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.
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.