Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in HAV?
Havilah Resources Ltd: THE INVESTMENT CASE
INVESTMENT OVERVIEW

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

One of Australia’s few potential cobalt producers from sulphide-based deposits, where cobalt production is underpinned by copper and gold.
Cobalt sample on the periodic table
INVESTMENT OVERVIEW: HAV The Big Picture
Cobalt economics are based on sulphide ores, favourable logistics and low-cost open pit mining

Havilah Resources Ltd (ASX:HAV) intends adding cobalt icing to its copper cake with appreciable cobalt resources in its sulphide copper projects in South Australia.

The company is one of the few potential Australian cobalt producers from sulphide-based deposits, where cobalt production is underpinned by copper and gold.

It boasts the country’s largest undeveloped copper sulphide resources at its projects near the established mining centre of Broken Hill and cobalt provides upside to project economics.

Cobalt resources in three deposits

There is a high relative proportion of cobalt in the Mutooroo sulphide deposit while cobalt makes up a valuable component of the Kalkaroo and North Portia copper deposits, along with gold.

Solid cobalt economics are based on sulphide ores, favourable logistics and low-cost open pit mining, supported by low sovereign risk owing to South Australia being a safe legal jurisdiction.

Havilah believes it is well positioned at the right time in the right commodity cycle with the right commodities, right country and right geology.

READ: Havilah Resources returns high-grade cobalt in samples from Scorpion prospect

Primary cobalt source Mutooroo contains 8,400 tonnes along with 195,000 tonnes of copper and 44,600 ounces of gold with potential to add multiples to the resource down dip and along strike.

The current JORC resource at this high copper and cobalt grade massive sulphide deposit covers less than half of the known lode outcrop.

It is a shallow deposit with less than 30 metres to sulphide ore.

READ: Havilah Resources acquires tenement strategic to iron ore and cobalt deposits

Mutooroo Cobalt District is under-explored and the company aims to find further resources in shear and lode structures identified by aeromagnetics and airborne EM geophysics.

Numerous prospects from the 1960s have ore-grade copper drilling intersections but these were not assayed for associated cobalt and gold.

Havilah’s initial objective at Mutooroo is to develop a conceptual 7-year open pit design to 130 metres depth with potential for expansion both along strike and at depth.

Investigating recovery options

The company is investigating cobalt recovery options from cobaltian pyrite and is focused on completing a pre-feasibility study (PFS), mine permitting and resource extension drilling.

Kalkaroo contains 1.1 million tonnes of copper, 23,200 tonnes of cobalt and 3.1 million ounces of gold with substantial resource extension upside along strike and down dip.

PFS underway at Kalkaroo

A PFS is underway for this large, long-life, strategically positioned copper-cobalt-gold project within the Curnamona Copper Belt, which has strong geological analogies to the prolific Zambian Copper Belt.

There are substantial inferred resources and the ore body is open in all directions, highlighting the potential to extend mine life.

The belt is more than 200-kilometres long, sparsely drilled and the mineralised horizon contains copper, cobalt, gold, molybdenum, lead and zinc.

Aeromagnetics clearly identifies the prospective mineralised horizon position with shallow drilling follow-up to locate economic mineralisation.

As well as Kalkaroo and North Portia, Havilah has Croziers, Eurinilla Dome and numerous other prospects along the horizon.

READ: Havilah Resources boosts gold resource and adds cobalt to the mix at North Portia

North Portia contains 101,000 tonnes of copper, 600 tonnes of cobalt and 259,000 ounces of gold.

It is a natural extension of the operating Portia Gold Project and is on the same mining lease.

The initial five-year mine life is targeting oxide gold and underlying supergene copper-cobalt-gold sulphides.

There is future mining upside in the underlying primary copper-cobalt-gold sulphide mineralisation.

An MOU has been signed with Portia mining partner CMC to complete PFS and permitting.

Processing technologies

Several technologies are potentially applicable to processing Havilah’s sulphide-hosted cobalt ores - leaching, roasting and a combination of both.

Leaching is well proven on similar pyritic ores and is being tested on Mutooroo ore.

Lab tests show that roasting is also a viable process with valuable by-products of sulphuric acid and cogenerated electricity

The combination method is being investigated and Cobalt Blue Holdings Ltd’s (ASX:COB) proprietary cobalt recovery method developed for similar ore is being tested.

View full HAV profile View Profile

Havilah Resources Ltd Timeline

Related Articles

map of project area
March 26 2018
The prospect of an IOCG deposit, similar to Olympic Dam, has ignited interest in the stock.
1534333583_Thunderstruck---Bryce-Bradley.jpg
August 15 2018
Thunderstruck has an attractive and diverse portfolio of assets in Fiji
1532518239_Vanadium-electrolyte-batteries.jpg
September 13 2018
The vanadium price is riding high, and so is Bushveld Minerals

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use