Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Citi Copper Day 2011
50 slides from Hillgrove Resources's conference presentation, Apr 5, 2011
Slide 1: Asia Pacific Copper Miner
ASIA PACIFIC COPPER MINER GEOFF STEWART G.M. BUSINESS DEVELOPMENT CITI COPPER DAY 5 APRIL 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 Hillgrove Resources (“HGO”) is an A Australian li bbased d minerals i l exploration l i and development company Bird’s Head project HGO’s flagship project is the Sumba project Kanmantoo Copper Mine project (100
Slide 4: Strategic Direction and Focus
STRATEGIC DIRECTION AND FOCUS NEAR TERM PRODUCTION, HIGHLY PROSPECTIVE EXPLORATION Deliver Kanmantoo as a producing asset on time and within budget asset, Single mine producer in 9 months Multi-mine producer within 5 years Australia and Indonesian focus for near term t Leverage off local k
Slide 5: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION ASX listed: HGO SHAREHOLDER DISTRIBUTION Shares on issue: 793.7 million J.P. Morgan Metals & Concentrates Co ce a es Share price: A$ 0.325 (4 April 2011) 10% Market capitalisation: A$262 million (4 April 2011) Cash and cash equivalent
Slide 6: Kanmantoo Copper Mines Project
Kanmantoo Copper Mines Project
Slide 7: Kanmantoo Highlights and Location
KANMANTOO COPPER MINES HIGHLIGHTS AND LOCATION AUSTRALIA’S NEXT PRODUCING COPPER/GOLD MINE 100%-owned by Hillgrove Located just 55km from Adelaide Adelaide, in South Australia The project enjoys commensurate capital Exploration Area EL4401 costt advantages d t Close to power, water, road, ra
Slide 8: Kanmantoo Copper Mines 2010 – Prior to Construction
KANMANTOO COPPER MINES 2010 – PRIOR TO CONSTRUCTION 8
Slide 9: View of Plant Site from Top of Old Waste Dump
KANMANTOO COPPER MINES VIEW OF PLANT SITE FROM TOP OF OLD WASTE DUMP 9
Slide 10: Planned Project Highlights
KANMANTOO COPPER MINES PLANNED PROJECT HIGHLIGHTS Plant construction commenced Pre-strip and tailings dam construction commenced First copper/gold production scheduled for November 2011 10 year mine life with potential to expand, subject to further resources Life-of-mine (“LOM”) average pa
Slide 11: FID and Construction Started November 2010
FID AND CONSTRUCTION STARTED NOVEMBER 2010 SUMMARY OF CAPITAL AND DEVELOPMENT COSTS TO BRING KANMANTOO TO PRODUCTION Project Total FID Capital Costs Construction Period Costs Total Capital costs Capital costs Spend Period Remaining capital costs spent to 31/8 for FID 1/9 to 31/1 Budget (AUD M) (AUD
Slide 12: Processing Overview
KANMANTOO COPPER MINES PROCESSING OVERVIEW Lime ROM Second-hand Pillara plant BIN FEED PRODUCT VIBRATING BIN SCREEN GRIZZLY NEUTRAL- disassembled and relocated FEEDER JAW CRUSHER ISATION TANK from Western Australia by STOCK PILE HYDRO PROCESS WATER TANK SECONDARY CYCLONE Abesque Engineering CRUSHE
Slide 13: Current Activity – Site View 1 of 2
KANMANTOO COPPER MINES – CURRENT ACTIVITY SITE VIEW WITH PLANT LOCATION SCHEMATIC (FROM LEFT TO RIGHT 1 OF 2) Stockpile F d Feed Stockpile Feed Crusher Conveyor Conveyor Footings
Slide 14: Current Activity – Site View 2 of 2
KANMANTOO COPPER MINES – CURRENT ACTIVITY SITE VIEW WITH PLANT LOCATION SCHEMATIC (FROM LEFT TO RIGHT 2 OF 2) Stockpile Feed Concentrate Filter Abesque Hillgrove York Civil Conveyor Storage Processing Construction Administration Construction Footing Area Area Office Block Office Process Concentrate
Slide 15: Construction Progress
KANMANTOO COPPER MINES CONSTRUCTION PROGRESS Abesque Engineering principal contractor C Construction to date 35% 3 % complete, on time and within budget Permanent administration block completed and occupied Mill Foundation pedestals completed and steel is rising Parsons Brinckerhoff appoin
Slide 16: Current Activity – Prestrip and Mining Area
KANMANTOO COPPER MINES – CURRENT ACTIVITY PRESTRIP AND MINING AREA
Slide 17: Current Activity – Crusher Area
KANMANTOO COPPER MINES – CURRENT ACTIVITY CRUSHER AREA WITH CONVEYOR IN FOREGROUND
Slide 18: Current Activity – Conveyor Construction
KANMANTOO COPPER MINES – CURRENT ACTIVITY CONVEYOR CONSTRUCTION
Slide 19: Current Activity – Concentrate Thickener Precinct
KANMANTOO COPPER MINES – CURRENT ACTIVITY CONCENTRATE THICKENER PRECINCT
Slide 20: Current Activity – Mill Area
KANMANTOO COPPER MINES – CURRENT ACTIVITY MILL AREA IN FOREGROUND, ADMIN OFFICES ABOVE AND WORKSHOP AND STORES SHED TO RIGHT
Slide 21: Current Activity – Tailing Storage Facility Construction
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) CONSTRUCTION
Slide 22: Current Activity – TSF Liner Layers
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) LINER LAYERS BEING PUT DOWN 22
Slide 23: Current Activity – TSF Liner
KANMANTOO COPPER MINES – CURRENT ACTIVITY TAILING STORAGE FACILITY (TSF) LINER
Slide 24: Mining and Infrastructure Progress
KANMANTOO COPPER MINES MINING AND INFRASTRUCTURE PROGRESS Exact Mining Services – mining contractor Milestones to date include Private site access road >90% complete (bypass Kanmantoo township) Mining hard stand and initial workshop completed Initial piping system for Tailings Storage Faci
Slide 25: Kanmantoo Overview: Resource and Reserve Growth
KANMANTOO COPPER MINES OVERVIEW EXPLORATION HAS IMPROVED RESOURCE CERTAINTY AND RESOURCE-RESERVE CONVERSION RATIO RESOURCE GROWTH RESERVE GROWTH Inferred Indicated Measured Mt Mt 20 0 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 25.0 12 0 12.0 11 1 11.1 20.0 18.4 10.0
Slide 26: Ore Body and Near Mine Exploration
KANMANTOO COPPER MINES ORE BODY AND NEAR MINE EXPLORATION Strategic review of Kanmantoo exploration program NW Zone undertaken in January 2011 Review of all exploration Waste Rock Stockpile conducted to date to target and rank priorities within NE Zone Z ML 6345 Main Zone Green Objective to ad
Slide 27: Summary
KANMANTOO COPPER MINES SUMMARY Next Australian copper producer Construction on time and on budget First production November 2011 Robust project with near term cash flows 27
Slide 28: Exploration
EXPLORATION
Slide 29: Exploration Assets: Indonesia
EXPLORATION ASSETS: INDONESIA HIGHLY PROSPECTIVE GOLD, COPPER EXPLORATION WHY INDONESIA? Proven geological provenance for target commodities (Cu, Au) Experienced E i d llocall partners t d developed l d through existing relationships Strengthened St th d llegislative i l ti and d jjudicial di
Slide 30: Sumba Island
SUMBA ISLAND HILLGROVE 80% Hillgrove is an 80% Tanah Daro beneficial shareholder Project Area in PT Fathi, holding IUP over ~1,000km2 for a period of six years Pelitalira Hillgrove responsible Masu Project A Area f exploration for l ti and d development activities and sole funding up to decision
Slide 31: Sumba Island – Masu Project
SUMBA ISLAND MASU PROJECT Recent exploration Soil sampling over Project now covers over 10km² identifying 17 high priority gold anomalies (the l largestt off which hi h extends t d over 1.5km in length) Soil sampling continues to discover and delineate quality gold targets for follow up trenchin
Slide 32: Sumba Island – Tanah Daro Project
SUMBA ISLAND TANAH DARO PROJECT Pelitalira Prospect Located in Central Sumba Accessible by road Waterfall Vein Recent exploration Soil sampling delineated t two distinct di ti t gold ld anomalies li with gold values up to 19.95g/t Au Earlier Waterfall Vein rock chip samples to 72g/t Au, 3.
Slide 33: 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’ 33
Slide 34: Bird's Head Project
BIRD’S HEAD PROJECT HILLGROVE 80% Hillgrove is an 80% beneficial shareholder in PT Akram Rights Ri ht cover almost l 1 000k 2 granted t 1,000km t d IUP ffor six i years Hillgrove responsible for exploration and development activities and sole u d g up to dec funding decision s o to mine e Ex
Slide 35: Bird's Head Project – Delta Prospect
BIRD’S HEAD PROJECT DELTA PROSPECT Young (Tertiary) intrusive complex Multiple porphyry copper targets Overlapping hydrothermal alteration systems in a 6.5km x 1.5km corridor Porphyry Targets Porphys Copper grades at surface s rface ~0.2%-0.6% common Ideal geographic location Porphyry PoTa
Slide 36: Bird's Head Project – West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Recent exploration Geological mapping, surface channel and rock chip sampling Mapping extent of porphyry-related alteration and copper mineralisation centred on Green Cliffs area Detailed trench sampling northeast of Green Cliffs area Outcomes Reve
Slide 37: Drill Core Shed Under Construction at Sumbum Camp
BIRD’S HEAD PROJECT DRILL CORE SHED UNDER CONSTRUCTION AT SUMBUM CAMP 37
Slide 38: First Drill Pad Under Construction at Green Cliffs
BIRD’S HEAD PROJECT FIRST DRILL PAD UNDER CONSTRUCTION AT GREEN CLIFFS, WEST DELTA PROSPECT 38
Slide 39: Project Manager and Field Crew at Green Cliffs
BIRD’S HEAD PROJECT PROJECT MANAGER DEAN WADSWORTH, M.D. DREW SIMONSEN AND FIELD CREW AT GREEN CLIFFS WITH BOULDER OF COPPER MINERALIZATION 39
Slide 40: Outcropping Copper Mineralization, Green Cliffs Prospect
BIRD’S HEAD PROJECT OUTCROPPING COPPER MINERALIZATION, GREEN CLIFFS PROSPECT
Slide 41: Green Cliffs Prospect
BIRD’S HEAD PROJECT GREEN CLIFFS PROSPECT Green Cliffs Breccia Target 3D magnetic inversion modelling of West Delta area showing magnetic targets Strong magnetic anomalies associated with intense hydrothermal alteration Magnetic High Inversion Modelling Outlines Diorite intrusives and copper val
Slide 42: Perspective View of West Delta Hydrothermal Alteration Zones
BIRD’S HEAD PROJECT PERSPECTIVE VIEW OF WEST DELTA HYDROTHERMAL ALTERATION ZONES PROPYLITIC ALTERATION 9 ADVANCED ARGILLIC 9 ALTERATION Green Cliffs Breccia Target PHYLLIC ALTERATION 9 POTASSIC ALTERATION 9 MAGNETIC ANOMALIES 9 WIDESPREAD SURFACE CU 9 MINERALISATION 42
Slide 43: Porphyry Signatures at West Delta
BIRD’S HEAD PROJECT PORPHYRY SIGNATURES AT WEST DELTA Widespread Surface Copper Mineralisation 9 Green Cliffs Breccia Target Advanced Argillic Alteration 9 Propylitic Alteration 9 Phyllic Alteration 9 Potassic Alteration 9 Magnetic anomalies 9 43
Slide 44: Alteration-Mineralisation Zoning Pattern for Porphyry Copper Deposits
BIRD’S HEAD PROJECT GENERAL ALTERATION-MINERALISATION ZONING PATTERN FOR TELESCOPED PORPHYRY COPPER DEPOSITS, DEPOSITS AFTER SILLITOE PORPHYRY COPPER SYSTEMS t Delta 44
Slide 45: West Delta – Trenching and Proposed Drill Targets
BIRD’S HEAD PROJECT WEST DELTA – TRENCHING, AND PROPOSED DRILL TARGETS 45
Slide 46: Bird's Head Project – West Delta Prospect
BIRD’S HEAD PROJECT WEST DELTA PROSPECT Geological mapping, historical soil sampling, aeromagnetic survey results, trenching and alteration mapping reveal zonation intensity increases towards Green Cliffs, determining core target area Very large remnant lithocap material on high ridge tops ind
Slide 47: Appendix
Il resources
Slide 48: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD Drew Simonsen, Managing Director & Chief Executive Officer BE (Mining); Dip Geo Sci (Min Eco); GAICD Appointed MD & CEO in August 2010 35 years in resources resources, investment and commercial banking and
Slide 49: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED MANAGEMENT TEAM WITH PROVEN TRACK RECORD Jim Kerr, General Manager – Exploration BSC(Geology); MSc(Mineral Economics) Joined Hillgrove Resources in late 2009 and was appointed to the role of General Manager – Exploration in July 2010 Over O er 20
Slide 50: Management Team & Board of Directors
MANAGEMENT TEAM & BOARD OF DIRECTORS EXPERIENCED BOARD OF DIRECTORS WITH PROVEN TRACK RECORD Hon. Dean Brown AO Non-Executive Chairman Former Premier and Minister of the South Australian Government and Member of the South Australian Parliament Chairman of InterMet Resources Limited, a Director o