Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (May 2018)
49 slides from Hillgrove Resources's shareholder meeting presentation, May 24, 2018
Slide 1: Hillgrove Resources AGM
For personal use only HILLGROVE RESOURCES AGM STEVEN MCCLARE IIIII CEO & MANAGING DIRECTOR 24 MAY 2018
Slide 2: Disclaimer Statement
DISCLAIMER STATEMENT 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 complete
Slide 3: Competent Person Statements
COMPETENT PERSON STATEMENTS Competent Person's Statement For personal use only 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 i
Slide 4: Contents
CONTENTS For personal use only 1. Safety, environment and community 2. Strategy and direction 3. Operational performance 4. The year ahead 5. Creating Company transforming mining projects 4
Slide 5: Safety, Environment and Community
For personal use only SAFETY, ENVIRONMENT AND COMMUNITY
Slide 6: Safety
SAFETY For personal use only Significant improvement in total recordable injury rate. 6
Slide 7: Progressive Rehabilitation of Nugent Pit
PROGRESSIVE REHABILITATION OF NUGENT PIT For personal use only Nugent Pit mined in 2015/16 Backfilled 2016 Rehabilitation commenced 2017 7
Slide 8: Community Consultation
COMMUNITY CONSULTATION For personal use only Active community working with the Mine to have a Master Plan for the District Planning 8 includes rehabilitation, growth concepts and post closure optionality
Slide 9: Strategy and Direction
For personal use only STRATEGY AND DIRECTION
Slide 10: Strategy and Direction
STRATEGY AND DIRECTION Strategy For personal use only Utilise existing infrastructure and assets Deliver value at Kanmantoo Mineral Resource Estimate (achieving entire resource in Giant Pit – including inferred category) Mining production delivery (cutback completed) Progressive rehabilita
Slide 11: Operational Performance
For personal use only OPERATIONAL PERFORMANCE
Slide 12: Kanmantoo Cash Generative Asset
KANMANTOO CASH GENERATIVE ASSET For personal use only Quarterly Copper Production (Cu t) 5500 5000 4500 4000 3500 3000 2017-Q1 2017-Q2 2017-Q3 2017-Q4 2018-Q1 Copper output progressively climbing towards annual guidance (22-24 kt Cu) 12
Slide 13: Giant Pit Cutback – Jan 2017 Comparison to Now
GIANT PIT CUTBACK – JAN 2017 COMPARISON TO NOW Jan 2017 For personal use only January 2017 multiple levels and plan restricted by cashflow May 2018 flat working area and sequential mining May 2018 13
Slide 14: The Year Ahead
For personal use only THE YEAR AHEAD
Slide 15: Kanmantoo – The Year Ahead
KANMANTOO – THE YEAR AHEAD The Year Ahead For personal use only Mining efficiency will continue to taper as working area reduces Persist with two excavators then revert to single unit Cash expenditure on mining reduces and then ceases in mid 2019 Continue building stockpiles – will increase
Slide 16: Creating Company Transforming Mining Projects
For personal use only CREATING COMPANY TRANSFORMING MINING PROJECTS
Slide 17: 2018 - A Very Important Strategic Year to Unlock Value
2018 - A VERY IMPORTANT STRATEGIC YEAR TO UNLOCK VALUE For personal use only 17
Slide 18: Exploration Presentation
For personal use only EXPLORATION PRESENTATION PETER ROLLEY IIIII CHIEF GEOLOGIST 24 MAY 2018
Slide 19: Contents
CONTENTS For personal use only 1. KANMANTOO MINE – the cornerstone 2. EXPLORATION UNDER & ADJACENT TO THE MINE 3. EXPLORATION NEAR THE MINE (<3KMS) 4. EXPLORATION IN THE REGION Utilising existing infrastructure and cash flow at Kanmantoo to create Company transforming mining projects 19
Slide 20: A Copper-Gold Producer: The Cornerstone
For personal use only A COPPER – GOLD PRODUCER THE CORNERSTONE
Slide 21: Location
LOCATION Hillgrove Resources Ltd (ASX:HGO) operates For personal use only the Kanmantoo Copper-Gold Open Pit in the south-east of South Australia. Mineral Resource Estimate1 of Meas+Ind 19.6Mt @ 0.6% Cu, 0.1g/t Au Inf 12.3Mt @ 0.6% Cu, 0.1g/t Au Located approx. 55kms from Adelaide Grid power, water
Slide 22: Funding for Growth Projects
FUNDING FOR GROWTH PROJECTS Quarterly copper production at Kanmantoo For personal use only Quarterly Copper Production (Cu t) 5500 continues to improve as a significant pit cut- 5000 back is now completed 4500 4000 Last Quarter 3500 C1 cash cost US$1.86/lb Cu 3000 2017-Q1 2017-Q2 2017-Q3 2017-Q4 201
Slide 23: Exploration Under and Adjacent to the Mine
For personal use only EXPLORATION UNDER AND ADJACENT TO THE MINE
Slide 24: Kanmantoo – Significant Copper and Gold Endowment
KANMANTOO – SIGNIFICANT COPPER AND GOLD ENDOWMENT Kanmantoo is a copper-gold mine with a large For personal use only number of structurally controlled Cu-Au ore zones Tenor of Gold can be significant, but varies across lodes. Not previously fully understood Best copper-gold intercepts below or adjac
Slide 25: Exploration Targets Down-Dip of Known Ore Zones
EXPLORATION TARGETS DOWN-DIP OF KNOWN ORE ZONES HGO has demonstrated the For personal use only extension of several high grade copper-gold zones beyond the final pit design with exploration drilling e.g. 37m @ 1.1% Cu, 1.9g/t Au 5m @ 32.3g/t Au 12m @ 2.2% Cu, 7.9g/t Au Resulting in an Exploration Ta
Slide 26: Down-Dip Drilling Targets
DOWN-DIP DRILLING TARGETS The first UG target is the Nugent copper-gold zone For personal use only Located 180m from the Pit Haul Road The Ore zones in Nugent Pit are up-to 20m wide Nugent 12m @ 2.2% Cu, 7.9g/t Au Kavanagh target is only 150m from Haul Road 21m @ 2%Cu, 0.1g/t Au and 7m @ 2.7% Cu, 0.
Slide 27: Exploration Targets Are Proximal to Existing Infrastructure
EXPLORATION TARGETS ARE PROXIMAL TO EXISTING INFRASTRUCTURE The Exploration Target; For personal use only is based on utilising the final in-pit haul road as a quasi-decline that will extend from surface down to 350m depth Therefore minimal capital will be required to develop the UG Development of t
Slide 28: Near Mine Exploration Projects
For personal use only NEAR MINE EXPLORATION PROJECTS Within 3 kms of processing plant
Slide 29: No Systematic Exploration Since 2008
NO SYSTEMATIC EXPLORATION SINCE 2008 For personal use only The Mine Corridor has not seen any systematic exploration since 2008 when the focus was on permitting the Kanmantoo open pit operations The Mine Corridor is ~5kms long, owned 100% by HGO Significant drill intercepts have not been followed up
Slide 30: Unfinished Business
UNFINISHED BUSINESS Wheal Harmony workings OUTCROPPING For personal use only KTRC742 – 5m @ 2.50% Cu Aubert Anomalies from 13m DO NOT OUTCROP – BLIND NO DRILLING! Dipole – Dipole IP Pseudosection – 6113400N (~500m south of the mine lease) Near Mine Targets There are a number of IP and magnetic anoma
Slide 31: Regional Exploration Projects
For personal use only REGIONAL EXPLORATION PROJECTS Within 100kms of Kanmantoo
Slide 32: Delamerian Orogeny
DELAMERIAN OROGENY The Kanmantoo Copper-Gold Mine is For personal use only located in the Delamerian Orogeny of south-east South Australia. This zone is contiguous with the western Victoria and western Tasmania tectonic zones hosting Stavely, Mt Lyell, Roseberry, Hellyer and Henty copper-gold and ba
Slide 33: Kanappa Cu-Au
KANAPPA Cu-Au For personal use only 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 wid
Slide 34: Kanappa – Isometric View of Copper Geochemistry
KANAPPA – ISOMETRIC VIEW OF COPPER GEOCHEMISTRY Cross sectional For personal use only Copper View Geochemistry East KEY TAKEAWAYS Soil copper geochemistry is strong and in a linear zone over 4kms long Best geochemistry is over 2kms 34
Slide 35: Kanappa – Copper Geochemistry & Mags
KANAPPA – ISOMETRIC VIEW OF COPPER GEOCHEMISTRY & MAGS For personal use only Copper Geochemistry East 3D Magnetic Model KEY TAKEAWAYS Magnetic anomalism is strong and not related to rock types, implying it is alteration related Best magnetic zones are correlated with the best geochemistry over 2km s
Slide 36: Kanappa – Copper Geochemistry, Mags & IP
KANAPPA – ISOMETRIC VIEW OF COPPER GEOCHEMISTRY & MAGS & IP For personal use only Copper Geochemistry East IP Chargeability Model 3D Magnetic Model KEY TAKEAWAYS The IP chargeability zone is discrete and strong over a 250m width Best Chargeable zones are correlated with best magnetic and Cu geochemi
Slide 37: Kanappa – All IP & 2006 HGO Drill Hole
KANAPPA – ISOMETRIC VIEW OF ALL IP & 2006 HGO DRILL HOLE North For personal use only KPDDH01 Drilled by HGO 2 km long zone of in 2006 coincident Geochemistry, Magnetics, Chargeability Open to south KEY TAKEAWAYS This isometric view of all IP lines shows strong continuity of the IP chargeability zone
Slide 38: Kanappa Cu-Au – Best Cross Section
KANAPPA Cu-Au – BEST CROSS SECTION For personal use only Kanappa is a large and strong zone of alteration and copper-gold anomalism It is the highest ranked Cu-Au exploration project for Hillgrove KEY TAKEAWAYS Large scale coincident Cu-Au geochem, magnetics, and IP anomaly Drilling to commence
Slide 39: Mt Rhine Cu-Au
MT RHINE Cu-Au For personal use only 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 with
Slide 40: Mt Rhine Cu-Au
MT RHINE Cu-Au For personal use only 1.7 kms long zone of Chargeability, Section line for next slide Magnetics, & IP Chargeability Cu geochemistry model on 200m sections North Magnetic 3D Model KEY TAKEAWAYS Stacked sections of IP chargeable model, with 3D magnetic model superimposed Continuous zone
Slide 41: Mt Rhine Cu-Au – Best Cross Section
MT RHINE Cu-Au – BEST CROSS SECTION For personal use only East Cu Soil anomaly IP Chargeability model 3D Magnetic model KEY TAKEAWAYS Mt Rhine has a strong zone of Cu geochemistry, magnetic and IP Chargeability anomalism Over a 1.7km long, 500m wide zone More work required to define the drill target
Slide 42: Under Mine, Near Mine and Regional Exploration Targets
UNDER MINE COPPER-GOLD EXPLORATION TARGETS For personal use only Utilising the Open Pit Haul Road as a quasi-decline in potential UG development Exploring ore zones already known from open pit mining Projections supported by diamond drilling under & adjacent to the Pit including 37m @ 1.1% C
Slide 43: Pumped Hydro Energy Storage
For personal use only PUMPED HYDRO ENERGY STORAGE (CEO & MD – CONT’D)
Slide 44: Kanmantoo Pumped Hydro Schematic
KANMANTOO PUMPED HYDRO SCHEMATIC For personal use only Proposed Upper Reservoir in valley Giant Pit schematic mid of owned paddock 2019 Existing Tailings Dam 44
Slide 45: One of the Lowest Capital $/MW Storage Projects in Australia
ONE OF THE LOWEST CAPITAL $/MW STORAGE PROJECTS IN AUSTRALIA For personal use only Source: public data. 45
Slide 46: Pumped Hydro Energy Storage – Competitive Advantage
PUMPED HYDRO ENERGY STORAGE – COMPETITIVE ADVANTAGE One of the best sites for Pumped Hydro Energy Storage in Australia; For personal use only Very low capital cost at < $0.9M / MW and < $140 / kWh. Potential to be first to market; commissioned by end 2021. Infrastructure already in place (lowe
Slide 47: Summary
For personal use only SUMMARY Utilising existing infrastructure and cash flow at Kanmantoo to create Company transforming mining projects
Slide 48: Summary: Kanmantoo Enabling New Growth
SUMMARY KANMANTOO ENABLING NEW GROWTH For personal use only Cash flow from operations Increased Geologic understanding of ore controls from production Owned, permitted and operating site Quasi decline (haul road) Processing and Tailings Facilities Infrastructure suitable for further mini
Slide 49: Question and Answer
QUESTION AND ANSWER Utilising existing infrastructure and cash flow at Kanmantoo For personal use only to create Company transforming mining projects