: Copper Rock Geochemistry
Bird’s Head Delta Prospect p For personal use only Copper Rock Geochemistry • High of 17.9% Cu • Multiple results in 1-20% range • High grade mineralisation of epithermal style plus broad l low grade d copper withith intrusives suggests porphyry style mineralisation
Slide 21: Delta Prospect: Significant Trench Intercepts
Bird’s Head Delta Prospect p For personal use only Significant Trench Intercepts Trenching T hi results lt confirmed fi d presence of high grade epithermal mineralisation F ll Follow up d drilling illi iintersected: t t d • 14.35m @ 1.71g/t gold and 2.55g/t silver from 13m in KSD1 incl KSD1, incl. 7
Slide 22: Bird's Head Central Prospects: Gold Geochemistry
Bird’s Head Project Central Prospects p For personal use only Gold (g/t) Geochemistry Significant untested geochemical anomalies, i.e. stream anomaly at Quebec similar to that originally defined by Alpha/Bravo anomalies 21
Slide 23: Bird's Head Alpha Prospect: Gold Soil Geochemistry
Bird’s Head Project Alpha p Prospect p For personal use only Gold (g/t) Soil Geochemistry 1 Kilometre Batu Hijau Extensive gold mineralisation, which appears to be strongly structurally controlled 22
Slide 24: Alpha Prospect: Drilling, Trenching Locations
Bird’s Head Project Alpha p Prospect p For personal use only Drilling, Trenching Locations on Gold Soil Geochemistry B15 Anomaly • Bonanza trenching A17/19 Anomaly grades gold associated grades, with epithermal quartz veins • Very limited drilling completed to date with only 5 drill holes • Signific
Slide 25: Bird's Head Project: 2009 Work Program
Bird’s Head Project 2009 Work Program g For personal use only The 2009 work program has progressed well and subject to approval is also likely to include: 9 Further historical data review and compilation 9 Socialisation 9 Logistical support 9 Establish coastal and Delta base camp 9 Geological mappin
Slide 26: Bird's Head Project: Key Attributes
Bird’s Head Project Key y Attributes For personal use only Bird’ss Head is an exciting exploration project: Bird • Favourable tectonic setting in tertiary volcanics • Outstanding surface geochemistry • Strong indications of a multi-phased mineralising system, epithermal over printing porphyry • Two
Slide 27: Bird's Head Project: Summary
Bird’s Head Project Summaryy For personal use only • The Bird Bird’ss Head Project represents an excellent opportunity to explore for large scale epithermal and porphyry style mineralisation within a geological setting that has been proven to host world class deposits • The Project covers a large ar
Slide 28: Indonesia: Sumba Island Prospect (80%)
Indonesia Sumba Island Prospect p ((80%)) For personal use only • IUP Explorasi No 322/kep/HK/2009 granted on 2 November for six years on Sumba covering an area of 1 000km2 1,000km • Hillgrove’s Indonesian partner PT Fathi Resources free carried to decision to mine with 20% interest • Sumba offers a
Slide 29: Sumba Project: Pahandanjal Region
Sumba Project Pahandanjal j Region g For personal use only 28
Slide 30: Significant rock chip/float assays from Pelitilira Prospect
Sumba Project Significant g rock chip/float p assays y from Pelitilira Prospect p For personal use only 29
Slide 31: Sumba Project: Masu – Current Focus
Sumba Project Masu – Current Focus For personal use only 30
Slide 32: Sumba Project: Pelitilira Prospect
Sumba Project Pelitilira Prospect p For personal use only Strongly g y siliceous float sample with malachite staining and abundant disseminated pyrite and galena 31
Slide 33: Pahandanjal Prospect - Western Vein
Sumba Project Pahandanjal j Prospect p - Western Vein For personal use only Outcropping vein zone (identified by Hillgrove in rock chip sampling in May-June) was trenched in October-December October December 2009 revealing multiple high grade lodes which are enveloped by low grade alteration Signifi
Slide 34: Pahandanjal Prospect: Western Lode
Sumba Project Pahandanjal j Prospect p For personal use only Western Lode 33
Slide 35: Pahandanjal Prospect – Western Lode
Sumba Project Pahandanjal j Prospect p – Western Lode For personal use only 34
Slide 36: Pahandanjal Prospect – Eastern Vein
Sumba Project Pahandanjal j Prospect p – Eastern Vein For personal use only Trenchingg at southern end confirmed p presence of high g ggrade zone at an interpreted p structural intersection. Results include: • FT18: 14m at 6.97g/t Gold and 10.74g/t Silver including 4m at 10.18g/t gold and g Silver a
Slide 37: Pahandanjal Prospect – Eastern Lode
Sumba Project Pahandanjal j Prospect p – Eastern Lode For personal use only 36
Slide 38: Pahandanjal Prospect – Far South Western Vein
Sumba Project Pahandanjal j Prospect p – Far South Western Vein For personal use only Strong silica-kaolin silica kaolin breccia float 37
Slide 39: Sumba Project: Masu Project
Sumba Project Masu Project j For personal use only 38
Slide 40: Sumba Project: 2009 Work Program
Sumba Project 2009 Work Program g For personal use only The 2009 work program is progressing and subject to approval is likely to include: 9 Further historical data review and compilation 9 Socialisation 9 Logistical support 9 Establish base camp 9 Geological mapping, rockk chip hi sampling li and t
Slide 41: Introduction to Hillgrove: Board of Directors
Introduction to Hillgrove Board of Directors For personal use only Legend Non-Executive Director Executive Director Management Team John Quirke Ron Belz David Archer Dean Brown AO John Gooding Director Director Managing Director Chairman Director Geoff Stewart Russell Middleton Dale Ferguson General
Slide 42: Hillgrove's Top Shareholders
Key Investors Hillgrove’s g Top p 10 Shareholders For personal use only RBS Sempra Metals & Concentrates Corporation 11.6% Copulos Family 8.0% Ras Al Khaimah Minerals & Metals Investments 4.7% Mr David S Archer 3.9% Scott Family 3.8% Quantex 1.9% Dr Kohlhase Vermogensverwaltungs 1.9% Ingalls g & Sny
Slide 43: Eastern Star Gas Limited Investment
Eastern Star Gas Limited Investment For personal use only 9 Hillgrove identified Narrabri CSG opportunity in 2003 and took a 32.5% direct JV interest 9 JV interest swapped for 172 million ESG shares in 2006 9 Sold 19.9% share/option p holding g in ESG for $172 million cash to Santos in July 2009 9 U
Slide 44: Half Year Financial Highlights – 31 July 2009
Hillgrove Resources Limited Half Year Financial Highlights g g – 31 Julyy 2009 For personal use only 9 Profit/earnings driven by ESG shareholding: NPAT ($m) EPS (cents) FY2007 10.8 4.9 FY2008 (4 9) (4.9) (2 0) (2.0) FY2009 11.1 3.4 Half 2010 54.0 13.1 9 Dividends paid: • 6 October 2009 1 cent p per
Slide 45: ASX Code: HGO - Key Investment Metrics
Hillgrove Resources Limited ASX Code: HGO - Keyy Investment Metrics For personal use only Hillgrove Resources 08/12/09 Share Price1 $ 0.38 Ordinary shares # 415.5M Trading History Fully diluted shares2 435 4M 435.4M Price (A$) g Hillgrove Resources 0.4 4.5 Fully diluted market cap. $165.4M 0.35 4.0
Slide 46: Copper Peer Valuations
Hillgrove Resources Limited Copper pp Peer Valuations For personal use only EV (US$) / Copper C Equivalent E i l t Contained C t i d Metal M t l (t) • Hillgrove is currently trading at US$452/t US$/t Development and Exploration Producing of contained copper 1,600 equivalent i l t reserve 1,400 • Adi
Slide 47: Investment Summary
Hillgrove Resources Limited Investment Summaryy For personal use only 9 Strong Balance Sheet: $127.5 $127 5 million cash or 31 cents per share at 31 July 2009 9 Targeting discovery of world class gold and copper/gold ore bodies: 2,815 km² – West Papua and Sumba 9 K Kanmantoo t Copper/Gold C /G ld Mi
Slide 48: Exploration Results: Competent Persons
Exploration Results Competent p Persons For personal use only The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMet Resources Limited is based on information compiled by Mr Dale Ferguson, Ferguson who is a Member of The Australasian
Hillgrove Resources — Investor Presentation (December 2009) on 6ix