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.
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.”