Hillgrove Resources Limited · ASX:HGO
Hillgrove Resources — Mines and Money Australia Day 2010
30 slides from Hillgrove Resources's conference presentation, Nov 29, 2010
Slide 1: Asia Pacific Copper Miner
ASIA PACIFIC COPPER MINER MINES AND MONEY AUSTRALIA DAY 29 NOVEMBER 2010
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 Australian based minerals exploration and development company Bird’s Head project Highly prospective advanced exploration assets in Indonesia Sumba gold project (80% owned) S
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT DETAILS AND SHAREHOLDER DISTRIBUTION ASX listed: HGO SHAREHOLDER DISTRIBUTION Shares on issue: 540.8 million J.P. Morgan Share price: A$0.275 Metals & Concentrates 10% Market capitalisation: A$148.7 million (5 November 2010) Cash and cash equivalents: A$94 million Instit
Slide 5: Kanmantoo Copper Mines Project
Kanmantoo Copper Mines Project
Slide 6: Kanmantoo Copper Mines
KANMANTOO COPPER MINES 2010 6
Slide 7: Kanmantoo Copper Mines Highlights and Location
KANMANTOO COPPER MINES HIGHLIGHTS AND LOCATION AUSTRALIA’S NEXT PRODUCING COPPER/GOLD MINE Kanmantoo was operated by North Broken Hill / South Broken Hill / Electrolytic Zinc as their first open cut mine from 1971-1976, mining approximately 4.1Mt of copper ore Exploration The project enjoys comm
Slide 8: Exploration at Kanmantoo Has Improved Resource Certainty
EXPLORATION AT KANMANTOO HAS IMPROVED RESOURCE CERTAINTY AND INCREASED THE RESOURCE-RESERVE CONVERSION RATIO RESOURCE GROWTH RESERVE GROWTH Inferred Indicated Measured 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 10.0 15.0 8.0 10.0 8.5 6.0 5.0
Slide 9: Financing Plan for Kanmantoo Copper Mines
FINANCING PLAN FOR KANMANTOO COPPER MINES UTILISES EXISTING CASH, PROJECT FINANCE DEBT AND EQUITY OFFER FINAL INVESTMENT DECISION (‘FID’) FOR KANMANTOO PROJECT MADE Existing cash of circa AUD77 million at 31 August 2010 Project Debt AUD30 million in Project Debt AUD20 million in Bonding and
Slide 10: Financing Plan: Project Finance Facilities
FINANCING PLAN FOR KANMANTOO COPPER MINES SUMMARY OF PROJECT FINANCE FACILITIES (CONT’D) OTHER MATERIAL FEATURES AND KEY TERMS Mandatory Hedging Borrower must not enter into committed hedging of >65% of the underlying payable copper production for any year Early Access Hedging Hillgrove has
Slide 11: Estimated Capital and Development Costs
ESTIMATED CAPITAL AND DEVELOPMENT COSTS SUMMARY OF COSTS TO BRING KANMANTOO TO PRODUCTION Total Capital costs Remaining capital costs spent to date capital costs (AUD million) (AUD million) (AUD million) Capital costs Mining 17.1 0.1 17.0 Pillara processing plant 67.9 21.3 46.6 Other infrastructure
Slide 12: Kanmantoo Copper Mines Overview
KANMANTOO COPPER MINES OVERVIEW PLANNED PROJECT HIGHLIGHTS Mining and stockpiling of ore to begin in March 2011 Completion of plant and first copper/gold production scheduled for Q4 2011 10 year mine life with potential to expand Life-of-mine (“LOM”) average payable metals production 21k t
Slide 13: Kanmantoo Processing Overview
KANMANTOO COPPER MINES PROCESSING OVERVIEW Lime ROM Construction and commissioning VIBRATING BIN FEED BIN PRODUCT SCREEN GRIZZLY NEUTRAL- contract with Abesque Engineering FEEDER JAW CRUSHER ISATION TANK Simple, standard flowchart and STOCK PROCESS SECONDARY PILE HYDRO WATER TANK CYCLONE CRUSHER p
Slide 14: Kanmantoo Copper Mines – Current Activity
KANMANTOO COPPER MINES – CURRENT ACTIVITY CURRENT SITE VIEW WITH PLANT LOCATION SCHEMATIC – 2 WEEKS INTO CONSTRUCTION Abesque York Civil Concentrate Process Construction Administration Construction Workshop & Storage Area Water Pond Office Area Office Stores Area Filter Concentrate Processing Thicke
Slide 15: Key Attributes / Low Risk Features
KANMANTOO COPPER MINES KEY ATTRIBUTES / LOW RISK FEATURES Historical operations significantly de-risk the project Environmental, construction & mining licenses granted; all approvals to mine in place Known, simple metallurgy with excellent recoveries Large database of exploration, mining and
Slide 16: Exploration
HILLGROVE EXPLORATION
Slide 17: Exploration Assets: Indonesia
EXPLORATION ASSETS: INDONESIA HIGHLY PROSPECTIVE GOLD, COPPER & BULKS EXPLORATION WHY INDONESIA? Proven geological provenance for target commodities (Cu, Au) Hillgrove’s position obtained through strong in-country experience base and development of pre-existing relationships Strengthened legis
Slide 18: Sumba Island
SUMBA ISLAND HILLGROVE 80% Hillgrove is an 80% beneficial shareholder in PT Fathi, holding IUP over ~1,000km2 for a period of six years Hillgrove is responsible for sole funding and management of all exploration and development activities up to decision to mine Main projects: Masu and Tanah Da
Slide 19: Sumba Island – Masu Project
SUMBA ISLAND MASU PROJECT Major structural corridor identified over >20km with associated intensive hydrothermal alteration, silicification and gold mineralisation Numerous prospects identified for scout drilling Large airborne geophysical survey to commence Q4 2010 Potential Cu / Au porphyr
Slide 20: Sumba Island – Masu Project
SUMBA ISLAND MASU PROJECT Trenching 7m @ 8.3g/t Au, 8m @ 3.1g/t Au, 4m @ 10.0g/t Au Drilling MADPH003: 6.45m @ 4.1g/t Au MADPH013: 13m @ 2.0g/t Au MADPH014: 8.05m @ 1.3g/t Au MADPH015: 10.05m @ 3.4g/t Au Most recent drilling of West Vein confirms consistent gold grade and widths down
Slide 21: Sumba Island – Tanah Daro
SUMBA ISLAND TANAH DARO Tanah Daro rocks to 73g/t Au, 3.68%Cu and 765g/t Ag Insert Surface sampling recommenced: Soil sampling identifies gold anomaly 200m x 300m with values > 1g/t Au Rock chip sampling of highly altered, silicified hill identifies additional high grade gold values to 37.13g/
Slide 22: 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’ 22
Slide 23: Bird's Head Project
BIRD’S HEAD PROJECT HILLGROVE 80% Hillgrove is an 80% beneficial shareholder in PT Akram: Rights cover almost 1,000km2 granted IUP for six years Hillgrove sole funding and manager to decision to mine Ex Normandy project: Hillgrove has acquired drilling and geophysics data, among other key da
Slide 24: Bird's Head Project
BIRD’S HEAD PROJECT Green Cliffs HILLGROVE 80% Breccia Target 3D magnetic inversion modelling of West Delta area showing modelled magnetic targets on Analytical Signal Image Magnetic High Inversion Approximate Modelling Outlines outline of Figure 1 West Delta channel sampling location and significan
Slide 25: Bird's Head Project
BIRD’S HEAD PROJECT HILLGROVE 80% Focus on porphyry copper targets within overlapping hydrothermal alteration systems in a 6.5km x 1.5km corridor Aeromagnetic imaging shows strong mag’ high and low anomalies associated Porphyry Porphyry with intense hydrothermal Targets Targets Targets alteratio
Slide 26: Bird's Head Project – Conceptual Porphyry Target
BIRD’S HEAD PROJECT CONCEPTUAL PORPHYRY TARGET Mapped alteration, surface geochemistry and Target Area magnetic signature indicates shallow, buried porphyry at West Delta Target depth top ~200m; between Cadia and Batu Hijau deposit depths. Earlier drilling too shallow Current Topographic Surface
Slide 27: Appendix
HILLGROVE APPENDIX
Slide 28: 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, investment and commercial banking and financial
Slide 29: 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 20 years
Slide 30: 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
Hillgrove Resources — Mines and Money Australia Day 2010 on 6ix