Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Brisbane Resources Round Up (October 2018)
27 slides from Hillgrove Resources's conference presentation, Oct 17, 2018
Slide 1: Uncovering a New Copper-Gold Province at Kanmantoo
UNCOVERING A NEW COPPER-GOLD PROVINCE AT KANMANTOO PETER ROLLEY IIIII CHIEF GEOLOGIST 17 OCTOBER 2018
Slide 2: Disclaimer Statement
DISCLAIMER 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
Slide 3: Competent Person Statements
COMPETENT PERSON STATEMENTS Competent Person's Statement The information in this release that r elates 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 is a full-time employe
Slide 4: Contents
CONTENTS 1. KANMANTOO MINE – THE ASSETS 2. EXPLORATION UNDER & NEAR MINE 3. KANMANTOO MINE – WHAT WE HAVE LEARNED 4. EXPLORATION IN THE REGION Utilising existing infrastructure and cash flow at Kanmantoo to create Company transforming mining projects 4
Slide 5: Location
LOCATION Hillgrove Resources Ltd (ASX:HGO) operates the Kanmantoo Copper-Gold Open Pit in the south-east of South Australia. Located approx. 55kms from Adelaide Grid power, water on site Local labour force – no FIFO Camp/Travel Awards for Community Consultation Leader in Environmental Rehabilitation
Slide 6: The Mine
THE MINE Strong revenue with increasing Cu Metal Last Half C1 cash costs A$2.63/lb Cu Realised Copper price A$4.08/lb Cu Open pit to conclude in Q2 2019 Processing stockpiles to conclude Q3 2020 Assets include: Open Pit Shell Haul Road to ultimate depth of 350m Tailings Facility Processing P
Slide 7: The Pumped Hydro Energy Storage
THE PUMPED HYDRO ENERGY STORAGE The Pit Shell at end of Mine Life is an Asset Looking to convert it to income as a PHES HGO has no desire to become an energy generator and is Seeking a partner to take forward Open to buy out, or revenue royalty Formal sale process is underway Either the pit shel
Slide 8: The Geology
THE GEOLOGY The Kanmantoo Mine extracts copper-gold-silver from a series of structurally controlled shears, lodes and breccias Original host rocks are greywackes, siltstones, sandstones Cu lode alteration is garnet, chlorite, staurolite Zone alteration is chlorite, garnet, andalusite Gold grad
Slide 9: 2. Exploration Under & Near Mine
2. EXPLORATION UNDER & NEAR MINE UTILISING EXISTING DATA AND KNOWLEDGE TO IDENTIFY NEW CU-AU TARGETS 9
Slide 10: Kanmantoo UG – Part of a Large Structural System
KANMANTOO UG – PART OF A LARGE STRUCTURAL SYSTEM The Principal targets in the wall of the Giant Pit are: East Kavanagh Nugent North-East Kavanagh (Schultze) Spitfire Central Kavanagh – main prize KEY TAKEAWAYS Significant >1.5% Cu Equiv zones continue beyond open pit 10
Slide 11: Drill Hole Targets
DRILL HOLE TARGETS KEY TAKEAWAYS Past drilling confirms UG targets and ready for infill drilling 11
Slide 12: Conceptual Underground Development
CONCEPTUAL UNDERGROUND DEVELOPMENT KAVANAGH NUGENT LODES UG access from Giant Pit to Nugent Lodes now Permitted. KEY TAKEAWAYS Value of PHES versus Kavanagh Underground is being evaluated 12
Slide 13: No Systematic Exploration Since 2008
NO SYSTEMATIC EXPLORATION SINCE 2008 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 AND clearly a large alteration and structural footprint Significant drill intercepts have not b
Slide 14: Magmatic Target?
MAGMATIC TARGET? 1.8 kms SE of Process Plant Coincident MT Conductivity Magnetic RTP High Geochem Cu – Au Further work to define depth to target and scale MT Line AMT/MT conductivity image Magnetics - RTP KEY TAKEAWAYS Large deep-seated conductivity target focuses exploration activities 14
Slide 15: 3. Kanmantoo Mine – What We Have Learned
3. KANMANTOO MINE – WHAT WE HAVE LEARNED UNDERSTANDING THE EXPOSED GEOLOGY TO UNLOCK THE OPPORTUNITIES UNDER-COVER 15
Slide 16: Magmatic Activity Is Evident During Orogen
MAGMATIC ACTIVITY IS EVIDENT DURING OROGEN Early igneous activity within the pit are alkali feldspar granite dykes These are pre-mineralisation – U-Pb age dating of monazite 500.5 +/- 4.6 Ma (Uni Adelaide – Dr R. Lilly) Dykes of highly chloritized Albite, K-feldspar, biotite, quartz To put into a re
Slide 17: Magmatic Activity Has Continued Through Orogen Time
MAGMATIC ACTIVITY HAS CONTINUED THROUGH OROGEN TIME Undeformed alkali feldspar dykes at the mine site are overprinted with Cu & Fe sulphides Monazite age dating = 483 +/- 2.4 Ma Uni Adelaide – Dr R. Lilly These dykes are syenites, monzonites to granodiorites and are Cu mineralised Post main Cu-Ag mi
Slide 18: Application for Exploration
APPLICATION FOR EXPLORATION Dating of the main copper-gold lodes shows 492 +/- 7 Ma – Wilson, 2009 (Monazite in garnet, within main mineralisation) Magmatic activity is therefore pre and post mineralisation And the undeformed post mineralisation felsic dykes are also Cu-Au bearing Such mineralisatio
Slide 19: Andean Type?
ANDEAN TYPE? Here is an interpretation of the Delamerian Orogen in south- east South Australia (after Belperio et al, 1998 and Foden et al, 2006) Kanmantoo is located in the rift basin – the Kanmantoo Trough And the Kanappa – Mt Rhine projects are located at the margin of the Magmatic Arc and the Ka
Slide 20: Andean Type? Under Cover
ANDEAN TYPE? UNDER COVER For the Delamerian orogen in south-east South Australia Most of the prospective stratigraphy and magmatism is hidden under the cover of the Murray Valley sediments and associated plains. 20
Slide 21: 4. Exploration in the Region
4. EXPLORATION IN THE REGION UNDERSTANDING THE EXPOSED GEOLOGY TO UNLOCK THE OPPORTUNITIES UNDER-COVER 21
Slide 22: A Copper Gold Enriched Province
A COPPER GOLD ENRICHED PROVINCE The regional magnetics clearly show the Kanmantoo Trough sedimentary basin and the magmatic arc (Padthaway Ridge) to the east Significant projects for Hillgrove within the Delamerian Orogen include Kanmantoo Cu - Au Kanappa Cu - Au Mt Rhine Cu – Au KEY TAKEAWAYS Str
Slide 23: A Copper Gold Enriched Province
A COPPER GOLD ENRICHED PROVINCE And then there is the portion of the Magmatic Arc that is now Tertiary and Quaternary covered by the Murray Valley Cover sediments KEY TAKEAWAYS Voluminous magmatic activity under cover 23
Slide 24: Kanappa Cu-Au
KANAPPA CU-AU The Kanappa Cu-Au zone is 50kms from Kanmantoo A series of pegmatites and aplites intrude into a sequence of Fe and potassic altered schists and carbonates Soil copper zone 4.4kms long Geochem zoning from west to east Cu-Zn => Cu-Bi => Cu-Au => Au => W Peak rock chips of 34% Cu 4.0g/t
Slide 25: Kanappa – Isometric View of Copper Geochemistry & Mags
KANAPPA – ISOMETRIC VIEW OF COPPER GEOCHEMISTRY & MAGS Copper Geochemistry 3D Magnetic Model Currently being drilled – results expected next month KEY TAKEAWAYS Magnetic anomalism is strong and not related to rock types, implying it is alteration related Best magnetic zones are correlated with t
Slide 26: Mt Rhine Cu-Au
MT RHINE CU-AU The Mt Rhine copper-gold zone 13% Cu is 10kms from Kanappa Soil copper zone 1.7kms long 49g/t Au 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 Also completed soils, mags, IP KEY TAKEAWAYS Large scal
Slide 27: Moving Forward
MOVING FORWARD COMPETITIVE ADVANTAGE Fully owned Process Plant and permitted Tailings Facility Fully owned Pit as Pseudo-decline or Pumped Hydro Scheme Cu-Au endowed tenements with access rights GROWTH COPPER-GOLD PROJECTS Kanmantoo underground access is now permitted Kanmantoo near mi
Hillgrove Resources — Brisbane Resources Round Up (October 2018) on 6ix