Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Noosa Mining Conference 2022
30 slides from Hillgrove Resources's conference presentation, Nov 11, 2022
Slide 1: Australia's Next Copper Mine
AUSTRALIA’S NEXT COPPER MINE For personal use only Lachlan Wallace CEO & Managing Director November 2022 1
Slide 2: 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 3: Fully Permitted in Tier 1 Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Tier 1 location ✓ Ready workforce - No FIFO ✓ Close to Port Adelaide 3
Slide 4: Fully Permitted in Tier 1 Jurisdiction
FULLY PERMITTED IN TIER 1 JURISDICTION For personal use only ✓ Surplus annual native seed production ✓ Linking rehab to regional vegetation to create greenbelt ✓ 122ha native vegetation completed 4
Slide 5: Fully Permitted in Tier 1 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 6: Infrastructure Already in Place
INFRASTRUCTURE ALREADY IN PLACE For personal use only ✓ 3.6Mtpa processing plant ✓ All critical spares ✓ Maintained for quick, low-cost restart 6
Slide 7: Infrastructure Already in Place
INFRASTRUCTURE 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 prices until 20
Slide 8: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Nugent Portal Development decline and Ventilation drive underground drill platform 8
Slide 9: Underground Development Commenced
UNDERGROUND DEVELOPMENT COMMENCED For personal use only Underground decline commenced 9
Slide 10: 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 11: Excellent Economics – Stage 1 Only
EXCELLENT ECONOMICS – STAGE 1 ONLY For personal use only ✓ Low capital - existing infrastrucutre 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 increas
Slide 12: Excellent Economics – Stage 1 Only
EXCELLENT ECONOMICS – STAGE 1 ONLY For personal use only ✓ Lowest capital intensity in the world 12 Source: AME, 2017, Copper - Capital Intensity of New Copper Mines
Slide 13: Excellent Economics – Stage 1 Only
EXCELLENT ECONOMICS – STAGE 1 ONLY For personal use only ✓ Strong cashflows and short payback under any price assumption ✓ Near term project cashflows multiples of current market cap – without including increased MRE and new drilling which is still ongoing 13
Slide 14: >100% Exploration Strike Rate
> 100% EXPLORATION STRIKE RATE 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 15: 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 16: 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 17: 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 18: Just Scratching the Surface
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 19: Just Scratching the Surface
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 19 10m @ 1.6% Cu 0.6 g/t Au ✓ ~200m strike length, 300m depth and still open
Slide 20: 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 21: Opportunity Re-cap
OPPORTUNITY RE-CAP For personal use only ■ PERMITTED, LOW COST, LOW RISK, NEAR TERM COPPER PRODUCTION ■ STAGE 1 ALREADY HAS STRONG FINANCIALS WITH SHORT PAYBACK PERIOD ■ MULTIPLE ON-LEASE INFILL DRILLING TARGETS TO FURTHER INCREASE MINING INVENTORY ■ PROCESSING CAPACITY TO RAMP UP COPPER PRODUCTION
Slide 22: Appendix
For personal use only Appendix 22
Slide 23: Important Notice
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 24: 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
Slide 25: South Hub
For personal use only SOUTH HUB 25
Slide 26: South Hub
For personal use only SOUTH HUB 26
Slide 27: South Hub
For personal use only SOUTH HUB 27
Slide 28: 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 28
Slide 29: North Hub
For personal use only NORTH HUB 29
Slide 30: North Hub
North Kavanagh lode NORTH HUB extends from surface to >300m depth For personal use only >300m 30