ANNUAL GENERAL MEETING CHAIRMANS ADDRESS 22 JUNE 2010 FINANCIAL - - PowerPoint PPT Presentation
ANNUAL GENERAL MEETING CHAIRMANS ADDRESS 22 JUNE 2010 FINANCIAL RESULTS 2010 PLUS PRIOR THREE YEARS 31 January 31 January 31 January 31 January Results for the 2007 2008 2009 2010 Year Ended $M $M $M $M $M $M $M $M Revenue
PLUS PRIOR THREE YEARS
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PLUS PRIOR THREE YEARS
N t A t ($ )
163.8 175.0 200.0
Net Assets ($m)
125.0 150.0 38.7 55.2 84.2 50.0 75.0 100.0 0.0 25.0 2007 2008 2009 2010 2007 2008 2009 2010
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RESOLUTIONS
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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 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 This presentation may contain forward looking statements that are subject to risk factors associated with copper, gold,
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 titi i t l i k h i l i k l i l ti fi l d l t d l t i d fi i l 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 It is important to note have been made based on both historical and company technical data at hand of the time of writing. It is 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 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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The information in this report that relates to Exploration Results at the Kanmantoo Copper Mines is based on information compiled by Mr Richard Bradey, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bradey is the Kanmantoo Project Geology Manager for Hillgrove Resources and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition of the ‘A stralasian Code for Reporting of E ploration Res lts Mineral Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Bradey 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 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. 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 full-time employee 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 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 a principal consultant with Snowdens Mining Consultants and has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 Edition
p g p consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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AUSTRALIAN MINER WITH ASIAN GROWTH PIPELINE
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COPPER ON THE MOVE
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SNAPSHOT
EL4401 10
2010
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RESOURCES / RESERVES
Type Total (0.25% Cu Cut Off Grade Model) Tonnes Cu Au Ag Cu Metal Au Ag Kt % g/t g/t Tonnes Ounces Ounces Oxide 1,125 0.8 0.2 3.3 8,600 6,900 121,000 Transitional 1,620 0.8 0.2 2.9 12,200 9,600 152,000 Fresh 29,447 0.9 0.2 3.2 271,500 174,600 3,040,700 Total 32,192 0.9 0.2 3.2 292,200 191,100 3,313,600
Category Tonnes Cu Au Ag Mt % g/t g/t g g Proved 2.3 0.87 0.13 3.2 Probable 12.5 0.84 0.18 3.1 Ore Reserve 14.8 0.85 0.17 3.1
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ORE BODY
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SITE PLAN NW Z Waste Rock NW Zone
Waste Rock Stockpile NE Zone
SE Zone Main Zone Green Zone
SE Zone Emily Star Green Zone Sth Plant Site O’Neil Zone Sth
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NEAR MINE PROSPECTS
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SUMMARY
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LOW COST SETTING
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PIT DESIGN
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ORE PROCESSING FLOW
ROM BIN PRODUCT SCREEN FEED BIN Lime VIBRATING GRIZZLY FEEDER NEUTRAL- ISATION PROCESS WATER TANK SECONDARY CRUSHER HYDRO CYCLONE FEEDER STOCK PILE JAW CRUSHER ISATION TANK SAG MILL PEBBLE CRUSHER FLOATATION REAGENTS REAGENTS ROUGHER FLOATATION FLOATATION CLEANER FLOATATION REAGENTS TAILINGS THICKENER CYCLONE REGRIND MILL CONCENTRATE THICKENER TAILINGS DAM Proposed WATER STORAGE DAM
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CONCENTRATE STORAGE TANK CONCENTRATE FILTER CONCENTRATE STOCKPILE TRUCK TO PORT
A COPPER PRODUCER AT LAST
RESULTS OF QUARTERLY OXIDE ORE OPERATIONS February March April Total YTD $ $ $ $ Sales Revenue 333,546 270,181 280,692 884,419 Copper Sales (tonnes) 51.5 40.3 44.4 136.2 pp ( ) Sales Revenue per tonne 6,481 6,698 6,322 6,493 Sales Revenue per lb 2.94 3.04 2.87 2.95 Oxide Ore Processed 8,000 10,000 8,000 26,000 Cu Grade 0.9% 0.9% 0.9% 0.9% Cu Contained Tonnes 72 90 72 234 Cu Recovered 50.0 56.6 45.1 151.7 Recovery 69.5% 62.9% 62.6% 64.8% Cash Cost 144,565 165,582 132,030 442,177 Cash Cost per tonne 2,890 2,927 2,927 2,915 Cash Cost per lb 1.31 1.33 1.33 1.32 p
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PILLARA PROCESS PLANT
PILLARA PROCESS PLANT AERIAL PHOTO - BEFORE
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PILLARA PROCESS PLANT AERIAL PHOTO – THE PLANT NOW
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PILLARA PROCESS PLANT COS FEED CONVEYOR DISMANTLE
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PILLARA PROCESS PLANT GRINDING AREA
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PILLARA PROCESS PLANT CYCLONE STRUCTURE ABOVE MILLS
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PILLARA PROCESS PLANT MILLS
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PILLARA PROCESS PLANT FLOTATION BUILDING ROOF
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PILLARA PROCESS PLANT TROUGH FLOAT CELL BEING LIFTED
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PILLARA PROCESS PLANT FLOAT BUILDING AND MILLS
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PILLARA PROCESS PLANT CONCENTRATE THICKENER MID SECTION
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PILLARA PROCESS PLANT CLEAR OF FLOATATION & GRINDING FOOTINGS
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DISMANTLING AND TRANSPORT OF PLANT
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MINING OPERATIONS
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MINING OPERATIONS
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CAPITAL COSTS
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UNIQUELY POSITIONED
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HIGHLY PROSPECTIVE ADVANCED GOLD EXPLORATION
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REGIONAL SETTING
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INDONESIA / NEW GUINEA DEPOSITS
Rank Deposit Province Tonnage (Mt) Au (g/t) Au (t) Cu (Wt %) Cu (Mt) 1. Grasberg East Papua 2,480 1.05 2,604 1.13 28.02 7. Panguna Bougainville 1,415 0.57 799 0.46 6.51 9. Batu Hijau Sumbawa 1,644 0.35 572 0.44 7.23 11 Ok Tedi PNG 700 0 64 446 0 64 4 48 11. Ok Tedi PNG 700 0.64 446 0.64 4.48 17. Frieda River PNG 1,103 0.32 354 0.61 6.73
Source: Economic Geology Volume 100 p 803
____________________ 1 Ranked on contained gold
Source: Economic Geology, Volume 100, p. 803
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IUP AREA AND DRAINAGE ANOMALIES BY GOLD
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WEST DELTA AREA
Over 5m silica-pyrite-albite altered it ith l hit ft fi monzonite with malachite after fine grained chalcocite in hanging wall Close up of above hanging wall rock with quartz-sulphide veining/stockwork
Clay altered & brecciated it monzonite
GREEN CLIFFS
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GREEN CLIFFS
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INTERPRETATIVE CROSS SECTION FOR WEST DELTA
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GOLD (G/T) SOIL GEOCHEMISTRY
1 Kilometre 1 Kilometre
Batu Hijau
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DRILLING, TRENCHING LOCATIONS ON GOLD SOIL GEOCHEMISTRY
B15 Anomaly B15 Anomaly B15 Anomaly B15 Anomaly A17/19 Anomaly A17/19 Anomaly A17/19 Anomaly A17/19 Anomaly
A18 Anomaly A18 Anomaly A18 Anomaly A18 Anomaly
y
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80%
Note: Trenching was largely conducted perpendicular to quartz veins and continuous sampling conducted at 1m intervals. Hillgrove still searching for reports that contain specific information on drill hole locations, assays and any other exploration data.
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MASU: CURRENT FOCUS
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MASU: CURRENT FOCUS
50 50
PAHANDANJAL PROSPECT
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PAHANDANJAL PROSPECT
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PAHANDANJAL PROSPECT
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BAUXITE PROJECTS HIGHLIGHTS
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SELETED PUBLISHED BAUXITE RESOURCE GRADES
Deposit Owner Country Al2O3 % Reactive Si % Available Al2O3 % Upgraded
1North Darling Range
Ba ite Reso rces A stralia 43 1 3 2 31 6
1North Darling Range
Bauxite Resources Australia 43.1 3.2 31.6
2Worsley
BHP Billiton Australia NS 2.1 31.1
2MRN
BHP Billiton Brazil NS 4.1 50.2 (washed)
2GAC
BHP Billiton Guinea NS 1.2 37.7
3Gove
Rio Tinto Australia 49.7 NS NS
3Porto Trombetas
Rio Tinto Brazil 50 NS NS
3Sangaredi
Rio Tinto Guinea 48.4 NS NS
3Weipa
Rio Tinto Australia 50.6 NS NS
4Wandoo
Iron Mountain Australia 38.25 31.61 6.64
5Pisolite Hills
Cape Alumina Australia 53.1 7.5 41.5 (washed)
6Tayan
ANTAM Indonesia 47 3.5 NS (washed)
7Landak
Hillgrove Resources Indonesia 48.8 2.7 46.2 (washed) Landak Hillgrove Resources Indonesia 48.8 2.7 46.2 (washed)
NS = Not Specified 1 ASX Release 16 January 2010 2 BHP Billiton Annual Report 2009 3 Rio Tinto Annual Report 2008 4 ASX Release 16 March 2010 5 ASX Release 2 July 2009 6 ANTAM Statement of Resources and Reserves 31 December 2007 7 IMO Landak Bauxite Project Report (Cumulative Grade at 3 3mm Screen Size)
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7 IMO Landak Bauxite Project Report (Cumulative Grade at 3.3mm Screen Size)
TENEMENTS
LANDAK 48.8% Al2O3 (washed) ( )
Tayan (ANTAM)* 30.9mt @ 47.5% Al2O3 (washed P & P Reserves) (washed P & P Reserves) Munggu Pasir (ANTAM)* 40mt @ 46.6% Al2O3 (washed Probable Reserve) (washed Probable Reserve) Bauxite Resource TAYAN SOUTH 56
LANDAK PROJECT
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INVESTMENT SUMMARY
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2010
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