Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (December 2020)
24 slides from Hillgrove Resources's investor presentation, Dec 17, 2020
Slide 1: Kanmantoo Underground
NOT FOR DISTRIBUTION IN THE UNITED STATES KANMANTOO UNDERGROUND LACHLAN WALLACE IIIII CEO & MANAGING DIRECTOR 17 DECEMBER 2020
Slide 2: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON STATEMENT IMPORTANT NOTICES & DISCLAIMER This investor presentation (Presentation) has been prepared by Hillgrove Resources Limited (ACN 004 297 116) (Hillgrove or the Company). This Presentation has been prepared in relation to the Company's proposed equity raising, as
Slide 3: Disclaimer & Competent Person Statement
DISCLAIMER & COMPETENT PERSON STATEMENT RELIANCE ON THIRD PARTY INFORMATION The information and views expressed in this Presentation were prepared by Hillgrove and contain information that has been derived from publicly available sources that have not been independently verified. No representation o
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Brownfields underground project with low risk staged development plan All key infrastructure in place and maintained for ready restart Short timeline to production restart Near mine exploration upside to extend resource base Fully permitted and strong stakeholder support in a t
Slide 5: Overview
OVERVIEW ■ 100% owned by Hillgrove Resources (HGO) ■ Open pit mining from 2011-19 produced 137kt Cu ■ 55km from Adelaide; local workforce ■ Processing plant on C&M ■ Fully operational TSF with additional capacity ■ 360m deep open pit provides ready access to underground lodes ■ All regulatory and co
Slide 6: Recent Exploration History
RECENT EXPLORATION HISTORY May 2017 Oct 2019 Dec 2020 ■ Definition of underground ■ Maiden Kavanagh UG ■ Updated Mineral Resource exploration target(1) down Mineral Resource Estimate Estimate increasing total dip of open pit lodes (limited to 750mRL in estimated Cu metal in the Kavanagh only) Resour
Slide 7: Exploration Results
EXPLORATION RESULTS ■ The 2020 drilling program (now complete) confirmed that the key Cu-Au lodes of Kavanagh, West Kavanagh and Nugent extend at least 230- 150m below the extent of the respective pits with grade and width to support an evaluation of underground mining ■ The drilling completed in Au
Slide 8: Staged Development Concept
STAGED DEVELOPMENT CONCEPT Initial reserve at Kavanagh and Nugent: ■ Funding required for 11.4km expansion and infill drill program at Nugent and Kavanagh and to test near mine targets including Stella and Northwest ■ Funds allow definition of an initial 3-4 year underground reserve at Kavanagh and
Slide 9: North West, Stella & Mullewa
NORTH WEST, STELLA & MULLEWA North West; Copper soil anomaly is 2.3kms long; Rock chips have identified zones with high gold and copper Mullewa; Large alteration area and MT zone with Cu anomalism Stella; MT survey suggests a significant conductive zone coincident Cu & Au anomaly and gravity low, wh
Slide 10: Stella
STELLA MT survey suggests a significant conductive zone which presents a new large target for exploration Previous Cu & Au drilling A large geochemical and geophysical signature with coincident: ■ MT Conductivity ■ Magnetic RTP High ■ Gravity Low ■ Geochem Cu, Pb, As, Au MAGNETIC Directly adjacent t
Slide 11: North West Kanmantoo
NORTH WEST KANMANTOO ■ Copper soil anomaly is 2.3kms long and Copper in coincident with large air-magnetic Soils anomaly. ■ Rock chips have identified zones with high gold and copper. Cu, Mo, Sn, Ce, La Breccia Zone ■ Regionally located at major tectonic dilation zone with new granites, albitites, C
Slide 12: Significant conductive zone presents a large exploration target
MULLEWA MT survey suggests a Projections of Location of Kavanagh Cu Mullewa Cu significant conductive zone anomaly which presents a new large target for exploration A large geochemical and geophysical signature with coincident: ■ MT Conductivity ■ Magnetic RTP High ■ Geochem Cu, Ce MODELLED 2D MT CO
Slide 13: Objective is to discover large scale porphyry Cu-Au deposits
■ In parallel with the underground and near mine development opportunities, HGO continues to undertake low cost exploration across 5,652km2 of tenements in south-east SA ■ Tenements sit within USGS and GA Porphyry Tract which includes the Stavely Cu-Au-Mo Porphyry ■ Multiple targets with geochemical
Slide 14: Proposed Timeline
PROPOSED TIMELINE 2019 2020 2021 2022 Resource Drilling Pre-Feasibility & Permitting Drilling to confirm depth extensions Mineral Resource Estimate c. 9 months to FID Capital Raise (Drilling and DFS) Drilling and DFS c. 5 months to restart Project Finance Capital Development Ore production 14
Slide 15: Proposed Raise & Use of Funds
PROPOSED RAISE & USE OF FUNDS Capital Raise to drill near mine targets, expand UG resource and reach FID Sources (to Oct-21) Uses (to Oct-21) Item Amount ($M) Item Amount ($M) Current Net Cash $3.3 Restricted Cash $1.8 Drilling & Studies: Placement $8.1 1. Expand UG Resource and complete DFS $5.0 2.
Slide 16: Proposed Raise Structure & Timetable
PROPOSED RAISE STRUCTURE & TIMETABLE Proposed structure: Indicative Timetable1 ■ Quantum: $8.7m - $10.9m (gross) Trading halt Tuesday, 15 December ■ Sources: Announcement of Placement Thursday, 17 December and Rights Issue • $8.1m two tranche placement to institutional & sophisticated investors at $
Slide 17: Summary
SUMMARY ■ Underground development opportunity on mining lease at Kanmantoo which benefits from very low capital intensity due to existing infrastructure. ■ Well advanced project: completed permitting, initial resource definition drilling, and mining contractor tender. ■ Funding required to prove up
Slide 18: Appendix
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Slide 19: Corporate Snapshot
CORPORATE SNAPSHOT Market Statistics Investment Opportunity ✓ Advanced, fully permitted UG mining project Share Price(1) A$p.s 0.0355 with infrastructure in place to quickly convert Shares on Issue M 585.6 for low capex and realise value of rising prices Market Capitalisation A$M 21 ✓ Exciting growt
Slide 20: Pumped Hydro Opportunity
PUMPED HYDRO OPPORTUNITY ■ In April 2019, HGO sold the rights to AGL to Proposed site layout develop, own and operate the Kanmantoo Pumped Hydro Energy Storage Facility (“PHES”) for A$31m in staged development payments ■ Despite the significant potential of the PHES it was agreed to mutually termina
Slide 21: 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
Slide 22: Exploration Target
EXPLORATION TARGET 1. An Exploration Target was reported to the ASX on 25 May 2017 (Kanmantoo Underground Copper Mine Growth Opportunity). 2. The South Hub Exploration Target was reported to the ASX on 27 Sep 2019 (Kanmantoo South Hub Cu-Au Growth Opportunity). This Exploration Target includes the p
Slide 23: Risks
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
Slide 24: Risks
RISKS ENVIRONMENTAL RISKS Hillgrove’s operations are subject to extensive Federal, State and local environmental laws and regulations. These laws and regulations set various standards regulating certain aspects of health and environmental quality and provide for penalties and other liabilities for v
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