Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — SAREIC Conference 2007
36 slides from Hillgrove Resources's conference presentation, Apr 30, 2007
Slide 1: Moving Mountains
MOVING MOUNTAINS DAVID ARCHER – SAREIC 30 April 2007
Slide 2: Hillgrove Resources asset and stake overview
NBIIGRVE Resources (ASK : HCO) www.hillgroveresources.com.au ® 90% / 100% Kanmantoo Copper/Gold Mine @® 90% Kanmantoo Regional © 20% -> 70% Alford |OCG HGO Stake is (ASX : ESG) |f99% > 26% www.easternstar.com.au @ 65% Gunnedah Gas Project @ 100% Coonarah Gas Field @ 100% Wilga Park Power Station @ O
Slide 3: Hillgrove in South Australia
HILLGROVE In South Australia 3.
Slide 4: Why South Australia?
KANMANTOO Why South Australia? One of the most prospective terrains in the world – home of the Big One – Olympic Dam Ideal for application of latest exploration techniques Neglected historically Gawler is vastly under explored → major mines New greenstone domains akin to the Eastern Goldfi
Slide 5: Project Location
KANMANTOO Project Location Low operating cost setting Existing infrastructure 5.
Slide 6: Kanmantoo Copper Gold Mine 1972
KANMANTOO Kanmantoo Copper Gold Mine 1972 6.
Slide 7: Kanmantoo Copper Gold Mine 2005
KANMANTOO Kanmantoo Copper Gold Mine 2005 7.
Slide 8: Potential Open Pit Operation
KANMANTOO Potential Open Pit Operation 8.
Slide 9: Resource Growth
KANMANTOO Resource Growth 50 Inferred Tonnes Indicated Tonnes 40 33.44Mt at .9% cu & 0.2g/t gold Resource Million Tonnes 28Mt at .94% cu & 0.2 g/t gold 30 18.4Mt at 1.1% cu & 0.2 g/t gold 20 8.5Mt at 1.2% cu & 0.2 g/t gold 10 0 Original 12/04 Upgrade 10/06 Upgrade 4/07 Upgrade Target Resource 9.
Slide 10: Pre-Feasibility Study Highlights
KANMANTOO Pre-Feasibility Study Highlights Mineral resources: - Copper/Gold: 28MT at 0.94% Copper and 0.20g/t Gold Contained metal: - 262,600T Copper and 177,200oz Gold Initial planning inventory: - 12,727,554MT optimized at USD$1.80 per lb copper price Base case assumptions: - Copper price US$2.65
Slide 11: Potential Open Pit Development
KANMANTOO Potential Open Pit Development 11.
Slide 12: Process Flow
HILLGROVE Process Flow HILLGROVE RESOURCES LIMITED POM RY KANMANTOO COPPER PROJECT CYCLONES PRIMARY TREATMENT PLANT “ vi aY PROCESS FLOWSHEET | « TRASH SCREEN FLASH ‘ = ROUGHER #1 ROTATION i FLOTATION ROUGHER #2 FLOTATION CONDITIONING va - [aera bal FLOTATION SCAVENGER #2 FLOTATION a Ez REGRIND ———
Slide 13: Proposed Site Layout
KANMANTOO Proposed Site Layout 13.
Slide 14: Communities and Stakeholders
KANMANTOO Communities and Stakeholders We act with integrity, transparency and honesty. We recognise, respect and support the right of Kanmantoo’s local communities to be consulted: – Committee/Focus group meetings – Community meetings – Site tours, newsletters and community webpage. We aim to
Slide 15: Financials
KANMANTOO Financials Cu Fx Discount NPV IRR NPAT (US$/lb) (A$/US$) % $’m % $’m PFS Case (10/06) 2.65 →1.63 0.70 8.5 75 32 141 Case 1 2.50 0.74 8.5 114 37 209 Case 2 3.00 0.74 8.5 191 54 321 Case 3 3.50 0.74 8.5 268 71 434 Note: Pit optimisation at US$1.80 Cu & A$/US$ 70c PFS breakeven cash cost US
Slide 16: Key DFS Consultants
KANMANTOO Key DFS Consultants 16.
Slide 17: Conceptual Flow Chart
KANMANTOO Conceptual Flow Chart 2006 2007 2008 2009 Pre-feasibility Metallurgy Permitting Drilling Definitive Feasibility Study Construction & Development Mining 17.
Slide 18: Near-mine Exploration
KANMANTOO Near-mine Exploration Exploration and resource definition drilling is ongoing and will be particularly concentrated during the Definitive Feasibility Study (DFS) which commenced in December 2006 Recent drilling intersected high-grade zones of copper mineralisation and highlighted new z
Slide 19: Mine Corridor
KANMANTOO Mine Corridor IP with Drilling and Ore Blocks 19.
Slide 20: Regional Magnetics
KANMANTOO Regional Magnetics Regional exploration has recommenced, reconnaissance of all new magnetic targets underway 12 major magnetic targets outside Mine Corridor 20.
Slide 21: Wheal Ellen Area – Magnetics
KANMANTOO Wheal Ellen Area – Magnetics Angus Deposit on same stratigraphic contact about 10km to the south and is a discrete magnetic high Series of magnetic targets have been identified along these targets These targets are largely unexplored with a number of targets with historic workings
Slide 22: Junior Australian Emerging Copper Producers
KANMANTOO Junior Australian Emerging Copper Producers Company Universal Copper Co Ex Co Discovery Matrix Hillgrove Resources Metals Metals Resources Code URL CUO EXS DML MRX HGO Mkt Cap @ 18 Apr 07 A$m 45.8 255.5 48.5 23.5 70.1 8.6 ** Cloncurry & White & Key Project Roseby Lady Annie White Dam Maun
Slide 23: Alford Project Summary
ALFORD PROJECT Summary – Similarities to Tennant Creek and Rum Jungle Past drilling has identified significant widths of copper mineralisation associated with haematite alteration including 76m at 0.95% Copper including 12m at 2.18% Copper in ALDDH001 Key similarities to Iron-Oxide-Copper-Gold (
Slide 24: Alford Project Interpreted Geology
ALFORD PROJECT Interpreted Geology 24.
Slide 25: Intermet Resources Investment Summary
INTERMET RESOURCES Investment Summary Issued capital – 40m shares and 31m @ 20c (10m expiry 30/11/07, 21m expiry 24/5/10) Cash 31 December 2006 of $3 million Tightly held structure – major shareholders Hillgrove 31% and Sempra Metals & Concentrates 8% Specialist Gawler Craton explorer with o
Slide 26: Intermet Resources Competitive Advantage
INTERMET RESOURCES Competitive Advantage Detailed understanding of the tectonic history and mineral systems on the Gawler Craton Technical expertise – Exploration team has extensive experience on the Gawler Craton and gold systems Uranium expertise – strategic JV’s with proven uranium explorer
Slide 27: ITT Project Matrix
INTERMET RESOURCES ITT Project Matrix Project Tenement No. Participants JV Commitment ($) Exploration Model Lake Gilles EL3466 ITT 100% • IOCG • Base metals related to Hiltaba Suite magmatic event • Orogenic gold EL3467 ITT and Hindmarsh $600,00 over 4 years to get 80% interest in • Unconformity-rel
Slide 28: Lake Gilles Project – IOCG Ingredients
INTERMET RESOURCES Lake Gilles Project – IOCG Ingredients Important “ingredients for IOCG style deposits” Temporal association of Cu-Au mineralisation with magmatism of the Hiltaba Suite and Gawler Range Volcanics – Lake Gilles, Southern GRV, Cocata Projects Importance of breccias in localising
Slide 29: Eastern Star Gas Company Overview
EASTERN STAR GAS LTD Company Overview Principal Activities Key Assets Eastern Star Gas Ltd (ESG) is focused on gas PEL 238 CSG (65%): 17 TCF gas resource exploration and production from both coal seam gas (CSG) and conventional natural reservoirs in PEL 238 eastern Australia. ESG also owns and opera
Slide 30: Macquarie Generation MOU
EASTERN STAR GAS LTD Macquarie Generation MOU Macquarie Generation is Australia’s largest electricity generator producing the equivalent of 40% of NSW’s electricity requirements MOU agreement provides ESG with a potential supply deal for: 500PJ gas for Bayswater Power Station (2,640MW capacity
Slide 31: Macquarie Generation MOU
EASTERN STAR GAS LTD Macquarie Generation MOU Macquarie Generation is Australia’s largest electricity generator producing the equivalent of 40% of NSW’s electricity requirements MOU agreement provides ESG with a potential supply deal for: 500PJ gas for Bayswater Power Station (2,640MW capacity
Slide 32: Growth Potential Aligned to Development Strategy
EASTERN STAR GAS LTD Growth Potential Aligned to Development Strategy 2006 2007 2008 2009 2010 PEL PEL 238 238 Coal Coal Seam Seam Gas Gas Program Program Unconfined Unconfined production production pilot pilot Drilling Drilling Confined Confined production production pilot pilot Core Core hole hole
Slide 33: Key People
HILLGROVE Key People Directors Dean Brown, Chairman – Former Premier of South Australia David Archer, Managing Director – Founded Savage Resources and PowerTel Ltd John Quirke, Non-executive Director – Former Senator, SA Member of Parliament Ron Belz, Non-executive Director – Certified pract
Slide 34: Capital Structure
HILLGROVE Capital Structure ASX : HGO Ordinary Shares HGO 242.1 million Options – 30 cents 2009 Unlisted 12.5 million Options – other expiry - ESOP Unlisted 7.9 million Options – other expiry - Sempra Unlisted 18.0 million Market Cap (@ 27.5 cents per share) $66.6 million Cash (March 2007) > $8.0 mi
Slide 35: Shareholders
SHAREHOLDERS Top 35% SegaInterSettle 8.5% Swiss Nominee D & V Archer 7.6% Managing Director Sempra Metals 7.0% Fortune 500, American energy & Concentrates and metals trading group Anglo Pacific 3.5% London based investment fund Colonial Global 3.5% Large Australian pensions institution M
Slide 36: Disclaimer
DISCLAIMER This presentation may contain forward looking statements that are subject to risk factors associated with copper, gold and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in un