Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Australian Copper Conference 2011
48 slides from Hillgrove Resources's conference presentation, Mar 24, 2011
Slide 1: Asia Pacific Copper Miner
For personal use only ASIA PACIFIC COPPER MINER AUSTRALIAN COPPER CONFERENCE 24 MARCH 2011 PRESENTED BY DREW SIMONSEN MANAGING DIRECTOR
Slide 2: Disclaimer
DISCLAIMER No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (Hillgrove) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (the Presentation), or
Slide 3: Company Overview
COMPANY OVERVIEW AUSTRALIAN MINING COMPANY WITH AUSTRALIAN-INDONESIAN GROWTH PIPELINE For personal use only Hillgrove Resources (“HGO”) is an Australian based minerals exploration and development company Bird’s Head project HGO’s flagship project is the Sumba project Kanmantoo Copper Mine projec
Slide 4: Strategic Direction and Focus
STRATEGIC DIRECTION AND FOCUS NEAR TERM PRODUCTION, HIGHLY PROSPECTIVE EXPLORATION Deliver Kanmantoo as a producing For personal use only asset, on time and within budget Single mine producer in 9 months Multi-mine producer within 5 years Australia and Indonesian focus for near term Levera
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION For personal use only ASX listed: HGO SHAREHOLDER DISTRIBUTION Shares on issue: 793.7 million J.P. Morgan Metals & Concentrates Share price: A$ 0.295 10% Market capitalisation: A$234 million (28 February 2011) Cash and cash equivalent
Slide 6: Kanmantoo Copper Mines Project
For personal use only Kanmantoo Copper Mines Project
Slide 7: Highlights and Location
KANMANTOO COPPER MINES HIGHLIGHTS AND LOCATION AUSTRALIA’S NEXT PRODUCING COPPER/GOLD MINE 100%-owned by Hillgrove For personal use only Located just 55km from Adelaide, in South Australia The project enjoys commensurate capital Exploration Area EL4401 cost advantages Close to power, water,
Slide 8: 2010 – Prior to Construction
KANMANTOO COPPER MINES 2010 – PRIOR TO CONSTRUCTION For personal use only 8
Slide 9: View of Plant Site from Top of Old Waste Dump
KANMANTOO COPPER MINES VIEW OF PLANT SITE FROM TOP OF OLD WASTE DUMP For personal use only 9
Slide 10: View of Tailings Storage Facility (TSF)
KANMANTOO COPPER MINES VIEW OF TAILINGS STORAGE FACILITY (TSF) For personal use only 10
Slide 11: Planned Project Highlights
KANMANTOO COPPER MINES PLANNED PROJECT HIGHLIGHTS Plant construction commenced For personal use only Pre-strip and tailings dam construction commenced First copper/gold production scheduled for November 2011 10 year mine life with potential to expand, subject to further resources Life-of-m
Slide 12: FID and Construction Started November 2010
FID AND CONSTRUCTION STARTED NOVEMBER 2010 SUMMARY OF CAPITAL AND DEVELOPMENT COSTS TO BRING KANMANTOO TO PRODUCTION Project Total FID Capital Costs Construction Period Costs For personal use only Total Capital costs Capital costs Spend Period Remaining capital costs spent to 31/8 for FID 1/9 to 31/
Slide 13: Processing Overview
KANMANTOO COPPER MINES PROCESSING OVERVIEW Lime ROM Second-hand Pillara plant BIN FEED PRODUCT VIBRATING BIN SCREEN For personal use only GRIZZLY NEUTRAL- disassembled and relocated FEEDER JAW CRUSHER ISATION TANK from Western Australia by STOCK PILE HYDRO PROCESS WATER TANK SECONDARY CYCLONE Abes
Slide 14: Current Activity – Site View 1 of 2
KANMANTOO COPPER MINES – CURRENT ACTIVITY SITE VIEW WITH PLANT LOCATION SCHEMATIC (FROM LEFT TO RIGHT 1 OF 2) For personal use only Stockpile Feed Stockpile Feed Crusher Conveyor Conveyor Footings
Slide 15: Current Activity – Site View 2 of 2
KANMANTOO COPPER MINES – CURRENT ACTIVITY SITE VIEW WITH PLANT LOCATION SCHEMATIC (FROM LEFT TO RIGHT 2 OF 2) Stockpile Feed Concentrate Filter Abesque Hillgrove York Civil For personal use only Conveyor Storage Processing Construction Administration Construction Footing Area Area Office Block Offic
Slide 16: Construction Progress
KANMANTOO COPPER MINES CONSTRUCTION PROGRESS For personal use only Abesque Engineering principal contractor Construction to date 35% complete, on time and within budget Permanent administration block completed and occupied Mill Foundation pedestals completed and steel is rising Parsons Bri
Slide 17: Prestrip and Mining Area
KANMANTOO COPPER MINES – CURRENT ACTIVITY PRESTRIP AND MINING AREA For personal use only
Slide 18: Mining and Prestrip Area with Crusher in Foreground
KANMANTOO COPPER MINES – CURRENT ACTIVITY MINING AND PRESTRIP AREA WITH CRUSHER IN FOREGROUND For personal use only
Slide 19: Crusher Area with Conveyor in Foreground
KANMANTOO COPPER MINES – CURRENT ACTIVITY CRUSHER AREA WITH CONVEYOR IN FOREGROUND For personal use only
Slide 20: Conveyor Construction
KANMANTOO COPPER MINES – CURRENT ACTIVITY CONVEYOR CONSTRUCTION For personal use only
Slide 21: Mill Area in Foreground, Admin Offices Above
KANMANTOO COPPER MINES – CURRENT ACTIVITY MILL AREA IN FOREGROUND, ADMIN OFFICES ABOVE AND WORKSHOP AND STORES SHED TO RIGHT For personal use only
Slide 22: Concentrate Thickener Precinct
KANMANTOO COPPER MINES – CURRENT ACTIVITY CONCENTRATE THICKENER PRECINCT For personal use only
Slide 23: Tailing Storage Facility (TSF)
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) For personal use only
Slide 24: TSF Liner in Front of Old Waste Dump
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) LINER IN FRONT OF OLD WASTE DUMP For personal use only
Slide 25: TSF Liner Being Constructed
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) LINER BEING CONSTRUCTED For personal use only
Slide 26: Mining and Infrastructure Progress
KANMANTOO COPPER MINES MINING AND INFRASTRUCTURE PROGRESS Exact Mining Services – mining contractor For personal use only Milestones to date include Private site access road >70% complete (bypass Kanmantoo township) Mining hard stand and initial workshop completed Initial piping system for
Slide 27: Overview: Resource and Reserve Growth
KANMANTOO COPPER MINES OVERVIEW EXPLORATION HAS IMPROVED RESOURCE CERTAINTY AND RESOURCE-RESERVE CONVERSION RATIO RESOURCE GROWTH RESERVE GROWTH For personal use only Inferred Indicated Measured Mt Mt 20.0 Probable Proved 40.0 18.0 35.0 31.8 32.2 16.0 14.8 30.0 28.0 14.0 25.0 12.0 11.1 20.0 18.4 10.
Slide 28: Ore Body and Near Mine Exploration
KANMANTOO COPPER MINES ORE BODY AND NEAR MINE EXPLORATION For personal use only Strategic review of Kanmantoo exploration program NW Zone undertaken in January 2011 Review of all exploration Waste Rock Stockpile conducted to date to target and rank priorities within NE Zone ML 6345 Main Zone Gre
Slide 29: Summary
KANMANTOO COPPER MINES SUMMARY For personal use only Next Australian copper producer Construction on time and on budget First production November 2011 Robust project with near term cash flows 29
Slide 30: Exploration
For personal use only EXPLORATION
Slide 31: Exploration Assets: Indonesia
EXPLORATION ASSETS: INDONESIA HIGHLY PROSPECTIVE GOLD, COPPER EXPLORATION WHY INDONESIA? For personal use only Proven geological provenance for target commodities (Cu, Au) Experienced local partners developed through existing relationships Strengthened legislative and judicial environment Fa
Slide 32: Sumba Island
SUMBA ISLAND HILLGROVE 80% Hillgrove is an 80% For personal use only Tanah Daro beneficial shareholder Project Area in PT Fathi, holding IUP over ~1,000km2 for a period of six years Pelitalira Hillgrove responsible Masu Project for exploration and Area development activities and sole funding up
Slide 33: Sumba Island – Masu Project
SUMBA ISLAND MASU PROJECT Recent exploration For personal use only Soil sampling over Project now covers over 10km² identifying 17 high priority gold anomalies (the largest of which extends over 1.5km in length) Soil sampling continues to discover and delineate quality gold targets for follow up
Slide 34: Sumba Island – Tanah Daro Project
SUMBA ISLAND TANAH DARO PROJECT Pelitalira Prospect For personal use only Located in Central Sumba Accessible by road Waterfall Vein Recent exploration Soil sampling delineated two distinct gold anomalies with gold values up to 19.95g/t Au Earlier Waterfall Vein rock chip samples to 72g/t
Slide 35: Indonesia Bird's Head Project – Regional Setting
INDONESIA BIRD’S HEAD PROJECT REGIONAL SETTING For personal use only Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’ 35
Slide 36: Bird's Head Project – Hillgrove 80%
BIRD’S HEAD PROJECT HILLGROVE 80% Hillgrove is an 80% beneficial shareholder in PT Akram For personal use only Rights cover almost 1,000km2 granted IUP for six years Hillgrove responsible for exploration and development activities and sole funding up to decision to mine Ex Normandy project:
Slide 37: Bird's Head Project – Delta Prospect
BIRD’S HEAD PROJECT DELTA PROSPECT Young (Tertiary) intrusive For personal use only complex Multiple porphyry copper targets Overlapping hydrothermal alteration systems in a 6.5km x 1.5km corridor Porphyry Targets Porphys Copper grades at surface ~0.2%-0.6% common Ideal geographic location
Slide 38: Bird's Head Project – West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Recent exploration For personal use only Geological mapping, surface channel and rock chip sampling Mapping extent of porphyry-related alteration and copper mineralisation centred on Green Cliffs area Detailed trench sampling northeast of Green Cliffs
Slide 39: Bird's Head Project – Green Cliffs Prospect
BIRD’S HEAD PROJECT GREEN CLIFFS PROSPECT Green Cliffs Breccia Target 3D magnetic inversion modelling of West Delta area showing magnetic targets For personal use only Strong magnetic anomalies associated with intense hydrothermal alteration Magnetic High Inversion Modelling Outlines Diorite int
Slide 40: Perspective View of West Delta Alteration Zones
BIRD’S HEAD PROJECT PERSPECTIVE VIEW OF WEST DELTA HYDROTHERMAL ALTERATION ZONES For personal use only PROPYLITIC ALTERATION ADVANCED ARGILLIC ALTERATION Green Cliffs Breccia Target PHYLLIC ALTERATION POTASSIC ALTERATION MAGNETIC ANOMALIES WIDESPREAD SURFACE CU MINERALISATION 40
Slide 41: Porphyry Signatures at West Delta
BIRD’S HEAD PROJECT PORPHYRY SIGNATURES AT WEST DELTA For personal use only Widespread Surface Copper Mineralisation Green Cliffs Breccia Target Advanced Argillic Alteration Propylitic Alteration Phyllic Alteration Potassic Alteration Magnetic anomalies 41
Slide 42: Alteration-Mineralisation Zoning Pattern for Porphyry Copper Deposits
BIRD’S HEAD PROJECT GENERAL ALTERATION-MINERALISATION ZONING PATTERN FOR TELESCOPED PORPHYRY COPPER DEPOSITS, AFTER SILLITOE PORPHYRY COPPER SYSTEMS For personal use only t Delta 42
Slide 43: West Delta – Trenching and Proposed Drill Targets
BIRD’S HEAD PROJECT WEST DELTA – TRENCHING, AND PROPOSED DRILL TARGETS For personal use only 43
Slide 44: Bird's Head Project – West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Geological mapping, historical soil sampling, aeromagnetic survey results, trenching For personal use only and alteration mapping reveal zonation intensity increases towards Green Cliffs, determining core target area Very large remnant lithocap material
Slide 45: Appendix
For personal use only APPENDIX
Slide 46: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD Drew Simonsen, Managing Director & Chief Executive Officer BE (Mining); Dip Geo Sci (Min Eco); GAICD For personal use only Appointed MD & CEO in August 2010 35 years in resources, investment and commercial
Slide 47: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD Jim Kerr, General Manager – Exploration BSC(Geology); MSc(Mineral Economics) For personal use only Joined Hillgrove Resources in late 2009 and was appointed to the role of General Manager – Exploration in Jul
Slide 48: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED BOARD OF DIRECTORS WITH PROVEN TRACK RECORD Hon. Dean Brown AO Non-Executive Chairman Former Premier and Minister of the South Australian Government and Member of the South Australian Parliament For personal use only Chairman of InterMet Resources
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