Hillgrove Resources Limited · ASX:HGO

Hillgrove Resources — Investor Presentation (December 2006)

21 slides from Hillgrove Resources's investor presentation, December 2006

  1. Slide 1: Kanmantoo - Moving Towards Development

    Kanmantoo - Moving Towards Development December 2006

  2. Slide 2: Hillgrove in South Australia

    HILLGROVE In South Australia • Hillgrove Resources is very active in South Australia having spent over $12million on exploration since commencing work in early 2003. • Brownfield's Exploration: Hillgrove’s business model focus’s on more advanced projects which have a readily definable value add path

  3. Slide 3: Why South Australia?

    KANMANTOO Why South Australia? ƒ One of the most prospective terrains in the world ƒ Ideal for application of latest exploration techniques ƒ Neglected historically ƒ Gawler is vastly under explored yet contains on of the worlds major mines in Olympic Dam with many emerging discoveries ƒ New greenst

  4. Slide 4: Project Location

    KANMANTOO Project Location • Kanmantoo is ideally located with good access to: - Roads - Power - Water - Infrastructure - Ports - Labour • These factors provide significant cost advantages to the project

  5. Slide 5: Kanmantoo Copper Gold Mine 2005

    KANMANTOO Kanmantoo Copper Gold Mine 2005

  6. Slide 6: Exploration and Resource Updates

    KANMANTOO Exploration and Resource Updates ƒ Hillgrove has been active at the Kanmantoo site since early 2003. ƒ Since that time Hillgrove’s drilling in vicinity of the mine includes over 450 RC and Diamond holes for 40,000m. ƒ The project has a total of over 640 RC and Diamond holes with in excess

  7. Slide 7: Updated Resource

    KANMANTOO Updated Resource Kanmantoo Deposit Resource Estimate– October 2006 (0.25% Cutoff) Indicated Inferred Total Au Au Au Cu Type Tonnes Cu Cut Tonnes Cu Cut Tonnes Cu Cut Metal Au Cut T % g/t T % g/t T % g/t Tonnes Ounces Oxide 722,995 0.82 0.23 146,510 0.70 0.23 869,505 0.80 0.23 6,972 6,353 T

  8. Slide 8: Potential Open Pit Operation

    KANMANTOO Potential Open Pit Operation

  9. Slide 9: Updated Resource by Area

    KANMANTOO Updated Resource by Area Zone Tonnes Cu Au Cut Cu Metal Au Cut T % g/t Tonnes Ounces Main 9,421,335 1.05 0.10 98,484 30,941 South East 3,890,311 0.88 0.37 34,277 46,391 North East 1,242,539 1.14 0.28 14,139 11,329 North West 1,209,302 0.73 0.11 8,808 4,235 Eastern 977,878 1.25 0.31 12,223

  10. Slide 10: Pre-Feasibility Study Highlights

    KANMANTOO Pre-Feasibility Study Highlights ƒMineral Resources: Copper gold: 28 MT at 0.94% Cu and 0.20g/t Au. ƒContained metal: 262,600T Cu and 177,200ozs Au ƒInitial planning inventory: 12,727,554 MT optimized at USD$1.80 per lb copper price ƒBase case assumptions: Copper price US$2.65 → US$1.63 Ex

  11. Slide 11: Pre-Feasibility Study Highlights

    KANMANTOO Pre-Feasibility Study Highlights ƒ Average head grade: 0.95% copper, 0.23g/t gold, 3.55g/t silver ƒ Average recovery: Copper 80% - 93% depending on ore type Gold 15% - 53% depending on ore type ƒ Concentrate: 61,000 – 82,000 dry TPA High quality, medium copper content, low impurities ƒ Con

  12. Slide 12: 3D View of Resource Blocks and PFS Open Pit

    “HILLGROVE RESOURCES Wheal Fortune c Venetia Star Emily Star Legend for Copper Grade (%) BB >1.00 i 0.25 - 1.00 | | 0-0.25 Green Zone O'Neil Zone South East Zone North ) North West Zone Main Zone Coopers Find North East Zone a |— SY Eastern Zone Screen Snapshot Showing 3D View of September 2006 Reso

  13. Slide 13: Process Flow

    HILLGROVE Process Flow ROM ORE HILLGROVE RESOURCES LIMITED = Geones KANMANTOO COPPER PROJECT ss hu TREATMENT PLANT a WE y PROCESS FLOWSHEET Ae TRASH a SCREEN ——, ROUGHER #1 FLASH ROTATION |. FLOTATION ROUGHER #2 ff FLOTATION CONDITIONING TANK ee #1 FLOTATION SCAVENGER #2 FLOTATION a cc REGRIND ————;

  14. Slide 14: Financials

    KANMANTOO Financials Cu Fx Discount NPV IRR NPAT (US$/lb) (A$/US$) % $’m % $’m Base Case 2.65 →1.63 0.70 8.5 75 32 141 Case 1 2.50 0.70 8.5 134 42 239 Case 2 3.00 0.70 8.5 216 60 358 ƒ Cash cost US$1.20 per lb including gold and silver revenue ƒ $5,600 capital cost per annual tonne of copper product

  15. Slide 15: Conceptual Flow Chart

    KANMANTOO Conceptual Flow Chart 2006 2007 2008 2009 Pre-feasibility Metallurgy Permitting Drilling DFS Construction & Development Mining

  16. Slide 16: Upside

    KANMANTOO Upside ƒ Resource increase ƒ Increase head grade > 1% ƒ Concurrent/ subsequent underground mining ƒ Garnet by-product ƒ Treat Wheal Ellen lead/ zinc, satellite copper ore bodies ƒ Increase throughput to 2.5 million TPA

  17. Slide 17: Mine Corridor IP with Drilling and Current Ore Blocks

    KANMANTOO Mine Corridor IP with Drilling and Current Ore Blocks • Multiple opportunities to increase resource base around the old Kanmantoo pit. • Strong relationship between IP responses and copper mineralisation. • High grade copper zones identified underground potential

  18. Slide 18: Regional Magnetics

    KANMANTOO Regional Magnetics • Strong relationship of magnetite with mineralisation. • Clear hydrothermal magnetic signatures. • Regional exploration has recommenced, reconnaissance of all new magnetic targets underway. • 12 major magnetic targets outside Mine Corridor.

  19. Slide 19: Wheal Ellen Area

    KANMANTOO Wheal Ellen Area • Angus Deposit on same stratigraphic contact about 10km to the south and is a discrete magnetic high • Series of magnetic targets have been identified along these targets • These targets are largely unexplored with a number of targets with historic workings • Rock chips u

  20. Slide 20: Outstanding New Copper-Gold Development Opportunity

    KANMANTOO Outstanding New Copper-Gold Development Opportunity ƒ Inferred and Indicated Resource of 28 MT @ 0.94% copper and 0.2 g/t gold. ƒ Targeting reserve of 16+ million tonnes to support 10 year 2 million tonne p.a. operation. ƒ Low cost setting – rail, road, power and water onsite – 60 km to de

  21. Slide 21: Disclaimer

    DISCLAIMER This presentation may contain forward looking statements that are subject to risk factors associated with copper, gold and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in un

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