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

The company’s next step is to carry out an infill resource drilling, with the objective of defining a JORC resource as part of the planned prefeasibility studies.
shares rising chart
Havilah shares are trading about 27% higher intra-day, at 16 cents.

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

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