Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Proactive Investors Australia Emerging Stars in Resources 2010 Conference
49 slides from Hillgrove Resources's conference presentation, Feb 10, 2010
Slide 1: Emerging Stars in Resources 2010
For personal use only Australian Junior Resources Blue Chip EMERGING STARS IN RESOURCES 2010 Proactive Investors Australia Conference 10 February 2010
Slide 2: Disclaimer
Disclaimer For personal use only This presentation should not be relied upon as a representation of any matter that a potential investor or their adviser should consider in evaluating the Company. Potential investors must make their own independent assessment and investigation of the matters contain
Slide 3: Key Assets
Key Assets Australian Mining g Company p y with Asian Growth Pipeline p For personal use only Mining Kanmantoo : oxide copper heap leach – 100% Development Kanmantoo a a oo Coppe Copper/Gold /Go d Mine: e 2.0MTPA -> 3.0MTPA – 100% Exploration Bird’s Head, Indonesia: gold and copper/gold – 80%
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 Bank Commodities, Commodities 9 June 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 stocks, l
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 exp
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 p cut mine from 1971-1976, mining around 4.1Mt of copper ore • Hillgrove commenced work at Kanmantoo in 2003, with production planned in 2011 • Low cost access to critical water water, powe
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 Kanmantoo Project‘s oxide ore heap leach processing operation 11
Slide 13: 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 • Only Australian mid-cap copper developer with production planned to start in 2011: 9 $98 million capex 9 Mining Lease 6345 granted 9 MARP conditionally approved 9 All feasibility studies, metalurgical testing completed 9 Freehold land
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: Indonesia/New Guinea Gold-Rich Porphyry Cu Deposits
Bird’s Head Project Indonesia/New Guinea Gold-Rich Porphyry y y Cu Deposits For personal use only Five of Top 20 Know Gold-Rich Porphyry Copper Deposits1 Rank Deposit p Province Tonnage g Au Au Cu Cu (Mt) (g/t) (t) (Wt %) (Mt) 1. Grasberg East Papua 2,480 1.05 2,604 1.13 28.02 7. Panguna Bougainvill
Slide 18: 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 17
Slide 19: Delta Prospect: West Delta Area
Delta Prospect West Delta Area For personal use only Over 5m silica-pyrite-albite altered monzonite with malachite after fine grained chalcocite in hanging wall Close up of above hanging wall rock with quartz-sulphide veining/stockwork Clay altered & brecciated monzonite 18
Slide 20: Delta Prospect: Copper Rock Geochemistry
Bird’s Head Delta Prospect p For personal use only Copper Rock Geochemistry • High of 17.9% Copper • 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: 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 22: 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: d • 14.35m @ 1.71g/t gold and 2.55g/t silver from 13m in KSD1, incl. 7.55m @ 2.97g/t
Slide 23: Bird's Head Central Prospects
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 22
Slide 24: 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 23
Slide 25: Alpha Prospect: Drilling, Trenching
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 grades, associated with epithermal quartz veins • Very V limited li it d ddrilling illi completed to date with only 5 drill
Slide 26: Bird's Head 2009/2010 Program
Bird’s Head Project 2009 / 2010 Program g For personal use only 2009: 9 Historical data review and compilation 9 Socialisation 9 Logistics established 9 Established coastal base camp and Delta fly camp 9 Geological mapping, rock chip sampling and trenching 2010: • Geophysics • Drilling 25
Slide 27: 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 28: 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 29: 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 30: Sumba Project: Pahandanjal Region
Sumba Project Pahandanjal j Region g For personal use only 29
Slide 31: 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 30
Slide 32: Sumba Project: Masu – Current Focus
Sumba Project Masu – Current Focus For personal use only 31
Slide 33: Sumba Project: Pelitilira Prospect
Sumba Project Pelitilira Prospect p For personal use only Strongly siliceous float sample with malachite staining and abundant disseminated pyrite and galena 32
Slide 34: 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 35: Pahandanjal Prospect – Western Lode
Sumba Project Pahandanjal j Prospect p – Western Lode For personal use only 34
Slide 36: Pahandanjal Prospect – Western Lode
Sumba Project Pahandanjal j Prospect p – Western Lode For personal use only 35
Slide 37: Pahandanjal Prospect – Eastern Vein
Sumba Project Pahandanjal j Prospect p – Eastern Vein For personal use only Trenching at southern end confirmed presence of high grade zone at an interpreted structural t t l intersection. i t ti R Results lt include: i l d • FT18: 14m at 6.97g/t Gold and 10.74g/t Silver including 4m at 10.18g/t gol
Slide 38: Pahandanjal Prospect – Eastern Lode
Sumba Project Pahandanjal j Prospect p – Eastern Lode For personal use only 37
Slide 39: Pahandanjal Prospect – Far South Western Vein
Sumba Project Pahandanjal j Prospect p – Far South Western Vein For personal use only Strong silica-kaolin breccia float 38
Slide 40: Sumba Project: Masu Project
Sumba Project Masu Project j For personal use only 39
Slide 41: Sumba Project: 2009/2010 Program
Sumba Project 2009 / 2010 Program g For personal use only 2009: 9 Historical data review and compilation 9 Socialisation 9 Logistics established 9 Base camp built 9 Geological mapping, rockk chip hi sampling li and trenching 2010: • Further mapping, p g and trenching sampling g • Drilling in early 2
Slide 42: 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 Jim Kerr Geoff Stewart Russell Middleton Dale Ferguso
Slide 43: Hillgrove's Top Shareholders
Key Investors Hillgrove’s g Top p 10 Shareholders For personal use only RBS Sempra Metals & Concentrates Corporation 10.0% Copulos Family 4.4% Ras Al Khaimah Minerals & Metals Investments 4.1% Scott Family 3.6% Mr David S Archer 3.3% Escor 1.5% Dr Kohlhase Vermogensverwaltungs 1.4% Dimensional Fund
Slide 44: 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 $172 million cash to Santos in July 2009 9 U
Slide 45: Half Year Financial Highlights – 31 July 2009
Hillgrove Resources Limited Half Year Financial Highlights g g – 31 Julyy 2009 For personal use only 9 Profit/earnings driven by ESG shareholding: NPAT ($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 per sh
Slide 46: ASX Code: HGO - Key Investment Metrics
Hillgrove Resources Limited ASX Code: HGO - Keyy Investment Metrics For personal use only Hillgrove Resources 9/02/10 Share Price1 $ 0.37 Ordinary shares # 477.8M Fully diluted shares2 496 7M 496.7M Trading History Fully diluted market cap. $183.8M Price (A$) Hillgrove Resources 0.6 4.5 Cash3 $129.4
Slide 47: Copper Peer Valuations
Hillgrove Resources Limited Copper pp Peer Valuations For personal use only EV (US$) / 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 48: Investment Summary
Hillgrove Resources Limited Investment Summaryy For personal use only 9 Strong Balance Sheet Sheet: $130.0 $130 0 million cash or 27 cents per share 2009 9 Targeting discovery of world class gold and copper/gold ore bodies: 2,815 km² – West Papua and Sumba 9 Kanmantoo Copper/Gold Mine: Oxide heap le
Slide 49: 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