Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Wilson HTM Roadshow April 2011
58 slides from Hillgrove Resources's conference presentation, Apr 11, 2011
Slide 1: Asia Pacific Copper Miner
For personal use only ASIA PACIFIC COPPER MINER DREW SIMONSEN MANAGING DIRECTOR WILSON HTM ROADSHOW APRIL 2011
Slide 2: Disclaimer
DISCLAIMER No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (Hillgrove) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (the Presentation), or
Slide 3: Company Overview
COMPANY OVERVIEW AUSTRALIAN MINING COMPANY WITH AUSTRALIAN-INDONESIAN GROWTH PIPELINE For personal use only Hillgrove Resources (“HGO”) is an Australian based minerals exploration and development company Bird’s Head project Principal asset is the Kanmantoo Sumba project Copper Mine project (100%
Slide 4: Strategic Direction and Focus
STRATEGIC DIRECTION AND FOCUS NEAR TERM PRODUCTION, HIGHLY PROSPECTIVE EXPLORATION For personal use only Our Strategy: Construct Kanmantoo, on time and within budget Expand the Kanmantoo resource base Expand Kanmantoo throughput Explore/develop copper & gold in Australia & Indonesia Beco
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION For personal use only ASX listed: HGO SHAREHOLDER DISTRIBUTION Shares on issue: 793.7 million J.P. Morgan Metals & Concentrates Share price: AUD 0.345 (6 April 2011) 10% Market capitalisation: AUD 274 million (6 April 2011) Cash and c
Slide 6: Kanmantoo Copper Mines Project
For personal use only Kanmantoo Copper Mines Project
Slide 7: Close to Adelaide
KANMANTOO COPPER MINES – CLOSE TO ADELAIDE ALL MAJOR SERVICES CLOSE BY 100%-owned by Hillgrove For personal use only Located just 55km from Adelaide, in South Australia Copper has been mined in the area for Exploration Area EL4401 over 150 years Exploration License area of 500km2, and relati
Slide 8: History of Mining in the Area
KANMANTOO COPPER MINES HISTORY OF MINING IN THE AREA For personal use only Bremer Engine House and Chimney Bremer Hut outside Callington 8 Paringa Smelter on Kanmantoo Site
Slide 9: 2010 – Prior to Construction
KANMANTOO COPPER MINES 2010 – PRIOR TO CONSTRUCTION For personal use only New Tailings Storage facility (TSF) behind old waste dump New plant site Current pre strip area Plant Current heap-leach operation Kanmantoo was operated by North Broken Hill, South Broken Hill & Electrolytic Zinc from 1971-
Slide 10: View of Plant Site from Top of Old Waste Dump
KANMANTOO COPPER MINES VIEW OF PLANT SITE FROM TOP OF OLD WASTE DUMP First copper/gold production is scheduled for November 2011 For personal use only Configured as 2.4Mtpa, and ramping to 2.7Mtpa through operational efficiencies Further potential to increase to 3.5Mtpa Estimated mine life o
Slide 11: Planned Project Highlights
KANMANTOO COPPER MINES PLANNED PROJECT HIGHLIGHTS Life-of-mine (“LOM”) average For personal use only payable metals production 21k tonnes p.a. copper 9k ounces p.a. gold 177k ounces p.a. silver Royalties 1.5% NSR for 5 years, 5% thereafter Average LOM cash cost of USD 1.61/lb (excluding
Slide 12: FID and Construction Started November 2010
FID AND CONSTRUCTION STARTED NOVEMBER 2010 CAPITAL AND DEVELOPMENT COSTS TO BRING KANMANTOO TO PRODUCTION TO 28/2/11 For personal use only Project Total FID Capital Costs Construction Period Costs Total Capital costs Capital costs Spend Period Remaining capital costs spent to 31/8 for FID 1/9 to 28/
Slide 13: Processing Overview
KANMANTOO COPPER MINES PROCESSING OVERVIEW Lime ROM Second-hand Pillara plant BIN FEED PRODUCT VIBRATING BIN SCREEN For personal use only GRIZZLY NEUTRAL- disassembled and relocated FEEDER JAW CRUSHER ISATION TANK from Western Australia by STOCK PILE HYDRO PROCESS WATER TANK SECONDARY Abesque Engi
Slide 14: Construction Progress
KANMANTOO COPPER MINES CONSTRUCTION PROGRESS For personal use only Abesque Engineering principal contractor Parsons Brinckerhoff appointed to provide project management oversight of construction activities Construction to date 35% complete, on time and within budget Civils nearing completion
Slide 15: Current Activity – Prestrip and Mining Area
KANMANTOO COPPER MINES – CURRENT ACTIVITY PRESTRIP AND MINING AREA WITH CRUSHER AREA AND CONVEYOR IN FOREGROUND For personal use only 15
Slide 16: Current Activity – Site View with Plant Location
KANMANTOO COPPER MINES – CURRENT ACTIVITY SITE VIEW WITH PLANT LOCATION SCHEMATIC (FROM LEFT TO RIGHT 2 OF 2) For personal use only Stockpile Feed Concentrate Filter Abesque Hillgrove York Civil Conveyor Storage Processing Construction Administration Construction Footing Area Area Office Block Offic
Slide 17: Current Activity – Conveyor and Reclaim Tunnel
KANMANTOO COPPER MINES – CURRENT ACTIVITY CONVEYOR AND RECLAIM TUNNEL CONSTRUCTION For personal use only 17
Slide 18: Current Activity – Concentrate Thickener Precinct
KANMANTOO COPPER MINES – CURRENT ACTIVITY CONCENTRATE THICKENER PRECINCT For personal use only 18
Slide 19: Current Activity – Mill Area
KANMANTOO COPPER MINES – CURRENT ACTIVITY MILL AREA IN FOREGROUND, ADMIN OFFICES ABOVE AND WORKSHOP AND STORES SHED TO RIGHT For personal use only 19
Slide 20: Current Activity – Tailing Storage Facility Construction
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) CONSTRUCTION For personal use only
Slide 21: Current Activity – TSF Liner Layers
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) LINER LAYERS BEING PUT DOWN For personal use only 21
Slide 22: Current Activity – TSF Liner
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) LINER For personal use only 22
Slide 23: Mining and Infrastructure Progress
KANMANTOO COPPER MINES MINING AND INFRASTRUCTURE PROGRESS Exact Mining Services – mining contractor For personal use only Milestones to date include Private site access road >90% complete (bypass Kanmantoo township) Major workshops completed Initial piping system installed for Tailings Sto
Slide 24: Overview – Resource and Reserve Growth
KANMANTOO COPPER MINES OVERVIEW EXPLORATION HAS IMPROVED RESOURCE CERTAINTY AND RESOURCE-RESERVE CONVERSION RATIO RESOURCE GROWTH RESERVE GROWTH For personal use only Inferred Indicated Measured Mt Mt 20.0 Probable Proved 40.0 18.0 35.0 31.8 32.2 16.0 14.8 30.0 28.0 14.0 25.0 12.0 11.1 20.0 18.4 10.
Slide 25: Ore Body and Near Mine Exploration
KANMANTOO COPPER MINES ORE BODY AND NEAR MINE EXPLORATION NW Zone For personal use only Exploration Manager appointed Waste Rock Strategic review of all exploration Stockpile conducted to date to target and NE Zone rank priorities within mining lease Main (ML 6345) Zone Green Zone SE Zone Boar
Slide 26: Resource Extension and Target Reserve Conversion
KANMANTOO MINES RESOURCE EXTENSION AND TARGET RESERVE CONVERSION Phase 1 – Convert For personal use only inferred resources to indicated 5,000m of RC drilling and up to 400 m of DD Plan view of resources around the pit Indicated (orange) Inferred (yellow) Sectional views provide better e
Slide 27: Resource Extension and Target Reserve Conversion
KANMANTOO COPPER MINES RESOURCE EXTENSION AND TARGET RESERVE CONVERSION For personal use only SLOT EXTENSION & NE ZONE GREEN ZONE SOUTH Phase 1 Convert inferred resources to indicated MAIN ZONE SOUTH McFARLANE’S 27
Slide 28: Resource Extension and Target Reserve Conversion
KANMANTOO COPPER MINES RESOURCE EXTENSION AND TARGET RESERVE CONVERSION For personal use only SLOT EXTENSION & NE ZONE GREEN ZONE SOUTH Phase 1 Convert inferred resources to indicated MAIN ZONE SOUTH McFARLANE’S Target IP anomalies 28
Slide 29: Cross Section A–A' Through Falcon and Main Zone
KANMANTOO COPPER MINES CROSS SECTION A – A’ LOOKING NORTH THROUGH FALCON & MAIN ZONE For personal use only Phase 1 - Convert inferred resources to indicated Open: No Drilling KTGC0073 – 19m @ 1.43% Cu Open: No Drilling 29
Slide 30: Cross Section B–B' Through Green and Main Zones
KANMANTOO COPPER MINES CROSS SECTION B – B’ LOOKING NORTH THROUGH GREEN & MAIN ZONES For personal use only Phase 1 - Convert inferred resources to indicated Open: No Drilling Open: No Drilling KTRC077 – 20m @ 1.31% Cu 30
Slide 31: Long Section D–D' Through Green Zone
KANMANTOO COPPER MINES LONG SECTION D – D’ LOOKING WEST THROUGH GREEN ZONE Phase 1 - Convert inferred resources to indicated For personal use only Open: No Drilling Phase 1 - Convert inferred resources to indicated Open: No Drilling KTRC077 – 20m @ 1.31% Cu Open: No Drilling 150m Below Surface
Slide 32: Cross Section C–C' Through O'Neil
KANMANTOO COPPER MINES CROSS SECTION C – C’ LOOKING NORTH THROUGH O’NEIL Phase 1 - Convert inferred resources to indicated For personal use only Open: No Drilling KTRCD122 – 24m @ 1.00% Cu KTRCD284 – 21m @ 1.27% Cu Open: No Drilling 32
Slide 33: Long Section E–E' Through O'Neil
KANMANTOO COPPER MINES LONG SECTION E – E’ LOOKING WEST THROUGH O’NEIL Phase 1 - Convert inferred resources to indicated For personal use only 150m Below Surface Open: No Drilling 200m Below Surface Open: No Drilling Open: No Drilling Open: No Drilling
Slide 34: Second Stage Resource Investigation
KANMANTOO COPPER MINES SECOND STAGE RESOURCE INVESTIGATION For personal use only Phase 2 – Targeting additional near mine targets for additional inferred resources amenable to future conversion potential 2,500m of RC drilling and up to 200 m of DD Target priorities are to be consistent with op
Slide 35: Near Mine Drilling Program
KANMANTOO COPPER MINES NEAR MINE DRILLING PROGRAM For personal use only COOPER’S FALCON FIND Phase 2 Identify additional open cut resources EMILY STAR PARINGA SOUTH 35
Slide 36: Near Mine Drilling Program
KANMANTOO COPPER MINES NEAR MINE DRILLING PROGRAM For personal use only COOPER’S FALCON FIND Phase 2 Identify additional open cut resources EMILY STAR PARINGA SOUTH Target IP anomalies 36
Slide 37: Cross Section F–F' Through Paringa
KANMANTOO COPPER MINES CROSS SECTION F – F’ LOOKING NORTH THROUGH PARINGA Phase 2 Identify additional open cut resources For personal use only Open: No Drilling Open: Open: No Drilling No Drilling KTRC554 – 6m @ 4.19% Cu 37
Slide 38: Summary
KANMANTOO COPPER MINES SUMMARY For personal use only Next Australian copper producer Construction on time and on budget First production November 2011 Robust project with near term cash flows Good potential for Life of Mine extension 38
Slide 39: Exploration
For personal use only EXPLORATION
Slide 40: Exploration Assets: Indonesia
EXPLORATION ASSETS: INDONESIA HIGHLY PROSPECTIVE GOLD, COPPER EXPLORATION WHY INDONESIA? For personal use only Proven geological provenance for target commodities (Cu, Au) Strengthened legislative and judicial environment Favourable new mining laws allowing direct foreign ownership Experienc
Slide 41: Sumba Island – Hillgrove 80%
SUMBA ISLAND HILLGROVE 80% Hillgrove is an 80% For personal use only Tanah Daro shareholder in PT Fathi, Project Area holding an IUP over ~1,000km2 for a period of six years Pelitalira Hillgrove responsible Masu Project for exploration and Area development activities and sole funding up to decis
Slide 42: Sumba Island – Masu (Southern) Project Area
SUMBA ISLAND MASU (SOUTHERN) PROJECT AREA Recent exploration For personal use only Soil sampling over Project now covers over 10km² Has identified 7 high priority gold anomalies (over up to1.5km in length) Soil sampling continues to identify high quality gold targets for further investigation
Slide 43: Sumba Island – Tanah Daro (Northern) Project
SUMBA ISLAND TANAH DARO (NORTHERN) PROJECT Pelitalira Prospect For personal use only Located in Central Sumba Accessible by road Waterfall Vein Recent exploration Soil sampling delineated two distinct gold anomalies with gold values up to 19.95g/t Au Earlier Waterfall Vein rock chip sample
Slide 44: Sumba Island – Pelitalira Prospect
SUMBA ISLAND PELITALIRA PROSPECT For personal use only Initially proposed 5 hole program 9 holes now completed Assay results pending Core indicates highly altered lithology, consistent with a high sulphidation system All results will be reassessed Waterfall Area on completion of aeromagnet
Slide 45: Indonesia Bird's Head Project – Regional Setting
INDONESIA BIRD’S HEAD PROJECT REGIONAL SETTING For personal use only Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’ 45
Slide 46: Bird's Head Project – Hillgrove 80%
BIRD’S HEAD PROJECT HILLGROVE 80% Hillgrove is an 80% beneficial shareholder in PT Akram For personal use only As with PT Fathi, we are moving to a corporatised ownership structure IUP rights cover almost 1,000km2 , granted for six years Hillgrove responsible for exploration and development
Slide 47: Bird's Head Project – West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT For personal use only Geological mapping, historical soil sampling, aeromagnetic survey results, trenching and alteration mapping reveal Zonation intensity increases towards Green Cliffs, determining core target area Porphyry Targets Porphys Very large r
Slide 48: Bird's Head Project – Delta Prospect
BIRD’S HEAD PROJECT DELTA PROSPECT For personal use only Young (Tertiary) intrusive complex Multiple porphyry copper targets Overlapping hydrothermal alteration systems in a 6.5km x 1.5km corridor Copper grades at surface ~0.2%-0.6% common Ideal geographic location i.e. close to coast Outc
Slide 49: Bird's Head Project – Green Cliffs Copper Mineralization
BIRD’S HEAD PROJECT PROJECT MANAGER DEAN WADSWORTH, M.D. DREW SIMONSEN AND FIELD CREW AT GREEN CLIFFS WITH BOULDER OF COPPER MINERALIZATION For personal use only 49
Slide 50: Bird's Head Project – West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Trenching highlights : For personal use only 32m @ 0.73% Cu including 20m @ 0.95% Cu 52m @ 0.35% Cu including 12m @ 0.75% Cu 132m @ 0.29% Cu including 18m @ 0.65% Cu 54m @ 0.48%Cu including 22m @ 0.97% Cu Rock chip sampling with geological mapping
Slide 51: Perspective View of West Delta Alteration Zones
BIRD’S HEAD PROJECT PERSPECTIVE VIEW OF WEST DELTA HYDROTHERMAL ALTERATION ZONES For personal use only WIDESPREAD SURFACE CU MINERALISATION ADVANCED ARGILLIC ALTERATION Green Cliffs Breccia Target PROPYLITIC ALTERATION PHYLLIC ALTERATION POTASSIC ALTERATION MAGNETIC ANOMALIES 51
Slide 52: West Delta – Trenching and Proposed Drill Targets
BIRD’S HEAD PROJECT WEST DELTA – TRENCHING, AND PROPOSED DRILL TARGETS For personal use only 52
Slide 53: Green Cliffs Prospect
BIRD’S HEAD PROJECT Green Cliffs GREEN CLIFFS PROSPECT Breccia Target 3D magnetic inversion modelling of West For personal use only Delta area showing magnetic targets Strong magnetic anomalies associated with intense hydrothermal alteration Diorite Magnetic High Inversion Modelling Outlines int
Slide 54: Bird's Head Project – Summary
BIRD’S HEAD PROJECT SUMMARY For personal use only Drill test these porphyry targets (to 600m) Experienced drilling contractor has been selected Testing width and depth of porphyry systems to gain initial understanding of the geology, alteration zonation at depth and the distribution of copper
Slide 55: Appendix
For personal use only APPENDIX
Slide 56: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD Drew Simonsen, Managing Director & Chief Executive Officer BE (Mining); Dip Geo Sci (Min Eco); GAICD For personal use only Appointed MD & CEO in August 2010 35 years in resources, investment and commercial
Slide 57: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD Jim Kerr, General Manager – Exploration BSC(Geology); MSc(Mineral Economics) For personal use only Joined Hillgrove Resources in late 2009 and was appointed to the role of General Manager – Exploration in Jul
Slide 58: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED BOARD OF DIRECTORS WITH PROVEN TRACK RECORD Hon. Dean Brown AO Non-Executive Chairman Former Premier and Minister of the South Australian Government and Member of the South Australian Parliament For personal use only Chairman of InterMet Resources