Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Investor Presentation (July 2012)
31 slides from Hillgrove Resources's investor presentation, Jul 11, 2012
Slide 1: July Investor Update
JULY INVESTOR UPDATE DREW SIMONSEN IIIII MANAGING DIRECTOR COMPANY PRESENTATION IIIII 11 JULY 2012 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS
Slide 2: Disclaimer
DISCLAIMER EXPECTATIONS & FORWARD LOOKING STATEMENTS Important Notice 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
Slide 3: Introduction
INTRODUCTION 3
Slide 4: Key Achievements in 2012
HILLGROVE RESOURCES LIMITED KEY ACHIEVEMENTS IN 2012 Kanmantoo: Steady production improvement – 300 tph design throughput achieved in May and June 2012 Plant performance at design, or better – Cu recovery above 91% (90.5% design) and concentrate grade at 26-27% (26.5% design) Rolling 90 day
Slide 5: Positioned for Performance
HILLGROVE RESOURCES LIMITED POSITIONED FOR PERFORMANCE Kanmantoo Copper Mine (100% owned): Cash flow: steady production improvements achieved last quarter and design plant throughput achieved in May/June Initiatives to improve operations and economics, including programs for crusher replacemen
Slide 6: Kanmantoo Value Drivers
HILLGROVE RESOURCES LIMITED KANMANTOO VALUE DRIVERS Optimise operations: Mine productivity Grade control Operating costs Feasibility study into replacement of the primary crusher to increase reliability, reduce costs and provide for capacity expansion Feasibility study into early process
Slide 7: Financial Overview
HILLGROVE RESOURCES LIMITED FINANCIAL OVERVIEW Economics supported by attractive hedging position: 50-55% production hedged at an average of AUD8,230/t to March 2016 Put options for 6,400t of copper @ AUD7,500/t (to March 2013) Next 8 months of production is therefore 100% covered by futures
Slide 8: Kanmantoo Summary
KANMANTOO SUMMARY 8
Slide 9: Kanmantoo Copper Mine Summary
KANMANTOO COPPER MINE SUMMARY Design throughput achieved in May and June 2012: Steady production improvement achieved over recent months. Mill performing at or above design levels Rolling 90 day completion test being continually monitored across all test parameters Mining fragmentation and c
Slide 10: New Resource Statement
KANMANTOO COPPER MINE NEW RESOURCE STATEMENT Increased confidence in tonnes to 200m depth Measured tonnes more than doubled from the November 2008 Mineral Resource Estimate Considerable exploration potential within mining lease remains untested New Resource: Undertaken by independent consu
Slide 11: New Resource Statement
KANMANTOO COPPER MINE NEW RESOURCE STATEMENT * The May 2012 Resource has been depleted relative to the November 2008 Resource due to recent treatment of 667kt @ 0.68% Cu through the Kanmantoo ore processing plant Global Mineral Resource (March 2012) JORC Cu Au Ag Bi Cu Metal Classification (Mt) (%)
Slide 12: First Half 2012 Exploration Strategy
KANMANTOO COPPER MINE FIRST HALF 2012 EXPLORATION STRATEGY January 2012 Aerial Photo EXTENSION OF RESOURCES Priority is to extend the Kanmantoo mine COOPER’S FIND life 2012 program – focus on shallow Resource extension within the Kanmantoo Mining Kavanagh Lease FALCON Wider spaced RC drilling
Slide 13: 2012 Exploration Success in Several Zones
KANMANTOO COPPER MINE 2012 EXPLORATION SUCCESS IN SEVERAL ZONES Aeromagnetics Image 2012 EXPLORATION SUCCESS NOT INCLUDED IN NEW AMC RESOURCE Emily Star Critchley Early RC drilling at Emily Star South was highly successful, returning: KTRC863 KTRC861 – 36m @ 0.81% Cu from 75m 4m @ 2.46% Cu inclu
Slide 14: Indonesian Exploration
INDONESIAN EXPLORATION
Slide 15: Indonesia Sumba Island
INDONESIA SUMBA ISLAND EPITHERMAL GOLD Sumba Island Masu Hillgrove has an 80% direct shareholding in PT Fathi Resources IUP rights cover almost 1,000km2 – valid to December 2016 Ex BHP project, with all BHP data available to PT Fathi Targeting Epithermal Gold Karipi prospect discovery – wi
Slide 16: Karipi Prospect
INDONESIA SUMBA ISLAND KARIPI PROSPECT Thin sediment masks prospective lithology but gold observed in exposed basement rock over large areas Bonanza grades to 1,250g/t Au in outcrop rock chips Magnetic signatures indicate strike Karipi continuation of Soil gold prospective structures geochemis
Slide 17: Karipi Prospect
INDONESIA SUMBA ISLAND KARIPI PROSPECT Early stage exploration hits confirm the widespread presence of gold mineralisation delineated by a 1.5km strike length gold corridor Better recent drilling results include: KP014: 3.75m @ 4.29g/t Au KP015: 2.85m @ 22.37g/t Au, 19.81g/t Ag And 6.10m @ 1
Slide 18: Sumba Summary & Future Exploration Plans
INDONESIAN EXPLORATION SUMBA SUMMARY & FUTURE EXPLORATION PLANS SUMBA – future exploration plans: Gold anomalism in the Karipi – Masu area is very encouraging Initial 4,000m diamond drilling program at Karipi – initial results support previous surface trenching, rock chip and geochemistry result
Slide 19: Bird's Head in West Papua: Porphyry Copper-Gold
INDONESIA BIRD’S HEAD PROJECT BIRD’S HEAD IN WEST PAPUA: PORPHYRY COPPER-GOLD MAGNETIC SIGNATURES AND COPPER GEOCHEMISTRY POINT TO OUR TARGETS West Delta West Delta Arc –normal transfer structure Hillgrove has an 80% beneficial interest in PT Akram through JV Agreement IUP rights cover almost 1,
Slide 20: Copper Porphyry Signatures at West Delta + Future Exploration Plans
INDONESIA BIRD’S HEAD PROJECT COPPER PORPHYRY SIGNATURES AT WEST DELTA + FUTURE EXPLORATION PLANS First three holes completed at Green Cliff Structural Corridor encountered fault-related strong potassic alteration consistent with near-porphyry environment Green Cliff Better intersections include:
Slide 21: Appendices
APPENDICES
Slide 22: Kanmantoo Copper Mine Aerial April 2012
KANMANTOO COPPER MINE AERIAL – 13 APRIL 2012
Slide 23: Panorama from 1970's Waste Dump
KANMANTOO COPPER MINE PANORAMA FROM 1970’S WASTE DUMP – APRIL 2012 23
Slide 24: Risk Factors
RISK FACTORS The business activities of Hillgrove are subject to risks, which include those which apply generally to any investment in equity markets, and those which apply specifically to Hillgrove's business and the present stage of development of Hillgrove's operations. Some of the specific risks
Slide 25: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) Copper and other metals prices Hillgrove’s potential revenue will primarily be derived from the sale of copper and other metals. The price for copper and other metals fluctuate and are affected by many factors beyond Hillgrove’s control. Relevant factors include supply and dema
Slide 26: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) International operations In Indonesia, in which Hillgrove has assets and operations, such assets and operations are subject to various political, economic and other uncertainties, including, among other things: The risks of expropriation, nationalisation, renegotiation or nul
Slide 27: Risk Factors (Cont'd)
RISK FACTORS (CONT’D) Production estimates Actual future production may vary materially from targets and projections of future production for a variety of reasons. There is greater risk that actual production will vary from estimates of production made for properties under exploration or not yet in
Slide 28: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS Notice to European Economic Area Investors In relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State”), with effect from and including the date on which the Prospectus Directive was imple
Slide 29: Foreign Selling Restrictions (Cont'd)
FOREIGN SELLING RESTRICTIONS (CONT’D) Germany Hong Kong United States This Document has been prepared by Hillgrove for information The contents of this Document have not been reviewed or This Document has been prepared for publication in Australia and purposes only, solely for the use by the recipie
Slide 30: Foreign Selling Restrictions (Cont'd)
FOREIGN SELLING RESTRICTIONS (CONT’D) Singapore New Zealand Malaysia This Document and any other materials in connection with any offer of This Document has been given to you on the basis that: This Document may only be supplied to investors in Malaysia in New Shares relating to Singapore have not b
Slide 31: Note on Reserves & Resources
NOTE ON RESERVES & RESOURCES Note on Reserves and Resources The information in this Document that relates to Kanmantoo Exploration Results, Exploration Targets and Stockpiles is based on information compiled by Mr Pat Manouge, who is a Member of The Australian Institute of Geoscientists. Mr Manouge
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