Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — RIU Resources Round Up 2019
21 slides from Hillgrove Resources's conference presentation, May 9, 2019
Slide 1: A Pipeline of Cu-Au Development & Exploration Projects
A PIPELINE OF CU-AU DEVELOPMENT & EXPLORATION PROJECTS PETER ROLLEY IIIII CHIEF GEOLOGIST 9 MAY 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: Strategic Objectives
STRATEGIC OBJECTIVES Hillgrove’s priority strategic objective is to return value to shareholders in the form of fully franked dividends which will be achieved by: Maximising the value from the processing of the existing ore stockpiles1 Realising the potential $31 million cash flow from pumped hy
Slide 4: Location
LOCATION Hillgrove Resources Ltd (ASX:HGO) holds, or has under application, ~6,100 sq. kms of exploration licences in South Australia. The focus is on defining copper-gold mineralisation around the Kanmantoo Process Plant, And thereby to optimise the value of the existing • low cost Kanmantoo Mill,
Slide 5: Contents
CONTENTS 1. KANMANTOO UG MINE – Stage 1 2. NUGENT UG PROJECT – Stage 2 3. KANMANTOO SOUTH UG HUB – Stage 3 4. EXPLORATION A pipeline of Cu-Au development & exploration projects 5
Slide 6: Stages 1-4 pipeline of projects
STAGE 1 – KAVANAGH DEEPS Utilising the Open Pit Haul Road as a quasi-decline in potential UG development Earliest to production Timing is Dependent on PHES execution STAGE 2 – NUGENT DEEPS Significant copper and gold outside of PHES Footprint Second production centre and springboard to Sta
Slide 7: Endowment - Recap
ENDOWMENT - RECAP HGO has demonstrated the extension of several high grade copper-gold zones beyond the final pit design e.g. 21m @ 2.0% Cu, 0.1g/t Au 7m @ 2.7% Cu, 0.6g/t Au 33m @ 2.1% Cu, 0.2g/t Au 12m @ 2.2% Cu, 7.9g/t Au Resulting in an Exploration Target1 of 5-10Mt @ 1.7-2.2% Cu, 0.4-1.0g/t Au
Slide 8: Stage 1 Target - Kavanagh
STAGE 1 TARGET - KAVANAGH Kavanagh copper lodes have been the main stay of the open pit operation and drilling has demonstrated that these lodes continue for over 480m vertically and below the final pit design See cross sections through the open pit as examples of the depth continuity of the mineral
Slide 9: Stage 1 Target - Kavanagh UG
STAGE 1 TARGET – KAVANAGH UG Under the PHES agreement with AGL, HGO be able to exploit the Kavanagh copper lodes via an UG operation for a limited time1. Due to the Kavanagh Lodes close proximity to the open pit Haul Road, minimal capital will be required to develop the UG KAVANAGH NUGENT LODES Deve
Slide 10: Stage 2 Target - Nugent UG
STAGE 2 TARGET - NUGENT UG Nugent Lode is over 300m long, and 2m to 23m wide. It is a quartz vein system with high Cu-Au It is open to depth Development of the Nugent Lode and extensions is NOT subject to any PHES Agreement KEY TAKEAWAYS ■ Investigating stand alone Nugent underground operation, as s
Slide 11: Stage 1 & 2 UG Targets
STAGE 1 & 2 UG TARGETS Exploration Target DH Width Tonnage Grade Grade Grade Range (m) Range (Mt) Range Cu% Range Au g/t Range CuEq% Coopers 6 ‐ 10 0.1 ‐ 0.3 1.5 ‐ 2.0 0.4 ‐ 0.8 1.8 ‐ 2.5 The North Kavanagh 6 ‐ 10 0.1 ‐ 0.7 1.5 ‐ 2.0 0.4 ‐ 0.8 1.8 ‐ 2.5 Exploration North East Zone 12 ‐ 33 0.4 ‐ 0.7
Slide 12: Kanmantoo South - Stage 3 Target for UG Mining Hub
KANMANTOO SOUTH – STAGE 3 TARGET FOR UG MINING HUB Kanmantoo is a copper-gold mine with a large number of structurally controlled Cu-Au ore zones In the area outside of the PHES agreement there are a number of Cu-Au lodes that may be amenable to underground mining. In addition to Nugent there are; P
Slide 13: Kanmantoo South - Stella Target
KANMANTOO SOUTH – STELLA TARGET In 2019 HGO infilled the 2018 MT survey for which the data is still being processed. Approx 300m north of the 2018 MT section line, Aberfoyle drilled one hole (KAN001) and intersected; A 60m wide zone of chlorite-pyrrhotite-Fe- garnet altered sediments (128-170m downh
Slide 14: Kanmantoo North West - Significant Copper and Gold Endowment
KANMANTOO NORTH WEST – SIGNIFICANT COPPER AND GOLD ENDOWMENT HGO mapping revealed a large area of high Fe and gossan alteration 4.5kms north-west of the Kanmantoo mine site. This high Fe alteration is coincident with a strong magnetic anomaly evident in the State survey regional magnetics HGO has co
Slide 15: Location
LOCATION To Recap Hillgrove does not only hold licences near to the Kanmantoo mine site Hillgrove also holds, or has under application, ~6,100 sq. kms of exploration licences in South Australia with significant Cu-Au endowment and prospectivity The objective is to transfer the geology knowledge from
Slide 16: Kanappa Cu-Au
KANAPPA Cu-Au The Kanappa Cu-Au zone is 50kms from Kanmantoo A series of diorites, pegmatites and aplites intrude into a sequence of schists and carbonates Soil copper zone 4.4kms long Geochem zoning from west to east Cu-Zn => Cu-Bi => Cu-Au => Au Peak rock chips of 34% Cu 4.0g/t Au (separate sample
Slide 17: Kanappa Drilling - A New Magmatic Cu-Au Discovery
KANAPPA DRILLING – A NEW MAGMATIC CU-AU DISCOVERY Kanappa drilling of a 400m portion of the soil anomaly intersected over 250m width of magmatic related alteration and veining1 KPDD003 45m @ 0.2% Cu from 45m downhole Peak values include 1m @ 2.7% Cu 1m @ 2.5 g/t Au Drill core is from KPDD002 from
Slide 18: Mt Rhine Cu-Au
MT RHINE Cu-Au The Mt Rhine copper-gold zone is 10kms from Kanappa Soil copper zone 1.7kms long 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 KEY TAKEAWAYS ■ Large scale alteration system 1.7kms long and 500m wide 1
Slide 19: South East
SOUTH EAST Numerous Copper & Cu-Mo occurrences recorded Colebatch – outcropping chalcopyrite and molybdenite over 1.6 kms in granite Alamil – drill core with narrow veins and chlorite/epidote zones of chalcopyrite and sulphides in diorite over 267m, from 86m depth Sherlock – drill core with SHR08 0.
Slide 20: Stages 1-4 pipeline of projects
STAGE 1 – KAVANAGH DEEPS Utilising the Open Pit Haul Road as a quasi-decline in potential UG development Earliest to production Dependent on PHES STAGE 2 – NUGENT DEEPS Significant copper and gold outside of PHES Footprint Second production centre and springboard to Stage 3 STAGE 3 – KANMA
Slide 21: Options to realise value: IPO, joint venture, sale
NOT IN ORDER OF PRIORITY NOR PREFERENCE, AND NOT NECESSARILY MUTUALLY EXCLUSIVE OPTION 1 - IPO To list the assets on the ASX with a capital raising and in-specie distribution to existing HGO shareholders OPTION 2 – JOINT VENTURE Joint venture of all or a portion of the assets OPTION 3 – SALE OR