Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (May 2012)
46 slides from Hillgrove Resources's investor presentation, May 3, 2012
Slide 1: Australia's Newest Copper Producer
For personal use only AUSTRALIA’S NEWEST COPPER PRODUCER DREW SIMONSEN IIIII MANAGING DIRECTOR COMPANY PRESENATION IIIII 3 MAY 2012
Slide 2: Disclaimer: Expectations & Forward Looking Statements
DISCLAIMER EXPECTATIONS & FORWARD LOOKING STATEMENTS This presentation contains information that is based on projected and/or estimated figures that reflect For personal use only expectations, assumptions and outcomes that may or may not eventuate. Any forward-looking statements are subject to a ran
Slide 3: Australian Cash Flow with Rim of Fire Upside
AUSTRALIAN MINING COMPANY AUSTRALIAN CASH FLOW WITH RIM OF FIRE UPSIDE For personal use only CASH FLOW, WITH EXPLORATION UPSIDE: Bird’s Head project Cash flow - Kanmantoo Copper Mine project (100% owned), in South Sumba project Australia Rim-of-Fire exploration upside in Indonesia Sumba gold p
Slide 4: Australian-Indonesian Growth Pipeline: Strategic Objectives
AUSTRALIAN MINING COMPANY WITH AUSTRALIAN-INDONESIAN GROWTH PIPELINE For personal use only STRATEGIC OBJECTIVES Kanmantoo – copper producer: Kanmantoo ramp-up – on track Extend Kanmantoo mine life – on track Expand plant – subject to increased resources/reserves Identify additional near mi
Slide 5: For personal use only
KANMANTOO COPPER MINE For personal use only
Slide 6: Close to Adelaide, All Major Services Close By
KANMANTOO COPPER MINES CLOSE TO ADELAIDE ALL MAJOR SERVICES CLOSE BY 100%-owned by Hillgrove For personal use only Just 55km from Adelaide, South Australia Exploration Area EL4401 Mining Lease is within 500km2 Exploration License, both relatively unexplored Exploration potential considered h
Slide 7: Historical Mineral Province
KANMANTOO COPPER MINE HISTORICAL MINERAL PROVINCE Mining in the area since the 1850’s For personal use only Small, high grade operations – Bremer Mine 3km away produced 35k tonnes at circa 8-10% copper Operations in area closed in 1920’s Kanmantoo open pit was developed and operated by North
Slide 8: New Kanmantoo Mine in Production
KANMANTOO COPPER MINE NEW KANMANTOO MINE IN PRODUCTION Second-hand plant (Lennard Shelf - For personal use only Teck & Xstrata) – 3.0Mtpa capacity 2.4 – 2.7 Mtpa commissioned now Expansion to 3.0 - 3.5 Mtpa possible Standard flotation process: historical metallurgical data coarse grind (
Slide 9: Status and Key Targets
KANMANTOO COPPER MINE STATUS AND KEY TARGETS Commissioned December 2011 For personal use only Ramp-up Now, to April/May Approximately 10,000t concentrate produced to date First revenue Received January 2012 Second Shipment April Mine life of 6.5/10 years based on current reserves/resourc
Slide 10: Crushing Process Flowsheet
KANMANTOO COPPER MINE CRUSHING PROCESS FLOWSHEET ROM Feed For personal use only Grizzly & Rock Stockpile ROM Bin 850x750mm Track Mounted Vibratory Mobile Crusher Feeder 150mm Kobe Single Toggle 48/36 Jaw Crusher CSS 125mm Track Mounted Stacker/Conveyor Metso HP 500 Screens Cone Crusher CSS 25mm Ore
Slide 11: ROM and Crushing Circuit
KANMANTOO COPPER MINE ROM AND CRUSHING CIRCUIT For personal use only
Slide 12: Crushing Circuit
KANMANTOO COPPER MINE CRUSHING CIRCUIT For personal use only
Slide 13: Processing Plant Flowsheet
KANMANTOO COPPER MINE PROCESSING PLANT FLOWSHEET For personal use only Primary Cyclones Primary Cyclones Tails Thickener Tails Thickener Ball Mill SAG Mill Concentrate Rougher 1 Rougher 1 Scavengers 1-2 Scavengers 1-2 Concentrate Thickener Thickener Rougher/Scavenger 4-7 Rougher/Scavenger 4-7 Roughe
Slide 14: Processing Plant
KANMANTOO COPPER MINE PROCESSING PLANT For personal use only
Slide 15: Thickener Tanks and TSF
KANMANTOO COPPER MINE THICKENER TANKS AND TSF For personal use only
Slide 16: Project Ramp-Up Parameters
KANMANTOO COPPER MINE PROJECT RAMP-UP PARAMETERS Ramp up to full production planned For personal use only over 4-6 months now May-June 2012 Production during ramp up 100% covered via Put Options @ AUD7,500/t (expire June 2012 – March 2013) Bank Completion Test June 2012 50-55% production hed
Slide 17: Processing Performance – To March 2012
KANMANTOO COPPER MINE PROCESSING PERFORMANCE – TO MARCH 2012 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 Total Tonnes Mined Tonnes (kT) 1,053 991 1,112 1,221 1,165 1,095 For personal use only Ore to long term stockpiles Tonnes (kT) 160 147 75 137 70 99 Ore to ROM Tonnes (kT) 49 95 144 149 103 273 ROM
Slide 18: Shipping
KANMANTOO COPPER MINE SHIPPING For personal use only 18
Slide 19: Kanmantoo Resources & Exploration
For personal use only KANMANTOO RESOURCES & EXPLORATION
Slide 20: Resources & Reserves
KANMANTOO COPPER MINE RESOURCES & RESERVES CURRENT RESOURCES CURRENT RESERVES For personal use only Inferred Indicated Meas ured 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 10.0 15.0 8.0 10.0 8.5 6.0 5.0 4.0 0.0 2.0 Dec-03 Dec-04 Oct-06 Dec-0
Slide 21: Site Plan and Pit Designs
KANMANTOO COPPER MINE SITE PLAN AND PIT DESIGNS KANMANTOO COPPER MINE EL4401 For personal use only TAILINGS STORAGE FACILITY MINING AREA WASTE DUMP AND ML6345 STOCKPILES ROM CRUSHER PROCESSING PLANT AND EL4401 ADMINISTRATION ML6345 EML6340
Slide 22: Exploration Strategy 2011
KANMANTOO COPPER MINE EXPLORATION STRATEGY 2011 IP Chargeability Image IP Chargeability Image PRIORITY 1: For personal use only EXTEND KANMANTOO MINE LIFE NE Zone/Slot Extension Objective is conversion of inferred resources to indicated resources by closer spaced drilling Immediately adjacent to
Slide 23: Resource Extension Drilling
KANMANTOO COPPER MINE RESOURCE EXTENSION DRILLING Emily Star: For personal use only KTRC861 - 36m @ 0.81% Cu from 75m (29m%) incl. 21m @ 1.22% Cu from 79m (26m%) Highly significant result from previously untested area Further wide-spaced drilling is planned, to explore potential to expand Em
Slide 24: Summary
KANMANTOO COPPER MINE SUMMARY For personal use only Production underway at 2.4 Mtpa rate Near-term cash flows supported by hedging Near-mine drilling indicates Life of Mine extension probable Mill throughput of 2.7 Mtpa or more looks achievable 24
Slide 25: Indonesia: Rim of Fire
INDONESIA: RIM OF FIRE For personal use only
Slide 26: Exploration Assets: Indonesia
EXPLORATION ASSETS: INDONESIA SPECIFIC ASSET SELECTION BY HILLGROVE Focussed approach: only targeting large porphyry copper-gold deposits For personal use only and associated epithermal gold deposits Partnership established first with professional in-country partners New laws allow for direct
Slide 27: Exploration Assets: Indonesia – Tenements, Security of Tenure
EXPLORATION ASSETS: INDONESIA TENEMENTS – SECURITY OF TENURE JAKARTA For personal use only Hillgrove is an 100% shareholder in PT Hillgrove Indonesia Pte. Ltd PT Hillgrove Indonesia provides management (not technical) services to our interests in Indonesia SUMBA Hillgrove is an 80% shareholder
Slide 28: PT Hillgrove Indonesia Pte Ltd – Management Services Company
EXPLORATION ASSETS: INDONESIA PT HILLGROVE INDONESIA PTE LTD – MANAGEMENT SERVICES COMPANY For personal use only HILLGROVE RESOURCES LIMITED (ASX:HGO) 100% 100% HILLGROVE HILLGROVE INDONESIA EXPLORATION PTY LIMITED PTY LIMITED (Australia) (Australia) 99% 1% PT HILLGROVE Jakarta based INDONESIA manag
Slide 29: Sumba – PT Fathi Resources Corporate Structure
EXPLORATION ASSETS: INDONESIA SUMBA – PT FATHI RESOURCES CORPORATE STRUCTURE For personal use only HILLGROVE RESOURCES LIMITED (ASX:HGO) 100% HILLGROVE INDONESIA PTY LTD (Australia) 80% 80% HILLGROVE SINGAPORE HILLGROVE SINGAPORE HOLDINGS PTE LIMITED NO. 2 PTE LIMITED (Singapore) (Singapore) 99% 1%
Slide 30: Bird's Head – Security of Tenure
EXPLORATION ASSETS: INDONESIA BIRD’S HEAD – SECURITY OF TENURE Hillgrove has an 80% beneficial interest in PT Akram Resources Pte. Ltd through For personal use only JV Agreement (JVA) JVA has been executed Conversion of PT Akram to “PMA” status, allowing direct foreign ownership, is underway In
Slide 31: Bird's Head Project Regional Setting
INDONESIA BIRD’S HEAD PROJECT REGIONAL SETTING For personal use only WEST PAPUA P.N.G. Bird’s Head covers part of the interpreted westward continuation 31 of the New Guinea Magmatic Arc
Slide 32: Bird's Head in West Papua
INDONESIA BIRD’S HEAD PROJECT BIRD’S HEAD IN WEST PAPUA For personal use only West Delta IUP rights cover almost 1,000km2, granted to March 2017 Hillgrove responsible for sole funding and management of exploration and development activities up to Decision to Mine Ex-Normandy project: HGO acqui
Slide 33: Bird's Head Project Attributes
INDONESIA BIRD’S HEAD PROJECT PROJECT ATTRIBUTES Close to the coast – significant advantage for future development For personal use only Known porphyry-related copper mineralisation Significant previous exploration database ex Normandy West Delta
Slide 34: Magnetic Signatures and Copper Geochemistry Point to Our Targets
INDONESIA BIRD’S HEAD PROJECT MAGNETIC SIGNATURES AND COPPER GEOCHEMISTRY POINT TO OUR TARGETS For personal use only West Delta Arc –normal transfer structure Rock Chip Cu ppm Analytical Signal Magnetics Stream Sediment - Cu 1st VD TMI Magnetics 34
Slide 35: West Delta Prospect
INDONESIA BIRD’S HEAD PROJECT WEST DELTA PROSPECT Geological interpretation is of: For personal use only A young (Tertiary) intrusive complex Overlapping hydrothermal alteration systems in a 6.5 x 1.5 km corridor Porphyry does not outcrop Copper mineralisation in quartz vein/breccia float
Slide 36: Bird's Head Project West Delta Drill Plan
BIRD’S HEAD PROJECT WEST DELTA DRILL PLAN For personal use only Drilling has commenced Three 500m+ holes from Site A, and reassess 5,000m program planned 36 Bald Hill, Southern Porphyry prospect Project Manager at Green Cliffs breccia outcrop
Slide 37: Indonesia Sumba Island
INDONESIA SUMBA ISLAND HILLGROVE 80% For personal use only Tanah Daro Masu Lewitu IUP rights cover almost 1,000km2, granted to March 2017 Hillgrove responsible for exploration and development activities and sole funding up to Decision to Mine under JV Agreement Ex BHP project; HGO acquired key
Slide 38: Sumba Island: Masu
INDONESIA SUMBA ISLAND MASU Initial mapping, soil sampling, trenching and For personal use only scout drilling completed to date 17 high grade gold anomalies identified Karipi Aeromagnetic/radiometric survey just completed Trenching at Karipi has intersected significant gold mineralisation
Slide 39: Sumba Island: Karipi Prospect
INDONESIA SUMBA ISLAND KARIPI PROSPECT Thin sediment masks prospective lithology but gold observed in exposed For personal use only basement rock over large areas Highly prospective gold targets Targets! Magnetic signatures indicate strike Karipi continuation of prospective structures beneath
Slide 40: Sumba Island: Karipi Prospect Trenching
INDONESIA SUMBA ISLAND KARIPI PROSPECT Sedimentary Karipi-Kanjilu trenching For personal use only Cover continues to indicate broad gold anomaly 1120 g/t Au over 800m 20m @ 1.58g/t Au 4m @ 10.57g/t Au (refer recent quarterly) Rock Chips reporting bonanza grades to 1,270g/t Au, 450g/t Au
Slide 41: Masu Exploration: Karipi Next Steps
INDONESIA SUMBA ISLAND MASU EXPLORATION KARIPI NEXT STEPS Aerial view of Karipi, looking SE Much groundwork on community liaison For personal use only in last 6 months Additional staff hired Landowner and community agreements signed Very significant anomalous surface gold mineralisation Dr
Slide 42: Corporate Overview
For personal use only CORPORATE OVERVIEW
Slide 43: Corporate Snapshot: Details and Shareholder Distribution
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION ASX listed: HGO For personal use only Shares on issue: 793.7 million SHAREHOLDER DISTRIBUTION Share price: AUD 0.265 (2 May 2012) Institutions 38.0% Market capitalisation: AUD 210.33 million (2 May 2012) Cash and cash equivalents: AUD
Slide 44: Corporate Snapshot: Executive Alignment Through Equity Incentives
CORPORATE SNAPSHOT EXECUTIVE ALIGNMENT THROUGH CONDITIONS ON EQUITY INCENTIVES Criteria 2010 2011 For personal use only Type Performance Rights (ZEPO) Performance Rights (ZEPO) Number 4,720,000 4,595,000 Fully diluted ownership by management ~0.6% ~ 1.1% Service Condition 3 years from award 3 years
Slide 45: Compelling Investment Opportunity
HILLGROVE RESOURCES LIMITED COMPELLING INVESTMENT OPPORTUNITY Kanmantoo processing plant production For personal use only ramp-up well underway Robust economics supported by hedging Producing asset Now High optionality through: Kanmantoo mine life extension (target 10 year reserve life)
Slide 46: Disclaimer: Competent Persons
DISCLAIMER COMPETENT PERSONS The information in this report that relates to Exploration Results is based on information compiled by Mr For personal use only Jim Kerr, who is a Member of The Australasian Institute of Geoscientists. Mr Kerr is General Manager – Exploration for Hillgrove Resources and
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