Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — South Australia Exploration and Mining Conference 2013
20 slides from Hillgrove Resources's conference presentation, Nov 28, 2013
Slide 1: South Australia Exploration and Mining Conference
SOUTH AUSTRALIA EXPLORATION AND MINING CONFERENCE STEVEN MCCLARE IIIII GENERAL MANAGER 28 NOVEMBER 2013
Slide 2: Assets, Board and Management Team
ASSETS, BOARD AND MANAGEMENT TEAM Production and cash flow in Australia Bird’s Head project Kanmantoo Copper Mine (100% owned), South Australia Sumba project Rim-of-Fire exploration in Indonesia Sumba gold project (80% owned) Bird’s Head copper/gold project (80% owned) Kanmantoo Hillgrove Boar
Slide 3: Kanmantoo Copper Mine and Exploration Area
KANMANTOO COPPER MINE AND EXPLORATION AREA 100%-owned 55km from Adelaide, South Australia Exploration Mining Lease is within 500km2 Exploration Area EL4401 License Exploration potential considered high Kanmantoo The project enjoys commensurate capital Copper Mine cost advantages Wheal Elle
Slide 4: The Mine as an Exploration Tool
THE MINE AS AN EXPLORATION TOOL Mine Construction and Operation are critical to exploration Feasibility to operation Safety & Community Quality Efficiency Costs 4
Slide 5: Feasibility to Operation
FEASIBILITY TO OPERATION ABARE stated that at the end of October 2011, 102 Projects underway with A$231 Billion of expenditure Pressure on EPCMs and Owners Significant scale Unprecedented level of complexity Blowouts and over runs aren’t new Between 1965 and 1981 the average cost over ru
Slide 6: Safety and Community
SAFETY AND COMMUNITY SAFETY COMMUNITY Operational commencement presents new challenges and expectation increase with time 6
Slide 7: Quality
QUALITY RESOURCE AND RESERVE Important parameters are realistic and achievable GEOTECHNICAL Blasting and vibration can have serious impacts on stability Bench and ground support effectiveness GRADE CONTROL Further refinement to Reserve EFFECTIVE EXTRACTION Maximum recovery Minimum diluti
Slide 8: Efficiency
EFFICIENCY BASIC BUT BULLETPROOF Do the absolute minimum Keep everything simple Plan effectively Maximise throughput Minimise cost 8
Slide 9: Costs
COSTS On Time and Scope Project Low Cost Operation Longer life Increased Exploration Options 9
Slide 10: 3Q and Company Highlights – Mining Services
3Q AND COMPANY HIGHLIGHTS – MINING SERVICES Complete change out of the mining services Supply, Maintain and Repair Contract (SMARC) Recruitment of Hillgrove employees and supervisors Specialised Drillers Explosives Supply Focus on safety, quality, efficiency and costs 10
Slide 11: Total Tonnes of Ore Mined
TOTAL TONNES OF ORE MINED Monthly Mined Bank Cubic Metres (bcm) 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Q1-13 (Feb-Apr) Q2-13 (May-Jul) Aug-13 Sep-13 Oct-13 Mining rate impacted by weather and changeover New fleet operational by 7 August, ramping to nominal capacity by mid-Septem
Slide 12: Ore Milled and Feed Grade
ORE MILLED AND FEED GRADE 0.80 Milled Tonnes 756,129 800,000 Feed Grade 708,280 719,986 0.70 648,055 700,000 595,016 0.60 572,289 600,000 Tonnes Copper (Dry) 488,130 0.50 500,000 0.40 400,000 0.30 300,000 0.20 200,000 0.10 100,000 ‐ 0 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Mill co
Slide 13: Contained Copper Rates Increased
CONTAINED COPPER RATES INCREASED Kanmantoo produced 4,306 tonnes of copper in concentrate Guidance for FY14 on target for 16,500 to 18,000t Cu 13
Slide 14: Processing Costs Reduced
PROCESSING COSTS REDUCED Quarterly Processing Unit Costs Including Mobile Crushing ($/t Milled) 16.00 14.00 12.00 10.00 Costs ($/t) 8.00 6.00 4.00 2.00 ‐ Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 14
Slide 15: Life of Mine and Reserve
LIFE OF MINE AND RESERVE LOM plan to encompass Note: Rodda will include Emily immediate resource areas – Star; and Giant will include Giles, Lean and Valentine targeting 10 year life of operations Mining performance currently focussed on Kavanagh pit, with the pit now accessing the higher grade
Slide 16: Mining Status – Kavanagh and Giant
MINING STATUS – KAVANAGH AND GIANT Cross Section (6115000N Looking North) Reserve 2013 Model Blocks Shown > 0.2% Cu KAVANAGH GIANT EOM Survey July 2013 16
Slide 17: Global Mineral Reserve Estimate at End February 2013
GLOBAL MINERAL RESERVE ESTIMATE AT END FEBRUARY 2013 Kanmantoo Global Mineral Reserve Estimate at End February 2013 JORC 2012 Tonnage Cu Au Ag Classification (Mt) (%) (g/t) (g/t) Proven 2.5 0.77 0.08 1.7 In Situ Reserve Probable 18.2 0.72 0.20 2.0 20.7 0.73 0.18 1.9 Long Term Stockpiles Proven 1.4 0
Slide 18: New 2012 JORC Mineral Reserve
NEW 2012 JORC MINERAL RESERVE New Ore Reserve shows an increase in both Reserve confidence and contained metal 18
Slide 19: Disclaimer - Important Notice
DISCLAIMER - IMPORTANT NOTICE 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 o
Slide 20: Competent Person Statements
COMPETENT PERSON STATEMENTS Kanmantoo Global Mineral Resource Estimate at End February 2013 ABOUT HILLGROVE JORC 2012 Tonnage Cu Au Ag Hillgrove Resources is an Australian mining Classification (Mt) (%) (g/t) (g/t) company listed on the Australian Securities Measured 2.63 0.88 0.10 1.95 In Situ Reso
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