Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — South Australian Resources and Energy Investment Conference 2019
28 slides from Hillgrove Resources's conference presentation, Apr 9, 2019
Slide 1: Transitioning Kanmantoo
For personal use only TRANSITIONING KANMANTOO South Australian Resources and Energy Investment Conference 2019 STEVEN MCCLARE IIIII CEO & MD 9 APRIL 2019
Slide 2: Disclaimer Statement
DISCLAIMER 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”) For personal use only and its officers, directors, employees, advisers and agents) in relation to the accuracy or complete
Slide 3: PHES is not core business
For personal use only 55 kilometres from Adelaide CBD PHES IS NOT CORE BUSINESS 3
Slide 4: About Hillgrove Resources - Kanmantoo
ABOUT HILLGROVE RESOURCES - KANMANTOO For personal use only Hillgrove Resources is a copper / gold producer with production and exploration assets in South Australia. The strategic intent: • maximise the value from the existing pit, • return value in the form of fully franked dividends, • progressiv
Slide 5: Giant Pit Completion & Rehabilitation
For personal use only Giant Pit Completion & Rehabilitation
Slide 6: Giant pit nearing completion
GIANT PIT NEARING COMPLETION ◼ Drilling and blasting of the approved cutback will be completed within a month. For personal use only ◼ Haulage will continue on a non continuous period. 6
Slide 7: Processing will continue until mid 2020
PROCESSING WILL CONTINUE UNTIL MID 2020 ◼ Despite mining winding down there are significant stockpiles accumulating. For personal use only ◼ With the majority of costs invested Kanmantoo is now cash generative. Ore Stockpiles 7
Slide 8: Mine closure & completion plan
MINE CLOSURE & COMPLETION PLAN ▪ Progressive rehabilitation program built on extensive consultation. For personal use only ▪ Rehabilitation plan encapsulates many 1970’s mining legacies. ▪ Seeing the site evolve builds credibility. ▪ The process is continually adapting and evolving e.g. optimal flor
Slide 9: For personal use only
For personal use only
Slide 10: Mine closure & completion plan 2019
MINE CLOSURE & COMPLETION PLAN For personal use only 2019 10 10
Slide 11: Mine closure & completion plan 2020
MINE CLOSURE & COMPLETION PLAN For personal use only 2020 11 11
Slide 12: Mine closure & completion plan 2021
MINE CLOSURE & COMPLETION PLAN For personal use only 2021 12 12
Slide 13: Mine closure & completion plan 2022
MINE CLOSURE & COMPLETION PLAN For personal use only 2022 13 13
Slide 14: Mine closure & completion plan 2023
MINE CLOSURE & COMPLETION PLAN For personal use only 2023 14 14
Slide 15: Pumped hydro
For personal use only Pumped hydro
Slide 16: Kanmantoo PHES
KANMANTOO PHES ◼ Kanmantoo is one of the best sites for PHES in Australia: For personal use only ❑ Very low capital cost at < $1M / MW ❑ Fast to market; ❑ Infrastructure already in place ❑ Proximity to grid ❑ Existing studies and knowledge (environmental, geotechnical, geology, hydrogeology) ❑ Long
Slide 17: Independent verification
INDEPENDENT VERIFICATION GHD were engaged to independently verify HGO statements, study confirmed: For personal use only – Very low capital cost at $1M / MW. • Lower pond (open pit) already constructed. • Upper pond in a natural valley. • All options are less than 1.5km between ponds. • High head in
Slide 18: Formal sale process
FORMAL SALE PROCESS ◼ Key Pacific Advisory Partners appointed to conduct sale process. For personal use only ◼ Indicative bid stage generated broad interest. ◼ Binding bid stage resulted in multiple offers. ◼ Shortlist developed and then Preferred Bidder selected. 18
Slide 19: Key points of difference
KEY POINTS OF DIFFERENCE Mining has resulted in a significant data source: For personal use only ◼ Geological and geotechnical ◼ Hydrology ◼ Environmental UPPER ◼ Community POND ◼ Network Proximity 19
Slide 20: Why Kanmantoo works for PHES
WHY KANMANTOO WORKS FOR PHES For personal use only 20
Slide 21: Capital cost
For personal use only 21 CAPITAL COST
Slide 22: Near Mine and Regional Exploration
For personal use only Near Mine and Regional Exploration
Slide 23: Interaction with pumped hydro
INTERACTION WITH PUMPED HYDRO Dawsley For personal use only The PHES area of interest is shown in the yellow polygon. PHES expected to move to FID after which the yellow area will not be available for mining, which includes the Kavanagh PHES underground. The Dawesley area to the north and the Kanman
Slide 24: Transitioning from ore stockpiles to regional exploration
TRANSITIONING FROM ORE STOCKPILES TO REGIONAL EXPLORATION For personal use only Hillgrove has a pipeline of assets to realise value for shareholders Near term open pit ore and on- surface ore stockpiles Underground Cu-Au zones as future production opportunities Regional exploration for the discovery
Slide 25: Exploration assets - location
EXPLORATION ASSETS - LOCATION Hillgrove Resources Ltd (ASX:HGO) For personal use only holds, or has under application, ~6,100 km2 of exploration licences in South Australia. The focus is on defining copper-gold mineralisation around the owned Kanmantoo Process Plant, and To transfer the geology know
Slide 26: Exploration - Kanappa drilling
EXPLORATION - KANAPPA DRILLING Kanappa drilling intersected over For personal use only 150m width of magmatic related alteration and veining ❑ KPDD002 45m @ 0.2% Cu from 45m downhole Peak values include 1m @ 2.7% Cu 1m @ 2.5 g/t Au 1m @ 3,570 ppm W 1m @ 241 ppm Mo KEY TAKEAWAYS ▪ These drill results
Slide 27: Conclusion
For personal use only Conclusion
Slide 28: Conclusion
CONCLUSION For personal use only Hillgrove Resources has an exciting albeit different future based around Kanmantoo: ◼ Mining of current approved phase is winding down, ◼ Value to owners is core purpose, ◼ Rehabilitation via consultation is a key attribute, ◼ Significant pumped hydro site capability
Hillgrove Resources — South Australian Resources and Energy Investment Conference 2019 on 6ix