Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (April 2019)
28 slides from Hillgrove Resources's shareholder meeting presentation, Apr 30, 2019
Slide 1: 2019 AGM MD Presentation
2019 AGM MD PRESENTATION STEVEN MCCLARE IIIII CEO & MD PETER ROLLEY IIIII CHIEF GEOLOGIST 30 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”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of
Slide 3: Competent Person Statements
COMPETENT PERSON STATEMENTS Competent Person's Statement The information in this release that relates to the 2016 Mineral Resource Estimate for Giant is based upon information compiled by Mr Peter Rolley, who is a Member of The Australian Institute of Geoscientists. Mr Rolley is a full-time employee
Slide 4: Strategic Objectives Summary
STRATEGIC OBJECTIVES SUMMARY 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 existing pit, Progressively rehabilitate, Realising future value from our existing assets: Potential $31 million
Slide 5: Giant Pit Nearing Completion
GIANT PIT NEARING COMPLETION Drilling and blasting of the approved cutback will soon be completed. Haulage will continue on a non continuous period. 5
Slide 6: Processing Will Continue Until Mid 2020
PROCESSING WILL CONTINUE UNTIL MID 2020 Despite mining winding down there are significant stockpiles accumulating. With the majority of costs invested Kanmantoo is now cash generative. Ore Stockpiles 6
Slide 7: Mine Closure & Completion Plan
MINE CLOSURE & COMPLETION PLAN Progressive rehabilitation program built on extensive consultation. Rehabilitation plan encapsulates many 1970’s mining legacies. Seeing the site evolve builds credibility. The process is continually adapting and evolving e.g. optimal flora and fauna or communi
Slide 8: 2018 Premier's Award Commendation
2018 PREMIER’S AWARD COMMENDATION 8 8
Slide 9: Kanmantoo PHES
KANMANTOO PHES Sale process concluded1 with AGL paying $31 million over 18-36 months: $1 million initial payment, $4 million (anticipated over six months): stability of the ground at the proposed vertical shaft early works agreement between AGL and HGO baseline contamination study confir
Slide 10: Exploration Presentation
EXPLORATION PRESENTATION PETER ROLLEY IIIII CHIEF GEOLOGIST 30 APRIL 2019
Slide 11: 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 projects 11
Slide 12: 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 13: 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 14: Stage 1 Target – Kavanagh UG
STAGE 1 TARGET – KAVANAGH UG Under the agreement with AGL, HGO may plan to exploit the Kavanagh copper lodes via an UG operation until FID1. Due to the Kavanagh Lodes close proximity to the open pit Haul Road, minimal capital will be required to develop the UG KAVANAGH Development of the UG will NUG
Slide 15: Stage 1 Target – Kavanagh UG Exploration Target
STAGE 1 TARGET – KAVANAGH UG Exploration Target DH Width Tonnage Grade Grade Grade Range (m) Range (Mt) Range Cu% Range Au g/t Range CuEq% The Exploration Target Coopers 6 - 10 0.1 - 0.3 1.5 - 2.0 0.4 - 0.8 1.8 - 2.5 for Central Kavanagh North Kavanagh 6 - 10 0.1 - 0.7 1.5 - 2.0 0.4 - 0.8 1.8 - 2.5
Slide 16: 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 Confirmation of the continuity and grade of the Nugent Lode to depth will occur via diamond drilling from surface before embarking on any UG development KEY TA
Slide 17: Stage 2 Target – Nugent UG Exploration Target
STAGE 2 TARGET – NUGENT UG 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 Exploration Target North Kavanagh 6 - 10 0.1 - 0.7 1.5 - 2.0 0.4 - 0.8 1.8 - 2.5 for the Nugent Lode, No
Slide 18: Kanmantoo South – Stage 3 Target for UG Mining Hub
KANMANTOO SOUTH – STAGE 3 TARGET FOR UG MINING HUB PHES Area 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 th
Slide 19: 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 20: 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 21: 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 To transfer the geology knowledge from Kanmantoo to discover large magmat
Slide 22: Kanappa Cu-Au
KANAPPA Cu-Au The Kanappa Cu-Au zone is 50kms from Kanmantoo A series of pegmatites and aplites intrude into a sequence of potassic altered schists and carbonates Soil copper zone 4.4kms long Geochem zoning from west to east Cu-Zn => Cu-Bi => Cu-Au => Au Alteration over 1km width from west to east C
Slide 23: Kanappa Drilling
KANAPPA DRILLING 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 230.5m, showing pyrrhotite & chal
Slide 24: 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
Slide 25: South East
SOUTH EAST Numerous Copper –Molybdenum 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 SHR0
Slide 26: Stage 1 – Kavanagh Deeps
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 27: Option 1 – Joint Venture
NOT IN ORDER OF PRIORITY NOR PREFERENCE, AND NOT TO BE NECESSARILY AS MUTUALLY EXCLUSIVE OPTION 1 – JOINT VENTURE Joint venture all or a portion of the assets OPTION 2 – SALE OR PARTIAL SALE Sale of all or a portion, of the assets in a similar process to the PHES strategy OPTION 3 - IPO To lis
Slide 28: Conclusion
CONCLUSION Hillgrove has an exciting albeit different future based around Kanmantoo: Continued safety as mining of Kanmantoo open pit winds down, Three million tonne ore stockpile to be processed over the next 12 months. Industry leading rehabilitation generates community goodwill. Cash gene
Hillgrove Resources — Shareholder Meeting (April 2019) on 6ix