Proactiveinvestors Australia Havilah Resources Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Havilah Resources Ltd RSS feed en Wed, 24 Jul 2019 14:39:00 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Havilah Resources has about 55% upside potential from current share price levels: State One Stockbroking ]]> https://www.proactiveinvestors.com.au/companies/news/222998/havilah-resources-has-about-55-upside-potential-from-current-share-price-levels-state-one-stockbroking-222998.html Havilah Resources Ltd (ASX:HAV) recently released positive PFS project economics for its Kalkaroo Copper-Gold Project in South Australia.

READ: Havilah Resources’ positive Kalkaroo PFS supports large-scale copper project

The economics include an estimated pre-tax NPV (7.5%) of $564 million and IRR of 26% at US$2.89 per pound of copper and US$1,200 per gold.

State One has maintained its Speculative Buy (higher risk) recommendation for Havilah with a target price of 21 cents. Following is an extract from State One’s research update:

Employing a copper price of A$3.85/lb (US$2.89/lb @ US$0.75) and a gold price of A$1,600/oz (US$1,200/oz @ US$0.75), the NPV of the 15-year LOM Project is estimated by independent mining consultants RPMGlobal Asia Limited, at A$258m (post-tax, 10% discount rate).

Note: while the PFS assumed Cu price of A$3.85/lb pretty much matches the current spot price, the current spot price of gold at A$2,017/oz is some 26% above the PFS’s assumed gold price. Thus, the PFS NPV estimate has, we suggest, significant upside potential.

In early May 2019, HAV entered into a Share Subscription Agreement (SSA) with SIMEC Mining (part of the Gupta Family Group (GFG)) consisting of A$50m in committed equity investments over three years and a further A$50m in conditional or discretionary funding.

The funds are specifically to be allocated to developing the group’s iron ore projects (Maldorky/Grants/GIOB) and the copper prospects in the Mutooroo Cu-Co District to DFS status. After a proposed A$5m rights issue to existing HAV shareholders, we calculate that the committed funds portion of the SSA will give GFG a 51% equity interest in HAV.

Thus, the SSA, if approved at an upcoming EGM (most likely to be held by end-July 2019), effectively gives GFG, for free, 51% of the Kalkaroo Project -which has a PFS post-tax NPV10 estimate of A$258m. Nevertheless, in the absence of a superior proposal, we believe that the SSA still represents a reasonable outcome for HAV shareholders.

• With pre-production capex estimated at A$332m, and a post-production sulphide plant requiring an additional A$246m, we believe that the Kalkaroo Project, at this juncture, is unlikely to progress beyond its current PFS stage.

• We suspect that existing HAV shareholders are effectively “tapped out”, and that without the funding provided by the SSA, advancing HAV’s other projects (iron ore, Mutooroo) will become increasingly problematic.

• Although forming part of the conditional additional Project funding, we note with interest that GFG can purchase a direct equity interest in HAV’s iron ore assets at A$1.2m for each 1% ownership interest; this values HAV’s current iron ore Resource at A$120m or A$1.03/t of contained Fe metal. In comparison, we value the Fe assets at (only) US$0.15/t of contained metal. The implication, we suggest, is that HAV/GFG believe the iron ore Resource base has the potential to significantly expand (we estimate by 5x or more).

The SSA implied value of HAV (A$98m) divided by the indicative number of post SSA shares (539m) is A$0.18ps; in addition, the share price - at least in the near-term - is most likely capped at A$0.21, the SSA reference share price of A$0.154 escalated by 35% (as per the committed funding terms). We adopt this as our target price.

With some 55% upside potential from current share price levels, we maintain a Speculative Buy (higher risk) recommendation.

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Fri, 28 Jun 2019 11:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222998/havilah-resources-has-about-55-upside-potential-from-current-share-price-levels-state-one-stockbroking-222998.html
<![CDATA[News - Havilah Resources readies documents ahead of shareholder approval for transformation transaction ]]> https://www.proactiveinvestors.com.au/companies/news/222997/havilah-resources-readies-documents-ahead-of-shareholder-approval-for-transformation-transaction-222997.html Havilah Resources Ltd (ASX:HAV) will soon be convening an extraordinary general meeting (EGM) to seek approval from shareholders for the proposed transaction with SIMEC Mining, a member of the GFG Alliance.

As recently detailed, Havilah entered an agreement with SIMEC Mining that provides for a capital injection of up to $100 million to fund work programs on its iron ore and copper assets.

There are two documents and a number of normal required regulatory reviews that need to be completed before an EGM can be called and a date set.

The key document to be completed is an independent expert report (IER), which Havilah understands is nearing finalisation and expects to receive soon.

Once this is received and the company has met its other obligations, an EGM can be called with a minimum of 28 days’ notice, at which, Havilah shareholders can approve the transaction.

READ: Havilah Resources shares surge on confirming 488-metre iron formation at Grants Basin

Recently, Havilah received assays from diamond drill hole GBDD014 completed at its Grants Basin Iron Ore Project in South Australia.

Assays revealed 488 metres at 24.57% iron from 126 metres.

This drilling was part of a comprehensive program of work which was performed and funded by OneSteel Manufacturing Pty Ltd (SIMEC), a member of the GFG Alliance.

Drilling was part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects in South Australia.

Proactive caught up with Havilah in early April 2019 for an update.

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Fri, 28 Jun 2019 11:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222997/havilah-resources-readies-documents-ahead-of-shareholder-approval-for-transformation-transaction-222997.html
<![CDATA[News - Havilah Resources shares surge on confirming 488-metre iron formation at Grants Basin ]]> https://www.proactiveinvestors.com.au/companies/news/222713/havilah-resources-shares-surge-on-confirming-488-metre-iron-formation-at-grants-basin-222713.html Havilah Resources Ltd (ASX:HAV) has received the final laboratory assays from diamond drill hole GBDD014 completed at its Grants Basin Iron Ore Project in January this year.

The final calculated intersection of 488 metres at 24.57% iron (from 126 metres to 614 metres downhole) using lab assay data compares favourably with the previously announced indicative handheld Niton XRF results of 486 metres at 24.06% iron (from 127 metres to 613 metres downhole).

READ: Havilah Resources intersects 486-metre thick iron ore sequence at Grants deposit

Havilah technical director Dr Chris Giles said: “As expected, the laboratory assays have confirmed the exceptionally thick 488 metres intersection of iron formation in the Grants Basin, with a slightly higher grade of 24.57% iron over this interval compared to previously announced handheld XRF analyses.

“These assays are also broadly consistent with the assays in the adjacent reverse circulation drill hole, meaning that our results have now been confirmed by two different drilling methods as well as by two different assaying methods.

“So far our wide spaced drilling has only covered about 25% of the area of the Grants Basin based on our aeromagnetic data interpretation, giving an idea of the potential scale and extent of the iron ore mineralisation.

“Our next step is to carry out an infill resource drilling campaign, with the objective of defining a JORC resource as part of the planned prefeasibility studies.”

Drill cross section of Line 02 looking west showing the diamond cored hole GBDD014, nearby RC drill intersections and interpreted shallower dip of iron sequence on southern side of basin.

This drilling was part of a comprehensive program of work which was performed and funded by SIMEC Mining (an affiliate of the GFG Alliance) as part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects in South Australia.

The drilling program was implemented and supervised by Havilah personnel.

Importantly, the results from this drilling program has allowed the estimation of an initial exploration target for the Grants Basin of 3.47 to 3.79 billion tonnes at a grade of 23.9% to 27.6% iron.

READ: Havilah Resources sets iron ore exploration target for Grants Basin

Havilah recently revealed a funding deal of up to $100 million with GFG Alliance, to fully fund work programs on Havilah’s iron projects (including Maldorky, Grants and Grants Basin) and copper assets in the Mutooroo Copper-Cobalt District.

READ: Havilah Resources enters "transformational" $100 million agreement with GFG Alliance ]]>
Tue, 25 Jun 2019 11:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222713/havilah-resources-shares-surge-on-confirming-488-metre-iron-formation-at-grants-basin-222713.html
<![CDATA[News - Havilah Resources’ positive Kalkaroo PFS supports large-scale copper project ]]> https://www.proactiveinvestors.com.au/companies/news/222282/havilah-resources-positive-kalkaroo-pfs-supports-large-scale-copper-project-222282.html Havilah Resources Ltd (ASX:HAV) has released a positive pre-feasibility study (PFS) report which supports a large-scale open pit copper-gold mine at the Kalkaroo project in northeast South Australia, near Broken Hill.

The economics include an estimated pre-tax NPV (7.5%) of $564 million and IRR of 26% at US$2.89 per pound of copper and US$1,200 per gold ounce at an A$1:US$0.75 exchange rate.

Prepared by independent mining consultants RPMGlobal Asia Limited (RPM), figures are based on average annual production of 30,000 tonnes of copper and 72,000 ounces of gold over a 13-year production period.

READ: Havilah Resources on-track to deliver Kalkaroo PFS in second half of 2019 after positive metallurgical results

Kalkaroo is in northeastern South Australia 100 kilometres west-northwest of Broken Hill.

The PFS was originally prepared for Wanbao Mining Ltd and is being released to inform the market ahead of release of a Notice of Meeting regarding a proposed transaction with SIMEC Mining, a member of the GFG Alliance.

Havilah continues to work with RPM on various opportunities identified in the PFS to potentially enhance the project.

If the outcomes are sufficiently material, these results will be released in an updated PFS during the fourth quarter of 2019.

“Attractive open pit project”

The company’s technical director Dr Chris Giles said: “The PFS demonstrates that Kalkaroo as it presently stands is a potentially attractive open pit copper-gold project.

“There is also excellent upside to extend the mine life if we can incorporate the substantial inferred resources into the mining plan and also through discovery of additional nearby resources, given that the Kalkaroo ore body remains open down-dip and along strike.

“We are continuing to work on these various upside opportunities with the assistance of RPM in order to determine what effect they could potentially have on the mining economics.”

READ: Havilah Resources has about 30% upside potential from current share price levels: State One Stockbroking

Kalkaroo PFS conceptual open pit, showing ore reserve shell (yellow) within the open pit and inferred resources (red) external to the open pit.

The PFS is based on a geological model developed by Havilah and verified by RPM, which comprises a saprolite gold resource forming a gold-rich cap on top of a mostly sulphide copper-gold resource. Measured, indicated and inferred mineral resources totalling 1.1 million tonnes of copper and 3.1 million ounces of gold are estimated.

There is excellent potential to expand the current resource base with further step out drilling down dip, along strike and in a major mineralised fault zone.

Ore reserves as at January 2018.

As 90% of the ore reserve is of proved status, RPM considers “…there is sufficient confidence in the mineral resources for them to be utilised for detailed feasibility planning with no further exploration drilling”.

The figures prepared by RPM are highly sensitive to commodity prices with a 10% increase in metal prices resulting in a 48% increase in the pre-tax NPV7.5% to $835 million.

READ: Havilah Resources obtains three mining leases from regulator for Kalkaroo Copper-Gold Project in SA

Economic evaluation results.

Havilah owns the 550 square kilometre Kalkaroo Station pastoral property on which the project is located and has the property de-stocked to carry out conservation activities that will continue for the duration of the mining operation.

Copper concentrates from the project are planned to be transported via road train 50 kilometres south to the Transcontinental railway line and then via rail.

Capital expenditure summary ($ million).

READ: Havilah Resources enters "transformational" $100 million agreement with GFG Alliance

RPM concluded: “The project has no significant issues that would prevent successful mining and processing of the ore.

“Furthermore, there are a number of opportunities to increase the mineral resource, increase product output and add value to the project.”

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Tue, 18 Jun 2019 12:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222282/havilah-resources-positive-kalkaroo-pfs-supports-large-scale-copper-project-222282.html
<![CDATA[News - Havilah Resources obtains three mining leases from regulator for Kalkaroo Copper-Gold Project in SA ]]> https://www.proactiveinvestors.com.au/companies/news/220817/havilah-resources-obtains-three-mining-leases-from-regulator-for-kalkaroo-copper-gold-project-in-sa-220817.html Havilah Resources Ltd (ASX:HAV) has obtained three mining leases (MLs) and two miscellaneous purposes licences (MPLs) for its flagship Kalkaroo Copper-Gold Project near Broken Hill.

This decision was granted by the South Australian Minister for Energy and Mining and secures Havilah’s right to mine at Kalkaroo.

The next step in the permitting process is to obtain permission to mine which requires submission and approval of a program for environment protection and rehabilitation (PEPR) as required under South Australia’s Mining Act.

The company also received the third installment of $4 million for the sale of the Benagerie Mining Lease to Consolidated Mining & Civil Pty Ltd, ahead of the planned July payment date.

Rapid completion and signing of the revised North Portia divestment documentation allowed the payment to be brought forward.

READ: Havilah Resources on-track to deliver Kalkaroo PFS in second half of 2019 after positive metallurgical results

Havilah Resources chief executive officer Walter Richards said: “The grant of the mining tenements for the Kalkaroo Copper-Gold Project is a significant milestone for Havilah and the result of many years of persistence.

“We look forward to progressing the Kalkaroo project to the next stages of development including the finalisation of the updated PFS.”

The company continues to investigate development opportunities including discussions with potential investment partners.

Work is also continuing investigating development opportunities which includes progressing discussions with potential investment partners.

Throughout this entire period Havilah has consistently strived to add value to the project in order to increase the likelihood of the development of the project and to attract investment development partners who can assist to bring the Kalkaroo project into production.

READ: Havilah Resources retains speculative buy recommendation from State One Stockbroking

The original discovery of the Kalkaroo deposit was made by Placer Pacific in 1992 who obtained several economic-grade intersections while drilling a magnetic anomaly in the footwall rocks.

A subsequent farm-in with MIM Holdings (MIM) saw exploration focus on a proprietary MIMDAS deep-looking geophysical targeting method.

Havilah acquired almost 1,000 square kilometres of exploration tenements during 2003-2006 from the Placer MIM JV and compiled high-quality drilling and geophysical data generated by previous explorers.

A new mineral resource estimate of 232.5 million tonnes at 0.49% copper and 0.37 g/t gold with a 0.4% copper equivalent lower cut off was recorded in 2017 based on the inclusion of 74 additional drill holes.

READ: Havilah Resources enters transformational $100 million agreement with GFG Alliance

A maiden ore reserve of 100 million tonnes containing 474,000 tonnes of copper and 1.41 million ounces of gold at 0.74% copper equivalent was determined by RPMGlobal in the PFS in June 2018.

Positive metallurgical results of more than 90% gold recovery in saprolite gold ore, as well as appreciable levels of gold and cobalt in pyrite concentrates, were recorded in May 2019 with improved gold recoveries in the oxidised gold ore type.

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Thu, 23 May 2019 11:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220817/havilah-resources-obtains-three-mining-leases-from-regulator-for-kalkaroo-copper-gold-project-in-sa-220817.html
<![CDATA[News - Havilah Resources on-track to deliver Kalkaroo PFS in second half of 2019 after positive metallurgical results ]]> https://www.proactiveinvestors.com.au/companies/news/219932/havilah-resources-on-track-to-deliver-kalkaroo-pfs-in-second-half-of-2019-after-positive-metallurgical-results-219932.html Havilah Resources Ltd’s (ASX:HAV) metallurgical test work program for the Kalkaroo pre-feasibility study is on track for completion in the second half of 2019 .

Key objectives were set prior to the program and positive outcomes were achieved such as improved gold recoveries in the oxidised saprolite gold ore type and confirmation of appreciable cobalt and gold grades in pyrite concentrates generated from copper tailings.

These outcomes have the potential to substantially enhance project revenues through an expanded open pit and extended mine life.

READ: Havilah Resources retains speculative buy recommendation from State One Stockbroking

Havilah technical director Chris Giles said: “Our metallurgical test program is nearing completion and it is apparent that the key objective to improve gold recoveries in the saprolite gold ore was successful.

“We have also confirmed that there is appreciable gold and cobalt in the pyrite concentrates and marketing studies, now underway, will inform us of the terms and likely payability levels we can expect from these metals.

“This new and complete metallurgical information will flow through into trade-off studies and a revised economic model to be incorporated into an updated PFS for Kalkaroo.”

READ: Havilah Resources enters “transformational” $100 million agreement with GFG Alliance

Metallurgy program objectives and outcomes

 

In an important breakthrough Havilah’s studies show that:

Excessive copper is unlikely to be an issue when average-grade saprolite gold ore is being treated, provided adequate levels of carbon loading are achieved; and As an alternative, an established method involving cold caustic cyanide solution is also effective in reducing copper to manageable levels.

Saprolite ore can therefore be treated by conventional cyanide leaching to achieve measurably improved gold revenues.

Remaining work to complete PFS update

Final metal recoveries from the metallurgical test work and the outcomes of the marketing studies will be used to complete a range of trade-off studies.

The objective of the trade-off studies is to ensure optimal processing and mine scheduling strategies are adopted as the basis for detailed mine optimisation, process engineering and economic modelling.

This phase of work will be supported by RPMGlobal, with the outcomes of the trade-off studies to be incorporated in the updated PFS study due later this year.  

 

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Thu, 09 May 2019 13:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219932/havilah-resources-on-track-to-deliver-kalkaroo-pfs-in-second-half-of-2019-after-positive-metallurgical-results-219932.html
<![CDATA[News - Havilah Resources retains speculative buy recommendation from State One Stockbroking ]]> https://www.proactiveinvestors.com.au/companies/news/219631/havilah-resources-retains-speculative-buy-recommendation-from-state-one-stockbroking-219631.html Havilah Resources Ltd (ASX:HAV) has signed a transformational capital injection deal of up to $100 million with SIMEC Mining, a member of the GFG Alliance.

This share subscription agreement with SIMEC will fully fund Havilah’s work programs for its iron ore assets and copper prospects in the Mutooroo Copper-Cobalt District in South Australia.

State One Stockbroking has retained its speculative buy (higher risk) recommendation for Havilah with a target price of 30 cents.

Following is an extract from State One’s research report:

Iron ore could be the new “gold”

Event

Strong demand from Chinese steelmakers, allied to supply disruptions from Brazil and Australia have boosted iron ore prices to a five-year high.

While the commodity price hike has, not unexpectedly, supported significant share price gains in the large cap miners – BHP, Rio Tinto, Fortescue - the favourable supply/demand balance has also generated renewed interest in the small cap iron ore space.

Havilah Resources, historically positioned as a copper/gold/cobalt exploration and development play, now finds that its long-sidelined iron ore projects (Maldorky and Grants/ Grants Iron Ore Basin (GIOB)), are firmly front and centre on investors’ radar screens.

State One comment: end-April could see a deal with SIMEC

In May 2018, SIMEC Mining (part of the Gupta Family Group (GFG)) commenced due diligence - including metallurgical testing and RC drilling - on HAV’s iron ore projects.

Note: the Maldorky and Grants/GIOB Projects are favourably located in relation to GFG’s existing steelmaking and iron ore export operations at Whyalla.

In December 2018, the exclusivity period to complete the due diligence was extended from the end of 2018 to the end of January 2019, and then on payment of A$1m was extended further to 31 March 2019. Subsequently, a 30-day extension was granted (to the end of April 2019).

Importantly, HAV stated that the extension was to allow for both parties to “continue negotiations on the terms of a deal structure and commercial arrangement”.

While there is no certainty that a deal will be announced by the end of April, or indeed at all, we suggest that the payment of A$1m by SIMEC to allow due diligence extensions was a positive sign.

SOTP Valuation: 30 cps

HAV’s current combined iron ore Resource is estimated at 451Mt @ 26% Fe for 117Mt of contained Fe.

At an assumed Resource value of US$0.15 per t of contained metal (based on peer average Resource valuations), we calculate HAV’s iron ore Resource could be worth ~A$24m (equivalent to A$0.10 per diluted share).

Importantly, HAV disclosed on 3 April 2019 an exploration target for the GIOB of at least 3.5Bt @ 24% for 840Mt of contained Fe.

Converting this to a Resource, could increase the iron ore valuation by multiples.

Allied to our (risk-adjusted) valuation of A$38m for Kalkaroo, we calculate HAV’s SOTP valuation at A$71m (A$0.30ps).

Recommendation: Speculative Buy (Higher Risk).

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Fri, 03 May 2019 16:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219631/havilah-resources-retains-speculative-buy-recommendation-from-state-one-stockbroking-219631.html
<![CDATA[News - Havilah Resources enters "transformational" $100 million agreement with GFG Alliance ]]> https://www.proactiveinvestors.com.au/companies/news/219447/havilah-resources-enters--transformational--100-million-agreement-with-gfg-alliance-219447.html Havilah Resources Ltd (ASX:HAV) has received a transformational capital injection of up to $100 million from OneSteel Manufacturing Pty Ltd, trading as SIMEC Mining, a member of the GFG Alliance.

This share subscription agreement with SIMEC will fully fund Havilah’s work programs for its iron ore assets and copper prospects in the Mutooroo Copper-Cobalt District in South Australia’s northeast.

The arrangement includes the company’s Mutooroo deposit and iron ore deposits in the nearby Grants Basin and provides a clear pathway to potential commercialisation.

Strategic partnership with GFG

It establishes a strategic partnership with GFG, a successful international group which owns the Whyalla Steelworks and iron ore export facilities.

GFG has the capacity to support and facilitate the future growth of Havilah through access to global capital markets, capital investment, technical assistance and commercial offtake agreements.

“Win-win outcome”

Havilah’s non-executive chairman Mark Stewart said: “The proposed transformational transaction announced today is the culmination of extensive discussions and technical co-operation between Havilah, SIMEC and GFG since the middle of 2018.

“This co-operative and patient approach to explore alternatives, test ideas and understand value propositions has paid off with a clear win-win outcome for both parties.

“It demonstrates a shared view of the inherent value of Havilah and its potential, combined with GFG’s confidence in the long-term growth prospects inherent in Havilah’s extensive tenement package in the Curnamona Craton.

“The Havilah board believes the strategic alliance with GFG will strengthen Havilah’s ability to generate value from its multi-commodity portfolio through discoveries, project development and further transactions.”

READ: Havilah Resources continues to progress Maldorky and Grants iron ore scoping study

Funding will be provided via a series of equity placements in Havilah at a premium up to 35%, over an expected period of three years, potentially providing GFG a 51% stake in Havilah if all equity placements are made.

Pro-rata rights issue

A discounted pro-rata rights issue will be offered to shareholders, after shareholder approval, but prior to any placement to GFG.

The transaction will position Havilah as a fully-funded minerals explorer and developer.

It provides the opportunity to rapidly advance two of Havilah’s major projects to production at a scale and within a timeframe to meet GFG’s ambitious growth plans in South Australia.

Staged equity investment

The investment consists of a committed staged equity investment in Havilah of $50 million, plus a further $50 million in conditional or discretionary funding.

Funds will be applied via agreed work programs to advance the projects to completed DFS over an anticipated and relatively short three-year period, as well as potentially providing funding for exploration, corporate and administration costs.

READ: Havilah Resources seeks to enhance Mutooroo economics through new scoping study

Chairman of Liberty House and CEO of GFG Alliance Sanjeev Gupta said: “We have been extremely impressed with Havilah since we began working with them last year, and this is a great opportunity for us to build upon that partnership to help realise our vision for our Next-Gen steel plant, for our ambitious Whyalla Transformation project and for realising South Australia’s tremendous copper potential.”

Compelling opportunity

Havilah’s directors consider this to be a compelling opportunity:

It provides access to capital that will allow Havilah to confidently advance two of its key projects to DFS milestones within the next three years; Project value creation remains within Havilah for the benefit of shareholders; A strategic alliance with GFG which has already made a significant investment commitment in South Australia; Havilah maintains control of its destiny and its projects as an independently directed and managed ASX listed entity; Opens the door to international capital markets and commercial support that would otherwise not be available; Access to an end user steelworks and export facility at Whyalla facilitating potential development of iron ore projects; Methodical exploration of the highly prospective Mutooroo Copper-Cobalt District, for the first time in Havilah’s history, with excellent discovery prospects; Opportunity for shareholders to participate on attractive terms via a pro-rata rights issue; Havilah will continue to seek the best investment options for Kalkaroo and will maintain an active regional exploration program on its high conviction targets; and Flexible investment terms that are governed by Havilah’s achievement of a series of technical milestones and agreed targeted project economics. GFG Alliance

The GFG Alliance is a London-headquartered international group of businesses, founded and owned by the British Gupta Family, with annual revenue of over US$15 billion and around 15,000 staff.

It combines energy generation, metal manufacturing, engineering, natural resources and financial services, working together to deliver a common business strategy.

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Wed, 01 May 2019 17:05:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219447/havilah-resources-enters--transformational--100-million-agreement-with-gfg-alliance-219447.html
<![CDATA[News - Havilah Resources in trading halt with material funding transaction pending ]]> https://www.proactiveinvestors.com.au/companies/news/219427/havilah-resources-in-trading-halt-with-material-funding-transaction-pending-219427.html Havilah Resources Ltd (ASX:HAV) has news of a material funding transaction imminent and has been granted a trading halt.

The halt will remain in place until the start of normal trading on the ASX on Friday, May 3, 2019, or when the announcement is released to the market, whichever occurs earliest.

Adelaide-based Havilah is focused on a number of projects in South Australia’s northeast, near the border with NSW and the mining centre of Broken Hill.

These are the Kalkaroo Copper-Gold Project, Mutooroo Copper-Cobalt Project and an iron ore project encompassing the Grants and Maldorky deposits.

READ: Havilah Resources continues to progress Maldorky and Grants iron ore scoping study

The company is awaiting completion of due diligence and a scoping study by SIMEC Mining on the iron ore project.

This work is assessing the resource, project life, production, infrastructure and ultimately commercial viability of the project.

READ: Havilah Resources accepts terms and conditions proposed for Kalkaroo applications

At Kalkaroo, the company has recently accepted terms and conditions proposed by South Australia’s Department of Energy and Mining for three mineral lease and two miscellaneous purposes licence applications.

The proposed terms and conditions require the development of acceptable strategies to manage waste rock and tailings as well as surface and ground water, among other things.

READ: Havilah Resources seeks to enhance Mutooroo economics through new scoping study

Havilah is also seeking to enhance the economics of its Mutooroo project through a new scoping study.

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Wed, 01 May 2019 13:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219427/havilah-resources-in-trading-halt-with-material-funding-transaction-pending-219427.html
<![CDATA[News - Havilah Resources continues to progress Maldorky and Grants iron ore scoping study ]]> https://www.proactiveinvestors.com.au/companies/news/218994/havilah-resources-continues-to-progress-maldorky-and-grants-iron-ore-scoping-study-218994.html Havilah Resources Ltd (ASX:HAV) has revealed an update on the scoping study and due diligence work program being led by SIMEC Mining on Havilah’s Maldorky and Grants iron ore projects in South Australia, near Broken Hill.

The scope of work is to assess the resource, project life, production, infrastructure and ultimately commercial viability of the iron ore projects.

This work commenced in June 2018 and SIMEC Mining has an exclusivity period until the end of April 2019 in order to complete its work program.

Mineralisation potential

The recent Grants Basin drilling program has confirmed a greatly expanded area of iron ore mineralisation comprising thick, continuous iron formation over an area of at least 3.5 square kilometres.

A new diamond drill hole in Grants Basin completed at a final depth of 624.4 m to obtain metallurgical samples returned an exceptional 486-metre continuous downhole thickness of iron bearing sequence.

READ: Havilah Resources intersects 486-metre thick iron ore sequence at Grants deposit

The results warrant a resource drilling campaign with the objective of defining a JORC resource of sufficient size to support a viable commercial operation in terms of mine life and processing plant throughput.

Processing

An extensive metallurgical testing program was undertaken on Maldorky iron ore drillcore samples using a conventional processing circuit that included crushing and grinding followed by gravity and magnetic separation.

Results to date have demonstrated the targeted product grade of 65% iron and mass recovery level of 40% can be achieved, as well as a high total iron recovery of 85%.

While the initial program was focused on the Maldorky deposit, diamond drillcore from Grants Basin is currently being tested to validate replication for both deposits.

Infrastructure

Initial investigations into both rail and slurry pipelines to transport concentrate from the mine site to Whyalla are being carried out.

Findings to date show that the existing east-west Transcontinental rail corridor has capacity to carry an additional 10 million tonnes per annum, with minor modifications only to some of the existing passing lanes.

Further work to investigate opportunities to reduce cost associated with concentrate transport continue.

Next steps

Pending a favourable assessment of the internal scoping study and successful negotiation of the commercial path forward, a follow up prefeasibility study (PFS) would include the following key steps:

• Additional drilling to establish a JORC mineral resource estimate at the Grants Iron Ore Basin to support the required mine life and design production rate.

• Develop the preferred flowsheet and define supporting infrastructure requirements.

• Evaluate downstream concentrate utilisation and market analysis.

• Finalise strategies to source water and power to support the project.

• Commence environmental baseline studies and stakeholder engagement to support project permitting process.

It is anticipated that the completion of the scoping study will align closely with the end of the current exclusivity arrangement after which a decision to proceed with the PFS can be made.

 

Havilah technical director Dr Chris Giles said: “Havilah and SIMEC Mining have been able to identify sufficiently extensive iron ore mineralisation in the Grants Basin to warrant an infill resource drilling campaign.

“Comprehensive metallurgical testing of Maldorky iron ore samples has confirmed that it can be beneficiated to a high quality, 65% iron product with favourable yields (40%) and high overall iron recovery (85%).

“These results, along with favourable logistics support progressing to a PFS study in order to determine the prospects of defining a commercially viable mining and processing operation in the region.”

READ: Havilah Resources sets iron ore exploration target for Grants Basin ]]>
Wed, 24 Apr 2019 12:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218994/havilah-resources-continues-to-progress-maldorky-and-grants-iron-ore-scoping-study-218994.html
<![CDATA[News - Havilah Resources accepts terms and conditions proposed for Kalkaroo applications ]]> https://www.proactiveinvestors.com.au/companies/news/218922/havilah-resources-accepts-terms-and-conditions-proposed-for-kalkaroo-applications-218922.html Havilah Resources Ltd (ASX:HAV) has accepted terms and conditions proposed for three mineral lease (ML) and two miscellaneous purposes licence (MPL) applications for the Kalkaroo Copper-Gold Project.

The company has received the proposed terms and conditions from the South Australian Department of Energy and Mining (DEM) for the project in the state’s northeast.

After reviewing these documents, the company said they were consistent with its applications.

READ: Havilah Resources a step closer to Kalkaroo mining leases being granted

Havilah’s CEO Walter Richards said: “Accepting the proposed terms and conditions for the Kalkaroo Copper-Gold Project is another important step forward in achieving our strategic objectives.”

As with many outback mining operations in Australia, the proposed terms and conditions require the development of acceptable strategies to manage waste rock and tailings as well as surface and ground water, among other things.

These aspects will be addressed in detail in the forthcoming Program for Environmental Protection and Rehabilitation (PEPR) that Havilah will prepare and submit to DEM.

READ: Havilah Resources seeks to enhance Mutooroo economics through new scoping study

Once the Kalkaroo mining tenements are granted, Havilah will have 12 months to submit the PEPR document, which must be approved before any mining activity can begin.

Richards added: “The final decision on the MLs and MPLs for Kalkaroo is very close and we will now turn our attention to the task of completing the PEPR for the project, in accordance with DEM guidelines.”

READ: Havilah Resources sets iron ore exploration target for Grants Basin

A final decision on Havilah’s Kalkaroo MLs and MPLs by the South Australian Minister for Energy and Mining is expected in coming weeks.

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Tue, 23 Apr 2019 16:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218922/havilah-resources-accepts-terms-and-conditions-proposed-for-kalkaroo-applications-218922.html
<![CDATA[News - Havilah Resources partners reveal wide copper intersection at Punt Hill ]]> https://www.proactiveinvestors.com.au/companies/news/218378/havilah-resources-partners-reveal-wide-copper-intersection-at-punt-hill-218378.html Havilah Resources Ltd’s (ASX:HAV) earn-in partners OZ Minerals Limited (ASX:OZL) and Red Metal Limited (ASX:RDM) maiden drill program at Punt Hill has returned anomalous copper mineralisation from the first hole into the PH1 target.

The PH1 target straddles the boundary of Exploration Licences 6014 and 6035 in South Australia.

The first drill hole lies just inside EL 6035 within metres of the boundary of EL 6014, which is held by Havilah (14.13%) and Red Metal (85.87%).

OZ Minerals entered into an agreement in 2017 to earn up to a 70% interest in Punt Hill, which is 42 kilometres south of OZ’s large Carrapateena copper and gold development.

Drill hole DD18PTH001 was directed towards the high-gravity portion of the anomaly and intersected meta-sediment rocks.

Notably, a wide 244-metre interval of anomalous copper mineralisation averaging 0.26% copper was detected throughout the meta-sedimentary rocks with one of the better zones returning:

• 35.0 metres at 0.6% copper from 841 metres, including 10.8 metres at 1.0% copper from 841 metres.

It is speculated that the magnetite and chlorite alteration together with the wide intervals of anomalous copper in DD18PTH001 may indicate a near-miss hole.

Further evaluation using deep penetrating electrical geophysics

Recent 3D modelling of the magnetic data highlights stronger magnetic material, possibly associated with better copper mineralisation, located a little further north of the DD18PTH001 drill trace that remains to be drill tested.

The common association of magnetic minerals such as magnetite and weakly magnetic hematite with the copper mineralisation at PH1 has important implications for future targeting in the joint venture area.

The use of deep penetrating electrical geophysical methods to prioritise the untested magnetic targets within the Punt Hill joint venture areas are being evaluated.

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Thu, 11 Apr 2019 14:21:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218378/havilah-resources-partners-reveal-wide-copper-intersection-at-punt-hill-218378.html
<![CDATA[Media files - Havilah Resources fast-tracks North Portia sale agreement with common sense revision ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12961/havilah-resources-fast-tracks-north-portia-sale-agreement-with-common-sense-revision-12961.html Wed, 10 Apr 2019 21:42:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/12961/havilah-resources-fast-tracks-north-portia-sale-agreement-with-common-sense-revision-12961.html <![CDATA[News - Havilah Resources seeks to enhance Mutooroo economics through new scoping study ]]> https://www.proactiveinvestors.com.au/companies/news/218275/havilah-resources-seeks-to-enhance-mutooroo-economics-through-new-scoping-study-218275.html Havilah Resources Ltd (ASX:HAV) has started a new scoping study to investigate initial development of the Mutooroo Copper-Cobalt project near Broken Hill as a higher throughput copper-only operation.

A stage I work program has been formulated as part of this process which is aimed at lowering project risk with a lower capital requirement while enhancing project economics.

A key part of this strategy is the identification of additional shallow copper-cobalt resources in the surrounding highly prospective Mutooroo Copper-Cobalt District, within trucking distance of the existing resource.

READ: Havilah Resources agrees revised terms for Benagerie mining lease divestment to CMC

Havilah’s CEO Walter Richards said: “The planned study will capitalise on the considerable opportunity at Mutooroo that is presented by combining our extensive existing knowledge of the deposit with the exciting potential for new finds in the surrounding Mutooroo Copper-Cobalt District.

“The staged approach to redefine and develop Mutooroo, initially as a copper only project, allows us to reduce project risk, enhance project economics with a realistic capex target, without eliminating the potential additional value from the recovery of cobalt.

“This approach to the scoping study accords with Havilah’s Copper Strategy – Enhanced by Cobalt.”

The stage I work program will include exploration and metallurgy.

Exploration program

Exploration will focus on defining additional shallow copper-cobalt resources within trucking distance that can be mined as open pits in order to support the planned higher ore processing throughput.

The generation of drill targets will be aided by a new 266 square kilometres detailed airborne electromagnetic (AEM) survey, which is expected to begin in mid-April.

This is designed to cover the Mutooroo deposit and possible extensions both north and south and nearby parallel lode systems as well as existing known prospects at Scorpion and King Brown.

It will also cover newly defined copper-cobalt prospects from surface geochemical sampling in 2018 including Sidewinder and Copperhead, as well as the broader region, not previously surveyed.

Final data and outputs are expected to be available in mid-2019.

Follow-up drilling

A follow-up stage I reverse circulation drilling program is planned and will include first pass testing of AEM targets, including the high priority copper-cobalt Scorpion target.

3D view of Mutooroo sulphide resource envelopes.

Test work program

The new scoping study will utilise extensive metallurgical testing of the sulphide mineralisation undertaken between 2007 and 2017.

This work indicated that high recoveries of copper could be achieved using proven conventional flotation processing methods.

Havilah anticipates that further test work will be required for the study to determine the compatibility of any new sulphide resources with the existing flotation flowsheet.

This would be further validated and optimised in a pre-feasibility study (PFS).

READ: Havilah Resources a step closer to Kalkaroo mining leases being granted

The company aims to complete the scoping study in the first quarter of 2020, with a PFS and permitting for the copper only project to be delivered in early 2021 after which a project investment decision can be made.

Subsequent stages

Later stages of the program will seek to realise the potential value of cobalt contained in the Mutooroo ore as well as investigate the viability and potential value of transitioning to an underground operation.

The Mutooroo Copper-Cobalt Project is 40 minutes’ drive west of Broken Hill and 16 kilometres south of the transcontinental railway line.

It is a lode-style massive sulphide copper-cobalt-gold deposit that contains a measured, indicated and inferred JORC resource of 13.1 million tonnes at 1.5% copper for a total contained 195,000 tonnes of copper, 8,400 tonnes of associated cobalt and 44,600 ounces of gold.

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Wed, 10 Apr 2019 09:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218275/havilah-resources-seeks-to-enhance-mutooroo-economics-through-new-scoping-study-218275.html
<![CDATA[Media files - Havilah Resources' iron ore projects show development potential as prices rise ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12923/havilah-resources--iron-ore-projects-show-development-potential-as-prices-rise-12923.html Mon, 08 Apr 2019 21:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/12923/havilah-resources--iron-ore-projects-show-development-potential-as-prices-rise-12923.html <![CDATA[News - Havilah Resources agrees revised terms for Benagerie mining lease divestment to CMC ]]> https://www.proactiveinvestors.com.au/companies/news/218103/havilah-resources-agrees-revised-terms-for-benagerie-mining-lease-divestment-to-cmc-218103.html Havilah Resources Ltd (ASX:HAV) has agreed to revised terms regarding divestment of the Benagerie Mining Lease in northeast South Australia on which the Portia and North Portia projects are located.

The company said the revised terms provided mutual commercial benefits for it and the purchaser - Consolidated Mining & Civil (CMC) and Benagerie Gold and Copper (BGC).

These include accelerated payments to Havilah and greater flexibility for CMC and BGC.

HAV permitting obligations eliminated

As well as the accelerated upfront payments, the revised terms also eliminate Havilah’s permitting obligations with respect to the Benagerie lease, which is west of Broken Hill.

In return for these payments and recognising that the lease is now being divested as a not fully permitted project and hence of less value, the sale price has been reduced by about $2.1 million.

This is net of permitting costs which Havilah will no longer be required to incur.

READ: Havilah Resources sets iron ore exploration target for Grants Basin

At a value of $12 million, Havilah said the divestment still represented fair value when compared to other transactions for similar projects with the same level of permitting.

The Benagerie lease comprises the Portia and North Portia projects.

A “win-win outcome”

Havilah’s CEO Walter Richards said: “We view the revised North Portia divestment terms as a win-win outcome for both parties.

“Under the revised arrangement, neither party is tied to the other with respect to cash flow planning or investment and operating decisions.

“Havilah still receives a fair sale price and is now relieved of the permitting obligations, which will allow it to focus on the other projects in its ‘Copper Strategy – Enhanced by Cobalt’.

READ: Havilah Resources a step closer to Kalkaroo mining leases being granted

CMC and MGC managing director Steve Radford said: “The whole BGC and CMC team are pleased to continue and strengthen their working relationship with Havilah as we move forward into the future.”

Reduced royalty of 1.5%

Metallurgical results for North Portia and updated economic modelling indicate that it would be challenging for Havilah to raise the project development capital required for the development of North Portia.

Accordingly, in recognition of the challenges presented by this project, Havilah has agreed to accept a reduced royalty of 1.5% from CMC for metal sales from the Benagerie lease. This was previously 2%.

Exploration agreement

The parties have also agreed to enter into an exploration agreement for the licence area (EL5873) that surrounds the mining lease.

This is geared towards CMC identifying mineralisation that could supplement feed to the North Portia plant, thus allowing CMC an opportunity to potentially increase the scale of the operation.

READ: Havilah Resources plans aerial survey at Mutooroo Copper-Cobalt Project

Richards added: “The exploration agreement on EL5873 is likely to accelerate exploration and enhance the prospects of discovery success in which Havilah can participate, while still retaining its key exploration rights.

“For Havilah, the certainty over immediate and accelerated cash flow was an important consideration in agreeing to revise the divestment terms,” he said.

CMC “now also mineral explorers”

CMC’s Radford said: “The opportunity for Portia to be the hub for processing and operational support for potential new mineral targets within the EL is very exciting.

“We are always looking at ways to add value and improve the economics of our business and by building on this alliance with Havilah for the long-term benefit of both the companies, their employees, Broken Hill and regional communities is what we do.

“Our group of companies are general contractors, miners and now also mineral explorers.”

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Mon, 08 Apr 2019 13:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218103/havilah-resources-agrees-revised-terms-for-benagerie-mining-lease-divestment-to-cmc-218103.html
<![CDATA[News - Havilah Resources sets iron ore exploration target for Grants Basin ]]> https://www.proactiveinvestors.com.au/companies/news/217810/havilah-resources-sets-iron-ore-exploration-target-for-grants-basin-217810.html Havilah Resources Ltd (ASX:HAV) has an initial iron ore exploration target of 1.084 billion cubic metres with a tonnage range of 3.47 to 3.79 billion tonnes at a grade range of 23.9 to 27.6% in the Grants Basin, South Australia.

This target is based on drilling funded by SIMEC Mining as part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

It is supported by recent reverse circulation (RC) and diamond drilling data, including assays, geological interpretation and 3D modelling and interpretation of aeromagnetic images.

Havilah’s technical director Dr Chris Giles said: “The exploration target numbers give some idea of the iron ore potential of the Grants Basin.

“There is still a lot of drilling to be done to fully understand the basin geometry and to define a JORC resource.”

Two separate models have been generated for the exploration target covering the West End and South Flank prospects of the project in the state’s northeast.

Drilling completed by Havilah since October 2018 has included 12 RC holes and one RC/DD hole for a total of 3,510 metres of RC drilling and 494 metres of HQ3 sized drill core.

READ: Havilah Resources and SIMEC further extend exclusivity period on iron ore projects

SIMEC and Havilah recently agreed to extend their investigations until the end of this month to enable SIMEC to complete its due diligence.

This extension will also allow the parties to continue negotiations on the terms of a deal structure and commercial arrangement.

The exploration target supports the goal of both companies to further explore the potential of this major new iron ore discovery.

Well located

Grants Basin is within 12 kilometres of the Transcontinental Railway to Port Pirie and Whyalla and the sealed Barrier Highway.

READ: Havilah Resources a step closer to Kalkaroo mining leases being granted

“SIMEC Mining is completing its preliminary metallurgical tests on the drill core from hole GBDD014 in order to determine the amenability to upgrading to a high-quality saleable product.

“With the due diligence period extended and ongoing discussions between the parties, we look forward to positive further developments in the coming months,” Giles said.

Aeromagnetic image showing the two defined exploration targets, West End and South Flank.

Follow-up drilling proposed

A follow-up RC and diamond drilling program is proposed to further investigate the iron ore resource potential of the Grants Basin.

The drilling is planned on existing, infill and extensional lines within the exploration target area during 2019, with holes spaced on lines 500 metres to 1,000 metres apart.

READ: Havilah Resources plans aerial survey at Mutooroo Copper-Cobalt Project

Havilah advises that the potential quantity and grade of the exploration target is conceptual in nature. There has been insufficient exploration to estimate a resource and it is uncertain if further exploration will result in the estimation of a resource.

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Wed, 03 Apr 2019 11:44:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217810/havilah-resources-sets-iron-ore-exploration-target-for-grants-basin-217810.html
<![CDATA[News - Havilah Resources a step closer to Kalkaroo mining leases being granted ]]> https://www.proactiveinvestors.com.au/companies/news/217581/havilah-resources-a-step-closer-to-kalkaroo-mining-leases-being-granted-217581.html Havilah Resources Ltd (ASX:HAV) is a step closer to the granting of three Mining Leases (MLs) and two Miscellaneous Purposes Licences (MPLs) for the Kalkaroo Copper-Gold Project in South Australia.

The latest milestone came in the form of the South Australian Department of Energy and Mining (DEM) providing notification of the proposed terms and conditions for the MLs and MPLs.

These MLs and MPLs were applied for by Havilah in 2007, 2008 and 2014 to cover the entire area required for a mining operation and associated infrastructure and employee accommodation.

Next step is to provide submissions

Havilah has 28 days from the notification date in which to provide submissions on the proposed terms and conditions offered by the DEM.

Once the terms and conditions, or any suggested modifications are accepted, then in the normal process, grant of the MLs and MPLs would follow shortly afterwards.

READ: Havilah Resources and SIMEC further extend exclusivity period on iron ore projects

Havilah’s CEO Walter Richards said: “The notification letters from DEM are the culmination of many years of sustained and dedicated effort by the Havilah team and represents a major milestone achievement for Havilah shareholders.

“It is Havilah’s objective to continue systematically moving Kalkaroo through the permitting process, in order to achieve a fully permitted project in accordance with our strategic objectives.”

Last week, Havilah and SIMEC Mining agreed to extend the exclusivity period for due diligence on Havilah’s Maldorky and Grants iron ore projects in northern South Australia.

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Mon, 01 Apr 2019 11:28:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217581/havilah-resources-a-step-closer-to-kalkaroo-mining-leases-being-granted-217581.html
<![CDATA[News - Havilah Resources and SIMEC further extend exclusivity period on iron ore projects ]]> https://www.proactiveinvestors.com.au/companies/news/217377/havilah-resources-and-simec-further-extend-exclusivity-period-on-iron-ore-projects-217377.html Havilah Resources Ltd (ASX:HAV) and SIMEC Mining have agreed to extend the exclusivity period for due diligence on Havilah’s Maldorky and Grants iron ore projects in northern South Australia.

The parties have extended the period to April 30, 2019, to enable SIMEC, which is an affiliate of the GFC Alliance, to complete its due diligence.

READ: Havilah Resources intersects 486-metre thick iron ore sequence at Grants deposit

This provides the additional time SIMEC requires to reach preliminary conclusions with respect to the work.

It also allows the parties to continue negotiations on the terms of a deal structure and commercial arrangement.

Havilah's CEO Walter Richards said: “SIMEC Mining’s due diligence work is reaching a decision point and the results of its work, in conjunction with the recent drilling results, appear to be positive for the possible commercialisation of Havilah’s iron ore projects.

“Given the current stage of negotiations, a short extension of time will provide both parties the additional time considered necessary to reach a mutually beneficial agreement.”

READ: Havilah Resources plans aerial survey at Mutooroo Copper-Cobalt Project

SIMEC is not required to make payment with this extension given that active negotiations are taking place with the objective that an agreement will be reached by no later than April 30, 2019.

The $1 million payment for the previous extension to March 31 will be deducted from any amount payable by SIMEC under any transaction that may be concluded between the parties, within 2019.

Richards concluded: “While negotiations are well advanced, there is no certainty that a deal will be concluded within this timeframe.”

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Thu, 28 Mar 2019 13:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217377/havilah-resources-and-simec-further-extend-exclusivity-period-on-iron-ore-projects-217377.html
<![CDATA[News - Havilah Resources plans aerial survey at Mutooroo Copper-Cobalt Project ]]> https://www.proactiveinvestors.com.au/companies/news/216591/havilah-resources-plans-aerial-survey-at-mutooroo-copper-cobalt-project-216591.html Havilah Resources Ltd (ASX:HAV) plans to fly a high resolution airborne electromagnetic (AEM) survey seeking further copper-cobalt mineralisation at its Mutooroo Copper-Cobalt Project near Broken Hill in New South Wales.

An AEM survey has never been flown over the target and Havilah plans to identify Mutooroo-style massive sulphide mineralisation based on previous orientation EM surveys.

The survey will be flown by UTS Geophysics for 1,344 line kilometres on 200-metre spaced lines, using 125 and 305-degree line orientations to provide the best coverage of the interpreted north-northeast trending stratigraphy.

 

Area of planned VTEM coverage around Mutooroo showing Havilah tenements

 

READ: Havilah Resources to receive $1 million after due diligence extension

Havilah technical director Chris Giles said: “The planned VTEM max survey will fill a key strategic gap in the detailed airborne EM coverage in the area and will cover most of our current high priority geochemical targets within 10 kilometres of the Mutooroo resource.

“It is the next logical step in investigating the massive sulphide potential of the Mutooroo copper-cobalt district in the vicinity of the Mutooroo deposit.

“The definition of additional copper-cobalt sulphide resources in the area is a key element in advancing the new strategy of a longer mine life with higher throughput at Mutooroo.”

 

 

The airborne survey will cover an area of around 266 kilometres and take at least three weeks to complete.

Final data, maps and report are expected two to three months after program completion.

This type of AEM survey has proven to be effective in detecting massive sulphide mineralisation at depths in excess of 200 metres.

The absence of thick conductive overburden and the shallow depth of oxidation within the Mutooroo area should aid in its effectiveness.

Compilation of previous airborne EM surveys has highlighted a large gap in the detailed coverage, which this survey will fill.

READ: Havilah Resources appoints experienced company secretary Simon Gray

The AEM program is planned to cover:

Strong copper and cobalt surface geochemical anomalies including Sidewinder, Mutooroo South and Copperhead;

The existing massive sulphide drill target at Scorpion and extensions along the Scorpion Trend magnetic anomalies;

The King Brown prospect where previous drilling intersected anomalous near surface copper mineralisation;

Areas under shallow cover and areas where surface sampling has not been completed.

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Mon, 18 Mar 2019 09:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216591/havilah-resources-plans-aerial-survey-at-mutooroo-copper-cobalt-project-216591.html
<![CDATA[Media files - Havilah Resources extends SIMEC Mining deal on Grants iron ore basin discovery ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12063/havilah-resources-extends-simec-mining-deal-on--grants-iron-ore-basin-discovery-12063.html Fri, 01 Feb 2019 14:50:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12063/havilah-resources-extends-simec-mining-deal-on--grants-iron-ore-basin-discovery-12063.html <![CDATA[News - Havilah Resources to receive $1 million after due diligence extension ]]> https://www.proactiveinvestors.com.au/companies/news/213765/havilah-resources-to-receive-1-million-after-due-diligence-extension-213765.html Havilah Resources Ltd (ASX:HAV) has agreed to further extend the period of exclusivity to complete due diligence on its 100% owned Maldorky and Grants iron ore projects in South Australia.

The extension of the due diligence period is through to 31 March 2019 and is possible through payment to Havilah of $1 million in accordance with the extension agreement.

SIMEC Mining, an affiliate of the GFG Alliance is conducting the due diligence.

The joint objective of this due diligence and extension of the exclusivity is to determine the future development and commercialisation potential of Havilah’s iron ore projects.

Any commercialisation agreement with SIMEC Mining regarding the iron ore projects would be subject to the results of the current due diligence studies and finalisation of a mutually acceptable deal structure and commercial terms.

The $1 million payment for the extension will be deducted from any amount payable by SIMEC Mining to Havilah under any transaction that may be concluded between the parties within calendar year 2019.

READ: Havilah Resources intersects 486-metre thick iron ore sequence at Grants deposit

Havilah’s CEO Walter Richards said: “SIMEC Mining’s decision to extend its exclusivity is a positive development for the potential commercialisation of Havilah’s iron ore projects.

“We are encouraged by the recently completed diamond drill hole into the Grants Basin which intersected 486 metres at 24% iron.”

Due diligence solely funded by SIMEC Mining

Due diligence is funded solely by SIMEC Mining and has thus far included drilling, comprehensive metallurgical studies and logistical and infrastructure studies by external consultants.

Work was recently expanded to include three diamond drill holes, of which one is complete.

These holes will obtain further metallurgical core samples from both the Maldorky deposit and the Grants Iron Ore Basin discovery.

SIMEC Mining can realise the project's value

SIMEC Mining has the technical expertise, and most importantly, the logistical capability at Whyalla to handle iron ore shipments from the Maldorky and Grants projects.

This co-operation has the potential to realise value from the iron ore component of Havilah’s multi-commodity portfolio without distracting from its primary copper-cobalt-gold focus.

Havilah has three substantial copper-cobalt-gold deposits that are amenable to low-cost open-cut mining being Kalkaroo, Mutooroo and North Portia.

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Fri, 01 Feb 2019 10:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213765/havilah-resources-to-receive-1-million-after-due-diligence-extension-213765.html
<![CDATA[News - Havilah Resources appoints experienced company secretary Simon Gray ]]> https://www.proactiveinvestors.com.au/companies/news/213469/havilah-resources-appoints-experienced-company-secretary-simon-gray-213469.html Havilah Resources Ltd (ASX:HAV) has appointment Simon Gray as company secretary to bolster the corporate and ASX compliance resources of the company.

This follows the appointment of Martin Janes as an independent non-executive director and is part of the ongoing review and continuing enhancement of Havilah’s ASX and company secretarial function and financial reporting and compliance framework.

READ: Havilah Resources appoints Martin Janes to board to complement copper and cobalt strategy

Simon Gray has been appointed on a part-time basis and will be assisted by Claire Redman who will continue as co-company secretary during the anticipated continuing busy period of corporate activity.

Havilah CEO Walter Richards will be resigning as co-company secretary which will enable him to focus on execution of Havilah’s corporate strategies.

READ: Havilah Resources speaks to achievements

Simon Gray has over 35 years' experience as a chartered accountant and 20 years as a partner with Grant Thornton, a national accounting firm.

Gray is currently chair of the audit and finance committee of the Flinders Medical Research Foundation and a member of the audit and finance committee of the South Australia Medical Research Foundation.

He is also company secretary and chief financial officer of Vintage Energy Ltd (ASX:VEN) which listed on the ASX in September 2018 and is a director of several unlisted companies.

READ: Havilah Resources intersects 486-metre thick iron ore sequence at Grants deposit

Havilah recently completed a deep diamond drill hole at its Grants Iron Ore Project west of Broken Hill to a final depth of 624.4 metres.

The hole intersected a 486-metre thick iron-bearing sequence which, based on systematic handheld Niton XRF analyses, grades at 24.06% from 127 metres.

A more accurate grade estimate of the interval will be reported once laboratory assay results are made available.

The drilling is part of due diligence being undertaken and funded by SIMEC Mining to investigate to commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

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Tue, 29 Jan 2019 17:15:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213469/havilah-resources-appoints-experienced-company-secretary-simon-gray-213469.html
<![CDATA[News - Havilah Resources intersects 486-metre thick iron ore sequence at Grants deposit ]]> https://www.proactiveinvestors.com.au/companies/news/213455/havilah-resources-intersects-486-metre-thick-iron-ore-sequence-at-grants-deposit-213455.html Havilah Resources Ltd (ASX:HAV) has completed a deep diamond drill hole at its Grants Iron Ore Project west of Broken Hill to a final depth of 624.4 metres.

The hole intersected a 486-metre thick iron-bearing sequence which, based on systematic handheld Niton XRF analyses, grades at 24.06% from 127 metres.

A more accurate grade estimate of the interval will be reported once laboratory assay results are made available.

The drilling is part of due diligence being undertaken and funded by SIMEC Mining to investigate to commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

 

Havilah technical director Chris Giles said the continuous intersection of iron formation with an indicative grade more than 24% was a truly amazing result by any standards.

The diamond drill hole has provided the first interpreted full thickness intersection of Grants iron-bearing sequence, as well as providing material for preliminary metallurgical test work.

It will also provide partial twinned hole drill data for the adjacent 316-metre total depth reverse circulation hole.

READ: Havilah Resources upgrades drill results from the Grants Iron Ore Basin

Giles said: “Considering this drill hole is located at the far western end of the Grants Basin (as indicated by the aeromagnetics), one can get an appreciation of the potential scale of the discovery.

“So far the drilling is supporting our original geological concepts, although a lot more drilling is required before we will be able to build a complete 3D picture of the basin geometry.

“We are appreciative of SIMEC Mining’s support in funding such a deep hole and once again their judgement has been vindicated.”

Due diligence work is funded solely by SIMEC Mining and has thus far included comprehensive metallurgical studies and logistical and infrastructure studies by external consultants.

It also includes percussion drilling which led to the discovery of the Grants deposit.

READ: Havilah Resources extends due diligence period for iron ore projects

Grants contains a JORC inferred resource of 304 million tonnes at 24% iron at a cut-off grade of 18%, with considerable exploration potential.

The iron ore appears to be geologically similar to Havilah’s nearby Maldorky iron ore deposit and other Braemar region iron ore deposits.

Havilah believes this, combined with favourable logistics and mining geometry, makes Grants well-suited to a low-cost open pit mining operation.

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Mon, 28 Jan 2019 19:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213455/havilah-resources-intersects-486-metre-thick-iron-ore-sequence-at-grants-deposit-213455.html
<![CDATA[News - Havilah Resources upgrades drill results from the Grants Iron Ore Basin ]]> https://www.proactiveinvestors.com.au/companies/news/212917/havilah-resources-upgrades-drill-results-from-the-grants-iron-ore-basin-212917.html Havilah Resources Ltd (ASX:HAV) has reported the final reverse circulation drill results from the Grants Iron Ore Basin in South Australia.

The laboratory assay intervals indicate average grades in the order of 24-27% iron.

Drilling results of significance

Notably, laboratory assay results are on average 18% higher than the previously reported handheld Niton XRF analyses, which is at the upper end of the expected increase of 10-20%.

This drilling is part of a comprehensive program of work currently being performed and funded by SIMEC Mining (an affiliate of the GFG Alliance) as part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

The drilling program was implemented and supervised by Havilah personnel.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Havilah technical director Dr Chris Giles said: “The recently received laboratory assays, as expected, are higher than the Niton hand-held XRF analyses that were previously reported.

“This, combined with the exceptionally thick iron ore intersections, confirms a major iron ore discovery in the Grants Basin.

“This was a well planned and well executed drilling program that has achieved great success, and I thank all concerned including SIMEC Mining for their funding support.”

Diamond drilling is currently underway to provide early sample material for preliminary metallurgical test work.

The diamond drilling is being carried out by MJ Drilling using a multipurpose UDR650 drilling rig and is expected to provide the first complete intersection of the Grants Basin iron bearing sequence.

Dr Giles added: “One thing we do not yet know is the thickness of the iron formation in the central part of the Grants Basin, which the present diamond drill hole should tell us.

“The drill core samples will be used by SIMEC Mining to carry out initial metallurgical work and to compare this iron ore with that from the JORC status Maldorky and Grants iron ore deposits.”

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Mon, 21 Jan 2019 12:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212917/havilah-resources-upgrades-drill-results-from-the-grants-iron-ore-basin-212917.html
<![CDATA[News - Havilah Resources director Martin Janes acquires 200,000 shares ]]> https://www.proactiveinvestors.com.au/companies/news/212737/havilah-resources-director-martin-janes-acquires-200000-shares-212737.html Havilah Resources Ltd’s (ASX:HAV) recently appointed director Martin Janes has acquired 200,000 shares via on-market trades for a total consideration of $33,363.

READ: Havilah Resources appoints Martin Janes to board to complement copper and cobalt strategy

Earlier this month, Havilah appointed Martin Janes as an independent non-executive director to replace outgoing board member Kenneth Williams.

Janes has been appointed chairman of Havilah’s audit and risk committee and in this capacity will be responsible for the ongoing review and enhancement of the company’s ASX secretarial functions, financial reporting and compliance framework.

READ: Havilah Resources’ Native Title agreement paves way for mining lease at copper-cobalt-gold project

Late last year, Havilah signed a Native Title Mining Agreement for its Kalkaroo Copper-Cobalt-Gold Project in South Australia, opening the way for the granting of a mining lease.

The agreement represents a major milestone on the path to Kalkaroo’s potential development as a major new copper-cobalt-gold mine.

Kalkaroo is about 500 kilometres northeast of Adelaide in proximity to a main highway, the transcontinental railway and the regional mining centre of Broken Hill.

Based on a 100 million tonne ore reserve independently estimated by RPMGlobal, it is the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis.

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Thu, 17 Jan 2019 12:54:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212737/havilah-resources-director-martin-janes-acquires-200000-shares-212737.html
<![CDATA[News - Havilah Resources speaks to achievements ]]> https://www.proactiveinvestors.com.au/companies/news/212541/havilah-resources-speaks-to-achievements-212541.html Havilah Resources Ltd (ASX:HAV) (FRA:FWL) has highlighted the company’s achievements for 2018 as part of its Copper Growth Strategy - Enhanced by Cobalt, with these milestones including native title mining agreement for its Kalkaroo Copper-Cobalt-Gold Project in South Australia.

The achievements, flagged by Havilah non-executive chairman Mark Stewart and technical director Dr Chris Giles, also included a maiden 100 million tonne ore reserve for the project, which was independently estimated by RPMGlobal.

Ninety per cent of the resource is in the proven category.

READ: Havilah Resources extends due diligence period for iron ore projects

Stewart told the market yesterday he believed the company’s extension of a due diligence period for its 100%-owned Maldorky and Grants iron ore projects in South Australia was another achievement.

GFG Alliance affiliate SIMEC Mining is sole-funding and undertaking an assessment of the future development and commercialisation potential of Havilah's iron ore projects.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Stewart pointed to the achievements in the annual general meeting presentation he delivered last month.

Among the achievements highlighted was the discovery of the Grants iron ore basin, which Stewart and the company believed was a significant event for Havilah.

The company picked up the entire basin in a series of tenement grabs over the last two years.

Havilah chief executive officer Walter Richards reported last month, “The outcome of the recent drilling program resulting in discovery of the Grants iron ore basin deposit is one of the highlights of 2018.

“While our primary focus remains the Copper Growth Strategy — Enhanced by Cobalt, it remains Havilah’s objective to realise value from its multi-commodity portfolio which includes the iron ore projects.”

Debt-free goal

Havilah chairman Mark Stewart told the market yesterday he was “strongly motivated to see Havilah transformed into a great South Australian resource success story.

“In the short-term this includes getting Havilah into a debt-free position and to minimise delays in the North Portia divestment payments.

“In the longer-term this involves working closely with the technical team and the corporate and administrative team to see Havilah deliver the anticipated value in its various advanced projects and exploration prospects.”

 

North Portia divestments require permitting milestones

North Portia Copper-Gold Project west of Broken Hill has supergene copper-cobalt-gold in the upper 150 metres of its deposit.

Havilah is contracted to sell the asset to Consolidated Mining and Civil Pty Ltd (CMC) for $3.5 million once a stage I permitting approval is secured.

READ: Havilah Resources’ North Portia divestment permitting process extended

CMC is picking up the full Benagerie Mining Lease sale as part of the extended $14.7 million transaction.

As well as North Portia, the lease also includes the adjoining Portia open pit gold operation.

Havilah last year largely upgraded the North Portia deposit to measured resource and improved its understanding of its metallurgical quality.

It secured a $6 million 12-month standby funding facility with Investec Group to progress its sale, expected to bring in a total of $7 million to the company.

Havilah was to start drawing down on the facility in the December 2018 financial quarter.

READ: Havilah Resources grabs $6 million Investec Group facility to support North Portia divestment

Approval of the updated Portia Program for Environmental Protection and Rehabilitation (PEPR) document has been extended to the June 2019 quarter.

The extension was needed to incorporate proposed modifications into the processing flowsheet and tailings storage facility design.

The PEPR document is then to be updated, with a second $3.5 million payment to follow.

 

Mutooroo Copper-Cobalt Project prospective for cobalt at depth

When copper-cobalt-focused Havilah chose to sell off its Portia and North Portia assets, its plans were to develop its two core projects, Kalkaroo and Mutooroo.

At Mutooroo Copper-Cobalt Project, Havilah hopes to find additional resources within trucking distance of the main 195,000-tonne copper and 8,400-tonne cobalt resource.

Havilah technical director Giles highlighted a 2018 achievement at Mutooroo was to confirm the cobalt potential of deeper ground at the project, with economic cobalt, copper and gold found.

He told investors at the company’s AGM the "exceptional" copper-cobalt sampling results had highlighted “the potential for new copper-cobalt gold discoveries” in the region near Broken Hill.

READ: Havilah Resources to expand copper-cobalt exploration in Mutooroo district

Giles spoke to Proactive Investors’ Stocktube video channel last month, saying Mutooroo looked "promising".

“It’s looking like we’ve actually found a completely new copper-cobalt province and we’ve come across that through a sampling of the surface material.

“We’re sampling on the surface and we’re getting very high copper and cobalt results from this type of material, which is telling us that at a depth just below the surface, we may have other Mutooroo-style deposits.”

Havilah was able to re-assay historical deep drilling from a Broken Hill mining company's effort.

The 300-500 metre deep assays were historically assayed for copper, but Havilah’s re-assaying also found cobalt.

Giles told Proactive, “We were able to assay it for cobalt and we established that the cobalt values that we see in our resource near the surface actually extend to depth.

“So, it means, ultimately, that there’s probably going to be a lot more cobalt in the Mutooroo deposit.”

Kalkaroo Copper-Cobalt-Gold Project has ‘significant’ cobalt

Kalkaroo Copper-Cobalt-Gold Project in had additional pre-feasibility study work undertaken last year by RPMGlobal.

An oblique image of the Kalkaroo project.

Giles told Proactive Havilah planned to follow up RPM’s tightly-budgeted work to answer some open-ended questions.

“In order to do justice to the project and to show its full economic potential, we’ve decided to follow-up some of those issues ourselves and mostly, they relate to improving the gold recoveries.

“And of course, the original PFS never included any consideration of the cobalt.

“The cobalt in the Kalkaroo deposits is quite significant — there’s 23,000 tonnes.

“That wasn’t considered in the PFS, so we’re also addressing that at the present time.”

Giles signed the Kalkaroo Native Title Mining Agreement with the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation (NAWNTAC) last month on behalf of Havilah.

Reserves at the Kalkaroo project.

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Mon, 14 Jan 2019 20:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212541/havilah-resources-speaks-to-achievements-212541.html
<![CDATA[News - Havilah Resources appoints Martin Janes to board to complement copper and cobalt strategy ]]> https://www.proactiveinvestors.com.au/companies/news/211936/havilah-resources-appoints-martin-janes-to-board-to-complement-copper-and-cobalt-strategy-211936.html Havilah Resources Limited (ASX:HAV) has appointed Martin Janes as an independent non-executive director to replace outgoing board member Kenneth Williams.

Janes has been appointed chairman of Havilah’s audit and risk committee and in this capacity will be responsible for the ongoing review and enhancement of the company’s ASX secretarial functions, financial reporting and compliance framework.

The company’s board intends to appoint an additional fourth independent director with a background in project delivery to enhance Havilah’s strategy of copper enhanced by cobalt.

 

Havilah chairman Mark Stewart said: “Janes’ appointment is a further important step in the ongoing renewal and enhancement of the skill set of the board.

“Any further changes to the board will be made in a considered and orderly manner that is in the best interests of all shareholders.

“The board sincerely thanks Williams for his valuable and dedicated service to the company over many years and wishes him well in his future endeavours.”

READ: Havilah Resources extends due diligence period for iron ore projects

Janes has a strong finance background covering equity, debt and related project financing and commodity offtake negotiations.

Until recently he was chief executive officer of Terramin Australia Limited (ASX:TZN) after serving as the company’s chief financial officer.

While at Terramin Janes had oversight of the company’s South Australian and overseas operations, providing him valuable experience in mining project development and a good understanding of the regulatory and operating environment in South Australia.

He was also employed by Newmont Australia for more than a decade, responsible for corporate and project finance, treasury management, asset sales and product offtake management.

Janes has a Bachelor of Economics and is a member of the Australian Institute of Company Directors, as well as a director of Twenty Seven Co Limited (ASX:TSC) where is he also chairman of the audit and risk committee.

READ: Havilah Resources’ Native Title agreement paves way for mining lease at copper-cobalt-gold project

Late last year Havilah signed a Native Title Mining Agreement for its Kalkaroo Copper-Cobalt-Gold Project in northeast South Australia, opening the way for the granting of a mining lease.

The agreement represents a major milestone on the path to Kalkaroo’s potential development as a major new copper-cobalt-gold mine.

Kalkaroo is about 500 kilometres northeast of Adelaide in proximity to a main highway, the transcontinental railway and the regional mining centre of Broken Hill.

Based on a 100 million tonne ore reserve independently estimated by RPMGlobal, it is the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis.

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Thu, 03 Jan 2019 19:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211936/havilah-resources-appoints-martin-janes-to-board-to-complement-copper-and-cobalt-strategy-211936.html
<![CDATA[News - Havilah Resources extends due diligence period for iron ore projects ]]> https://www.proactiveinvestors.com.au/companies/news/211789/havilah-resources-extends-due-diligence-period-for-iron-ore-projects-211789.html Havilah Resources Ltd (ASX:HAV) has agreed to extend the period of exclusivity to complete due diligence on its 100% owned Maldorky and Grants iron ore projects in South Australia.

The extension is through to the end of January 2019 and can be extended further to the end of March 2019 through payment of $1 million.

The extension is to facilitate completion of a diamond drilling program to obtain more core samples for additional metallurgical test work.

The joint objective of this due diligence and extension of the exclusivity is to determine the future development and commercialisation potential of Havilah’s iron ore projects.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Havilah’s CEO Walter Richards said: “We are encouraged by the results of the work funded so far by SIMEC Mining.

“The outcome of the recent drilling program resulting in discovery of the Grants Iron Ore Basin deposit is one of the highlights of 2018.

“While our primary focus remains the Copper Growth Strategy - Enhanced by Cobalt, it remains Havilah’s objective to realise value from its multi-commodity portfolio which includes the iron ore projects.”

Due diligence solely funded by SIMEC Mining

Due diligence is funded solely by SIMEC Mining and has thus far included comprehensive metallurgical studies and logistical and infrastructure studies by external consultants.

It also includes percussion drilling which led to the newly discovered Grants Iron Ore Basin deposit.

Work has recently been expanded to include three diamond drill holes, expected to be completed in January 2019.

These holes will obtain further metallurgical core samples from both the Maldorky deposit and the Grants Iron Ore Basin discovery.

SIMEC Mining can realise the project's value

SIMEC Mining has the technical expertise, and most importantly, the logistical capability at Whyalla to handle iron ore shipments from the Maldorky and Grants projects.

This co-operation has the potential to realise value from the iron ore component of Havilah’s multi-commodity portfolio without distracting from its primary copper-cobalt-gold focus.

Havilah has three substantial copper-cobalt-gold deposits that are amenable to low-cost open-cut mining being Kalkaroo, Mutooroo and North Portia.

 

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Mon, 31 Dec 2018 08:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211789/havilah-resources-extends-due-diligence-period-for-iron-ore-projects-211789.html
<![CDATA[Media files - Havilah Resources' technical director updates on Grants and Kalkaroo projects ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11694/havilah-resources--technical-director-updates-on-grants-and-kalkaroo-projects-11694.html Fri, 21 Dec 2018 12:27:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/11694/havilah-resources--technical-director-updates-on-grants-and-kalkaroo-projects-11694.html <![CDATA[News - Havilah Resources’ Native Title agreement paves way for mining lease at copper-cobalt-gold project ]]> https://www.proactiveinvestors.com.au/companies/news/211440/havilah-resources-native-title-agreement-paves-way-for-mining-lease-at-copper-cobalt-gold-project-211440.html Havilah Resources Ltd (ASX:HAV) has signed a Native Title Mining Agreement for the Kalkaroo Copper-Cobalt-Gold Project in northeast South Australia that opens the way for granting of a mining lease.

The agreement was executed with the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation (NAWNTAC).

Signing of the agreement took place after a special sitting of the Federal Court in Orroroo last week.

This represents another major milestone on the path to the potential development of the Kalkaroo project as a major new copper-cobalt-gold mine.

READ: Havilah Resources to appoint new chairman as part of board rejuvenation

Havilah’s new chairman Mark Stewart said: “The importance of the execution of this agreement cannot be overstated and represents a massive leap forward in the implementation of Havilah’s Copper Strategy – Enhanced by Cobalt, as it should now result in the grant of the Kalkaroo Mining Lease.

“It is the culmination of many years of patient and persistent negotiation, introducing innovative concepts such as EBITDA, by Havilah executives, namely Chris Giles and Walter Richards.”

Kalkaroo is about 500 kilometres northeast of Adelaide in proximity to a main highway, the transcontinental railway and the regional mining centre of Broken Hill.

Based on a 100 million tonne ore reserve independently estimated by RPMGlobal, it is the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis.

Kalkaroo ore reserves as at June 30, 2018.

READ: Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests

At the Federal Court sitting, a consent determination was made in favour of NAWNTAC in respect of the overlapping native title claims of the Adnyamathanha, Ngadjuri and Wilyakali people.

NAWNTAC is a corporate entity that jointly represents the interests of the three native title groups and will be the first point of contact for future native title matters in this specific area.

The agreement is a key requirement for the granting of a mining lease by the Department for Energy and Minerals (DEM) of South Australia.

It follows more than five years of patient negotiations and numerous meetings in good faith between representatives of the native title holders and Havilah.

Map showing the new NAWNTAC Native Title area in relation to Havilah’s tenements and projects.

EBITDA model accepted

Acceptance of the concept of an EBITDA model, which is a profit-based compensation payment rather than an ‘off-the-top’ revenue-based royalty payment, paved the way for finalisation of a fair profit-sharing arrangement that achieves the objectives of both parties.

This assists Havilah in times of low profits while allowing NAWNTAC to share fully in times of high

profitability of any future mining operations.

READ: Havilah Resources to expand copper-cobalt exploration in Mutooroo district

The agreement also focuses on important non-financial benefits such as employment, training and business development opportunities for the native title holders over the life of the mine.

Stewart said: “Acceptance of the EBITDA profit sharing concept is a good outcome for all parties.

“I would like to acknowledge the support of our legal advisor, Abigail Steed, and also the co-operation and goodwill of the native title holder groups and their legal advisors over an extended period of time.”

Following lodgment of the agreement with DEM and completion of the statutory process for registration of native title mining agreements as provided in Part 9B of the Mining Act, it is expected that DEM will offer the Kalkaroo Mining Lease to Havilah in accordance with its due process.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

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Wed, 19 Dec 2018 11:14:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211440/havilah-resources-native-title-agreement-paves-way-for-mining-lease-at-copper-cobalt-gold-project-211440.html
<![CDATA[News - Havilah Resources granted an ASX trading halt ]]> https://www.proactiveinvestors.com.au/companies/news/211279/havilah-resources-granted-an-asx-trading-halt-211279.html Havilah Resources Ltd (ASX:HAV) has been granted a trading halt by the ASX pending an announcement in relation to Kalkaroo’s native title agreement.

The halt will remain in place until the earlier of the start of trading on Wednesday, December 19, or when the announcement is released to market.

READ: Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests

The Kalkaroo Project in South Australia hosts an ore reserve of 100.1 million tonnes grading 0.47% copper and 0.44 g/t gold along with cobalt.

Ongoing PFS work is being funded and managed by Havilah and follows previous study work sponsored by Wanbao Mining.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Earlier this month Havilah discovered a major new iron ore deposit in the nearby Grants Iron Ore Basin.

A recent 13-hole, 3,510-metre reverse circulation drilling program intersected consistently thick iron formation in multiple drill holes over an area of at least 3.5 square kilometres in the western part of the basin.

Handheld XRF results indicate consistent average grades ranging from 21% to 24% iron.

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Mon, 17 Dec 2018 12:03:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211279/havilah-resources-granted-an-asx-trading-halt-211279.html
<![CDATA[News - Havilah Resources to appoint new chairman as part of board rejuvenation ]]> https://www.proactiveinvestors.com.au/companies/news/211006/havilah-resources-to-appoint-new-chairman-as-part-of-board-rejuvenation-211006.html Havilah Resources Ltd (ASX:HAV) is rejuvenating its board and will appoint Mark Stewart as chairman after today’s annual general meeting.

As part of this process the company is also seeking a new independent non-executive director with the search drawing to a conclusion.

Well-credentialed candidates with the desired background in project delivery, ASX-listed board experience and a strong capital markets profile have been short-listed.

Ken Williams to retire

Ken Williams will retire as chairman immediately following the appointment of Stewart.

He will also retire as a director after a new independent non-executive director with the desired profile and experience is appointed.

This process will allow continuity and stability through the transition to the new board.

READ: Havilah Resources grabs $6 million Investec Group facility to support North Portia divestment

Williams said: “The views of shareholders have been heard and carefully considered.

“The board plans to act upon this in a manner that the board believes to be in the best interests of all shareholders.”

Havilah said the board would, therefore, be rejuvenated by a new technically skilled director with project delivery experience.

Continuity of exploration knowledge

Stability would be provided by the retention of Dr Chris Giles to provide continuity of exploration knowledge and field operating experience.

It would similarly benefit from the continuing commercial and legal experience of Stewart.

Review of capital structure

In light of investor feedback, the new board will undertake a thorough review of the company’s remuneration arrangements, project delivery timelines and capital structure.

Williams said: “We believe the timing of the renewal of the board fits very well with the progress made with the execution of the Copper Strategy – Enhanced by Cobalt.”

He added that this strategy was re-positioning Havilah to realise the value in its extensive minerals and exploration multi-commodity portfolio in South Australia.

READ: Havilah Resources to expand copper-cobalt exploration in Mutooroo district

The company has a suite of projects in South Australia’s northeast, encompassing copper, cobalt, gold and iron ore.

Last week it announced plans to expand exploration at the Mutooroo Copper-Cobalt District, targeting further resources within trucking distance of the Mutooroo deposit.

Additional exploration, including drilling, sampling and survey work, will support an expanded project scope supported by a comprehensive metallurgical test program for the copper stream.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Havilah has also this month discovered a major new deposit in the Grants Iron Ore Basin following a 13-hole, 3,510-metre reverse circulation drilling program.

Consistently thick iron formation was intersected in multiple drill holes over an area of at least 3.5 square kilometres in the western part of the basin.

This drilling is part of a comprehensive program of work being carried out and funded by SIMEC Mining, an affiliate of the GFG Alliance.

Due diligence investigation

It is part of SIMEC’s due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

SIMEC has exclusivity over the Maldorky and Grants projects through the end of 2018 and discussions regarding an extension are underway.

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Wed, 12 Dec 2018 09:35:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211006/havilah-resources-to-appoint-new-chairman-as-part-of-board-rejuvenation-211006.html
<![CDATA[News - Havilah Resources to expand copper-cobalt exploration in Mutooroo district ]]> https://www.proactiveinvestors.com.au/companies/news/210727/havilah-resources-to-expand-copper-cobalt-exploration-in-mutooroo-district-210727.html Havilah Resources Ltd (ASX:HAV) plans to expand exploration at the Mutooroo Copper-Cobalt District in South Australia’s northeast targeting additional resources within trucking distance of the Mutooroo deposit.

The additional exploration, including drilling, sampling and survey work, will support an expanded project scope.

This work will be supported by a comprehensive metallurgical testing program for the copper stream.

Copper Strategy – Enhanced by Cobalt

Havilah is systematically targeting copper and cobalt, in north-eastern South Australia, in line with its Copper Strategy – Enhanced by Cobalt.

Chief geologist Andy Price is outlining the plans for Mutooroo today in a technical presentation at the South Australian Exploration and Mining Conference.

His presentation will highlight Havilah’s low-cost 2018 exploration strategy, which has resulted in the definition of several high priority copper-cobalt drill targets in the Mutooroo district.

This district covers 720 square kilometres of Havilah exploration tenements and lies just west of Broken Hill, alongside South Australia’s border with New South Wales.

It encompasses copper-cobalt prospective terrain with high potential for new discoveries.

Regional exploration targets at the Mutooroo project in northeast South Australia.

The company’s 2019 exploration plans include ground electromagnetic (GEM) survey work and reverse circulation drilling of the Scorpion prospect.

Other prospects in line for GEM surveys and possible first pass drill testing are Sidewinder, Viper, Mutooroo South, Scorpion Trend and Copperhead.

READ: Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests

Havilah will also continue with regional Fe lag sampling, a geochemical sampling medium that is primarily used in arid regions and which has been used successfully in the district to date.

Fe lag sampling work at Mutooroo.

Cobalt remains a valuable component that could add significant value in the future but quantifying and realising the scope of this potential upside requires more detailed study.

The recommended start of a scoping level study into a copper only project with an increased throughput and extended mine life can be funded by Havilah without raising additional capital.

The Mutooroo copper-cobalt district lies to the west of Broken Hill.

READ: Havilah Resources confirms new discovery in the Grants Iron Ore Basin

Earlier this week Havilah confirmed a major new iron ore deposit in the nearby Grants Iron Ore Basin.

A recent 13-hole, 3,510-metre reverse circulation drilling program intersected consistently thick iron formation in multiple drill holes over an area of at least 3.5 square kilometres in the western part of the basin.

Handheld XRF results indicate consistent average grades ranging from 21% to 24% iron.

These readings were collected by taking measurements through the heavy-duty plastic bags that hold the bulk samples for each metre.

The drilling is part of a comprehensive program of work being performed and funded by SIMEC Mining, an affiliate of the GFG Alliance, as part of tdue diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

READ: Havilah Resources’ North Portia divestment permitting process extended

Havilah technical director Chris Giles said: “The drilling program has confirmed the original exploration concept for the existence of a thick, relatively shallow, iron formation in the Grants Iron Ore Basin.

“We are grateful to SIMEC Mining for having the vision to fund the exploration drilling that has resulted in this major new iron ore discovery for South Australia.

“The beauty is that the deposit starts near-surface, lies only 11 kilometres from the Transcontinental Railway line and is just over a one-hour drive from Broken Hill, which makes it uniquely favourable for development.

“At this stage, we can only guess at the potential size of the deposit but based on the thickness of the iron formation and its areal extent, it is apparent that there exists significant resource potential.”

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Fri, 07 Dec 2018 10:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210727/havilah-resources-to-expand-copper-cobalt-exploration-in-mutooroo-district-210727.html
<![CDATA[News - Havilah Resources confirms new discovery in the Grants Iron Ore Basin ]]> https://www.proactiveinvestors.com.au/companies/news/210432/havilah-resources-confirms-new-discovery-in-the-grants-iron-ore-basin-210432.html Havilah Resources Ltd (ASX:HAV) has discovered a major new iron ore deposit in the Grants Iron Ore Basin in South Australia.

The company’s recently completed 13-hole, 3,510-metre reverse circulation (RC) drilling program successfully intersected consistently thick iron formation in multiple drill holes over an area of at least 3.5 square kilometres in the western part of the basin.

To date, only handheld XRF results are available, and they indicate consistent average grades ranging from 21 - 24% iron.

Significant drilling results

The handheld XRF readings were collected by taking measurements through the heavy-duty plastic bags that hold the bulk samples for each metre.

These results are likely to be upgraded by conventional laboratory assays, which will be reported in due course.

READ: Havilah Resources seeks to grow iron ore resources at Grants through drilling program

This drilling is part of a comprehensive program of work currently being performed and funded by SIMEC Mining (an affiliate of the GFG Alliance) as part of their due diligence investigation of the commercialisation potential of Havilah’s Maldorky and Grants iron ore projects.

SIMEC Mining has exclusivity over the Maldorky and Grants projects through the end of 2018 and discussions regarding an extension have commenced.

The drilling program was planned and supervised by Havilah personnel.

 

Havilah’s technical director Dr Chris Giles said: “The drilling program has confirmed the original exploration concept for the existence of a thick, relatively shallow, iron formation in the Grants Iron Ore Basin.

“We are grateful to SIMEC Mining for having the vision to fund the exploration drilling that has resulted in this major new iron ore discovery for South Australia.

“The beauty is that the deposit starts near surface, lies only 11 kilometres from the Transcontinental Railway line and is just over a one-hour drive from Broken Hill, which makes it uniquely favourable for development.

“At this stage we can only guess at the potential size of the deposit, but based on the thickness of the iron formation and its areal extent, it is apparent that there exists significant resource potential.

READ: Havilah Resources grabs $6 million Investec Group facility to support North Portia divestment

“Ironically, the iron-rich lateritised cap on the deposit was mined from the Grants quarries by BHP in the 1890’s, as flux for the Broken Hill smelters but the primary iron deposit has lain essentially unrecognised until now.

“Havilah’s recognition of the exploration potential and patience in accumulating all of the ground covering the Grants Iron Ore Basin over a period of several years, has finally been rewarded with these substantial interim drilling results.” 

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Tue, 04 Dec 2018 12:33:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210432/havilah-resources-confirms-new-discovery-in-the-grants-iron-ore-basin-210432.html
<![CDATA[News - Havilah Resources’ North Portia divestment permitting process extended ]]> https://www.proactiveinvestors.com.au/companies/news/210341/havilah-resources-north-portia-divestment-permitting-process-extended-210341.html Havilah Resources Ltd (ASX:HAV) advises that an extension to the permitting approval process for the divested North Portia Copper-Gold Project will result in a $3.5 million payment being delayed.

Under the divestment agreement with Consolidated Mining and Civil Pty Ltd (CMC) for the South Australian project, the second payment of $3.5 million is dependent on stage I permitting approval.

READ: Havilah Resources grabs $6 million Investec Group facility to support North Portia divestment

Approval of the updated Portia Program for Environmental Protection and Rehabilitation (PEPR) document was expected by the end of 2018, but this has been extended to the second quarter of 2019.

The extension is required to incorporate proposed modifications into the processing flowsheet and tailings storage facility design, which CMC has undertaken at its expense.

READ: Havilah Resources seeks to grow iron ore resources at Grants through drilling program

These modifications will necessitate revisions to the updated PEPR document prepared by Havilah on behalf of CMC under the North Portia divestment agreement for stage I permitting.

Havilah’s CEO Walter Richards said: “Completion of the updated PEPR, once the additional information is provided by CMC, can be addressed by Havilah within a reasonable time frame and at limited cost.

“This will delay the receipt of the second divestment payment of $3.5 million, but Havilah has access to adequate funds to allow the company to manage through this extended permitting process.”

Following provision of the details from CMC and with the cooperation of the regulator in rescheduling the approvals process, Havilah believes permitting approval in the first half of 2019 is achievable.

READ: Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests

The Benagerie Mining Lease, which is being divested to CMC and is west of Broken Hill, comprises the pre-development North Portia project and the adjoining Portia open pit gold operation.

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Mon, 03 Dec 2018 09:17:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210341/havilah-resources-north-portia-divestment-permitting-process-extended-210341.html
<![CDATA[News - Havilah Resources grabs $6 million Investec Group facility to support North Portia divestment ]]> https://www.proactiveinvestors.com.au/companies/news/207893/havilah-resources-grabs-6-million-investec-group-facility-to-support-north-portia-divestment-207893.html Havilah Resources Ltd (ASX:HAV) has accepted a $6 million 12-month standby funding facility from Investec Group that backs its divestment of the North Portia Copper-Gold Project in northeast South Australia.

Final documentation for the Investec Group facility is expected to be completed by early November 2018.

READ: Havilah Resources seeks to grow iron ore resources at Grants through drilling program

Havilah reported the facility provided a contingency funding plan for the company as it divested the North Portia project to Broken Hill-based Consolidated Mining & Civil Pty Ltd (CMC).

A key part of the deal was the sale of the Benagerie Mining Lease to CMC in July, with the lease area near Broken Hill including North Portia and the adjacent operating Portia Gold Project.

Havilah is set to receive $7 million over the next 12 months as North Portia permitting is completed and approved under the company’s North Portia divestment agreement.

The company said: “The timing of the receipt of these divestment proceeds is subject to various permitting approvals which are not under Havilah’s full control.

“This facility provides Havilah with a contingency funding plan over the next 12-month period as the permitting work is completed and submitted to the regulator for approval.”

Havilah chief executive officer Walter Richards said: “We are pleased to have this facility in place as a contingency measure to manage our cash flow over the next 12 months, as work is completed on the North Portia permitting.

“This facility provides us with financial flexibility to ensure we can continue to progress the execution of our Copper Strategy – Enhanced by Cobalt.

“Investec has been very supportive since the start of our relationship in 2015 and we appreciate their continued backing.”

 

READ: Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests

Investec’s 12-month facility starts from the execution of the facility documents, likely next month.

Havilah and its subsidiaries, Kalkaroo Copper Pty Ltd and Mutooroo Metals Pty Ltd, will guarantee the facility.

The financier’s interest will be set at the floating Bank Bill Swap Bid Rate (BBSY) and include a credit margin on top.

Investec may be issued up to 10 million three-year unlisted options, depending on Havilah’s use of the facility.

Investec’s exercise price for the options will be set at a 20% premium to the 30-day volume-weighted average share price when the facility is taken up, triggering the issue of options.

READ: Havilah Resources completing divestment of North Portia Copper-Gold Project

As part of the new funding deal, the parties have agreed to cancel a Portia contingent success fee, which was to have applied if production from Portia exceeded 50,500 ounces of gold in total with a cap of 80,000 ounces.

This was a feature of a 2015 $6 million loan and risk management facility.

The facility allowed Havilah to construct the Portia processing plant, with the company only drawing down $4 million of the funds.

Havilah repaid the facility in 2016, ahead of its maturity date.

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Thu, 25 Oct 2018 19:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207893/havilah-resources-grabs-6-million-investec-group-facility-to-support-north-portia-divestment-207893.html
<![CDATA[News - Havilah Resources seeks to grow iron ore resources at Grants through drilling program ]]> https://www.proactiveinvestors.com.au/companies/news/207128/havilah-resources-seeks-to-grow-iron-ore-resources-at-grants-through-drilling-program-207128.html Havilah Resources Ltd (ASX:HAV) is seeking to expand iron ore resources at the Grants and Maldorky projects near Broken Hill through a 3,500-metre drilling program funded by SIMEC Mining.

The reverse circulation (RC) drilling program will begin soon targeting the western portion of the Grants Iron Ore Basin.

It forms part of a comprehensive program of work being performed and funded by SIMEC, an affiliate of the GFG Alliance, as part of due diligence on the commercialisation potential of the projects.

CEO Walter Richards said: “We are very pleased to see the commencement of drill-testing of the Grants Iron Ore Basin by SIMEC Mining.

“There is the potential to confirm the existence of a very large iron ore deposit that will add to our existing nearby Grants iron ore resource.

“Grants is approximately one hour’s drive from Broken Hill and is in sight of the transcontinental railway line, which makes the logistics for the deposit and any extensions, very favourable.”

READ: Havilah Resources teams up to evaluate iron ore projects

Earlier this year an agreement was reached with SIMEC to conduct due diligence on the iron ore assets to enable Havilah to fully focus on its Copper Strategy – Enhanced by Cobalt.

Drilling to test extensions

Drilling will test the unexplored eastern extensions of the Grants resource, in what is interpreted to be part of a potentially large iron ore basin covering an area of about 17 square kilometres.

Maldorky contains a JORC indicated resource of 147 million tonnes of 30% iron, while Grants contains a JORC inferred resource of 304 million tonnes of 24% iron.

The only drill hole completed by Havilah within the iron ore basin area to date, in March 2012, returned 69 metres of 31.7% iron from near surface.

This hole ended in iron ore and had the highest average iron grade intersection of all holes drilled in the Grants area.

The 1,000 by 500 metre planned reconnaissance drill hole spacing is designed to determine the broad extent, thickness and grade of iron ore mineralisation in the western half of the basin.

Large RC rig to be used

Drilling will be carried out using a large RC drilling rig contracted by SIMEC Mining and the technical work will be managed by Havilah’s exploration team.

Havilah has carried out all necessary advance preparatory and permitting work for the program.

This includes executing the required native title exploration agreement, an aboriginal heritage survey of drill collar sites, and approval of a Program for Environmental Protection and Rehabilitation from the Department for Energy and Mining.

Maldorky samples being tested

SIMEC continues to carry out extensive metallurgical testing of Maldorky iron samples, with encouraging results so far.

Following completion of the Grants Iron Ore Basin RC drilling, SIMEC may follow-up with several diamond holes to obtain additional core sample material for metallurgical sampling.

Grants Iron Ore Basin in relation to the Grants resource and proposed drill hole layout.

READ: Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests

SIMEC Mining is a division of the SIMEC Group which is an international energy, infrastructure and natural resources business founded 50 years ago.

It is part of the Gupta Family Group (GFG Alliance), which has combined turnover of about US$15 billion and combined net assets of about US$3 billion.

Strong regional presence

SIMEC Mining owns and operates iron ore mines in the Middleback Ranges in South Australia, about 60 kilometres from the town of Whyalla.

These operations incorporate the Iron Baron, Iron Knob and South Middleback Ranges mine sites. The company mines both hematite and magnetite iron ore which is respectively railed and piped to Whyalla.

Most of the magnetite is pelletised and used within Liberty OneSteel’s Whyalla Steelworks, an associated company.

The hematite and magnetite ore is loaded onto ships for transport to a primarily Asian customer base.

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Tue, 16 Oct 2018 11:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207128/havilah-resources-seeks-to-grow-iron-ore-resources-at-grants-through-drilling-program-207128.html
<![CDATA[Media files - Havilah Resources’ multi-commodity exploration strategy in SA delivers substantial results ]]> https://www.proactiveinvestors.com.au/companies/stocktube/11693/havilah-resources-multi-commodity-exploration-strategy-in-sa-delivers-substantial-results-11693.html Fri, 21 Sep 2018 12:21:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/11693/havilah-resources-multi-commodity-exploration-strategy-in-sa-delivers-substantial-results-11693.html <![CDATA[News - Havilah Resources obtains suitable core samples for Kalkaroo copper-gold-cobalt tests ]]> https://www.proactiveinvestors.com.au/companies/news/204584/havilah-resources-obtains-suitable-core-samples-for-kalkaroo-copper-gold-cobalt-tests-204584.html Havilah Resources Ltd (ASX:HAV) has obtained suitable representative samples of copper-gold-cobalt mineralisation from its flagship Kalkaroo project for test work.

Long ore grade intercepts were returned from a three-hole metallurgical drilling program at the Kalkaroo project in South Australia’s northeast, near the mining centre of Broken Hill.

The large 83-millimetre diameter PQ3 drill core will provide the required samples for additional metallurgical test work, which forms part of a pre-feasibility study (PFS).

Part of additional PFS work

Havilah CEO Walter Richards said, “Obtaining the fresh drill core metallurgical samples is a very important part of Havilah’s planned additional Kalkaroo PFS work.

“The drilling was well planned and executed and we obtained adequate quantities of good quality sample that we required.”

Large ore reserve

Kalkaroo hosts an ore reserve of 100.1 million tonnes grading 0.47% copper and 0.44 g/t gold along with cobalt.

Ongoing PFS work is being funded and managed by Havilah and follows previous study work sponsored by Wanbao Mining.

READ: Havilah Resources considers its options for copper-cobalt-gold project

Hole locations were selected to be representative of the overall Kalkaroo deposit and in particular, of the four main styles of mineralisation.

As such, the results returned do not represent new mineralisation.

Oblique view of the Kalkaroo ore shells showing locations of the three new metallurgy holes.

All drill holes have been logged, photographed and sampled, with a quarter of the drill core sent for assay.

Long, continuous intervals

Long, continuous copper and gold mineralised intersections are typical of the Kalkaroo deposit

Examples include:

- 85 metres at 2.73 g/t gold from 75 metres; - 73 metres at 1.17% copper from 87 metres; - 39 metres at 261 ppm cobalt from 121 metres (in sulphide zone only); - 68.3 metres at 1.29 % copper and 148 ppm cobalt from 121 metres; - 60.3 metres at 0.48 g/t gold from 129 metres; and - 16 metres at 1.16% copper and 0.59 g/t gold from 114 metres.

These are composite intersections that are comprised of more than one ore type.

READ: Havilah Resources better defines cobalt and copper prospects, potential to add to Mutooroo resource

The additional metallurgical testing program being undertaken by Havilah has three main objectives:

- Demonstrate improved gold recoveries in the saprolite gold cap;

- Demonstrate improved gold recoveries in the native copper zone; and

- Confirm the indicated cobalt, copper and gold grades in bulk pyrite concentrates.

Malachite representing secondary, supergene copper hosted by weathered and oxidised bedrock.

Richards said, “Establishing with certainty the best processing route to maximise gold recoveries is essential to confirming Kalkaroo’s project economics and supplementing the previously completed metallurgy work.”

Bulk pyrite samples to be prepared

With the excess sulphide samples generated by the current drilling, Havilah plans to prepare several bulk pyrite concentrate samples from the chalcocite ore and chalcopyrite ore, in order to confirm the levels of contained copper, cobalt, and gold.

In addition, these samples will provide suitable feed for future leaching and/or roasting studies to be conducted.

It is important to note that the grades of copper, cobalt and gold make this a potentially saleable direct shipping product.

READ: Havilah Resources completes divestment of North Portia Copper-Gold Project

“We are encouraged by the latent value of copper, cobalt and gold in the pyrite concentrate, which potentially can be recovered for very little additional expense,” Richards said.

“We intend to demonstrate this by obtaining larger samples of pyrite concentrate from bulk sulphide ore samples.

“This metallurgical work has the potential to add significant value to Kalkaroo over and above the already favourable economics,” he added.

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Tue, 11 Sep 2018 12:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204584/havilah-resources-obtains-suitable-core-samples-for-kalkaroo-copper-gold-cobalt-tests-204584.html
<![CDATA[News - Havilah Resources on schedule with permitting at recently divested North Portia project ]]> https://www.proactiveinvestors.com.au/companies/news/203752/havilah-resources-on-schedule-with-permitting-at-recently-divested-north-portia-project-203752.html Havilah Resources Ltd (ASX:HAV) is progressing permitting for stage I development of its recently divested North Portia Copper-Gold Project in South Australia on schedule.

Permitting will allow the mining of overburden and subsequent processing of the oxide gold component of the resource.

Havilah is undertaking the permitting process as part of the sale of Benagerie Mining Lease, which includes North Portia and the adjoining Portia Gold Project, to Benagerie Copper Gold Pty Ltd (BGC).

READ: Havilah Resources completes divestment of North Portia Copper-Gold Project

The permitting documents are expected to be submitted to the regulator for assessment by the middle of September 2018.

Havilah recently completed the divestment to Broken Hill-based BGC.

$13.5 million sale

The first payment of $1 million has been received, which has also replaced Havilah’s share of the Portia rehabilitation obligation funding of $1.2 million.

A second $3.5 million payment is due on Havilah completing the required permitting.

The third payment of $3.5 million is due with Havilah’s completion of permitting allowing for the mining and processing of North Portia supergene sulphide copper-cobalt-gold ore.

This is expected in the second half of 2019.

A final payment of $5.5 million is due 12 months after the second payment, which is expected in the last quarter of 2019.

Updated PEPR approval sought

BCG recently announced that it was placing the Portia pit on care and maintenance.

This temporary step has been taken until an updated Program for Environmental Protection and Rehabilitation (PEPR) for the Benagerie Mining Lease has been approved.

Havilah says this step has no impact on completion of the planned permitting.

It also does not have a material impact on the total royalty payments to Havilah over the life of the operation.

Mining expected to begin in Q1 2019

In a statement, Havilah said: “BGC’s principal Steve Radford is reported as saying that upon approval of the PEPR upgrade, mining of the North Portia copper-gold deposit would begin in the first quarter of 2019.”

Havilah’s divestment of the lease forms part of its ‘Copper Strategy – Enhanced by Cobalt’ which focuses on the Kalkaroo and Mutooroo projects.

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Wed, 29 Aug 2018 15:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203752/havilah-resources-on-schedule-with-permitting-at-recently-divested-north-portia-project-203752.html
<![CDATA[News - Havilah Resources better defines cobalt and copper prospects, potential to add to Mutooroo resource ]]> https://www.proactiveinvestors.com.au/companies/news/203649/havilah-resources-better-defines-cobalt-and-copper-prospects-potential-to-add-to-mutooroo-resource-203649.html Havilah Resources Ltd’s (ASX:HAV) sampling has confirmed and better defined copper-cobalt prospects in the Mutooroo Cobalt District of northeast South Australia, near the mining centre of Broken Hill.

Two new phases of follow-up surface sampling have seen the Sidewinder prospect emerge as a large new Mutooroo-style copper-cobalt target while the Taipan prospect has been expanded.

A potential southern extension to the Mutooroo copper-cobalt-gold deposit has also been identified.

READ: Havilah Resources reveals high cobalt recoveries from Mutooroo ore sample

Havilah’s CEO Walter Richards said sampling results continued to highlight the copper-cobalt exploration potential of the Mutooroo Cobalt District.

Mutooroo a priority

The Mutooroo Copper-Cobalt-Gold Project is a priority for Havilah owing to its higher copper grade, lower capex and an expected production target date of 2021.

Notably, the project has a resource of 195,000 tonnes of contained copper and 8,400 tonnes of contained cobalt.

Sampling forms part of a systematic regional exploration program with the objective to discover additional resources within trucking distance of the Mutooroo project.

READ: Havilah Resources considers its options for copper-cobalt-gold project

The aim was to confirm and better define the tenor and extent of the promising copper-cobalt prospects.

Richards said, “The prioritisation of the Mutooroo project and the district exploration potential is producing positive results through the application of a low-cost, systematic approach to exploration.

“These results strengthen the case for an expanded regional exploration program targeting additional resources around the Mutooroo deposit.”

READ: Havilah Resources completes divestment of North Portia Copper-Gold Project

The more detailed, extensional and infill sampling at several prospects returned strongly anomalous copper and cobalt results, mostly within 10 kilometres of the Mutooroo deposit.

Overview of Mutooroo project area prospects on a magnetic image.

A total of 448 composite ironstone samples and 24 orientation soil samples were collected by Havilah geologists at the eight selected prospects in the two sampling programs.

There were 23 samples of greater than or equal to 1,000 ppm copper with the highest individual assay of 2,230 ppm (0.22%) copper at the Sidewinder D prospect.

Sixteen samples were greater than or equal to 2,500 ppm (0.25%) cobalt with the highest individual assay of 3,870 ppm (0.39%) cobalt from Taipan prospect.

Anomalous gold values

High cobalt and copper results are also locally associated with anomalous gold values.

In some cases, the sampling is now sufficiently closely spaced to plan initial shallow drill testing.

The objective of this drilling will be to determine the extent and nature of subsurface mineralisation.

Other prospects still require additional infill and extensional sampling.

Richards said, “We now believe there is high potential for discovery of repetitions of Mutooroo-style copper-cobalt-gold mineralisation at the Sidewinder, Viper and Mutooroo South prospects.

“All of these lie within short distances of the already significant, existing copper-cobalt-gold resource at Mutooroo.”

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Tue, 28 Aug 2018 11:57:00 +1000 https://www.proactiveinvestors.com.au/companies/news/203649/havilah-resources-better-defines-cobalt-and-copper-prospects-potential-to-add-to-mutooroo-resource-203649.html
<![CDATA[News - Havilah Resources completes divestment of North Portia Copper-Gold Project ]]> https://www.proactiveinvestors.com.au/companies/news/200625/havilah-resources-completes-divestment-of-north-portia-copper-gold-project-200625.html Havilah Resources Ltd (ASX:HAV) has completed the divestment of its North Portia Copper-Gold Project to Broken Hill-based Consolidated Mining & Civil Pty Ltd (CMC).

With consents granted, guarantees replaced and documentation executed, the sale of the Benagerie Mining Lease to CMC has closed.

The lease area in northeast South Australia, near Broken Hill, includes North Portia and the adjacent operating Portia Gold Project.

READ: Havilah Resources considers its options for copper-cobalt-gold project

Havilah’s CEO Walter Richards said: “Closing this first transaction in the execution of Havilah’s Copper Strategy – Enhanced by Cobalt has progressed as planned.

“This transaction realises tangible value from our multi-commodity portfolio and will allow us to increase our focus on Mutooroo and Kalkaroo, the two core projects in our strategy.

“Recent exceptional copper-cobalt sampling results from the Mutooroo Cobalt District and the many prospects identified, have confirmed that we are focused on the right scope of work to maximise value generation.”

Series of payments

The first payment of $1 million has been received from CMC, which has also replaced Havilah’s share of the Portia rehabilitation obligation funding of $1.2 million.

A second $3.5 million payment is due on Havilah’s completing required permitting allowing the mining of overburden at North Portia and subsequent processing of the oxide gold component of the resource.

The third payment of $3.5 million is due with Havilah’s completion of permitting allowing for the mining and processing of North Portia supergene sulphide copper-cobalt-gold ore.

This is expected in the second half of 2019.

A final payment of $5.5 million is due 12 months after the second payment, which is expected in the last quarter of 2019.

The lease comprises the Portia and North Portia projects.

Gold revenue stream remains

The current Portia 15% gold revenue stream to remains until November 30, 2018, when the oxidized ore in the Portia pit is expected to be mined out.

At that time this interest will convert into the 2% NSR royalty.

The transaction includes a 2% NSR royalty on all commodity sales from the lease area.

This will increase to 3.25% on copper metal sales, once more than 101,400 tonnes of copper metal have been produced and sold from the lease.

READ Havilah Resources sampling confirms strong cobalt results at Mutooroo

Havilah maintains the first right to purchase any pyrite (contains cobalt) produced as a by-product from the production of copper and gold.

The company retains exploration rights to the Bassanio IOCG target on the Benagerie lease.

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Thu, 12 Jul 2018 09:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200625/havilah-resources-completes-divestment-of-north-portia-copper-gold-project-200625.html
<![CDATA[News - Havilah Resources expects closure of divestment deal within two weeks ]]> https://www.proactiveinvestors.com.au/companies/news/199985/havilah-resources-expects-closure-of-divestment-deal-within-two-weeks-199985.html Havilah Resources Ltd (ASX:HAV) is making progress with the transaction to divest the Benagerie Mining Lease in South Australia to Consolidated Mining and Civil Pty Ltd (CMC).

The lease comprises the operating Portia Gold Project and adjacent pre-development North Portia Copper-Gold Project.

Consideration for the transaction will include $13.5 million in staged cash payments over 18 months.

READ: Havilah Resources signs divestment deal to focus on copper-cobalt assets

The exchange and lodging of bank guarantees for CMC to take full responsibility for rehabilitation obligations, has occurred.

This means that CMC has replaced Havilah’s $1.2 million in bank guarantee obligations.

Accordingly, Havilah has no further exposure to rehabilitation liabilities on the lease.

In addition, CMC has confirmed that funds for the first payment of $1 million are immediately available to be paid upon closure.

No impediments to closure

Havilah said completion of the required documentation and approvals had taken longer than anticipated but was now well advanced.

At this time there are no impediments foreseen that will prevent closure of the transaction within the next two weeks.

This transaction is the next step in Havilah’s association with CMC, which started with a 50% revenue sharing arrangement that resulted in the Portia mine being developed.

Gold revenue stream

Havilah will continue to receive its 15% gold revenue stream from the Portia mine until 30 November 2018, when the oxidised ore in the Portia pit is expected to be mined out based on the current mine plan.

At that time this interest will convert into a 2% net smelter return (NSR) royalty on any further gold sales from Portia.

The Benagerie lease transaction allows Havilah to focus more attention on the advancement and ultimate development of the Mutooroo and Kalkaroo copper-cobalt-gold projects.

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Tue, 03 Jul 2018 09:17:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199985/havilah-resources-expects-closure-of-divestment-deal-within-two-weeks-199985.html
<![CDATA[News - Havilah Resources considers its options for copper-cobalt-gold project ]]> https://www.proactiveinvestors.com.au/companies/news/199911/havilah-resources-considers-its-options-for-copper-cobalt-gold-project-199911.html Havilah Resources Ltd (ASX:HAV) has turned its focus to considering development options for the Kalkaroo copper-cobalt-gold project in far east South Australia.

This comes after a period of exclusivity with Wanbao Mining lapsed on June 30 allowing Havilah to be free to engage with all other parties who have expressed an interest.

READ: Havilah Resources sampling confirms strong cobalt results at Mutooroo

The pre-feasibility study (PFS) received that was based on the scope of work as defined and funded by Wanbao, is still in draft form.

On-going PFS work by Havilah to optimise the project economics is expected to be completed by the end of 2018.

Havilah’s CEO Walter Richards said: “I would like to record our thanks to Wanbao for its support to date and for its positive engagement during the PFS process.”

Largest open pit copper equivalent deposit in Australia

Richards added: “Havilah is in the fortunate position of owning 100% of the largest open pit copper deposit in Australia on a copper equivalent ore reserve basis, at a time when there is a shortage of good quality copper development projects in the world ahead of a predicted surge in the usage of copper.

“There is significant upside in the already attractive robust project through improved gold recoveries, inclusion of cobalt, and resource expansion opportunities.

“We are continuing to work with RPMGlobal on additional inputs into the draft PFS to define the full value of this project.

“Interest has been expressed in the Kalkaroo project by a number of parties and Havilah will carefully evaluate all development and investment options in order to maximise shareholder value from the project, now that we are free to engage with third parties.”

100 million tonne Ore Reserve

Kalkaroo is located on the board of South Australi and New South Wales and hosts an Ore Reserve of 100.1 million tonnes grading 0.47% copper and 0.44 g/t gold.

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Mon, 02 Jul 2018 12:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199911/havilah-resources-considers-its-options-for-copper-cobalt-gold-project-199911.html
<![CDATA[News - Havilah Resources sampling confirms strong cobalt results at Mutooroo ]]> https://www.proactiveinvestors.com.au/companies/news/199443/havilah-resources-sampling-confirms-strong-cobalt-results-at-mutooroo-199443.html Havilah Resources Ltd (ASX:HAV) has received strong surface sampling results of up to 5,950 ppm cobalt from the Mutooroo Cobalt District in South Australia near the mining centre of Broken Hill.

Regional reconnaissance surface sampling has defined several promising new prospects that have never been drilled.

Five new copper-cobalt prospects have been confirmed, with follow-up sampling underway to define drill targets and identify additional targets.

READ: Havilah Resources reveals high cobalt recoveries from Mutooroo ore sample

The sampling has identified a potential southern extension to the Mutooroo copper-cobalt-gold deposit.

Havilah’s CEO Walter Richards said: “We are excited about the developing broader regional copper-cobalt exploration potential of the Mutooroo Cobalt District, as provided by the tangible evidence of these exceptional surface sampling results.

“Early indications are looking positive for additional discoveries to add to the already significant existing copper-cobalt-gold resource at Mutooroo.”

READ: Havilah Resources aims to put cobalt icing on its large South Australian copper cake

Results have highlighted several significant surface cobalt-copper anomalies with potentially the highest surface cobalt values ever recorded in the district.

Mutooroo area prospects on a total magnetic intensity aeromagnetic image.

This reinforces Havilah’s long-held belief in the prospectivity for major copper-cobalt discoveries within its extensive landholding in north-eastern South Australia.

The sampling is being carried out in conjunction with ongoing compilation and analysis of previous exploration conducted over the last 50 years, sourced from open file reports.

At least 14 areas identified

This work has highlighted at least 14 areas with strongly anomalous cobalt results that were not previously followed up due to limited interest in cobalt at the time.

Historical exploration included a 1990s program of ironstone sampling for copper-lead-zinc Broken Hill style deposits, which returned some high cobalt results up to 5,900 ppm or 0.59%.

In the majority of cases, Havilah’s recent first pass reconnaissance surface sampling of the prospects has validated the high cobalt and associated copper results.

99 samples collected

There were 99 samples collected by Havilah geologists at the 14 prospects along with some opportunistic sampling of ironstone where encountered.

Of these four samples were greater than 2,500 ppm cobalt, 23 greater than 1,000 ppm, 37  greater than 500 ppm and 48 in excess of 250 ppm.

The highest individual assay of 5,950 ppm, or 0.60%, cobalt was at the Taipan prospect.

READ: Havilah Resources’ shares ride higher after establishing large copper-gold reserve

Richards said: “The patient accumulation of exploration tenements over the years is now reaping the rewards in revealing many new opportunities to expand our copper-cobalt resource base as the present sampling results show.

“Given these results, Havilah’s track record of exploration success, and our in-house exploration expertise, we will continue to focus on this highly prospective area with an expanded exploration program targeting copper-cobalt prospects.”

First-ever cobalt targeted exploration

Havilah is conducting the first-ever cobalt targeted exploration campaign in this highly endowed 720 square kilometre copper-cobalt district.

The company is focused on infill sampling of the newly defined high-priority targets of Sidewinder, Taipan, Viper and Mutooroo South.

Reconnaissance sampling is also being carried out at the as yet untested targets of Scorpion Trend and Cobra in order to advance the targets to drill testing status.

Three sampling teams are in the field under the supervision of an experienced Havilah geologist, who has a distinguished track record of exploration success.

Plans are being developed to expand the exploration program and accelerate the Mutooroo project scope of work.

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Mon, 25 Jun 2018 11:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199443/havilah-resources-sampling-confirms-strong-cobalt-results-at-mutooroo-199443.html
<![CDATA[News - Havilah Resources reveals high cobalt recoveries from Mutooroo ore sample ]]> https://www.proactiveinvestors.com.au/companies/news/199284/havilah-resources-reveals-high-cobalt-recoveries-from-mutooroo-ore-sample-199284.html Havilah Resources Ltd (ASX:HAV) has received final results from Cobalt Blue’s (ASX:COB) cobalt recovery testing of a massive sulphide ore sample from Havilah’s Mutooroo copper-cobalt project in South Australia.

The 13-kilogram sample of Mutooroo massive sulphide ore was tested by Cobalt Blue, pursuant to a memorandum of understanding (MOU) signed in February 2018.

88% of the cobalt in Mutooroo sulphide ore recovered

Applying Cobalt Blue’s proprietary cobalt recovery processing methodology, the overall recovery of cobalt in the ore to leach solution was about 88%.

This is very similar to the results achieved by Cobalt Blue on its Thackaringa cobaltian pyrite ore.

Notably, the Mutooroo project has a resource of 195,000 tonnes of contained copper and 8,400 tonnes of contained cobalt.

Important first step for MOU initiative

Havilah chief executive officer Walter Richards said: “The successful application of COB’s cobalt recovery process is a positive outcome and an important first step from our MOU cooperation initiative.

“We have agreed with COB to investigate, at the appropriate time, how we can jointly capitalise on these results for our mutual benefit going forward”.

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Thu, 21 Jun 2018 16:32:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199284/havilah-resources-reveals-high-cobalt-recoveries-from-mutooroo-ore-sample-199284.html
<![CDATA[News - Havilah Resources teams up to evaluate iron ore projects ]]> https://www.proactiveinvestors.com.au/companies/news/199182/havilah-resources-teams-up-to-evaluate-iron-ore-projects-199182.html Havilah Resources Ltd (ASX:HAV) has reached an agreement with SIMEC Mining to conduct due diligence on the 100% owned Maldorky and Grants iron ore project in South Australia.

The joint objective is to determine the future development and commercialisation potential of the projects.

SIMEC Mining is an affiliate of the GFG Alliance and also owns and operates iron ore mines in the in South Australia.

SIMEC Mining can potentially realise value in the assets

Havilah’s CEO Walter Richards said: “SIMEC Mining has the technical expertise, and most importantly, the logistical capability at Whyalla to handle iron ore shipments from the Maldorky and Grants projects.

“Our co-operation has started well, with SIMEC Mining now in possession of all Havilah’s technical data relating to the projects, as well as representative drill chip samples and drill core that is being used for the metallurgical test work, which is now in progress.

“This co-operation has the potential to realise value from the iron ore component of Havilah’s multi-commodity portfolio without distracting from our primary focus on the copper growth strategy - enhanced by cobalt.

“SIMEC Mining’s solid track record, demonstrated capability, and extensive resources available to execute this study make them an ideal partner on these projects.”

Both projects have JORC-compliant resource estimates for their iron ore deposits.

READ: Havilah Resources’ shares ride higher after establishing large copper-gold reserve

Earlier this week, Havilah revealed a maiden ore reserve of 474,000 tonnes of contained copper and 1.41 million ounces of gold for its Kalkaroo copper-cobalt-gold project in South Australia.

The ore reserve was independently estimated by mining consultants, RPMGlobal Asia Ltd, as part of the Kalkaroo preliminary pre-feasibility study (PFS) report.

Importantly, the maiden ore reserve establishes the Kalkaroo project as the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis.

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Wed, 20 Jun 2018 12:49:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199182/havilah-resources-teams-up-to-evaluate-iron-ore-projects-199182.html
<![CDATA[News - Havilah Resources’ shares ride higher after establishing large copper-gold reserve ]]> https://www.proactiveinvestors.com.au/companies/news/198992/havilah-resources-shares-ride-higher-after-establishing-large-copper-gold-reserve-198992.html Havilah Resources Ltd (ASX:HAV) has revealed a maiden ore reserve of 474,000 tonnes of contained copper and 1.41 million ounces of gold for its Kalkaroo copper-cobalt-gold project in South Australia.

The ore reserve was independently estimated by mining consultants, RPMGlobal Asia Ltd, as part of the Kalkaroo preliminary pre-feasibility study (PFS) report.

Importantly, the maiden ore reserve establishes the Kalkaroo project as the largest undeveloped open pit copper-gold deposit in Australia on a copper-equivalent ore reserve basis.

READ: Havilah Resources signs $14.7 million divestment deal to focus on copper-cobalt assets

Kalkaroo is larger than any other Australian based undeveloped open pit copper deposit and is second in size only to the Productora deposit in Chile amongst its ASX listed copper peers.

 

Furthermore, Kalkaroo’s copper-equivalent grade of 0.74%, which is enhanced by a material gold credit, exceeds that of its comparable size Australian based peers.

The gold serves as a natural hedge, with copper and gold prices often being in opposite metal price cycles, which potentially lowers the inherent risk of the project.

90% of the ore reserves are of proved status

An outstanding attribute of Kalkaroo is the high potential for discovery of additional resources, given that the Kalkaroo deposit is not closed off on any drill section either along strike or down dip.

Three separate nearby prospects, each with well mineralised drill intercepts, can also potentially add appreciable ore feed, if converted to resources by further drilling.

It is worth noting that 90% of the ore reserves are of proved status, giving sufficient confidence in the reserves to be utilised for detailed feasibility planning with further exploration drilling unlikely to be required within the currently defined pit limits.

Incorporating cobalt resources into the project

Havilah is presently working on a revised PFS with RPMGlobal to ensure that the final PFS captures the full value of the Kalkaroo project.

This includes Incorporation of cobalt resources and pyrite tails into the economic model and improving some of the metal recoveries.

Havilah chief executive officer Walter Richards said: “Kalkaroo’s ore reserve clearly indicates the significant value of this copper-cobalt-gold project.

“The large ore reserve estimate highlights Kalkaroo as a standout amongst the very few open pit copper development opportunities presently available in Australia.

“Kalkaroo is a robust copper-cobalt-gold project, with a value multiple many times higher than Havilah’s current market capitalisation.”

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Mon, 18 Jun 2018 13:43:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198992/havilah-resources-shares-ride-higher-after-establishing-large-copper-gold-reserve-198992.html
<![CDATA[News - Havilah Resources outlines succession planning following milestone achievement ]]> https://www.proactiveinvestors.com.au/companies/news/198317/havilah-resources-outlines-succession-planning-following-milestone-achievement-198317.html Havilah Resources Ltd’s (ASX:HAV) chairman, Kenneth Williams, has indicated his plan to retire at the 2018 annual general meeting later this year.

Williams was appointed as an independent non-executive director in November 2003 and elected as chairman in November 2013.

Williams said: “In my five years as Chairman, Havilah was granted its first mining lease, began its first mine and recently announced its first divestment transaction to begin the process of realising value from its multi- commodity project portfolio.

“Completion of the sale of the North Portia project, which I consider to be an outstanding milestone achievement, will put Havilah in a much stronger position to focus on realisation of value for the Murooroo and Kalkaroo copper-cobalt-gold projects.

READ: Havilah Resources signs $14.7 million divestment deal to focus on copper-cobalt assets

“Given this, I believe that now is an appropriate time to refresh and re-invigorate the board”

Accordingly, Havilah is now seeking a replacement director with a suitable background in processing, mining, and project management and delivery to complement the existing geological skills of Dr Chris Giles and the legal and commercial skills of Mark Stewart.

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Wed, 06 Jun 2018 10:53:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198317/havilah-resources-outlines-succession-planning-following-milestone-achievement-198317.html