Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (June 2010)
59 slides from Hillgrove Resources's shareholder meeting presentation, Jun 22, 2010
Slide 1: Annual General Meeting: Chairman's Address
ANNUAL GENERAL MEETING CHAIRMAN’S ADDRESS 22 JUNE 2010
Slide 2: Financial Results 2010
FINANCIAL RESULTS 2010 PLUS PRIOR THREE YEARS 31 January 31 January 31 January 31 January Results for the 2007 2008 2009 2010 Year Ended $M $M $M $M Revenue and 0.3 0.6 46.8 98.2 other income Profit/(loss) after tax 10.8 (4.9) 11.1 55.6 Earnings per share 4.9 (2.0) 3.0 12.7 – diluted (cents) 2
Slide 3: Net Assets 2010
NET ASSETS 2010 PLUS PRIOR THREE YEARS N t Assets Net A t ($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 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 Director of the Company. R
Slide 5: Annual General Meeting: Managing Director's Presentation
ANNUAL GENERAL MEETING MANAGING DIRECTORS PRESENTATION 22 JUNE 2010
Slide 6: Disclaimer
DISCLAIMER 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 contained herein and should n
Slide 7: Competent Persons Statement
COMPETENT PERSONS STATEMENT 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 Kanmantoo Project Geology Mana
Slide 8: Key Assets 2010
KEY ASSETS 2010 AUSTRALIAN MINER WITH ASIAN GROWTH PIPELINE 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% ❙ Kanmantoo, SA: copper/gol
Slide 9: Metals Outlook 2010: Copper on the Move
METALS OUTLOOK 2010 COPPER ON THE MOVE 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, limited idle capacity and
Slide 10: Kanmantoo Copper Mines Snapshot
KANMANTOO COPPER MINES SNAPSHOT EL4401 10
Slide 11: Kanmantoo Copper Mines 2010
KANMANTOO COPPER MINES 2010 11
Slide 12: Resources / Reserves
KANMANTOO COPPER MINES RESOURCES / RESERVES Total (0.25% Cu Cut Off Grade Model) 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 3.2 271,500 174,600 3,040,700 To
Slide 13: Kanmantoo Copper Mines Ore Body
KANMANTOO COPPER MINES ORE BODY 13
Slide 14: Kanmantoo Mines Site Plan
KANMANTOO MINES SITE PLAN NW Z Zone ❙ 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 Main Zone evidence of pr
Slide 15: Near Mine Prospects
KANMANTOO COPPER MINES NEAR MINE PROSPECTS 15
Slide 16: Kanmantoo Copper Mines Summary
KANMANTOO COPPER MINES SUMMARY Resources: 292,700 tonnes copper @ 0.9% 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 contained t i d coppe
Slide 17: Low Cost Setting
KANMANTOO COPPER MINES LOW COST SETTING 9 Connected to national grid 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 18
Slide 19: Ore Processing Flow
Lime KANMANTOO MINES ROM FEED ORE PROCESSING FLOW VIBRATING BIN BIN PRODUCT GRIZZLY SCREEN NEUTRAL- FEEDER ISATION JAW TANK CRUSHER PROCESS STOCK WATER SECONDARY HYDRO PILE TANK CRUSHER CYCLONE SAG MILL PEBBLE CRUSHER FLOATATION REAGENTS ROUGHER FLOATATION FLOATATION REAGENTS CLEANER FLOATATION TAIL
Slide 20: A Copper Producer at Last
KANMANTOO COPPER MINES A COPPER PRODUCER AT LAST 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 Sales Revenue per lb 2.94
Slide 21: Pillara Process Plant
KANMANTOO COPPER MINES PILLARA PROCESS PLANT Second hand processing plant purchased from Pill in Pillara i WA prior i to dismantling
Slide 22: Pillara Process Plant Aerial Photo - Before
KANMANTOO COPPER MINES PILLARA PROCESS PLANT AERIAL PHOTO - BEFORE 22
Slide 23: Pillara Process Plant Aerial Photo - The Plant Now
KANMANTOO COPPER MINES PILLARA PROCESS PLANT AERIAL PHOTO – THE PLANT NOW 23
Slide 24: Pillara Process Plant COS Feed Conveyor Dismantle
KANMANTOO COPPER MINES PILLARA PROCESS PLANT COS FEED CONVEYOR DISMANTLE 24
Slide 25: Pillara Process Plant Grinding Area
KANMANTOO COPPER MINES PILLARA PROCESS PLANT GRINDING AREA 25
Slide 26: Pillara Process Plant Cyclone Structure Above Mills
KANMANTOO COPPER MINES PILLARA PROCESS PLANT CYCLONE STRUCTURE ABOVE MILLS 26
Slide 27: Pillara Process Plant Mills
KANMANTOO COPPER MINES PILLARA PROCESS PLANT MILLS 27
Slide 28: Pillara Process Plant Flotation Building Roof
KANMANTOO COPPER MINES PILLARA PROCESS PLANT FLOTATION BUILDING ROOF 28
Slide 29: Pillara Process Plant Trough Float Cell Being Lifted
KANMANTOO COPPER MINES PILLARA PROCESS PLANT TROUGH FLOAT CELL BEING LIFTED 29
Slide 30: Pillara Process Plant Float Building and Mills
KANMANTOO COPPER MINES PILLARA PROCESS PLANT FLOAT BUILDING AND MILLS 30
Slide 31: Pillara Process Plant Concentrate Thickener Mid Section
KANMANTOO COPPER MINES PILLARA PROCESS PLANT CONCENTRATE THICKENER MID SECTION 31
Slide 32: Pillara Process Plant Clear of Floatation & Grinding Footings
KANMANTOO COPPER MINES PILLARA PROCESS PLANT CLEAR OF FLOATATION & GRINDING FOOTINGS 32
Slide 33: Dismantling and Transport of Plant
KANMANTOO COPPER MINES DISMANTLING AND TRANSPORT OF PLANT Dismantling is nearly complete and loads arriving in SA at lay down area ready for construction 33
Slide 34: Mining Operations
KANMANTOO MINES MINING OPERATIONS ❙7 month pre-strip ❙14.8MT ore ❙69.8MT waste ❙Operating strip ratio 4.9:1 34
Slide 35: Mining Operations
KANMANTOO MINES MINING OPERATIONS 35
Slide 36: Capital Costs
KANMANTOO COPPER MINES CAPITAL COSTS 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 Owners Costs 8,454 9,178 To
Slide 37: Uniquely Positioned
KANMANTOO COPPER MINES UNIQUELY POSITIONED ❙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 Freehold land of 835ha (2,
Slide 38: Regional Pipeline Indonesia
REGIONAL PIPELINE INDONESIA HIGHLY PROSPECTIVE ADVANCED GOLD EXPLORATION 38
Slide 39: Indonesia Bird's Head Project: Regional Setting
INDONESIA BIRD’S HEAD PROJECT REGIONAL SETTING Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’ 39
Slide 40: Indonesia / New Guinea Deposits
BIRD’S HEAD PROJECT INDONESIA / NEW GUINEA DEPOSITS 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. Batu Hijau Sumbawa 1
Slide 41: IUP Area and Drainage Anomalies by Gold
BIRD’S HEAD PROJECT IUP AREA AND DRAINAGE ANOMALIES BY GOLD 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 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 monzonite it
Slide 43: Bird's Head Delta Prospect: Green Cliffs
BIRD’S HEAD DELTA PROSPECT GREEN CLIFFS 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 Outcrop map of the Green Cliffs Breccia Area with channel samples by copper 44
Slide 45: Interpretative Cross Section for West Delta
BIRD’S HEAD DELTA PROSPECT INTERPRETATIVE CROSS SECTION FOR WEST DELTA 45
Slide 46: Bird's Head Alpha Prospect
BIRD’S HEAD ALPHA PROSPECT GOLD (G/T) SOIL GEOCHEMISTRY 1 Kilometre Batu Hijau Extensive gold mineralisation, which appears to be strongly structurally controlled 46
Slide 47: Bird's Head Alpha Prospect: Drilling, Trenching Locations
BIRD’S HEAD ALPHA PROSPECT DRILLING, TRENCHING LOCATIONS ON GOLD SOIL GEOCHEMISTRY ❙Bonanza trenching 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 results including 17.45m
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 area of 99,970 hectares or 999km2 ❙Hillgrove’ss Indonesian partner PT Fathi Resources free carried to decision to mine with 20% interest ❙Hillgrove ❙Sumba offers a leg up int
Slide 49: Sumba Project: Masu Current Focus
SUMBA PROJECT MASU: CURRENT FOCUS 49
Slide 50: Sumba Project: Masu Current Focus
SUMBA PROJECT MASU: CURRENT FOCUS 50 50
Slide 51: Sumba Project: Pahandanjal Prospect Western Lode
SUMBA PROJECT PAHANDANJAL PROSPECT Western Lode ❙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 ❙Outcropping vein zone reveals
Slide 52: Sumba Project: Pahandanjal Prospect Eastern Lode
SUMBA PROJECT PAHANDANJAL PROSPECT Eastern Lode ❙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 generally occur as brecciate
Slide 53: Sumba Project: Pahandanjal Prospect
SUMBA PROJECT PAHANDANJAL PROSPECT 53
Slide 54: Indonesia Bauxite: Projects Highlights
INDONESIA BAUXITE BAUXITE PROJECTS HIGHLIGHTS 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 mining operations ❙Baux
Slide 55: Selected Published Bauxite Resource Grades
BAUXITE PROJECTS SELETED PUBLISHED BAUXITE RESOURCE GRADES 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 2MRN BHP Billiton Brazi
Slide 56: Bauxite Projects Landak
BAUXITE PROJECTS LANDAK TENEMENTS 48.8% Al2O3 ( (washed)) SELETED PUBLISHED BAUXITE RESOURCE GRADES Tayan (ANTAM)* 30.9mt @ 47.5% Al2O3 (washed P & P Reserves) Munggu Pasir (ANTAM)* 40mt @ 46.6% Al2O3 (washed Probable Reserve) TAYAN SOUTH Bauxite Resource 56
Slide 57: Landak Project Tenure and Reconnaissance Sampling
BAUXITE PROJECTS LANDAK PROJECT LANDAK PROJECT TENURE AND RECONNAISSANCE SAMPLING Al2O3 GRADE MAP 57
Slide 58: Investment Summary
KEY ASSETS 2010 INVESTMENT SUMMARY 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 production plus significant
Slide 59: Kanmantoo Copper Mines 2010
KANMANTOO COPPER MINES 2010 59
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