Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (November 2019)
22 slides from Hillgrove Resources's investor presentation, Nov 29, 2019
Slide 1: Kanmantoo Growth Pipeline
For personal use only KANMANTOO GROWTH PIPELINE LACHLAN WALLACE IIIII CEO & MANAGING DIRECTOR 29 NOVEMBER 2019
Slide 2: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON 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 completenes
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT Market Statistics Investment Opportunity For personal use only ✓ Cash generation enables growth through Share Price(1) A$p.s 0.065 modest exploration and potential value return Shares on Issue M 585.6 through fully franked dividends Market Capitalisation A$M 38 ✓ Exciting growth p
Slide 4: Summary
SUMMARY ■ Cash generative stage For personal use only ■ Low cost processing of open pit stockpiles generating free cash flows ■ Pumped Hydro ($30m in potential remaining payments) ■ 1.5cps fully franked dividend returned in Jun-19 ■ Funded pipeline of growth opportunities ■ Underground mining develo
Slide 5: Rewarding Shareholders & Funding Future Growth
REWARDING SHAREHOLDERS & FUNDING FUTURE GROWTH ■ Low risk, low cost processing of open pit stockpiles generating cash For personal use only ■ Pumped Hydro Energy Storage (PHES) payments – potentially $30m remaining ■ Franking credits enable fully franked dividends to be distributed ■ Tax credits shi
Slide 6: Exploration & Development
EXPLORATION & DEVELOPMENT ■ Overarching strategy to utilise existing infrastructure including 3.6Mtpa process For personal use only facility and operational TSF to add value by converting exploration targets. KANMANTOO Stella 1 2 3 South East Porphyry Province 6
Slide 7: PHES & Stockpiles / Kavanagh Underground / South Hub
For personal use only PHES & Stockpiles Kavanagh Underground South Hub Stella North West Mullewa South East Mt Rhine Kanappa IOCG / Porphyry Province 7 7
Slide 8: Double Edged Sword
DOUBLE EDGED SWORD For personal use only Upper Pond Lower Pond Pumped Hydro has potential to realise up to $30m but uses pit as lower pond which limits underground mine life below pit 8 Note; Conceptual scheme layout
Slide 9: Kavanagh Underground
KAVANAGH UNDERGROUND ■ Directly below the main pit. Utilises 350m deep pit as a ‘quasi decline’ to establish For personal use only relatively low capital mining operation. ■ Drilling and Feasibility Study undertaken to confirm viability of an short term, low capital underground operation before Pump
Slide 10: Kavanagh Underground
KAVANAGH UNDERGROUND ■ Key Intersections1; For personal use only ■ 16.37m @ 3.0% Cu, 0.21 g/t Au, 7.8 g/t Ag from 434.73m downhole ■ 22.5m @ 2.5% Cu, 0.11 g/t Au, 6.9 g/t Ag from 372m downhole ■ 18m @ 2.3% Cu, 0.16 g/t Au, 7.8 g/t Ag from 367m downhole Drilling confirmed widths and grade suitable fo
Slide 11: Kavanagh Underground
KAVANAGH UNDERGROUND ■ JORC Mineral Resource Estimate of For personal use only 857kt at 1.7%Cu, 0.14 g/t Au (Kavanagh Central & East only).1 ■ Central & East Kavanagh Resource open in all directions (down dip and along strike). ■ West Kavanagh provides opportunity OPEN to increase mining inventory w
Slide 12: Kavanagh Underground
KAVANAGH UNDERGROUND ■ Geotech modelling to assess impact of underground on pumped hydro project For personal use only ■ Permitting process underway – South Australian Regulator assessing application to undertake Kavanagh underground and increase TSF capacity by 7.5Mt which will enable 8-10 years pr
Slide 13: PHES & Stockpiles / Kavanagh Underground / South Hub
For personal use only PHES & Stockpiles Kavanagh Underground South Hub Stella North West Mullewa South East Mt Rhine Kanappa IOCG / Porphyry Province 13 13
Slide 14: South Hub
SOUTH HUB For personal use only South Hub not impacted by Pumped Hydro agreement Note; The Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further 14 exploration will result in the determination of a Mineral Resou
Slide 15: South Hub
SOUTH HUB For personal use only Zone Hole ID DH Length Down hole intercept KTDD141 64 - 76m 12m @ 2.22% Cu, 7.93g/t Au Nugent KTRCD284 183 - 195m 12m @ 1.84% Cu, 0.29g/t Au KTRC557 102 - 115m 13m @ 1.0% Cu, 1.6g/t Au Paringa KTRC954 144 - 161m 17m @ 3.6% Cu, 0.6g/t Au KTRC866 123 - 137m 14m @ 2.8% C
Slide 16: South Hub
SOUTH HUB For personal use only NUGENT EMILY Nugent and Emily pits mined > 100m depth Proof of concept drill program to validate width and grade at depth is suitable for UG ` 16
Slide 17: PHES & Stockpiles / Kavanagh Underground / South Hub
For personal use only PHES & Stockpiles Kavanagh Underground South Hub Stella North West Mullewa South East Mt Rhine Kanappa IOCG / Porphyry Province 17 17
Slide 18: Near Mine – North West & Stella
NEAR MINE – NORTH WEST & STELLA North West; Copper soil anomaly is 2.3kms For personal use only long. Rock chips have identified zones with high gold and copper. Mullewa; Lower priority large alteration area and MT zone with Cu - Au Stella; MT survey suggests a significant conductive zone with Cu &
Slide 19: Near Mine – North West
NEAR MINE – NORTH WEST ■ Copper soil anomaly is 2.3kms long and For personal use only coincident with large air-magnetic anomaly. ■ Rock chips have identified zones with high gold and copper. ■ Strong magmatic association with elevated Mo, Bi, Co, Sn, U, La in rock chips. ■ <5km from Kanmantoo proce
Slide 20: Near Mine – Stella
NEAR MINE – STELLA ■ MT survey suggests a For personal use only significant conductive zone which presents a new large target for exploration Cu & Au ■ Coincident ■ MT Conductivity ■ Magnetic RTP High ■ Gravity Low ■ Geochem Cu, Pb, As, Au MAGNETIC PLATE MODELLED MT CONDUCTIVITY Combination of magne
Slide 21: Kanmantoo Advantages
KANMANTOO ADVANTAGES ■ Infrastructure already in place; For personal use only ■ Low cost 3.6Mtpa process facility. ■ Permitted and operational TSF. ■ Maintenance, offices, warehousing. ■ Essential services in place (2.5GLpa water, 8MW power, fuel storage). ■ Port access via Highway 1 (SE Freeway) on
Slide 22: Why Invest?
WHY INVEST? ■ Cash generating phase uniquely positions Hillgrove to fund growth through For personal use only modest exploration and consider returning value to shareholders through fully franked dividends ■ Mining development opportunities on lease require relatively low capital intensity due to ex
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