Tuesday, 31 October 2017

IMARC PAMPHLET

Hillgrove Resources (ASX:HGO), advises that the attached pamphlet has been prepared for distribution at the International Mining and Resources Conference (IMARC) to be held in Melbourne this week.

For more information contact:

Mr Steven McClare Mr Paul Kiley

CEO & Managing Director CFO & Company Secretary

Tel: +61 8 7070 1698 Tel: +61 8 7070 1698

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HILLGROVE RESOURCES LIMITED ACN 004 297 116 www.hillgroveresources.com.au

5-7 King William Road, Unley SA 5061, Australia T +61 8 7070 1698 F +61 8 8538 5255

PUMPED HYDRO ENERGY STORAGE

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200-250MW/h generation for 5-8 hours / day

Pumped Hydro enables South Australian renewable energy growth by adding system stability and storage to the electrical network. Hillgrove has completed a prefeasibility into the option of a Pumped Hydro Energy Storage (PHES) facility at the Kanmantoo site. A submission to the SA Bulk Energy Storage funding round was made in September to complete a feasibility study.

The mine site is well suited for this project due to:

  • 427m difference in elevation

  • Proximity to the electricity network (

  • Over 250MW capacity at Mt Barker exchange

  • Access to water and existing pipeline (>2.5GLpa)

  • Community relationships and site zoning

Importantly, initial studies indicate the PHES can occur concurrently with underground mining.

MT RHINE EXPLORATION

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13.1% Cu and 49.8g/t Au (different samples)

Hillgrove has identified two very high grade copper-gold mineralised zones at Mt Rhine, both of which are over 1km in length each. Mt Rhine is 12km from the Kanappa target and 80km by road from the Kanmantoo processing facility. Drilling will commence in early 2018.

Zo n e A: Gossan zones over 1km hosting high grade gold and base metal from which historic Au-Pb-Zn-Ag mining occurred in 1800's. Peak assays from rock chips include 36.8g/t Au, 5.2% Zn, 1.7% Pb, and 550g/t Ag.

Zo n e B: The zone of anomalous copper geochemistry is over 300m wide and 1.7km long, and open both north and south. Rock chip sampling has confirmed the high grade tenor of the outcropping copper-gold mineralisation with rock chips to 13.1% Cu and 49.8g/t Au (separate samples). ASX Release 25/10/2017

Zone A

Zone B

Kanmantoo PHES Site Plan

Kanmantoo PHES Waterway Longitudinal Section

Plant arriving ready for construction

Utilising existing infrastructure and cash flow at Kanmantoo to create Company transforming mining and energy hubs

Phone: +61 8 7070 1698

www.hillgroveresources.com.au

HILLGROVE RESOURCES

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Hillgrove Resources is an ASX listed mining company (ASX:HGO) focused on leveraging the existing assets and operational capability at its flagship Kanmantoo open pit operation to create value from the surrounding region.

Regional targets around Kanmantoo Copper Mine

KANMANTOO OPEN PIT

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The Kanmantoo Copper Mine is located approximately 44km southeast of Adelaide, South Australia. Invested infrastructure, including a 3.6Mtpa flotation plant, tailings facility and pit haul road being extended to over 360m in depth, creates unique opportunities to add significant value through relatively low cost underground extensions below and adjacent the open pit, and processing of regional copper/gold and lead/zinc lodes.

Over $70M has been invested in the open pit cutback. All of this investment is forecast to be repaid in 2018 with sufficient residual cash flow to actively pursue a number of growth opportunities including underground, regional exploration and pumped hydro energy storage.

KANMANTOO UNDERGROUND

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Exploration Target 5-10Mt @ 1.7-2.2%Cu, 0.4-1.0g/t Au

A feasibility study into the development of the underground extension of the Kanmantoo open pit is underway. There is an opportunity to utilise the existing open pit haul ramp to access the depth extensions of the Kanmantoo orebody, with an Exploration Target of 5-10Mt @ 1.7-2.2%Cu, 0.4-1.0g/t Au within 250m of the open pit access ramp.

The first stage of the feasibility study focuses on the high gold grade area in Nugent (12m @ 2.2% Cu, 7.9g/t Au) with a short development drive from the existing pit ramp to establish underground exploration drilling platforms to test Nugent Exploration Target of 0.8-2.0Mt @ 1.5-2.0% Cu, 1.5-2.5 g/t Au

An Exploration Target is conceptual in nature as there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. ASX Release 25/05/2017.

Inset: upper levels of Nugent underground (concept)

KANAPPA EXPLORATION

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34.8% Cu and 4.0g/t Au (different samples)

Hillgrove has identified a 4.8km long and 600m wide copper-gold mineralised zone at Kanappa, 60km by road from the Kanmantoo processing facility. Mineralisation is most likely magmatic related. Drilling will commence in early 2018. ASX Release 20/10/2017

Hillgrove Resources Limited published this content on 31 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 October 2017 01:22:06 UTC.

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