Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Q2 2012 Earnings Presentation
21 slides from Hillgrove Resources's earnings presentation, Aug 23, 2012
Slide 1: Second Quarter Report
For personal use only SECOND QUARTER REPORT RUSSELL MIDDLETON IIIII 23 AUGUST 2012
Slide 2: Disclaimer - Important Notice
DISCLAIMER Important Notice For personal use only 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 c
Slide 3: Australian and Indonesia Focus: Production and Exploration Assets
AUSTRALIAN AND INDONESIA FOCUS PRODUCTION AND EXPLORATION ASSETS For personal use only Production and cash flow in Australia Bird’s Head project Kanmantoo Copper Mine (100% owned), South Australia Sumba project Rim-of-Fire exploration upside in Indonesia Sumba gold project (80% owned) Bird
Slide 4: Hillgrove Second Quarter Update Highlights
HILLGROVE SECOND QUARTER UPDATE HIGHLIGHTS Improvement in ongoing safety performance For personal use only Solid production and unit cost improvement at Kanmantoo In fill exploration at Kanmantoo indicates extension of resource Excellent gold intersections at Sumba Encouraging drill result
Slide 5: Kanmantoo Operations
For personal use only KANMANTOO OPERATIONS 5
Slide 6: Safety Performance Statistics
HILLGROVE SECOND QUARTER PERFORMANCE SAFETY PERFORMANCE STATISTICS For personal use only Initiatives TRIFR ‐ Total Recordable Injury Frequency YTD ‐ TRIFR Rate Nov 2011 ‐ July 2012 Pre-qualification Monthly TRIFR 120.0 of contractors 106.6 100.0 Increased 84.4 supervision 80.0 67.0 during shutdo
Slide 7: Production Output
HILLGROVE SECOND QUARTER PERFORMANCE PRODUCTION OUTPUT Previous April July July For personal use only Financial Quarter Quarter YTD Year Total Tonnes Mined (kt) 3,156 3,481 3,417 6,898 Improvements to Ore to long term stockpiles (kt) 382 298 248 546 mill feed grade Ore to ROM (kt) 288 544 486 1,03
Slide 8: C1 Production Costs Decreasing
HILLGROVE SECOND QUARTER PERFORMANCE C1 PRODUCTION COSTS DECREASING For personal use only Apr-12 Jul-12 YTD Period QTR QTR (at 31/07/12) Mining unit cost reduction due to US cents per lb lower FX Rate Mining Costs 132 116 123 combined with Processing Costs 111 88 98 higher Cu Other Direct Cash Cos
Slide 9: Solid Outlook for Realised Copper Prices
HILLGROVE SECOND QUARTER PERFORMANCE SOLID OUTLOOK FOR REALISED COPPER PRICES For personal use only 100% of copper Hillgrove AUD Copper Position 10,500 production covered AUD 3M Copper to March 2013 10,000 Committed Hedging 9,500 UnCommitted Hedging 9,000 8,500 8,000 7,500 7,000 6,500 6,000 Aug 10
Slide 10: Kanmantoo Exploration
For personal use only KANMANTOO EXPLORATION 10
Slide 11: Kanmantoo Copper Mine New Resource Estimate
KANMANTOO COPPER MINE NEW RESOURCE ESTIMATE For personal use only * The May 2012 Resource has been depleted relative to November 2008 Resource due to treatment of 667kt @ 0.68% Cu through the Kanmantoo ore processing plant Global Mineral Resource (March 2012) JORC Cu Au Ag Bi Cu Metal Classification
Slide 12: 2012 Exploration Strategy: Extension of Resources
KANMANTOO COPPER MINE 2012 EXPLORATION STRATEGY EXTENSION OF RESOURCES For personal use only Priority is to extend the Kanmantoo mine life 2012 program focuses on Resource extension within the Kanmantoo Mining Lease Wider spaced RC drilling to extend and potentially link known Resources along
Slide 13: Kanmantoo Exploration Results
KANMANTOO COPPER MINE EXPLORATION RESULTS 2012 EXPLORATION SUCCESS NOT INCLUDED IN AMC RESOURCE ESTIMATE For personal use only Early RC drilling at Emily Star South was highly successful, returning: KTRC861: 36m @ 0.81% Cu from 75m including 21m @ 1.22% Cu from 79m New zones have been discover
Slide 14: Indonesian Exploration
For personal use only INDONESIAN EXPLORATION
Slide 15: Indonesia Sumba Island: Karipi Prospect
INDONESIA SUMBA ISLAND KARIPI PROSPECT New gold discovery by Hillgrove Resources at For personal use only Karipi continues to yield exciting results Early stage exploration hits confirm the widespread presence of gold mineralisation delineated by a 1.5km strike length gold corridor Drilling mo
Slide 16: Karipi Prospect Exploration Results
INDONESIA SUMBA ISLAND KARIPI PROSPECT EXPLORATION RESULTS Highlight results include: For personal use only MADDKP014: 3.75m @ 4.29 g/t Au from 76.3m MADDKP015: 2.85m @ 22.37 g/t Au from 42.9m MADDKP019: 5.95m @ 1.52 g/t Au from 7m and 6.5m @ 1.22 g/t Au from 15.2m and 5m @ 1.38 g/t Au from
Slide 17: Indonesia Bird's Head Project Exploration Programme
INDONESIA BIRD’S HEAD PROJECT EXPLORATION PROGRAMME Initial scout deep diamond drilling of the West Delta prospect confirms For personal use only porphyry-related molybdenum-copper mineralisation Disseminated copper sulphides with elevated copper and molybdenum values confirming porphyry-related
Slide 18: West Delta Exploration Results
INDONESIA BIRD’S HEAD PROJECT WEST DELTA EXPLORATION RESULTS Highlights include: For personal use only WDD-014: 2m @ 623 ppm Mo, 0.57% Cu from 33m 12m @ 483 ppm Mo, 0.23% Cu from 41m 11m @ 203 ppm Mo, 0.25% Cu from 72m WDD-015: 25m @ 252 ppm Mo, 0.18% Cu from 33m 24m @ 213 ppm Mo, 0.17% Cu fro
Slide 19: Corporate Overview
For personal use only 19 CORPORATE OVERVIEW
Slide 20: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION AT 31 JULY 2012 ASX listed: HGO For personal use only Shares on issue: 912.9 million SHAREHOLDER DISTRIBUTION Cash and cash equivalents: Institutions 36.1% AUD 26.9 million Share price: AUD 0.09* Market capitalisation: AUD 82.2 millio
Slide 21: Disclaimer: Competent Persons
DISCLAIMER COMPETENT PERSONS The information in this report that relates to Kanmantoo Exploration Results, Exploration Targets and Stockpiles is based For personal use only on information compiled by Mr Pat Manouge, who is a Member of The Australian Institute of Geoscientists. Mr Manouge is the Kanm