2009 ANNUAL GENERAL MEETING STAMFORD PLAZA HOTEL, ADELAIDE 24 June - - PowerPoint PPT Presentation

2009 ANNUAL GENERAL MEETING

STAMFORD PLAZA HOTEL, ADELAIDE 24 June 2009

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Chairman’s Address

Net Profit After Tax

• $6,000,000
• $4,000,000
• $2,000,000

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2005 2006 2007 2008 2009

HGO - NPAT

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2005 2006 2007 2008 2009

HGO - Net Assets

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Chairman’s Address

Net Assets

Copper, Gold and Gas

ANNUAL GENERAL MEETING Managing Director’s Presentation 24 June 2009

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 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. 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.

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Key Assets

Australian Based with Asian Expansion

Hillgrove Resources Limited (ASX:HGO)

• Gold and Base Metals Explorer
• Kanmantoo Copper/Gold Project

Indonesian Exploration

• Joint Ventures:

80.0% Direct

• PT Akram Resources

Bird’s Head

• PT Fathi Resources

Sumba

• Large scale epithermal/porphyry

gold/copper targets Eastern Star Gas Limited

• S&P ASX 200 - Code:ESG

17.8% Direct

• Coal Seam /Conventional Gas

InterMet Resources Limited

• ASX:ITT

84.8% Direct

• Gold, Iron Ore, Uranium, Base Metals

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Focused on development of its near term Kanmantoo copper/gold project 60km east of Adelaide

• Initial mine inventory of 12Mt supports a 6.5 year mine life producing 15 – 20kt

p.a. of copper in concentrate with gold and silver credits

• Excellent potential to extend mine life >10 years and identify further base metal

reserves in the Kanmantoo Trough

Strategic 20.6% (fully diluted) shareholding worth approximately $145 million in ASX 200 NSW coal seam gas developer Eastern Star Gas Limited (ESG)

• 21PJ of 1P, 336PJ 2P, 1,300PJ 3P and 6,128PJ 3C (PEL 238 – ESG 65%)

Extensive highly prospective exploration pipeline

• 85% of ASX listed InterMet – iron ore, basemetals, Uranium, Gawler Craton, QLD
• 80% of highly prospective Indonesian gold and gold/copper projects

Source: ESG announcements and Iress share price information. ESG valuation based on share price as at 19 June 2009 and Hillgrove holdings of 151.8m ordinary shares and 24.3m $0.15 options

Introduction to Hillgrove

Major Assets

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Introduction to Hillgrove

Key Investment Metrics

Hillgrove Resources 19/06/09 Share Price $ 0.19 52 Week

• high

$ 0.34

• low

$ 0.08 Ordinary shares # 413.0M Market capitalisation $ 78.5M Cash $ 10.6M Options # 48.9M Bond due 30/06/11 US$ 30.0M ESG shares/options $145.6M Kanmantoo, PP&E $ 49.3M

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40

Trading History Hillgrove Resources

Volume Closing Price

Price (A$)

Regional Pipeline – Indonesia

Highly Prospective Advanced Gold Exploration

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Advanced projects totalling 5,248km² – with significant mineralisation already identified

Bird’s Head Project

Mineralisation Model

• Magmatic arc deposits

are classified by the depth at which they form

• Bird’s Head has seen a

number of phases of tectonic activity, including uplift and associated mineralising events that have led to the over printing or telescoping of epithermal mineralisation

• nto porphyry style

mineralisation

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Bird’s Head, Indonesia

Regional Setting

Bird’s Head covers part of the interpreted westward continuation of the New Guinea ‘Orogenic Belt’

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Bird’s Head Project

West Papua – Mineral Occurrences

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Bird’s Head Project

Project Scale Geology & Geomorphology

Multiple Diorite – Granodiorite Intrusives, Magmatic Centre’s – Widespread Hydrothermal Activity

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Bird’s Head Project

3D Geology & Geomorphology

• Overall northward younging of the strata caused by the interaction of the

topography and the overall shallow northward dips. The topography is broadly “dip slope” in character

• The major Sansapor fault (and probably also the Sorong fault) may be reverse

faults or thrusts

Alpha Delta

north

Bird’s Head Project

Historical Drainage Anomalies

Stream Sediment Anomalies by Gold

Work by Normandy and past explorers highlighted 16 high order anomalies, with Bird’s Head containing 10 of these

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Copper Soil Geochemistry

• Extensive Cu anomalism in

main target corridor 6 x 1.5km

• Cu mineralisation assoc. with

granodiorite/diorite intrusive, same host rocks as large deposits like Grasberg

• Surface expression of a

porphyry e.g. Batu Hijau in Sumbawa is only 400 x 200m (4.8Mt Copper)

• WDD7 100m @ 0.21% copper

Bird’s Head

Delta Prospect

Batu Hijau

West Delta Kali Sute

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Delta Prospect

Geochemistry - Copper

• Soil anomalism (Au & Cu)

are coincident with circular features which in turn appear to relate to a diorite body, magmatic centre, key driver for mineralising system

• This is a key component

to all mineralising systems through the belt

Delta Copper in Soils

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• Multi phased diorite –

granodiorite magmatic centre

• Strong Correlation with

copper geochemistry

• Clear evidence of

mineralised porphyry system

• WDD7 100m @ 0.21%

copper

Delta Prospect

West: Geology & Soils

Delta Prospect

West Delta Area

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Delta Prospect

Geochemistry - Gold

• Delta Gold mineralization

is fault controlled low- sulphidation epithermal

• Two steep pervasive

fracture sets are evident. Also, the prospect is transected by some strong 120 degree trending faults

Delta Gold in soils

Delta Prospect

Kali Sute

Significant Trench Intercepts

Trenching results confirmed presence

• f high grade epithermal mineralisation

Follow up drilling has intersected:

• 14.35m @ 1.71g/t gold and 2.55g/t

silver from 13m in KSD1, incl. 7.55m @ 2.97g/t gold and 3.56g/t silver

• 6.1m @ 1.25g/t gold and 2.96g/t

silver from 19.1m and 6.6m @ 5.96g/t gold and 3.18g/t silver from 54.9m KSD6

• Drilling has been sparse and erratic

to date; shoot geometry in an epithermal deposit usually necessitates a high density of drilling

2 Kilometres

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Alpha Prospect

Structural Setting

• Fault controlled low-

sulphidation epithermal

• Two steep fracture

sets are evident

• Mineralisation occurs

at a dilational jog in the fault system

• Circular features

potential magmatic centres

• Alpha high ground

appears to be capped by a palaeoregolith remnant, possibly masking underlying geochemistry

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Alpha Prospect

Radiometrics

Discrete Potassium anomaly on western side of Delta

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Alpha Prospect

Air Magnetics

Coincident magnetic and potassium anomaly just west of Alpha suggestive of magmatic source

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Bird’s Head Project

Alpha Prospect

Gold (g/t) Soil Geochemistry

1 Kilometre

Batu Hijau

Extensive gold mineralisation, which appear to be strongly structurally controlled

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Bird’s Head Project

Alpha – Soils (Gold) and Geology

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Bird’s Head Project

Alpha – Soils (Gold) and Alteration

Strong genetic relationship for mineralisation

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Bird’s Head Project

Alpha Prospect

• Bonanza trenching

grades, gold associated with epithermal quartz veins

• Very limited drilling

completed to date, only 5 drill holes

• Significant scout drilling

results including 17.45m @ 2.16g/t gold, 18.36g/t silver, 0.29% copper, 2.08% lead and 5.31% zinc in AD1

• 1.6m @ 108.5g/t gold

and 16g/t silver in AD4 Drilling, Trenching Locations on Gold (g/t) Soil Geochemistry

A18 Anomaly B15 Anomaly A17/19 Anomaly

Bird’s Head Project

Key Attributes

Bird’s Head is an exciting exploration project:

• Favourable tectonic setting, interpreted western continuation of New

Guinea Orogenic belt, which contains the giant Grasberg deposit

• Outstanding surface geochemistry
• Strong indications of a multi-phased mineralising system, epithermal
• ver printing porphyry
• Two advanced exploration prospects (Delta and Alpha), could be drill

ready in 6-9 months

• Numerous high order stream anomalies still require follow up
• The Indonesian mining law has recently seen many favourable changes
• Excellent potential to discover a company making world class ore body

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• Establish a positive working relationship with local and regional

government and with the local communities

• Establish a coastal base camp at Warmandi as the main base to

service helicopter supported Reconnaissance and drilling operations

• Conduct detailed surface geochemistry programs including 2100 soil

samples, 900 rock chip samples and 6000 trench samples (2m)

• Conduct detailed geomorphology, structural, alteration and lithological

mapping to aid in drill target selection

• Commence a 10,000 metre diamond drilling program at the start of

the 2010 field season

Birds Head Project

Budget Timeline – April 2009 to January 2011

Birds Head Project

Kali Sute - Exploration

• Soil Sampling Program

(1000 samples)

• Rock chipping (400

samples)

• Follow up trenching (2000

samples, 2m composites)

• Detailed mapping

(geological and structural)

• Drilling (3,000 – 5,000m)

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Birds Head Project

West Delta - Exploration

• Soil Sampling Program

(1153 samples)

• Rock chipping (400

samples)

• Follow up trenching (2000

samples, 2m composites)

• Detailed mapping

(geological and structural)

• Drilling (5,000 – 7,000m)

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Birds Head Project

Alpha Prospect - Exploration

• Detailed mapping

(geological and structural)

• Rock chipping (100

samples)

• Follow up trenching

(2000 samples, 2m composites)

A18 Anomaly B15 Anomaly A17/19 Anomaly

Birds Head Project

Alpha Prospect

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Birds Head Project

Building a Team

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Birds Head Project

Landing Barge – Logistic Support

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Birds Head Project

Community Relationships

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The 2009 work program is currently being developed and subject to approval is likely to include:

• Further historical data review and

compilation

• Socialisation
• Logistical support
• Establish coastal and Delta base camp
• Geological mapping, rock chip

sampling and trenching

• Geophysics
• Drilling

Bird’s Head

2009 Work Program

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Bird’s Head

Summary

• The Bird’s Head Project represents an excellent opportunity to explore

for large scale epithermal and porphyry style mineralisation within a geological setting that has been proven to host world class deposits

• The Project covers a large area of what is interpreted to be the

westward continuation of the New Guinea “Orogenic Belt” which contains the giant Ertsberg/Grasberg, Porgera and Ok Tedi deposits

• The Project has key ingredients to potentially host a deposit of

significant size

• Two advanced prospects which could be drill ready in six months
• Indonesian mining law has recently seen many favourable changes
• Highly energised Indonesian partners
• Excellent potential to discover a company making world class ore body

Indonesia

Sumba Island Prospect

• KP 350/KEP/HK/2007 general survey license granted on Sumba covering

an area of 3,433km²

• Indonesian subsidiary of Hillgrove, PT Fathi Resources to undertake

exploration work, studies and steps to advance the KP to exploration status in return for an indirect 80% interest

• Sumba offers a leg up into previously identified gold mineralisation zone

(BHP) not followed up due to economic conditions of late 1990’s Better results from BHP trenching include:

• 3m @ 49.38g/t gold
• 4m at 16.73g/t gold
• 4m at 6.7g/t gold
• 9m at 5.87g/t gold
• 9m at 6.1g/t gold
• 13m at 2.05g/t gold
• 16m at 1.56g/t gold

Note: Trenching was largely conducted perpendicular to quartz veins and continuous sampling was conducted at 1m intervals. Hillgrove is still searching for reports that contain specific information on drill hole locations, assays and any other exploration data.

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Sumba

Pahandanjal Region

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 Targeting discovery of world class ore bodies: 5,248 km² – West Papua and Sumba  Investments: ~ $145 million of listed strategic resources investments  East Coast Australia Gas: Strategic stake in leading coal seam gas independent  Latent Copper Production: Kanmantoo production targeted for 2010/11, DFS complete, significant resource extension potential >10 years mine life  People: Leading team of corporate, exploration and mining professionals  Growth: Linked to expected medium term synchronised global growth

Summary

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 Person as defined 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.

Hillgrove Resources Limited

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

• f 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 a principal consultant with Snowdens Mining Consultants 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. 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 the Principal of Resource Evaluations 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 Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.