Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Shareholder Meeting (June 2011)
50 slides from Hillgrove Resources's shareholder meeting presentation, Jun 22, 2011
Slide 1: Annual General Meeting Presentation
For personal use only ANNUAL GENERAL MEETING PRESENTATION IIIII DREW SIMONSEN, MANAGING DIRECTOR 22 JUNE 2011
Slide 2: Disclaimer
DISCLAIMER No representation or warranty is or will be made by any person (including Hillgrove Resources Limited ACN 004 297 116 (Hillgrove) and its officers, directors, employees, advisers and agents) in relation to the accuracy or completeness of all or part of this document (the Presentation), or
Slide 3: Company Overview
COMPANY OVERVIEW AUSTRALIAN MINING COMPANY WITH AUSTRALIAN-INDONESIAN GROWTH PIPELINE For personal use only Strategically aligned to concentrate on three key assets: Bird’s Head project The principal asset is the Kanmantoo Copper Mine project (100% owned), Sumba project under construction in South
Slide 4: Strategic Direction and Focus
STRATEGIC DIRECTION AND FOCUS NEAR TERM PRODUCTION, HIGHLY PROSPECTIVE EXPLORATION Kanmantoo SAG Mill in place (17 May 2011) Our Strategy: For personal use only Construct Kanmantoo, on time and within budget Expand the Kanmantoo resource base Expand Kanmantoo throughput Explore/develop cop
Slide 5: Management Team
MANAGEMENT TEAM EXPERIENCED MANAGEMENT TEAM Cam Schubert, General Manager – Kanmantoo Project BSc (Hons); MAppSc; MEngSc; MAusIMM For personal use only Started January 2010, with 21 years experience in the resource industry Previously served as Mine Operations Development Manager for BHP Billito
Slide 6: Management Team
MANAGEMENT TEAM EXPERIENCED MANAGEMENT TEAM Geoff Stewart, General Manager – Business Development B.Com. (Acc.) For personal use only Joined Hillgrove in June 2007 He has an extensive network cultivated through 30 years of trusted interaction and cooperation Strong entrepreneurial and marketin
Slide 7: Kanmantoo Copper Mine Project
For personal use only Kanmantoo Copper Mine Project
Slide 8: Close to Adelaide
KANMANTOO COPPER MINE CLOSE TO ADELAIDE ALL MAJOR SERVICES NEAR BY 100%-owned by Hillgrove For personal use only Located just 55km from Adelaide, in South Australia Copper has been mined in the area for Exploration Area EL4401 over 150 years Exploration License area of 500km2, and relatively
Slide 9: Model, Plant Construction and Mining Video April 2011
KANMANTOO COPPER MINE MODEL, PLANT CONSTRUCTION AND MINING VIDEO 25 APRIL 2011 For personal use only SEE VIDEO ON HGO WEBSITE UNDER INVESTORS/PRESENTATIONS WWW.HILLGROVERESOURCES.COM.AU 9
Slide 10: View of Plant Site from Top of Old Waste Dump
KANMANTOO COPPER MINE VIEW OF PLANT SITE FROM TOP OF OLD WASTE DUMP 30 MAY 2011 First copper/gold production is scheduled for November 2011 For personal use only Planned at 2.4Mtpa, expected to achieve up to 2.7Mtpa Further potential to increase to 3.5Mtpa, with about AUD12M in CAPEX Estimat
Slide 11: Construction of Second Hand Processing Plant
KANMANTOO COPPER MINE CONSTRUCTION OF SECOND HAND PROCESSING PLANT FROM WESTERN AUSTRALIA Abesque Engineering For personal use only principal contractor Parsons Brinckerhoff appointed for project management oversight of construction activities Standard flowchart and production process with add
Slide 12: Current Activity: Mining Area
KANMANTOO COPPER MINES CURRENT ACTIVITY MINING AREA AT 30 MAY 2011 ABOUT 1.5M bcm MOVED TO DATE Edge of Excavator and Grade control Flood Lights for For personal use only existing pit dump truck drill rigs Night Operations
Slide 13: Current Activity: Primary and Secondary Crusher
KANMANTOO COPPER MINES CURRENT ACTIVITY PRIMARY AND SECONDARY CRUSHER WITH CRUSHED ORE CONVEYER IN FOREGROUND 30 MAY 2011 Primary Jaw Secondary Crusher Cone Crusher For personal use only Crushed Ore Stockpile Feed Conveyor
Slide 14: Current Activity: Crushed Ore Conveyor and Stockpile
KANMANTOO COPPER MINE CURRENT ACTIVITY CRUSHED ORE CONVEYOR AND STOCKPILE AREA 30 MAY 2011 Crushed Ore Crushed Ore Crushed Ore Foundations For personal use only Stockpile Feed Stockpile Reclaim Stockpile Feed Doors of Dust Conveyor Conveyor Tunnel to Conveyor Tunnel Containment Cone
Slide 15: Current Activity: SAG Mill, Flotation
KANMANTOO COPPER MINE CURRENT ACTIVITY (R-L) SAG MILL CRUSHER, FLOTATION REAGENTS THROUGH TO CONCENTRATE THICKENER 30 MAY 2011 Concentrate & Abesque Hillgrove Flotation Mill SAG Workshop For personal use only Tailings Construction Administration Building Area Mill & Stores Thickeners Office Block Ar
Slide 16: Ore Processing Area
KANMANTOO COPPER MINE ORE PROCESSING AREA FIRST SECTION OF SAG MILL BEING LIFTED INTO PLACE AND FLOTATION CELLS 30 MAY 2011 For personal use only 16
Slide 17: Current Activity: Concentrate Storage and Filter Shed
KANMANTOO COPPER MINE CURRENT ACTIVITY CONCENTRATE STORAGE SHED, FILTER SHED & THICKENERS 30 MAY 2011 Truck Process Concentrate Filter Concentrate Water For personal use only Cleaning Storage Processing & Tailings Ramp Pond Shed Area Thickeners
Slide 18: Current Activity: Tailing Storage Facility
KANMANTOO COPPER MINE CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) FIRST STAGE 90% COMPLETE Wall lining Tie into Base liner and 60% complete base liner failure overlay 95% complete For personal use only
Slide 19: Mining and Infrastructure Milestones
KANMANTOO COPPER MINE MINING AND INFRASTRUCTURE MILESTONES Tailings Storage Facility (TSF) piping system and liner installation first stage For personal use only 90% complete, end June completion Ore stockpiling underway (approximately 380kt Oxide and Transition ore stockpiled for later processi
Slide 20: Mt Barker to Kanmantoo Water Supply Pipeline
KANMANTOO COPPER MINE MT BARKER TO KANMANTOO WATER SUPPLY PIPELINE Reclaimed water pipeline from Mt Barker to site is complete, awaiting DCMB For personal use only pumping equipment which is due end August for water to flow 20
Slide 21: Key Milestones Through to Commissioning in November 2011
KANMANTOO COPPER MINE KEY MILESTONES THROUGH TO COMMISSIONING IN NOVEMBER 2011 C2 Commissioning Phase For personal use only COMMENCES: 5 October 2011 ‐ Water commissioning of plant ‐ Duration 4‐6 Weeks Pre‐commissioning Phase COMMENCES: 7 September 2011 ‐ Bump tests ‐ Power to plant & equipment ‐ Du
Slide 22: FID and Construction Started November 2010
FID AND CONSTRUCTION STARTED NOVEMBER 2010 CAPITAL AND DEVELOPMENT COSTS TO BRING KANMANTOO TO PRODUCTION 31 MAY 2011 UPDATE Project Total FID Capital Costs Construction Period Costs For personal use only Total Capital costs Capital costs Spend Period Remaining capital costs spent to 31/8 for FID 1/
Slide 23: Planned Project Highlights
KANMANTOO COPPER MINE PLANNED PROJECT HIGHLIGHTS Life-of-mine (“LOM”) average For personal use only payable metals production 21k tonnes p.a. copper 9k ounces p.a. gold 177k ounces p.a. silver Royalties 1.5% NSR for 5 years, 5% thereafter Average LOM cash cost of USD 1.61/lb (excluding r
Slide 24: Overview: Resources and Reserves
KANMANTOO COPPER MINE OVERVIEW EXPLORATION HAS IMPROVED RESOURCE CERTAINTY AND RESOURCE-RESERVE CONVERSION RATIO CURRENT RESOURCES CURRENT RESERVES For personal use only Inferred Indicated Meas ured Mt Mt 20.0 Probable Proved 40.0 18.0 35.0 31.8 32.2 16.0 14.8 30.0 28.0 14.0 25.0 12.0 11.1 20.0 18.4
Slide 25: Ore Body and Near Mine Exploration
KANMANTOO COPPER MINE ORE BODY AND NEAR MINE EXPLORATION Little exploration since late 2008 NW Zone For personal use only Exploration Manager appointed in January 2011 Waste Rock Stockpile Strategic review of all exploration conducted to date to target and NE Zone rank priorities within mining
Slide 26: Resource Extension and Target Reserve Conversion
KANMANTOO MINE RESOURCE EXTENSION AND TARGET RESERVE CONVERSION For personal use only Phase 1 – Convert inferred resources to indicated 5,000m of RC drilling and up to 400 m of DD Phase 2 – Identify additional inferred resources 2,500m of RC drilling 26
Slide 27: Resource Extension – Target Near Mine IP Anomalies
KANMANTOO COPPER MINE RESOURCE EXTENSION – TARGET NEAR MINE IP ANOMALIES Slot Extension NE Zone For personal use only SLOT EXTENSION & NE ZONE GREEN ZONE SOUTH Green Zone SE Zone MAIN ZONE SOUTH Otto O’Neil McFARLANE’S Structure Some mineralisation correlated with Phase 1: Reserve Upgrade – 5,000m
Slide 28: Resource Extension - Target Near Mine IP Anomalies
KANMANTOO COPPER MINE RESOURCE EXTENSION - TARGET NEAR MINE IP ANOMALIES For personal use only Area is under-explored Several significant anomalies yet to be investigated, some bigger than original Kanmantoo pit Anomalies both within the mining lease, as well as the exploration license area
Slide 29: Cross Section A–A' Falcon and Main Zone
KANMANTOO COPPER MINE CROSS SECTION A – A’ LOOKING NORTH THROUGH FALCON & MAIN ZONE Phase 1 ‐ Convert inferred resources to indicated For personal use only Historical data incorporated into model Open: No Drilling KTGC0073 – 19m @ 1.43% Cu Open: No Drilling 29
Slide 30: Cross Section B–B' Green and Main Zones
KANMANTOO COPPER MINE CROSS SECTION B – B’ LOOKING NORTH THROUGH GREEN & MAIN ZONES Phase 1 ‐ Convert inferred resources to indicated For personal use only Open: No Drilling Open: KTRC077 – 20m No Drilling @ 1.31% Cu
Slide 31: Cross Section C–C' O'Neil
KANMANTOO COPPER MINE CROSS SECTION C – C’ LOOKING NORTH THROUGH O’NEIL Phase 1 ‐ Convert inferred resources to indicated For personal use only Open: No Drilling KTRCD122 – 24m @ 1.00% Cu KTRCD284 – 21m Open: @ 1.27% Cu No Drilling
Slide 32: Summary
KANMANTOO COPPER MINE SUMMARY For personal use only Next Australian copper producer Construction on time and on budget First production November 2011 (four months) Robust project with near term cash flows Good potential for Life of Mine extension 32
Slide 33: Exploration
For personal use only EXPLORATION
Slide 34: Exploration Assets: Indonesia
EXPLORATION ASSETS: INDONESIA HIGHLY PROSPECTIVE GOLD, COPPER EXPLORATION WHY INDONESIA? For personal use only Proven geological provenance for target commodities (Cu, Au) Strengthened legislative and judicial environment Favourable new mining laws allowing direct foreign ownership Experienc
Slide 35: Sumba Island, Hillgrove 80%
SUMBA ISLAND HILLGROVE 80% Hillgrove is an 80% For personal use only Tanah Daro shareholder in PT Fathi, Project Area holding an IUP over ~1,000km2 for a period of six years Pelitalira Hillgrove responsible Masu Project for exploration and Area development activities and sole funding up to decis
Slide 36: Sumba Island: Masu (Southern) Project Area
SUMBA ISLAND MASU (SOUTHERN) PROJECT AREA Karipi-Kanjilu Prospect Recent exploration For personal use only Soil sampling over Project now covers over 10km² Has identified 17 high priority gold anomalies (up to1.5km in length) Karipi-Kanjilu trenching indicates broad anomaly over 800m strike le
Slide 37: Sumba Island: Tanah Daro (Northern) Project
SUMBA ISLAND TANAH DARO (NORTHERN) PROJECT Pelitalira Prospect For personal use only Located in Central Sumba Accessible by road Waterfall Vein Recent exploration Soil sampling delineated Tanah Daro two distinct gold anomalies Project Area with gold values up to 19.95g/t Au Earlier Waterfa
Slide 38: 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’ 38
Slide 39: Bird's Head Project, Hillgrove 80%
BIRD’S HEAD PROJECT HILLGROVE 80% Hillgrove is an 80% beneficial shareholder in PT Akram through JV Agreement For personal use only As with PT Fathi, we are moving to a corporatised ownership structure IUP rights cover almost 1,000km2 , granted for six years Hillgrove responsible for explora
Slide 40: Bird's Head Project: Green Cliffs Prospect
BIRD’S HEAD PROJECT GREEN CLIFFS PROSPECT Green Cliffs 3D magnetic inversion modelling Breccia Target For personal use only of West Delta area showing magnetic targets (Normandy data) Strong magnetic anomalies associated w. intense hydrothermal alteration, Diorite intrusives and copper values of
Slide 41: Bird's Head Project: West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT LAND SLIPS INTO STREAMS AND RIVERS For personal use only
Slide 42: Bird's Head Project: West Delta Coastal Proximity
BIRD’S HEAD PROJECT WEST DELTA COASTAL PROXIMITY For personal use only West Delta
Slide 43: Bird's Head Project: West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Trenching highlights : For personal use only 32m @ 0.73% Cu including 20m @ 0.95% Cu 52m @ 0.35% Cu including 12m @ 0.75% Cu 132m @ 0.29% Cu including 18m @ 0.65% Cu 54m @ 0.48%Cu including 22m @ 0.97% Cu Rock chip sampling with geological mapping
Slide 44: Bird's Head Project: Delta Prospect
BIRD’S HEAD PROJECT DELTA PROSPECT For personal use only Widespread remnant litho-cap material on high ridge tops indicates the system is partially eroded Copper grades at surface ~0.2%-0.6% are common, and often exceed 1% Outcropping Copper Mineralization, Green Cliffs Prospect 44
Slide 45: Copper Porphyry Signatures at West Delta
BIRD’S HEAD PROJECT COPPER PORPHYRY SIGNATURES AT WEST DELTA WIDESPREAD For personal use only SURFACE CU MINERALISATION ADVANCED ARGILLIC ALTERATION Green Cliffs Breccia Target PROPYLITIC ALTERATION PHYLLIC ALTERATION POTASSIC ALTERATION MAGNETIC ANOMALIES 45
Slide 46: Bird's Head Project: West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT For personal use only Geological mapping, historical soil sampling, aeromagnetic survey results, trenching and alteration mapping Zonation intensity increases towards Green Cliffs, determining Porphyry Targets Porphys core target area There are multiple
Slide 47: Bird's Head Project: West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Have done as much as we can through surface exploration For personal use only Next step is to drill-test these porphyry targets (to 600m) Experienced drilling contractor has been selected Drill rig en-route to site Awaiting necessary permitting to un
Slide 48: Corporate Snapshot: Hillgrove vs Broker Valuations
CORPORATE SNAPSHOT HILLGROVE RESOURCES vs BROKER VALUATIONS For personal use only $1.00 Intersuisse $0.43 ‐ $0.90 Broker valuations $0.80 are significantly Wilson Austock higher than the $0.60 $0.54 $0.54 existing share price $0.40 Little or no value attributed to the $0.20 Indonesian assets $0.
Slide 49: Corporate Snapshot: Financing Plan Status
CORPORATE SNAPSHOT FINANCING PLAN STATUS Hillgrove Resources Limited (HGO) For personal use only Producing asset in November 2011 (4 months) High optionality through: Resource expansion at Kanmantoo (target doubling of resources) Reserve expansion to 24MT (see Resolution 4) Expanded throug
Slide 50: Thank You
For personal use only 50 THANK YOU
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