Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (June 2010)
60 slides from Hillgrove Resources's shareholder meeting presentation, Jun 22, 2010
Slide 1: Annual General Meeting Chairman's Address
For personal use only ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS 22 JUNE 2010
Slide 2: Financial Results 2010 plus prior three years
FINANCIAL RESULTS 2010 PLUS PRIOR THREE YEARS For personal use only 31 January 31 January 31 January 31 January Results for the 2007 2008 2009 2010 Year Ended $M $M $M $M Revenue and 0.3 0.6 46.8 98.2 other income Profit/(loss) after tax 10.8 (4.9) 11.1 55.6 Earnings per share 4.9 (2.0) 3.0 12.7 – d
Slide 3: Net Assets 2010 plus prior three years
NET ASSETS 2010 PLUS PRIOR THREE YEARS For personal use only N t Assets Net A t ($m) ($ ) 200.0 175.0 163.8 150.0 125.0 100.0 84.2 75.0 55.2 50.0 38.7 25.0 0.0 2007 2008 2009 2010 3
Slide 4: Annual General Meeting 2010 Resolutions
ANNUAL GENERAL MEETING 2010 RESOLUTIONS For personal use only RESOLUTION 1 That the Remuneration Report in the 2010 Annual Report of the Company be adopted. adopted RESOLUTION 2 That Mr Ronald Belz is elected as a Director off the C Company. RESOLUTION 3 That the Hon. Dean Brown is elected as a Dire
Slide 5: Annual General Meeting Managing Director's Presentation
For personal use only ANNUAL GENERAL MEETING MANAGING DIRECTORS PRESENTATION 22 JUNE 2010
Slide 6: Disclaimer
DISCLAIMER For personal use only This presentation should not be relied upon as a representation of any matter that a potential investor or their adviser should consider in evaluating the Company. Potential investors must make their own independent assessment and investigation of the matters contain
Slide 7: Competent Persons Statement
COMPETENT PERSONS STATEMENT For personal use only The information in this report that relates to Exploration Results at the Kanmantoo Copper Mines is based on information compiled by Mr Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bradey is the Kanmanto
Slide 8: Key Assets 2010
KEY ASSETS 2010 AUSTRALIAN MINER WITH ASIAN GROWTH PIPELINE For personal use only MINING ❙ Kanmantoo: oxide copper heap leach - 100% DEVELOPMENT ❙ Kanmantoo Copper/Gold Mine: 2.4MTpa →2.7MTpa - 100% EXPLORATION ❙ Bird’s Head, Indonesia: copper/gold and gold - 80% ❙ Sumba, Indonesia: gold - 80% ❙ Kan
Slide 9: Metals Outlook 2010: Copper on the Move
METALS OUTLOOK 2010 COPPER ON THE MOVE For personal use only THE RIGHT COMMODITIES AT THE RIGHT TIME MACQUARIE BANK COMMODITIES, 9 JUN 2009 “Looking further out, in our view, copper has the best fundamentals of any of the base metals, metals and should go into an economic upturn with low stocks, lim
Slide 10: Snapshot
KANMANTOO COPPER MINES SNAPSHOT For personal use only EL4401 10
Slide 11: 2010
KANMANTOO COPPER MINES 2010 For personal use only 11
Slide 12: Resources / Reserves
KANMANTOO COPPER MINES RESOURCES / RESERVES Total (0.25% Cu Cut Off Grade Model) For personal use only Tonnes Cu Au Ag Cu Metal Au Ag Type Kt % g/t g/t Tonnes Ounces Ounces Oxide 1,125 0.8 0.2 3.3 8,600 6,900 121,000 Transitional 1,620 0.8 0.2 2.9 12,200 9,600 152,000 Fresh 29,447 0.9 0.2 3.2 271,50
Slide 13: Ore Body
KANMANTOO COPPER MINES ORE BODY For personal use only 13
Slide 14: Mines Site Plan
KANMANTOO MINES SITE PLAN NW Z Zone For personal use only ❙ Copper-gold mineralisation is predominantly parallel to the north- Waste Rock southth axial i l planar l ffoliation li ti with ith Stockpile influence from a conjugate extensional shear zones NE Zone ❙ Mineralisation is complex. There is Ma
Slide 15: Near Mine Prospects
KANMANTOO COPPER MINES NEAR MINE PROSPECTS For personal use only 15
Slide 16: Summary
KANMANTOO COPPER MINES SUMMARY Resources: 292,700 tonnes copper @ 0.9% For personal use only 194,700 ounces gold @ 0.2g/t 3,326,300 , , ounces silver @ 3.2g/t g Reserves: 14.8MT @ 0.85% copper 0.17g/t gold and 3.1g/t silver Mi i St Mining Stage 1: 1 O id heap Oxide h lleachh operation ti 450t 450tpa
Slide 17: Low Cost Setting
KANMANTOO COPPER MINES LOW COST SETTING 9 Connected to national grid For personal use only 9 Retreated waste water to process water 9 Preferred employment destination 9 Close to export port of Port Adelaide 17
Slide 18: Pit Design
KANMANTOO COPPER MINES PIT DESIGN For personal use only 18
Slide 19: Kanmantoo Mines Ore Processing Flow
Lime KANMANTOO MINES ROM FEED ORE PROCESSING FLOW VIBRATING BIN BIN PRODUCT GRIZZLY SCREEN NEUTRAL- FEEDER ISATION JAW TANK For personal use only CRUSHER PROCESS STOCK WATER SECONDARY HYDRO PILE TANK CRUSHER CYCLONE SAG MILL PEBBLE CRUSHER FLOATATION REAGENTS ROUGHER FLOATATION FLOATATION REAGENTS C
Slide 20: A Copper Producer at Last
KANMANTOO COPPER MINES A COPPER PRODUCER AT LAST For personal use only RESULTS OF QUARTERLY OXIDE ORE OPERATIONS February March April Total YTD $ $ $ $ Sales Revenue 333,546 270,181 280,692 884,419 Copper pp Sales (tonnes) ( ) 51.5 40.3 44.4 136.2 Sales Revenue per tonne 6,481 6,698 6,322 6,493 Sale
Slide 21: Pillara Process Plant
KANMANTOO COPPER MINES PILLARA PROCESS PLANT For personal use only Second hand processing plant purchased from Pill in Pillara i WA prior i to dismantling
Slide 22: Pillara Process Plant - Plant Aerial Photo
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Plant Aerial Photo For personal use only
Slide 23: Pillara Process Plant - The Plant Now
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Plant Aerial Photo – The Plant Now For personal use only
Slide 24: Pillara Process Plant - COS Feed Conveyor Dismantle
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - COS Feed Conveyor Dismantle For personal use only
Slide 25: Pillara Process Plant - Grinding Area
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Grinding Area For personal use only
Slide 26: Pillara Process Plant - Cyclone Structure Above Mills
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Cyclone Structure Above Mills For personal use only
Slide 27: Pillara Process Plant - Mills
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Mills For personal use only
Slide 28: Pillara Process Plant - Flotation Building Roof
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Flotation Building Roof For personal use only
Slide 29: Pillara Process Plant - Trough Float Cell Being Lifted
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Trough Float Cell Being Lifted For personal use only
Slide 30: Pillara Process Plant - Float Building and Mills
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Float Building and Mills For personal use only
Slide 31: Pillara Process Plant - Concentrate Thickener Mid Section
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Concentrate Thickener Mid Section For personal use only
Slide 32: Pillara Process Plant - Clear of Footings
KANMANTOO COPPER MINES PILLARA PROCESS PLANT - Clear of Floatation & Grinding footings For personal use only
Slide 33: Dismantling and Transport of Plant
KANMANTOO COPPER MINES DISMANTLING AND TRANSPORT OF PLANT For personal use only Dismantling is nearly complete and loads arriving in SA at lay down area ready for construction 33
Slide 34: Mining Operations
KANMANTOO COPPER MINES MINING OPERATIONS For personal use only ❙7 month pre-strip ❙14.8MT ore ❙69.8MT waste ❙Operating strip ratio 4.9:1 34
Slide 35: Mining Operations
KANMANTOO COPPER MINES MINING OPERATIONS For personal use only ❙7 month pre-strip ❙14.8MT ore ❙69.8MT waste ❙Operating strip ratio 4.9:1 35
Slide 36: Capital Costs
KANMANTOO COPPER MINES CAPITAL COSTS For personal use only C t t Works Contract W k O i i lB Original Budget d t Estimated E ti t d total t t l Expenditure A$000 A$000 Mining 25,589 15.376 Process Plant (incl. Secondary crusher) 70,015 58.072 Infrastructure 17,331 9,072 Owners Team 4,571 4,302 Owner
Slide 37: Uniquely Positioned
KANMANTOO COPPER MINES UNIQUELY POSITIONED For personal use only ❙Only Australian mid-cap copper developer with production planned to start in 2011: 9 $90.7 million capex, net of sunk costs 9 Mining Lease 6345 granted and MARP approved 9 All feasibility studies, metalurgical testing completed 9 Free
Slide 38: Regional Pipeline Indonesia
REGIONAL PIPELINE INDONESIA HIGHLY PROSPECTIVE ADVANCED GOLD EXPLORATION For personal use only 38
Slide 39: Indonesia Bird's Head Project Regional Setting
INDONESIA BIRD’S HEAD PROJECT REGIONAL SETTING For personal use only Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’ 39
Slide 40: Bird's Head Project Indonesia / New Guinea Deposits
BIRD’S HEAD PROJECT INDONESIA / NEW GUINEA DEPOSITS For personal use only Five of Top 20 Know Gold-Rich Porphyry Copper Deposits1 Rank Deposit Province Tonnage Au Au Cu Cu (Mt) (g/t) (t) (Wt %) (Mt) 1. Grasberg East Papua 2,480 1.05 2,604 1.13 28.02 7. Panguna Bougainville 1,415 0.57 799 0.46 6.51 9
Slide 41: Bird's Head Project IUP Area and Drainage Anomalies
BIRD’S HEAD PROJECT IUP AREA AND DRAINAGE ANOMALIES BY GOLD For personal use only Work by Normandy and past explorers highlighted 16 high order anomalies, with Bird’s Head now containing the most prospective 41
Slide 42: Bird's Head Delta Prospect West Delta Area
BIRD’S HEAD DELTA PROSPECT WEST DELTA AREA For personal use only Over 5m silica-pyrite-albite altered monzonite it with ith malachite l hit after ft fifine grained chalcocite in hanging wall Close up of above hanging wall rock with quartz-sulphide veining/stockwork Clay altered & brecciated monzonit
Slide 43: Bird's Head Delta Prospect Green Cliffs
BIRD’S HEAD DELTA PROSPECT GREEN CLIFFS For personal use only Plan View of a 3D Inversion Model clipped at -500R.L 500R L and overlaid by historical rock chip samples and drilling 43
Slide 44: Bird's Head Delta Green Cliffs
BIRD’S HEAD DELTA GREEN CLIFFS For personal use only Outcrop map of the Green Cliffs Breccia Area with channel samples by copper 44
Slide 45: Bird's Head Delta Prospect Cross Section for West Delta
BIRD’S HEAD DELTA PROSPECT INTERPRETATIVE CROSS SECTION FOR WEST DELTA For personal use only 45
Slide 46: Bird's Head Alpha Prospect Gold Soil Geochemistry
BIRD’S HEAD ALPHA PROSPECT GOLD (G/T) SOIL GEOCHEMISTRY For personal use only 1 Kilometre Batu Hijau Extensive gold mineralisation, which appears to be strongly structurally controlled 46
Slide 47: Bird's Head Alpha Prospect Drilling and Trenching Locations
BIRD’S HEAD ALPHA PROSPECT DRILLING, TRENCHING LOCATIONS ON GOLD SOIL GEOCHEMISTRY ❙Bonanza trenching For personal use only grades: gold associated with epithermal quartz veins ❙ Very limited drilling B15 Anomaly completed to date with A17/19 Anomaly only 5 drill holes ❙Significant scout drilling re
Slide 48: Indonesia Sumba Island Project
INDONESIA SUMBA ISLAND PROJECT 80% ❙IUP Explorasi No 322/kep/HK/2009 granted on 2 November for six years on Sumba covering an For personal use only area of 99,970 hectares or 999km2 ❙Hillgrove’ss Indonesian partner PT Fathi Resources free carried to decision to mine with 20% interest ❙Hillgrove ❙Sum
Slide 49: Sumba Project Masu: Current Focus
SUMBA PROJECT MASU: CURRENT FOCUS For personal use only 49
Slide 50: Sumba Project Masu: Current Focus
SUMBA PROJECT MASU: CURRENT FOCUS For personal use only 50 50
Slide 51: Sumba Project Pahandanjal Prospect Western Lode
SUMBA PROJECT PAHANDANJAL PROSPECT Western Lode For personal use only ❙Potential to host multiple, high- grade, fracture-controlled f vein systems of comparable grades and dimensions to high grade epithermal ith l llow sulphidation l hid ti systems mined elsewhere in Indonesian archipelago ❙Outcropp
Slide 52: Sumba Project Pahandanjal Prospect Eastern Lode
SUMBA PROJECT PAHANDANJAL PROSPECT Eastern Lode For personal use only ❙Eastern Vein system strikes NNW and outcrops over at least 600m, but exhibits multiple intersecting lodes which vary f from ENE to t ESE ❙Trenching indicate low grade alteration halo to many lodes ❙ENE / WNW trending lodes genera
Slide 53: Sumba Project Pahandanjal Prospect
SUMBA PROJECT PAHANDANJAL PROSPECT For personal use only 53
Slide 54: Indonesia Bauxite Projects Highlights
INDONESIA BAUXITE BAUXITE PROJECTS HIGHLIGHTS For personal use only Highlights p ❙Options secured over 70% of companies p controllingg 1,400km² , of ggranted bauxite exploration p licenses in West Kalimantan in Indonesia ❙Licences adjacent to large, established bauxite resources and active bauxite m
Slide 55: Bauxite Projects Selected Published Bauxite Resource Grades
BAUXITE PROJECTS SELETED PUBLISHED BAUXITE RESOURCE GRADES For personal use only Deposit Owner Country Al2O3 Reactive Available Upgraded % Si % Al2O3 % 1North Darling Range Ba ite Resources Bauxite Reso rces A stralia Australia 43 1 43.1 32 3.2 31 6 31.6 2Worsley BHP Billiton Australia NS 2.1 31.1 2
Slide 56: Bauxite Projects Selected Published Bauxite Resource Grades
BAUXITE PROJECTS SELETED PUBLISHED BAUXITE RESOURCE GRADES For personal use only 56
Slide 57: Bauxite Projects Landak Project
BAUXITE PROJECTS LANDAK PROJECT For personal use only LANDAK PROJECT TENURE AND RECONNAISSANCE SAMPLING Al2O3 GRADE MAP 57
Slide 58: Hillgrove June 2010 Key Investment Metrics
HILLGROVE 17 JUNE 2010 ASX CODE: HGO – KEY INVESTMENT METRICS For personal use only Hillgrove Resources: Share Price1 $ 0.30 Ordinary shares # 481.5M Trading History Fully diluted shares2 499.4M Price (A$) Hillgrove Resources Volume (m) Fully diluted market cap. cap $ 149.8M 149 8M 0.6 4.5 Cash3 $ 1
Slide 59: Key Assets 2010 Investment Summary
KEY ASSETS 2010 INVESTMENT SUMMARY For personal use only 9 Strong Balance Sheet: $101 million cash 9 Targeting discovery of world class gold and copper/gold ore bodies: 2,815 km² – West Papua and Sumba 9 Kanmantoo Copper/Gold Mine: Oxide heap leach moving to 2.4MTpa mine with 2011 concentrate produc
Slide 60: 2010
KANMANTOO COPPER MINES 2010 For personal use only 60
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