Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Conference Presentation (February 2019)
16 slides from Hillgrove Resources's conference presentation, Feb 26, 2019
Slide 1: Pumped Hydro Energy Storage - Kanmantoo Project
PUMPED HYDRO ENERGY STORAGE - KANMANTOO PROJECT STEVE MCCLARE IIIII CEO & MD 26 FEBRUARY 2019
Slide 2: Disclaimer Statement
DISCLAIMER STATEMENT No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (“Hillgrove”, “HGO”, or the “Company”) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of
Slide 3: PHES Is Not Core Business
55 kilometres from Adelaide CBD PHES IS NOT CORE BUSINESS 3
Slide 4: Hillgrove is a copper/gold producer in South Australia
Hillgrove Resources is a copper / gold producer with production and exploration assets in South Australia. The intent remains to maximise the value from the existing mining operation (including progressive rehabilitation), progress the sale of the Pumped Hydro site and evaluate options to unlock the
Slide 5: Kanmantoo PHES
KANMANTOO PHES ◼ At last years conference we stated Kanmantoo was one of the best sites for PHES in Australia: ❑ Very low capital cost at < $1M / MW ❑ Fast to market; ❑ Infrastructure already in place ❑ Proximity to grid ❑ Existing studies and knowledge (environmental, geotechnical, geology, hydroge
Slide 6: Independent Verification
INDEPENDENT VERIFICATION GHD were engaged to independently verify HGO statements, study confirmed: – Very low capital cost at $1M / MW. • Lower pond (open pit) already constructed. • Upper pond in a natural valley. • All options are less than 1.5km between ponds. • High head in stable geological con
Slide 7: Formal Sale Process
FORMAL SALE PROCESS ◼ Key Pacific Advisory Partners appointed to conduct sale process. ◼ Indicative bid stage generated broad interest. ◼ Shortlist developed after binding bid phase. ◼ Negotiations with preferred bidder are progressing but are incomplete. 7
Slide 8: General Layout
| HILLGROVE KANMANTOO PHES RESOURCES GENERAL LAYOUT Upper Pond < Shaft & . OfGP/H & ‘% th / Lower “ep * Pond | 7 apa Processing Plant . : e 1) ae 4Xc : S Y ®. es “ = as | S es A, wo” ye ®.
Slide 9: Current Status of Lower Pond
CURRENT STATUS OF LOWER POND ◼ Mining of the lower pond is imminent. 9
Slide 10: Cross Section
| HILLGROVE KANMANTOO PHES » RESOURCES CROSS SECTION con y INLET STRUCTURE WITH INTEGRAL EMERGENCY SPILLWAY | SET IN CONCRETE FACED ROCKFILL DAM | CREST RL1225 | @5m STEEL PIPELINE IN CUT TRENCH caine | | TRANSITION TO TUNNEL TO SUIT ROCK | | CONDITION AND COVER EXISTING GROUND MOL RL1216 | _> EXIST
Slide 11: Key Points of Difference
KEY POINTS OF DIFFERENCE Mining has resulted in a significant data source: ◼ Geological and geotechnical ◼ Hydrology ◼ Environmental UPPER ◼ Community POND ◼ Network Proximity 11
Slide 12: Capital Cost
HILLGROVE KANMANTOO PHES tv | RESOURCES CAPITAL COST an Comparative Capex (ASm) for PHES projects 2.50 0.50 0.45 2.00 0.40 = 0.35 s % & 1.50 0.30 5 c + =) a 0.25 = = = = 1.00 0.20 = uw a o15 < 0.50 0.10 0.05 0.00 0.00 Kanmantoo _ Kidston, QLD Baroota Highbury Goat Hill Middleback Cultana Ranges Mmmm
Slide 13: From Open Pit Mining to PHES
FROM OPEN PIT MINING TO PHES ▪ 250MW for 7.5 hours generating over 1,800MWh ▪ < 5km to 275KVA line UPPER POND LOWER POND 13
Slide 14: Interaction with Pumped Hydro
INTERACTION WITH PUMPED HYDRO Dawsley Assuming the PHES proceeds, the indicative area in yellow will not be available for mining, which includes the Kavanagh underground. PHES The Nugent, Dawsley, Stella and Kanmantoo South targets remain accessible as exploration targets regardless of PHES developm
Slide 15: Why Kanmantoo Works for PHES
WHY KANMANTOO WORKS FOR PHES 15
Slide 16: Personal Observations
PERSONAL OBSERVATIONS Whilst governments can steer or even mandate direction, the majority of the PHES market is driven by commercially attractive projects. Synchronous generators are often the best partners of PHES. The Australian environment has many hills, mining creates artificial mountain gradi
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