Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Fremantle Conference 2023
32 slides from Hillgrove Resources's conference presentation, Feb 16, 2023
Slide 1: Fremantle Conference Presentation cover announcement
Thursday, 16 February 2023 FREMANTLE CONFERENCE PRESENTATION For personal use only Hillgrove Resources Limited’s CEO and Managing Director Lachlan Wallace will be presenting at the Fremantle conference this afternoon, please refer to the attached presentation. Mr Wallace will be presenting at 3:10pm
Slide 2: Australia's Next Copper Mine
AUSTRALIA’S NEXT COPPER MINE For personal use only Lachlan Wallace CEO & Managing Director February 2023 1
Slide 3: Summary
SUMMARY For personal use only ■ 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 PAYBACK PERIOD: ■ A$196m FCF (
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only 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 •
Slide 5: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Tier 1 location ✓ Ready workforce - No FIFO ✓ Close to Port Adelaide 4
Slide 6: Fully Permitted in Tier Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Genuine win-win community engagement ✓ Community and government support ✓ ESG reporting to GRI, UNSDG, ICMM 5
Slide 7: Plant and Infrastructure Already in Place
PLANT AND INFRASTRUCTURE ALREADY IN PLACE For personal use only ✓ 3.6Mtpa processing plant ✓ All critical spares ✓ Maintained for quick, low-cost restart 6
Slide 8: Tailings Storage Facility Already in Place
TAILINGS STORAGE FACILITY ALREADY IN PLACE For personal use only ✓ Tailings storage with approved capacity for more than double current mine life ✓ Further low-cost capacity available to accommodate growing mine plan ✓ All services connected (power, water). Long term power contract provides low pric
Slide 9: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Nugent Portal Development decline and Ventilation drive underground drill platform 8
Slide 10: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Underground decline commenced 9
Slide 11: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only ✓ Decline and ventilation drive commenced ✓ Infrastructure at portal in place ✓ First copper intersected only 13m from portal! 10
Slide 12: Excellent Initial Economics – Stage 1 Only
EXCELLENT INITIAL ECONOMICS – STAGE 1 ONLY For personal use only ✓ Low capital - existing infrastructure and close proximity of lodes ✓ Low AISC - excellent geotechnical conditions and multiple headings enable efficient mining ✓ Since this study, the MRE increased by 1.2Mt (21%) which is expected to
Slide 13: Excellent Economics – Low Capital Intensity
EXCELLENT ECONOMICS – LOW CAPITAL INTENSITY For personal use only ✓ Lowest capital intensity in the world 12 Source: AME, 2017, Copper - Capital Intensity of New Copper Mines
Slide 14: Significant Leverage to the Copper Price
SIGNIFICANT LEVERAGE TO THE COPPER PRICE For personal use only ✓ Stopes terminate in lower grade halo around high grade mineralised core. ✓ As price increases, the cut-off grade reduces, enabling this high grade to be mined for low incremental cost by simply widening stope width. ✓ Spare processing
Slide 15: >100% Exploration Strike Rate = Resource Growth
> 100% EXPLORATION STRIKE RATE = RESOURCE GROWTH For personal use only ✓ 143 Cu-Au intersections of economic grade and width from only 122 holes: over 100%! ✓ Mine plan does not include 1.2Mt added to MRE and recent Spitfire results ✓ Every drill program has increased MRE 14
Slide 16: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only 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 15
Slide 17: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only ✓ Drilling density limits mine plan to 250m below pit (~600mRL) but copper mineralisation has been confirmed at 500m below pit and still open. ✓ 2021/22 drilling increased Kavanagh MRE by 7kt Cu metal which is not in current 16 economic assessment. W
Slide 18: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only ✓ 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. 17
Slide 19: Just Scratching the Surface – South Hub
JUST SCRATCHING THE SURFACE For personal use only 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 underway 18 14m @ 2.8% Cu 0.3 g/t Au
Slide 20: South Hub
For personal use only SOUTH HUB 19
Slide 21: South Hub
For personal use only SOUTH HUB 20
Slide 22: South Hub
For personal use only SOUTH HUB 21
Slide 23: Just Scratching the Surface – North Hub
JUST SCRATCHING THE SURFACE For personal use only 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 22 10m @ 1.6% Cu 0.6 g/t Au ✓ ~200m strike length, 300m depth and still open
Slide 24: 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 For personal use only 23
Slide 25: North Hub
For personal use only NORTH HUB 24
Slide 26: North Kavanagh lode
North Kavanagh lode NORTH HUB extends from surface to >300m depth For personal use only >300m 25
Slide 27: Just Scratching the Surface
JUST SCRATCHING THE SURFACE For personal use only 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
Slide 28: News Flow
NEWS FLOW For personal use only ■ DRILLING RESULTS – NORTH & SOUTH HUB ■ UPDATED MINE PLAN & ECONOMICS Strong news flow over next 6 months as we transition from ■ CONCLUDE FUNDING explorer to developer ■ FID – COMMENCING UNDERGROUND ■ RESOURCE UPDATES – NORTH HUB & SOUTH HUB 27
Slide 29: Opportunity Re-cap
OPPORTUNITY RE-CAP For personal use only ■ FULLY PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION OPPORTUNITY ■ STAGE 1 ALREADY HAS STRONG FINANCIALS WITH SHORT PAYBACK PERIOD ■ HIGHLY LEVERAGED TO COPPER PRICE INCREASES AND RESOURCE GROWTH ■ MULTIPLE ON-LEASE INFILL DRILLING TARGETS TO FU
Slide 30: Appendix
For personal use only Appendix 29
Slide 31: Important Notice – Cautionary Statement
IMPORTANT NOTICE CAUTIONARY STATEMENT The Economic Assessment discussed herein has been undertaken to explore the technical and economic feasibility of developing an underground mine to economically and sustainably exploit the Kanmantoo Copper Gold Deposit, located in South Australia. The Kanmantoo
Slide 32: Important Notice – References
IMPORTANT NOTICE 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 For personal use only form and context of the original ASX relea