Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (June 2005)
33 slides from Hillgrove Resources's investor presentation, Jun 22, 2005
Slide 1: Hillgrove
— HILLGROVE
Slide 2: Focus Growth Commodities
HILLGROVE Focus Growth Commodities Natural Gas = Gunnedah Gas Project has >42% of Australian coal bed methane resources. = Most proximate gas reserve to Australia’s largest population centre. » Australia’s power production must increase by >50% by 2020 (ABARE, Aug 2004). Copper * Cycle high price an
Slide 3: Geological map of operating mines
Aishvean to early Mesoproterezoia Neoproterozoic : ‘Cairibrian to Late Carboniferous @ ~ Operating Mines Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 4: Regional Setting
Regional Setting HILLGROVE o 40 20 a Kilometers Seale: 1-700, 800 Sea www.hillgroveresources.com.au for a colour v Tenement Boundary
Slide 5: Prospect Map
Prospect Map Kanappa Sou _ "Gold aisle am all ale Wh | Tenement Boundary eZ Tappanappa Formation Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 6: Sea
Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 7: Interpreted geology
Interpreted Identified/ Mineralised Zone eee] C2) Host Units a) 20 200 400 600 Meters Scale: 1:10,000 N A a pee aa es ae Sea www.hillgroveresources.com.au for a colour version of this presentation HILLGROV
Slide 8: Gradient Array IP
reyes Gradient Array IP Multiple highly conductive horizons defines the Kanmanioo Mine Corridor (KMC). The NNE trend of a tightly folded stratigraphic package within the Tapanappa Formation. Individual conductive horizons are very discrete and where drilled are sulphide rich. Highly conductive zones
Slide 9: IP with Drilling
ues }! i Me IP with Drilling Lleol ot 6 Diilthote a Ore Blocks at December 2004 oe A SS 2 semen oe ee aa 260 198 Con conan: ae ee Hosapi ie, eisai Ars AOD Cen nner em He Cope pevatin cone ets) . aaeen oe in @ 1201 Gbps: Sagesiue fiance Ne G28) po carpe shies aan Salt RDN eae ees aeuslie, Sc A 48 Coo
Slide 10: IP with Rockchips
IP with Rockchips & Rockchips (Copper %) mB o>t% BOT to 1% B<O.1% Seil contours {Copper ppm} See” 8000 ppm NL 2000 ppm 506 ppm 300 ppm | atin easton, ssaeanenl “Kanmantoo ‘Open Pit EL 3077 etait PSR ati, Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 11: Comparison with Oyu Tolgoi Gradient IP
tle Compare Oyu Tolgoi Gradient IP OYU TOLGOL PROS DRILLING UPDAT! 2769000 rd {WAMBO MINESCNCOLIALTE, Same horizontal scale but colour amplitude scale X 2 Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 12: Drilling Results to Date
te B g Results to Date « Extensive drilling in the vicinity of the mine includes 127 RC and Diamond holes for 17,310m. = TOP 10: Anomalous Down Hole Drill Results HILLGROVE Hole ID From (m) To (m) | Exploration Result intercepts Copper and Gold Equivalents. KTRCO08 19 46 27m at 3.94% Copper, 0.17 g/
Slide 13: Outstanding New Copper-Gold Resource
HILLGROVE Outstanding New Copper-Gold # Inferred and Indicated Resource of 18.371 MT @ 1.1% cu and 0.2 g/t au (0.3 - 0.4 g/t projected) - 196,700T contained cu and 104,500 ozs au. # Targeting resource increase to 25+ million tonnes to support 10 year 2 million tonne p.a. operation. * Low cost settin
Slide 14: Kanmantoo
HILLGROVE 5128000 mt KANMANTOO MINE OHEIL ZONE 553000 me EMILY STAR | PROSPECT EMILY STAR SOUTH PROSPECT Vecaten Mag K Old mine s working Interpreted Copper Orebody e570 ‘Copper Ovebody Garet-chioite setist ‘Gametandatusie eetiet WE cvatecnca sn Fault shear 2 Sea www.hillgroveresources.com.au for a
Slide 15: r , q , gaye
r , q , gaye Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 16: Kanmantoo
ih, B24 KANMANTO HILLGROVE Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 17: Industry Structure
HILLGROVE Industry Structure * Garnet types * Markets * Geologic environment Garnet Markets * Electronics * Water filtration * Waterjet cutting * Abrasive blasting * Annual demand totals ~405,000 MT p.a. Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 18: North American Mineral Abrasive Estimate
Nth American Mineral Abrasive Estimate (001) Abrasive Annual Demand Silica Sand 1,400,000 MT Coal Boiler Slag 600,000 MT Copper Slag's (incl. Ni Slag) 100,000 MT Stauroloite and other miner 100,000 MT Garnet 50,000 MT 2,240,000 Metric Tonnes Steel Abrasives 250,000 MT Total 2,490,000 Metric Tonnes S
Slide 19: Estimated Global Garnet Reserve Base
HILLGROVE Estimated Global Garnet Reserve Base Garnet Source Reserve Base Production (measured plus indicated) Tonnes Tonnes p.a. India 5,400,000 240,000 Australia 7,000,000 130,000 China Moderate to Large Small Other Countries 20,000,000 20,000 United States 25,000,000 50,000 World Total (rounded)
Slide 20: Peer Group Comparison
HILLGROVE Peer Group Comparison Company Tritton Oxiana Lafayette Anvil Matrix Breakaway SMC Hillgrove Resources Resources Mining Mining Metals § Resources Gold Ltd Resources (Code TT OXR LAF AVM. MRX BRW SMO HGO Mkt Cap (A$m) A$m 45.9 1195 924 101 322 15.9 22.5 26.4 (@14 June 05) Project Tritton Sep
Slide 21: Gunnedah JV Permit and gas pipeline
ity Vd (ony! Mh ti Sea www.hillgroveresources.com.au for a colour version of this presentation Gunnedah JV Permit Gas Pipeline Proposed Gas Pipeline Proposed Bohena to Newcastle Pipeline HILLGROVE
Slide 22: Resource Parametres
HILLGROVE Resource Parametres = Largest onshore gas resource in Australia. 215 km? gas reserve area — 3,700 PJ gas-in-place — target 200 to 500 PJ of 1P reserves from this programme. = Equivalent to more than 20 years of NSW consumption. « 17 TCF P10 gas potential in Maules Creek coals alone (35 TCF
Slide 23: RO j HILLGROVE
\ i RO j HILLGROVE LEGEND Gas Well Gas Shows Suspended CSM Well CSM Shows Proposed Welt P& A Weill Black Jack Fm CSM Fairway Black Jack Fm & Maules Creek Fm CSM Fairway Eo & ee Seal BONGO g Sth ao 15006 2ete 2s000 m Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 24: ‘th, I hE eee peony
‘th, I hE eee peony aNd i i * Shot oy [us by ( Frac HILLGROVE Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 25: Staged gas supply and pipeline plan
HILLGROVE = Stage 1 - 2006: Wilga Power Station, Narrabri. = Stage 2 - 2006: Gunnedah & Tamworth (5-10 PJ pa) e.g. Cargil (2-4 PJ pa). « Stage 3- 2007: Hunter Valley, Newcastle and Sydney (30-50 PJ pa) for industry and electricity generation e.g. Incitec (20 PJ pa) - 370 kms to Newcastle. « Pipeline
Slide 26: Gunnedah Gas Project
GUNNEDAH GAS PROJE HILLGROVE EN Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 27: Indicative per Well Cashflow at Acre Spacing
HILLGROVE Indicative 20 yr per Well Cashflow @ 60 Acre Spacing Initial well flow rate 250 GJD Year 2 well flow rate 800 GJD Year 3 well flow rate 1,000 GJD Total production (decline rate yrs 3-20) 8% 3,767,153 GJ Less: average royalty 16% (602,745) GJ Net sales gas 3,164,409 GJ A$‘000 Total revenues
Slide 28: Hillgrove Resources
ta ty oy Sea www.hillgroveresources.com.au for a colour version of this presentation HILLGROVE RESOURCES HILLGROVE
Slide 29: Australian CSG Peer Comparison
I Australian CSG Peer Comparison Sea www.hillgroveresources.com.au for a colour version of this presentation m2P Reserves PJ 0 3P Reserves PJ © Market Cap $M HILLGROVE
Slide 30: Key People
HILLGROVE Key People Directors « David Archer, Managing Director & Chairman — Founded Savage Resources Limited and PowerTel Limited « Pearce Bowman, Non-executive Director - WMC copper executive, SECV CEO « John Quirke, Non-executive Director - Former Senator, SA Member of Parliament = Ron Belz, Non
Slide 31: Capital structure
HILLGROVE Ordinary Shares HGO 158.1 million Options - 20 cents 31/12/06 HGOOA 38.1 million Options — other expiry Unlisted 2.6 million Market Cap (@ 17 cents per share) $26.9 million Cash (@ 31/05/05) $ 5.2 million Sea www.hillgroveresources.com.au for a colour version of this presentation
Slide 32: Investment Summary
HILLGROVE Investment Summary Gunnedah Gas Largest on shore resource of gas. Cooper basin in decline. Multi-well $4.0M production pilot completed. Book P1/ P2 reserves Q2 2005 to support gas sales contracts. Tightening gas supply / demand balance post 2006. Gunnedah Gas is the “clean and green” elect
Slide 33: HILLGROVE
HILLGROVE
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