straits hillgrove gold

STRAITS HILLGROVE GOLD

Hillgrove: A New Start

20th September 2007

Chris Simpson – Senior Exploration Geologist

• Regional Geology

• Hillgrove Demonstration Process Plant

• Tailings Storage Facility Two (TSF2)

• Bakers Creek Haul Road

• Pre-Mine Development Syndicate

• Exploration Drilling

• Infrastructure Upgrades

Hillgrove

Site Overview

Hillgrove – Overview

Location

HillgroveMineral Exploration Tenements

Overview

• Challenging terrain – 450m deep

gorge adjacent the mine site

• Straits Resources purchased 100%

of Hillgrove in March 2004

• Exploration plus ongoing care and

maintenance activities to July 2006.

• Pre mine development from August

2006

Hillgrove – Overview

History

Overview - Historical

Mining since the 1880’s

Regional Geology

Hillgrove

Regional Geology

• Late Carboniferous Girrakool Sediments – Turbiditic shales and cherts

• Intruded by Early Permian Granites –Hillgrove Adamellite / Bakers Creek Diorite

• Tension gash corridor bounded by two regional ENE fault zones

• Lamprophyre dykes are common – Mid Carboniferous in age

• Multi phase Au – Sb – W mineralisation

• Shear hosted

• Strong Au – As association

Geology

• 200+ lodes identified within the field

• Extensive workings on many of the lode systems

• Investigated 15 lode systems to date

• Resource currently at 1.44 M ounce gold equivalent as at 31st December 2006

Typical X-Section – Hillgrove Lodes

Geology

Hillgrove Demonstration Process Plant

Hillgrove

Hillgrove Demonstration Plant

The Process

•Comminution. SAG mill circuit producing a coarse product for concentration

•Concentration. Conventional Flash Flotation followed by rougher flotation at a coarse grind to generate a bulk mineral concentrate. Gravity concentration of bulk concentrate to produce gravity gold concentrate.


The Process

•Antimony Leach. Alkaline / sulphide leach to selectively dissolve antimony from Stibnite

•Antimony EW processDirect electro-winning of Sb from leach solutionCrystalline deposit easily removed from plates for melting on site

3 (Na2S ) + Sb2S3 2 Na3SbS3

Laboratory Antimony Cathode


The Process

•Tungsten recovery. Gravity recovery of Scheelite mineral from circuit tailings


The Process

•Metal casting Facility. Electric furnace melting and automatic casting facility

Hillgrove – OverviewPlant Construction - Pictures

30th April

SAG Mill

Hillgrove – OverviewPlant Construction - Pictures

Au Room

Sb Smelting

E/W

Process Water

Hillgrove

Tailings Storage Facility Two (TSF2)

Hillgrove

Hillgrove

TSF2 Construction – September 2007

Bakers Creek Haul Road

Hillgrove

Mining

• Internal access road and creek crossing completed

Hillgrove

Mining

• Bakers Creek crossing completed

Hillgrove

Mining

Pre-mine Development - Syndicate

Hillgrove

• Development has commenced in 1740 and 1650 Levels.

Hillgrove

Mining

• Preparation for stoping underway.

Hillgrove

Mining

Exploration drilling

Hillgrove

Syndicate

Black Lode

Syndicate

•Most consistent lode to recommence mining operations•Average width 2m•Strong Au – Sb – W mineralisation•Block model – 500m strike length•Excellent potential for additional resources along strike / depth•Exploration for parallel lode systems

Eleanora / Garibaldi

Eleanora / Garibaldi

Quartz Breccia – ELG076

Lower Cooney Tunnel

6615200N

3946

00E

6615000N

6614800N

6614600N

6614400N

6614200N

3948

00E

3950

00E

3952

00E

3954

00E

3956

00E

3958

00E

3960

00E

3962

00E

Legend UG DevelopmentMineralised TrendRoadExisting HolePlanned HoleCurrent HoleCompleted Hole

BRK001

BRK002

BRK003

BRK016

BRK005

BRK006

BRK007

BRK008

BRK004

BRK011

Brackins Spur Drilling YTD07

EXPLORATION

HILLGROVE DEPOSITS

Clarks Gully

Wide-spaced deeper drilling

HILLGROVE FAULT

?

? OFFSET?

• Preliminary resource of

413,757t @ 15.1g/t Au Eq

2000RL

1900RL

1800RL

1700RL

6620

800N

6621

000N

6621

200N

Hillview Prospect

Clarks Gully Open Pit

Old Hillgrove Road

Waterfall Way

B.O.W.

<5>5 <10>10 <20>20Planned Hole

LegendDownhole Gram Metres

(Au eq. ppm)

6620

600N

Clarks GullySb core with enveloping Au - Proposed Drilling 2007/2008

Regional Exploration

Hillgrove

Regional Exploration 2007/2008

• Helicopter borne magnetometer survey completed Dec 2006

• Literature review and digital capture of regional exploration data completed,

including geological mapping, soils, streams and drilling

• Many untested targets with either no work, or incomplete work eg soil sampling

with no gold assay

• Large scale stream sediment/soil sampling, mapping and drilling of targets will

occur during 2007/2008

• Steady climb in annual drill metres

Year Diamond Percussion Total

2004 2,113 5,178 7,291

2005 5,225 8,326 13,551

2006 10,287 - 10,287

2007 16,865 - 16,865

47,994

HillgroveHelimag Survey

TMI with sun angle from east

Upgrade & Refurbishment of Site Infrastructure

Hillgrove

Hillgrove

Thank you

Hillgrove

straits hillgrove gold

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