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Havilah Resources sets iron ore exploration target for Grants Basin

Published: 11:44 03 Apr 2019 AEDT

Drilling at Grants project
SIMEC Mining is undertaking due diligence on the project

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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