Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (March 2023)
38 slides from Hillgrove Resources's investor presentation, Mar 1, 2023
Slide 1: Australia's Next Copper Mine
AUSTRALIA’S NEXT COPPER MINE Lachlan Wallace CEO & Managing Director February 2023 1
Slide 2: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Summary information This presentation contains summary information about Hillgrove Resources Limited (Hillgrove or the Company) and its activities as at 27 February 2023. The information in this presentation is of a general nature and does not purport to be complete nor
Slide 3: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Future performance continued The forward looking statements are subject to risks, stakeholder engagement, uncertainties and assumptions which could cause actual results, timing, or events to differ materially from the expectations described in such forward-looking state
Slide 4: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER Mineral Resources and Ore Reserves Estimates continued There is a lower level of geological and grade continuity confidence associated with Inferred Resources and there is no certainty that further exploration work will result in the conversion of Inferred Resource esti
Slide 5: Summary
SUMMARY ■ FULLY FUNDED (SUBJECT TO EGM & FIRB APPROVALS) ■ FULLY PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION OPPORTUNITY ■ 3.6Mtpa PROCESSING PLANT ON CARE AND MAINTENANCE AND ALL INFRASTRUCTURE IS ALREADY IN PLACE FOR A POTENTIAL RESTART ■ STAGE 1 HAS STRONG FINANCIALS WITH SHORT PAY
Slide 6: Corporate Snapshot
CORPORATE SNAPSHOT Company Overview Investment Highlights • ASX listed (‘HGO’) Australian resources company that owns and ✓ Advanced, fully permitted project with key infrastructure in place operates the Kanmantoo Copper Gold Mine in South Australia for a <$30M capex restart • 19+ years of strong op
Slide 7: Fully Permitted in Tier 1 Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION ✓ Tier 1 location ✓ Ready workforce - No FIFO ✓ Close to Port Adelaide 7
Slide 8: Fully Permitted in Tier 1 Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION ✓ Surplus annual native seed production ✓ Linking rehab to regional vegetation to create greenbelt ✓ 122ha native vegetation completed 8
Slide 9: Fully Permitted in Tier 1 Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION ✓ Genuine win-win community engagement ✓ Community and government support ✓ ESG reporting to GRI, UNSDG, ICMM 9 Kanmantoo Callington Community Consultative Committee (K4C) receiving award from Premier Steven Marshall for Community Excellence
Slide 10: Plant and Infrastructure Already in Place
PLANT AND INFRASTRUCTURE ALREADY IN PLACE ✓ 3.6Mtpa processing plant ✓ All critical spares ✓ Maintained for quick, low-cost restart 10
Slide 11: Tailings Storage Facility Already in Place
TAILINGS STORAGE FACILITY ALREADY IN PLACE ✓ Tailings storage with approved capacity of >7Mt, well above current mine plan of 4.5Mt ✓ Further low-cost capacity available to accommodate growing mine plan ✓ All services connected (power, water). Long term power contract provides low prices until 2027
Slide 12: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED Nugent Portal Development decline and Ventilation drive underground drill platform 12
Slide 13: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED Underground decline commenced 13
Slide 14: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED ✓ Decline and ventilation drive commenced ✓ Infrastructure at portal in place ✓ First copper intersected only 13m from portal! 14
Slide 15: Excellent Economics – Stage 1 Only
EXCELLENT ECONOMICS – STAGE 1 ONLY ✓ Low capital - existing infrastructure and close proximity of lodes ✓ Low AISC - excellent geotechnical conditions and multiple headings enable efficient mining ✓ Nugent 2022 drilling increased the MRE increased by 6kt Cu metal which is not included in this study.
Slide 16: Excellent Economics – Low Capital Intensity
EXCELLENT ECONOMICS – LOW CAPITAL INTENSITY ✓ Lowest capital intensity in the world 16 Source: AME, 2017, Copper - Capital Intensity of New Copper Mines
Slide 17: Significant Leverage to the Copper Price
SIGNIFICANT LEVERAGE TO THE COPPER PRICE ✓ Stopes terminate in lower grade halo around high grade mineralised core. ✓ As price increases, the cut-off grade reduces, enabling additional copper mineralization to be mined for low incremental cost by simply widening stope width. ✓ Spare processing capac
Slide 18: >100% Exploration Strike Rate = Resource Growth
> 100% EXPLORATION STRIKE RATE = RESOURCE GROWTH ✓ 143 Cu-Au intersections of economic grade and width from only 122 holes: over 100%! ✓ Mine plan does not include 6kt added to Nugent MRE in 2022 and recent drilling results in Spitfire, North Hub and South Hub ✓ Every drill program has increased MRE
Slide 19: Just Scratching the Surface
JUST SCRATCHING THE SURFACE Stage 1 Mine plan ✓ Stage 1 includes 2 of 9 lodes to 250m below pit ✓ All 9 lodes remain open at depth and along strike 19
Slide 20: Just Scratching the Surface
JUST SCRATCHING THE SURFACE ✓ Drilling density limits mine plan to 250m below pit (~600mRL) but copper mineralisation has been confirmed at 500m below pit and still open. ✓ Spitfire drilled from underground in 2022 is not in current economic assessment. 20
Slide 21: Just Scratching the Surface
JUST SCRATCHING THE SURFACE ✓ 2021/22 drilling increased Nugent MRE by 6kt Cu metal which is not in current economic assessment. When included, it is expected to increase mine plan. ✓ Nugent remains open at depth and along strike. 21
Slide 22: Just Scratching the Surface
JUST SCRATCHING THE SURFACE Stage 1 Mine plan South Hub: Critchley, Paringa & Emily Star ✓ Area below Emily pit remains open 17m @ 3.6% Cu 0.6 g/t Au ✓ Drilling commenced late 2022 22 14m @ 2.8% Cu 0.3 g/t Au
Slide 23: South Hub
T 317600mE + 6115400mN F 6115000mN Valentine ae Sidi) = RESOURCES S Location of Emily Star & Paringa sre Plan View - All Drilling 317800mE WEST f- ri0omAt | stan f 900m. Projected Giant Open Pit forscale 318000mE Dail ntesection = >10%6U = 06-1050 = 04-0686 cu = 02-0860 = <02%6) HILLGROVE RESOURCES
Slide 24: South Hub
T 317600mE + 6115400mN Emily Star areal 4 ° = =~ OpenPit ye Completed 2019 A 7 z i <@ HILLGROVE L Location of Emily Star & Paringa Plan View - All Drilling rook 000m 31760nE Dil ntesecton = > 10% = 05-1.0%00 = 04-0560 = 02-0480 <02%6U som SI77D0mE 31780me Emily Star - All Drilling Cross Section alon
Slide 25: South Hub
T 317600mE + 6115400mN F 6115000mN Valentine erg, ‘Open Pit Completed 2019 a Foo & HILLGROVE RESOURCES Location of Emily Star & Paringa Plan View - All Drilling 3IT6DOME 3177b0mE 317800mE ‘100mAL 000m Dil intersection = > 10% = 06-1.0%00 = 04-0696 = 02-04% Cu <02% (0 HILLGROVE IRB Emily Star - All D
Slide 26: Just Scratching the Surface
JUST SCRATCHING THE SURFACE Stage 1 Mine plan North Hub: North Kav & Coopers ✓ North Kavanagh lode visible in pit wall 9m @ 2.1% Cu 0.7 g/t Au ✓ Immediate low-cost access from existing pit haul road 26 10m @ 1.6% Cu 0.6 g/t Au ✓ ~200m strike length, 300m depth and still open
Slide 27: North Hub
North Kavanagh lode visible in pit wall NORTH HUB Easy and immediate access to North Kavanagh lode from existing pit haul road ~200m strike length 27
Slide 28: North Hub
+ 6115400mN F 6115000mN T a 317600mE 3180008 —~— Emily Star ne Se : 2. Critchley = T “=, 318400mE North Kavanagh t Se KTRC995 X-SECTION SECTION > RESOURCES Location of North Kavanagh Plan View - All Drilling Tae te risa WEST EAST ina sn HILLGROVE North Kavanagh Zone Gross Section 110m North of Giant
Slide 29: North Hub
North Kavanagh lode NORTH HUB extends from surface to >300m depth >300m 29
Slide 30: Just Scratching the Surface
JUST SCRATCHING THE SURFACE North Hub South Hub Kavanagh Nugent ✓ Conceptual designs indicate North Hub and South Hub can be added to the plan for low incremental cost (pending successful confirmatory drilling) ✓ Mill only 40% utilised and plenty of TSF capacity, so additional throughput requires no
Slide 31: News Flow
Strong news flow as we NEWS FLOW transition to producer Indicative timetable(1) ✓ Q1-23 UPDATED MINE PLAN ■ Q1-23 CONCLUDE INITIAL PLACEMENT & COMMENCE EARLY WORKS ■ Q2-23 CONCLUDE FUNDING (SUBJECT TO EGM & FIRB) ■ Q2-23 FID & COMMENCE UNDERGROUND DEVELOPMENT ■ Q3-23 CONTINUED MINE LIFE EXPANSION DR
Slide 32: Capital Raise & Timetable
CAPITAL RAISE & TIMETABLE Indicative Timetable (3) Offer structure: Record Date for SPP Offer 7.00pm, Tuesday 28 February 2023 ■ Quantum: $39.2m Announcement of Capital Raising Wednesday, 1 March 2023 ■ Sources: • $17.2m placement to Freepoint at $0.053 per SPP Offer opens and despatch of SPP Offer
Slide 33: Sources & Uses
SOURCES & USES Sources (12 months) Uses (12 months) Item Amount ($M) Item Amount ($M) Cash less Creditors (31 Jan 2023) $4.0 Pre-production Capital $25.0 unaudited Placement – Freepoint(1) $17.2 Mine Expansion Drilling $7.5 Placement – Institutional, & $19.0 Corporate $1.8 Sophisticated Investors SP
Slide 34: Opportunity Re-cap
OPPORTUNITY RE-CAP ■ FULLY PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION OPPORTUNITY ■ STAGE 1 ALREADY HAS STRONG ECONOMICS WITH SHORT PAYBACK PERIOD ■ HIGHLY LEVERAGED TO COPPER PRICE INCREASES AND RESOURCE GROWTH ■ MULTIPLE ON-LEASE INFILL DRILLING TARGETS TO FURTHER INCREASE MINING I
Slide 35: Appendix
Appendix 35
Slide 36: Investment Risks
INVESTMENT RISKS Potential investors should be aware that there are risks associated with investing in Hillgrove. Certain risks are beyond the control of Hillgrove and its Directors and Management and may have a material impact on Hillgrove's future operating and financial performance, and/or the fi
Slide 37: Investment Risks
INVESTMENT RISKS • The future success of the Company depends, to a significant extent, upon the continued services of the members of the management Key person team of the Company. There can be no assurance that the Company will be able to retain or hire all personnel necessary for the dependence dev
Slide 38: References
REFERENCES All exploration drill results, exploration information and Mineral Resource Estimates have previously been reported to the ASX by Competent Person at the time. The results reported herein are reported in the form and context of the original ASX releases. Refer http://www.hillgroveresource
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