Hillgrove Resources Limited Overview

Transcription

1 COPPER PROJECT SA Explorers Conference NOVEMBER 2009

2 Hillgrove Resources Limited Overview Kanmantoo Copper Mine: 2.0Mtpa copper gold operation targeted for 2011 production. Current 6.5 year mine life with potential for extension Strong Balance Sheet: $127.5 million cash or 31 cents per share. Targeting gdiscovery of world class ore bodies: 5,248 km² West Papua and Sumba. 2

3 Project Location Cambrai Mount Pleasant Exploration Licence EL square km 50 km east of Adelaide Mt Barker Strathalbyn

4 Geological Setting Regional Geological Features Kanmantoo Trough Tapanappa pp Formation Regional folding Local Geological Features Andalusite biotite schist Intense garnet & chlorite alteration Issues to Resolve (2007) Structure, Source & Timing 4.

5 DFS December 2007 Mineral Resource Estimate 0.9% Copper and 0.20g/t Gold (June 07) Mining Lease Proposal lodged Definitive Feasibility Study (DFS) completed Positive Mining Reserve Mining Reserve of 0.9% Cu 5.

6 Permitting Mining Lease Application lodged Mining Lease issued ML6345 MARP Lodged October 2008 MARP Approval expected by Dec 18 (2009) Permit to Construct subject to MARP (kick off) Permit to Operate - pre commissioning 6.

7 Tenements & Infrastructure ML 6345 ~ 830ha Freehold Treated waste water supply EML

8 Kanmantoo Copper Gold Mine

9 Infrastructure Pillara Mill Pillara Process Plant All plant and equipment at site - includes; ball and SAG mills, buildings, crusher, spares, consumables, workshops, warehouse, sample preparation facility, assay lab, fuel farm... 9.

10 Infrastructure Pillara Process Plant Significant plant capacity upside Capital cost saving (~$20m) Surplus equipment to sell (+$5m) Off site by June

11 Infrastructure Process Flowsheet Process Flow Sheet 11.

12 Infrastructure Tailings Storage Double HDPE lining Water Access to class A recycled water from DC Mt Barker ~14 km pipeline mainly along existing road reserves Supply capacity double process water requirement Surplus water available to other users. Other sources; SA Water (potable), groundwater, pit dewatering, Power Mains power grid already established to the mine boundary Other Transport, Work force, Services 12.

13 Mineralisation 1. Mineralised Pods (red) 4. Variable orientations 2.Garnet-Andalusite- Biotite Schist GABS (green) Host Lithology 3 Biotite Schist 3.Biotite Schist (grey) unmineralised

14 Cross Section 14.

15 Kanmantoo Resource Resource Drilling post DFS RC drilling 9,000m; Diamond drilling 2,000m Resource confidence Grade control trial Underground resource (total drill metres: 145,000 RC & DD) Main Pit Emily Star N O Neil Resource Categories Measured = Yellow Indicated = Dark Blue Inferred = Light Blue 2008 block model constrained to blocks 0.25% Cu 15.

16 Resource New resource estimate - improved resource confidence DFS Resource June 2007 November 2008 Category Mt Cu (%) Au (g/t) Ag (g/t) Mt Cu (%) Au (g/t) Ag (g/t) Measured Indicated Inferred Total Potential additional resource through; Follow up drilling program (in planning) Cut off grade study marginal milling cut-off 0.2% Cu Marginal resource based on 0.1% copper grade domains quantify interstitial mineralisation quantify dilution and, assess additional tonnes from copper equivalence. 16.

17 Geology Proposed Work Further resource development RC drilling - shallow resources ~5,000m Diamond drill program underground resource ~3,000m Near Mine exploration program - 5km radius Grade control drilling and modelling Detailed mapping of existing pit and subsequent exposures Sirovision Support for post graduate projects 17.

18 Geology Continued development of Kanmantoo genetic model Hillgrove have sponsored four honours projects over last two years Tedesco Titanium in quartz geothermometry, fluid inclusions and geochemical modelling... Wilson Structural setting and timing of the Kanmantoo Cu-Au deposit Franklin Systematics of Extensional Structures in the vicinity of the Kanmantoo Cu Au deposit Focke - Geochemistry and Geobarometry of the Kanmantoo Satellite Deposits 18.

19 Geology Summary of findings for Kanmantoo mineralisation: Late stage Delamerian Extensional structure association plate roll back Igneous rather than exhalative fluid source (REE) Previously: Syn-sedimentary exhalative, or Epigenetic peak Delamarian Plan to continue program with increased focus on structure 19.

20 Mining Revised Mining Reserve Dec 07 - Definitive Feasibility Study - Mining Inventory Nov 09 Reserve Category Mt Cu (%) Au (g/t) Ag (g/t) Mt Cu (%) Au (g/t) Ag (g/t) Proven oe Probable Inferred Total Mining i Contractor t - Exact Mining i 20.

21 Kanmantoo Project Project Development Timetable Permitting Dismantling & Transport Construction & Development Grade Control Mining Production 21

22 Summary Kanmantoo project has consolidated its resource, mining and infrastructure position over the past 2 years Service, supply and employment markets are now more competitive The project is positioned for commencement as copper price and demand strengthen

23 Disclaimer This presentation should not be relied upon as a representation of any matter that a potential investor or their adviser should consider in evaluating the Company. Potential investors must make their own independent assessment and investigation of the matters contained herein and should not rely on any statement t t or the adequacy or accuracy of the information provided. The Company and its related bodies corporate or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements or representations contained in the presentation, and they do not accept any liability whatsoever (including in negligence) for any information, representation or statement made in or omitted from this presentation. This presentation may contain forward looking statements that are subject to risk factors associated with copper, gold, other minerals and gas businesses. Based on currently available information, the Company believes that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, interest and foreign exchange rates, availability of capital, political risks, project delay or advancement, approvals and cost estimates. Comments in relation to exploration targets, exploration potential and resource potential referenced in this document have been made based on both historical and company technical data at hand of the time of writing. Itis important to note that these targets are conceptual in nature as there has been insufficient exploration to date to define a mineral resource and it is uncertain if further exploration will result in the determination of a mineral resource. Interested parties should form their own view on these exploration targets. Investors should undertake their own analysis and obtain independent advice before investing in HGO shares. All references to dollars, cents or $ in this presentation refer to Australian currency unless otherwise stated.

24 Results Reporting Competent Persons The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMet Resources Limited is based on information compiled by Mr Dale Ferguson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Ferguson is the Executive Director Exploration and Operations of Hillgrove Resources and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ferguson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Results announced by Hillgrove Resources Limited and InterMet Resources Limited is based on information compiled by Mr Adam Freeman, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Freeman is the Exploration Manager of Hillgrove Resources and has sufficient relevant experience to qualify as a Competent t Person as defined d in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Freeman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Mineral Resource estimates is based on information compiled by Mr Paul Payne, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Payne is a Principal of Runge Limited and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Ore Reserve estimates is based on information compiled by Mr Geoff Davidson, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Davidson is the principal mining engineer with Mining And Cost Engineering Pty Ltd and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Davidson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 24

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