Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Pumped Hydro Energy Storage Conference 2018
26 slides from Hillgrove Resources's conference presentation, Mar 21, 2018
Slide 1: Kanmantoo Pumped Hydro
For personal use only KANMANTOO PUMPED HYDRO STEVE McCLARE IIIII CEO & MANAGING DIRECTOR PUMPED HYDRO ENERGY STORAGE CONFERENCE SYDNEY MARCH 2018
Slide 2: Statement
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 this docum
Slide 3: Project Overview
For personal use only PROJECT OVERVIEW
Slide 4: Turning existing mine into pumped hydro storage opportunity
TURNING EXISTING MINE INTO PUMPED HYDRO STORAGE OPPORTUNITY For personal use only UPPER POND LOWER POND KEY TAKEAWAYS 220MW for 6 hours generating over 1,300MWh 5km to 275KVA line Site studies already complete to Regulator standards for mining project – transferrable to PHES Plausible commis
Slide 5: Project Advantages
PROJECT ADVANTAGES Key metrics highlight that the Kanmantoo site is one of the best sites for For personal use only Pumped Hydro Energy Storage in Australia: Very low capital cost at < $1M / MW and < $160 / kWh Fast to market; possibly commissioned by end 2021 Infrastructure already in place
Slide 6: Hillgrove Resources overview
Hillgrove Resources (ASX:HGO) is a For personal use only copper / gold producer with production and exploration assets in South Australia. Hillgrove’s goal is to become a mid-tier copper/gold resources group with growth from the Kanmantoo Copper Mine and regional exploration discoveries. In addition
Slide 7: Current Status
CURRENT STATUS Mining of the lower pond anticipated completion by mid 2019 For personal use only Preliminary study for Pumped Hydro Energy Storage Facility complete Definitive feasibility study underway March 2018 COMPLETE MID 2019 7
Slide 8: Key Criteria
For personal use only KEY CRITERIA
Slide 9: Site Layout
SITE LAYOUT For personal use only UPPER POND UPPER POND DISTANCE BETWEEN PONDS LESS THAN 1KM WHICH KEEPS CAPITAL LOW LOWER POND (open pit) KEY TAKEAWAYS Over 400m available head at site; initial studies shows optimum head between 212m and 270m Short distance between ponds keeps capital cost of p
Slide 10: Site Layout
SITE LAYOUT Existing topography enables For personal use only low cost dam construction UPPER POND LOWER POND (open pit) KEY TAKEAWAYS Concept uses available mine waste rock to construct 3 GL dam. Waste rock has been used on site to already construct 28 GL tailings dam to ANCOLD standards. 10
Slide 11: Geological / Geotechnical Knowledge
GEOLOGICAL / GEOTECHNICAL KNOWLEDGE >145,000m OF DRILLING DATA For personal use only KEY TAKEAWAYS Over 145,000m of drilling and 200m vertical of exposed pit face with structural mapping. Historic underground mining and geotechnical assessment of drill core provide excellent understanding of cav
Slide 12: Hydrogeological / Hydrology Knowledge
HYDROGEOLOGICAL / HYDROLOGY KNOWLEDGE >10 YEARS OF GROUND WATER For personal use only MONITORING FEEDING INTO HYDROGEOLOGICAL MODEL KEY TAKEAWAYS Array of water quality monitoring bores established for over 10 years and measured regularly Extensive baseline, operating data and modelling complete
Slide 13: Environmental Knowledge
ALREADY HAVE ENVIRONMENTAL ENVIRONMENTAL KNOWLEDGE STUDIES ACCEPTED BY REGULATOR FOR A MAJOR PROJECT Flora / Fauna – baseline, operational and Ecosystem Function Analysis For personal use only Noise – established monitoring program and sensitive receptor modelling Air Quality – real time monit
Slide 14: Long Established Social Licence to Operate
LONG ESTABLISHED SOCIAL LICENCE TO OPERATE Over 13 years of ongoing consultation with the local community and Regulator For personal use only Recognised as best in industry as recipient of Premier's Award for “Excellence in Community Support” Project support from Federal MP and State MP BEST I
Slide 15: Existing water supply pipelines
SEMI-ARID ENVIRONMENT AND EXISTING WATER SUPPLY PIPELINES RESULTS IN MORE WATER THAN REQUIRED ALREADY DELIVERED TO SITE WITHOUT TECHNOLOGY RISK SUCH AS For personal use only EVAPORATION COVERS OR SEAWATER SUPPLY EXISTING WATER PIPELINES OTHER PROJECTS KANMANTOO PROJECT AREA KEY TAKEAWAYS Two exist
Slide 16: Proximity and Access to Network
PROXIMITY AND ACCESS TO NETWORK 5KM TO 275KVA LINE VIA EXISTING EASEMENTS For personal use only KEY TAKEAWAYS 5km to 275KVA line via established easements. Two options under consideration. Location of proposed PHES in close proximity to proposed 375MW wind facility at Mannum and 127MW solar faci
Slide 17: Simple and Secure Title
SIMPLE AND SECURE TITLE For personal use only UPPER POND LOWER POND FREEHOLD OWNERSHIP OF ENTIRE SITE AND SURROUNDING LAND KEY TAKEAWAYS Hillgrove own the land of the proposed PHES site freehold with no Native Title claimants 17
Slide 18: Energy Generation
ENERGY GENERATION Dispatch of available energy over 48hr period in 2020 For personal use only DAILY GENERATION FROM STORAGE OPTIMAL OVER 4-6 HOUR PERIOD PHES generation / storage over 48hr period in 2020 KEY TAKEAWAYS Basis of design 220-250 MW for 6 hours producing upwards of 1300MWh. Additiona
Slide 19: Capital Cost
CAPITAL COST Capital cost less than $1M / MW driven by; For personal use only Short distance between ponds reduces penstock capital. High head arrangement reduces machine and cavern size, which are in good ground. Close proximity to grid. Existing infrastructure and knowledge from mining o
Slide 20: Capital Cost
CAPITAL COST Capital cost less than $160 / kWh which places project well below industry For personal use only range and competitive with other storage technologies < $160 / kWh Pumped Hydro Capital Cost Outlook ($ / kWh) KANMANTOO FROM Q4 2021 Source: Lazard Levelized Cost of Storage Analysis v2.0
Slide 21: Value in Energy and FCAS Markets
VALUE IN ENERGY AND FCAS MARKETS Fixed speed reversible pumped turbines, fast response (~10 sec) due to short For personal use only waterways and low capital cost of project provides market opportunities in: Arbitrage in spot market. Firming contract with RE projects. $300 caps. FCAS; Sync
Slide 22: Land available for complimentary solar project
LAND AVAILABLE FOR COMPLIMENTARY SOLAR PROJECT 100% LAND OWNERSHIP Solar Array For personal use only GRID CONNECTION Upper pond DC/AC Grid Generate electricity PUMPED HYDRO CONSUMER Control Electricity out Station Pumping Lower pond OPPORTUNITY FOR LOW CAPITAL COST SOLAR FACILITY Pump Turbine and AT
Slide 23: Low Risk
LOW RISK Design uses simple, proven processes and technology For personal use only Not reliant on unproven / novel concepts to be successful such as using seawater or developing evaporation covers. Site is 100% owned as freehold No native title claimants. Site is already permitted and esta
Slide 24: Speed to Market
SPEED TO MARKET For personal use only 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Definitive Feasibility Study FID Procurement Construction & Commissioning ` Operating KEY TAKEAWAYS Operational by Q4 2021 which makes it one of the first to market in Australia. 24
Slide 25: Realising value from the pumped hydro opportunity
Hillgrove have no desire to become an energy generator but seeking to realise For personal use only value for shareholders by monetising the pumped hydro opportunity. Continue definitive feasibility study to increase project value and maintain timing to market. Seek partner to take this forward
Slide 26: Summary and further information
Key metrics highlight that the Kanmantoo site is one of the best sites for For personal use only Pumped Hydro Energy Storage in Australia; Very low capital cost at < $1M / MW and < $160 / kWh. Potential to be first to market; commissioned by end 2021. Infrastructure already in place (ponds,
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