Slide 1: Great Collaboration Leads to Disruptive Geology at Kanmantoo
For personal use only GREAT COLLABORATION LEADS TO DISRUPTIVE GEOLOGY AT KANMANTOO PETER ROLLEY IIIII CHIEF GEOLOGIST 7 DECEMBER 2018
Slide 2: Disclaimer Statement
DISCLAIMER STATEMENT For personal use only 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 complete
Slide 3: Isn't That What We Have Been Doing for 100 Years?
ISN’T THAT WHAT WE HAVE BEEN DOING FOR 100 YEARS? For personal use only “In business, a disruptive innovation is an innovation that creates a new market and value network…” Wikipedia, 2018 3
Slide 4: The Location
THE LOCATION For personal use only Hillgrove Resources Ltd (ASX:HGO) operates the Kanmantoo Copper-Gold Open Pit in the south-east of South Australia. Mineral Resource Estimate of Meas+Ind 19.6Mt @ 0.6% Cu, 0.1g/t Au Inf 12.3Mt @ 0.6% Cu, 0.1g/t Au Located approx. 55kms from Adelaide Grid power, wat
Slide 5: The Geology
THE GEOLOGY The Kanmantoo Mine extracts For personal use only copper-gold-silver-bismuth from a series of structurally controlled shears, lodes and breccias Original host rocks are greywackes, siltstones, sandstones Cu lode alteration is garnet, chlorite, staurolite Zone alteration is chlorite
Slide 6: The Mine
THE MINE Strong revenue with increasing Cu Metal For personal use only Sept Qtr C1 cash costs US$2.03/lb Cu Realised Copper price A$9030/t Cu Open pit to conclude in Q2 2019 Processing stockpiles to conclude Q3 2020 Assets include: Open Pit Shell Haul Road to ultimate depth of 350m Tailings Fa
Slide 7: The Pumped Hydro Energy Storage
THE PUMPED HYDRO ENERGY STORAGE The Pit Shell at end of Mine Life is an For personal use only Asset Looking to convert it to income as a PHES HGO has no desire to become an energy generator and is Seeking a partner to take forward Open to buy out, or revenue royalty Formal sale process is underw
Slide 8: The Haul Road as a Decline
THE HAUL ROAD AS A DECLINE HGO has demonstrated the For personal use only extension of several high grade copper-gold zones beyond the final pit design e.g. 37m @ 1.1% Cu, 1.9g/t Au 5m @ 32.3g/t Au 12m @ 2.2% Cu, 7.9g/t Au Resulting in an Exploration Target of 5-10Mt @ 1.7-2.2% Cu, 0.4-1.0g/t Au To
Slide 9: Drill Targets Are Within 200m of the Haul Road
DRILL TARGETS ARE WITHIN 200M OF THE HAUL ROAD For personal use only KEY TAKEAWAYS Past drilling confirms UG targets that are ready for infill drilling 9
Slide 10: Using the Haul Road for UG Access
USING THE HAUL ROAD FOR UG ACCESS For personal use only KAVANAGH NUGENT LODES UG access from Giant Pit to Nugent Lodes is now Permitted. KEY TAKEAWAYS Multiple lodes able to be accessed from multiple portals from Pit Haul Road 10
Slide 11: No Systematic Exploration Since 2008
NO SYSTEMATIC EXPLORATION SINCE 2008 For personal use only The Mine Corridor has not seen any systematic exploration since 2008 when the focus was on permitting the Kanmantoo open pit operations The Mine Corridor is ~5kms long AND clearly a large alteration and structural footprint Significant drill
Slide 12: Magmatic Activity Is Evident Post Peak Deformation
MAGMATIC ACTIVITY IS EVIDENT POST PEAK DEFORMATION For personal use only Undeformed alkali feldspar dykes at the mine site are overprinted with Cu & Fe sulphides Monazite age dating = 483 +/- 2.4 Ma Uni Adelaide – Dr R. Lilly/B.Kimpton These dykes are syenites, monzonites to granodiorites and are Cu
Slide 13: Porphyritic Dykes et al
PORPHYRITIC DYKES ET AL For personal use only K-feldspar +/- albite vein 483.7 +/- 4.4 Ma monazite Po & Cpy later than feldspars B.Kimpton - 2018 Jon Standing of Model Earth 2006 – “The porphyry has large (1cm) sericitised feldspar phenocrysts set in a medium- grained feldspathic matrix …. The dyke
Slide 14: Magmatic Activity Is Evident During Orogen
MAGMATIC ACTIVITY IS EVIDENT DURING OROGEN Early igneous activity within the mine For personal use only area are altered alkali feldspar granite dykes These are pre or syn-mineralisation – U-Pb age dating of monazite 500.5 +/- 4.6 Ma (Dr R. Lilly/B.Kimpton) Dykes of highly chloritized Albite, K-feld
Slide 15: Gold and Bismuth Late
GOLD AND BISMUTH LATE Bismuth overprints all other minerals Bi overprints For personal use only Chlorite Gold overprints magnetite, et al Gold can be as inclusions in Chalco, or as 0.5mm native gold Gold and Bismuth often complexed Laser mapping of gold grains shows high Ag, Bi, Hg Au overprints Whi
Slide 16: Deep Seated Conductive Structural Control?
DEEP SEATED CONDUCTIVE STRUCTURAL CONTROL? <3 kms SE of Process Plant For personal use only Coincident MT Conductivity Magnetic RTP High Geochem Cu – Au Further work to define depth to target and scale MT Line AMT/MT conductivity image Magnetics - RTP KEY TAKEAWAYS Is the regional control a deep-s
Slide 17: Andean Type Tectonics?
ANDEAN TYPE TECTONICS? Here is an interpretation of the For personal use only Delamerian Orogen in south-east South Australia (after Belperio et al, 1998 and Foden et al, 2006) Kanmantoo is located in the rift basin – the Kanmantoo Trough And the Kanappa – Mt Rhine projects are located at the margin
Slide 18: A Copper Gold Enriched Province
A COPPER GOLD ENRICHED PROVINCE The regional magnetics clearly show For personal use only the Kanmantoo Trough sedimentary basin and the magmatic arc (Padthaway Ridge) to the east Significant projects for Hillgrove within the Delamerian Orogen include Kanmantoo Cu - Au Kanappa Cu - Au Mt Rhine Cu –
Slide 19: Kanappa Cu-Au
KANAPPA CU-AU For personal use only The Kanappa Cu-Au zone is 50kms from Kanmantoo A series of pegmatites, diorites and aplites intrude into a sequence of Fe and potassic altered schists and carbonates Soil copper zone 4.4kms long Geochemical zonation from west to east Cu-Zn => Cu-Bi => Cu-Au => Au
Slide 20: Kanappa – Isometric View of Copper Geochemistry & Mags
KANAPPA – ISOMETRIC VIEW OF COPPER GEOCHEMISTRY & MAGS For personal use only Copper Geochemistry 3D Magnetic Model Drilling now completed – assay results expected next month KEY TAKEAWAYS Best magnetic zones are correlated with the best geochemistry over 2km strike length 20
Slide 21: Mt Rhine Cu-Au
MT RHINE CU-AU For personal use only The Mt Rhine copper-gold zone 13% Cu is 10kms from Kanappa Soil copper zone 1.7kms long 49g/t Au Peak rock chips of 13% Cu 49.8g/t Au (separate samples) Peak Channel Sampling of 6m @ 15.9g/t Au Much higher gold tenor cf Kanappa Also completed soils, mags, IP KEY
Slide 22: Moving Forward
MOVING FORWARD For personal use only COMPETITIVE ADVANTAGE Fully owned Process Plant and permitted Tailings Facility Fully owned Pit as Pseudo-decline or Pumped Hydro Scheme Cu-Au endowed tenements with access rights GROWTH COPPER-GOLD PROJECTS Kavanagh-Nugent Cu-Au underground targets
Slide 23: Thank You for Listening
For personal use only THANK YOU FOR LISTENING At Kanmantoo we are Utilising existing infrastructure and cash flow to create Company transforming mining projects 23