Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — 58th Minesite Forum (April 2009)
38 slides from Hillgrove Resources's conference presentation, Apr 22, 2009
Slide 1: Copper, Gold and Gas - 58th Minesite Forum
For personal use only Copper Gold and Gas Copper, 58th Minesite Forum Armourers' Armourers Hall, Hall London 21 April 2009
Slide 2: Disclaimer
Disclaimer For personal use only This presentation should not be relied upon as a representation of any matter that a potential investor or their adviser should consider in evaluating the Company. Potential investors must make their own independent assessment and investigation of the matters contain
Slide 3: Key Assets
Key Assets Australian Based with Asian Expansion For personal use only Hillgrove g Resources Limited (ASX:HGO) ( ) • Gold and Base Metals Explorer • Kanmantoo Copper/Gold Project Indonesian Exploration • Joint Ventures: 80.0% Direct ¾ PT Akram Resources Bird’s Head ¾ PT Fathi Resources Sumba • Large
Slide 4: Introduction to Hillgrove: Board of Directors
Introduction to Hillgrove Board of Directors For personal use only Legend Non-Executive Director Executive Director Management Team Dean Brown AO Ron Belz David Archer John Quirke John Gooding Chairman Director Managing Director Director Director Geoff Stewart Russell Middleton Dale Ferguson General
Slide 5: Key Investors
Key Investors Top 10 Shareholders For personal use only RBS Sempra p 12.1% Subsidiaryy of RBS ANZ Nominees 10.9% European shareholders RMMI 5 1% 5.1% RAK Minerals - UAE investor Archer Group 4.6% Managing Director & associates Citicorp Nominees 3.3% Investment nominee HSBC Custody 3.0% I
Slide 6: Key Investment Metrics
Introduction to Hillgrove Key Investment Metrics For personal use only Hillgrove Resources 17/04/09 Trading History Share Price $ 0.185 Price (A$) Hillgrove Resources 52 Week - high $ 0.420 0.45 4.5 0.40 4.0 - low $ 0.080 0.35 3.5 Ordinary shares # 378 6M 378.6M 0 30 0.30 30 3.0 0.25 2.5 Market capi
Slide 7: Metals Outlook: Copper on the Move
Metals Outlook Copper on the Move For personal use only “Right Right commodities at the Right Time Time” Reuters London, March 5 – “The Chi Chinese d dragon i hungry is h f copper for again and its buying has impacted the LME market much earlier than had been generally anticipated.” Fraser Institute
Slide 8: Kanmantoo Project: South Australian Region
Kanmantoo Project South Australian Region For personal use only • South Australia is one of the most prospective terrains in the world ¾ Home of the Big One; Olympic Dam • Historically neglected and vastly under explored • IInitial iti l project j t att Kanmantoo K t will ill produce d cash flow to
Slide 9: Kanmantoo Copper Gold Mine
Kanmantoo Project Kanmantoo Copper Gold Mine For personal use only 8
Slide 10: Kanmantoo Project Snapshot
Kanmantoo Project Snapshot For personal use only • Kanmantoo was operated by NBH/ SBH/EZ as their first open cut mine from 1971-1976, mining around 4.1Mt of copper ore • Hill Hillgrove commenced d work k iin 2003 2003, and d plans to start mining 2010 / 2011 • Low risk access to critical water,, pow
Slide 11: Kanmantoo Project: Low Risk Features
Kanmantoo Project Low Risk Features For personal use only • Operational history significantly de de-risks risks the project • Known, simple metallurgy • Large database of exploration, mining and processing information • Capital cost per tonne of annual copper in concentrate produced <50% of global a
Slide 12: Exploration Focus: Kanmantoo Near Mine Prospects
Exploration Focus Kanmantoo Near Mine Prospects For personal use only 11
Slide 13: Kanmantoo Project: Unique Investment Opportunity
Kanmantoo Project Unique Investment Opportunity For personal use only • Only y Australian mid-cap p copper pp developer p with p production p planned 2010 / 2011: 9 Management case of 2.5 MTPA and 10 year mine life 9 $130 million capex 9 Mine lease grant and approvals almost complete 9 DFS complete
Slide 14: Eastern Star Gas Limited
Eastern Star Gas Limited Hillgrove - 18%: 151M shares 24M options For personal use only ESG Permit Locations – NSW Key Milestone Summary Mar ‘07: MacGen MOU to supply 500PJ 07: Certified reserves: 21 PJ (1P) & 59PJ (2P) Sep ‘07: Nov ‘07: Babcock & Brown MOU to supply 40PJ p.a. Jan ‘08: Certified res
Slide 15: Australian CSG Industry - Overview
Eastern Star Gas Limited Australian CSG Industry - Overview For personal use only Geographic Spread of CSG Industry Industry Observations Source: ESG 14
Slide 16: Australian CSG Industry - Recent Transactions
Eastern Star Gas Limited Australian CSG Industry - Recent Transactions For personal use only February 2008 Transaction Metrics February 2009 15
Slide 17: Narrabri CSG Project - Markets / Infrastructure
Eastern Star Gas Limited Narrabri CSG Project – Markets / Infrastructure For personal use only Stages 3 & 4: Major Domestic Greenfield Opportunities; High Value ‘Global’ Global Opportunities 16
Slide 18: Hillgrove Value Proposition
Hillgrove Resources Limited Value Proposition For personal use only Hillgrove value upside – ESG and Kanmantoo: Hillgrove has 151.8 million ESG shares and 24.3 million 15 cent ESG options 2009 2P target 1,300 PJ’s for Narrabri CSG Project. Median value recent CSG transactions $2.78 per PJ of 2P
Slide 19: Regional Pipeline - Indonesia
Regional Pipeline – Indonesia Highly Prospective Advanced Gold Exploration For personal use only 18
Slide 20: Mineralisation Model
Bird’s Head Mineralisation Model For personal use only • Magmatic arc deposits are classified by the depth at which they form • Bird’s Head has seen a number b off phases h off tectonic activity, including uplift and associated mineralising events that have led to the over printing or telescoping of
Slide 21: Bird's Head, Indonesia: Regional Setting
Bird’s Head, Indonesia Regional Setting For personal use only Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’ 20
Slide 22: West Papua - Mineral Occurrences
Bird’s Head West Papua – Mineral Occurrences For personal use only 21
Slide 23: Historical Drainage Anomalies
Bird’s Head Historical Drainage Anomalies For personal use only Stream Sediment Anomalies by Gold Work by Normandy and past explorers highlighted 16 high order anomalies, with Bird’s Head containing 10 of these 22
Slide 24: Local Geology
Bird’s Head Local Geology For personal use only Ad Advanced d Projects P j t Tertiary Volcanics (Andesites) key host unit for mineralisation 23
Slide 25: Delta Prospect: Gold Rock Geochemistry
Bird’s Head Delta Prospect For personal use only Gold Rock Geochemistry • Confirms large corridor of mineralisation • Peak value of 205 g/t gold • Peak values 205 g/t gold, 471 gg/t silver,, 17.9% copper, 6.3% lead, 7.5% zinc (not the same sample).
Slide 26: Delta Prospect: Copper Rock Geochemistry
Bird’s Head Delta Prospect For personal use only Copper Rock Geochemistry • High of 17.9% Cu • Multiple results in 1-20% range • High grade mineralisation p of epithermal style y p plus broad low grade copper with intrusives suggests porphyry style mineralisation i li i
Slide 27: Delta Prospect: Copper Soil Geochemistry
Bird’s Head Delta Prospect For personal use only Copper Soil Geochemistry • E Extensive t i CuC anomalism li in i main target corridor 6 x 1.5km • Cu mineralisation assoc. with granodiorite/diorite di it /di it iintrusive, t i same host rocks as large deposits like Grasberg • Surface S f expression
Slide 28: Delta Prospect: Significant Trench Intercepts
Bird’s Head Delta Prospect For personal use only Significant Trench Intercepts Trenching results confirmed presence of high grade epithermal mineralisation Follow up drilling has intersected: • 14.35m 1 3 @ 1.71g/t 1 1 / gold and 22.55g/t/ silver from 13m in KSD1, incl. 7.55m @ 2.97g/t gold and 3.56
Slide 29: Central Prospects: Gold Geochemistry
Bird’s Head Central Prospects For personal use only Gold (g/t) Geochemistry Significant untested geochemical anomalies, i.e. stream anomaly at Quebec similar to that originally defined by Alpha/Bravo anomalies 28
Slide 30: Alpha Prospect: Gold Soil Geochemistry
Bird’s Head Alpha Prospect For personal use only Gold (g/t) Soil Geochemistry 1 Kilometre Batu Hijau Extensive gold mineralisation, which appears to be strongly structurally controlled 29
Slide 31: Alpha Prospect: Drilling, Trenching Locations
Bird’s Head Alpha Prospect For personal use only Drilling, Trenching Locations on Gold (g/t) Soil Geochemistry B15 Anomaly • Bonanza trenching grades, A17/19 Anomaly gold associated with epithermal quartz veins • Very limited drilling completed l t d tto d date, t only l 5 drill holes • Significant
Slide 32: 2009 Work Program
Bird’s Head 2009 Work Program For personal use only The 2009 work p program g is currently y being g developed p and subject j to approval is likely to include: • Further historical data review and compilation • Socialisation • Logistical support • Establish coastal and Delta base camp • Geological
Slide 33: Key Attributes
Bird’s Head Key Attributes For personal use only Bird’s Bird s Head is an exciting exploration project: • Favourable tectonic setting in tertiary volcanics • Outstanding surface geochemistry • Strong S o g indications d ca o s o of a multi-phased u p ased mineralising e a s g sys system, e , ep epit
Slide 34: Summary
Bird’s Head Summary For personal use only • The Bird Bird’s s Head Project represents an excellent opportunity to explore for large scale epithermal and porphyry style mineralisation within a geological setting that has been proven to host world class deposits • The Project covers a large area of wh
Slide 35: Indonesia: Sumba Island Prospect
Indonesia Sumba Island Prospect For personal use only • KP 350/KEP/HK/2007 general survey license granted on Sumba covering an area of 3,433km² 3 433km² • Indonesian subsidiary of Hillgrove, PT Fathi Resources to undertake exploration work, studies and steps to advance the KP to exploration status i
Slide 36: Sumba: Pahandanjal Region
Sumba Pahandanjal Region For personal use only 35
Slide 37: Summary
Summary For personal use only 9 Targeting discovery of world class ore bodies: 5,248 km km² – West Papua and Sumba 9 Investments: ~ $120 million of listed strategic resources investments 9 East Coast Australia Gas: Strategic stake in leading coal seam gas independent 9 Latent Copper Production: Kanm
Slide 38: Exploration Results: Competent Persons
Exploration Results Competent Persons For personal use only The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMet Resources Limited is based on information compiledp byy Mr Dale Ferguson, g , who is a Member of The Australasian Insti
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