Havilah Resources (ASX:HAV) and joint venture partner MMG Limited (HKSE:1208) have discovered new copper mineralisation at the Birksgate prospect in South Australia.
Assays included including 10.9 metres at 0.84% copper, 0.64 g/t gold from 209.5 metres, 23.8 metres at 0.51% copper from 207.5 metres, and 6 metres at 5.3% copper from 157 metres.
This drilling is in the same region where last year MMG intersected hematite alteration that is typically associated with hydrothermal brecciation.
Such features are commonly observed in the alteration zones marginal to Iron Oxide Copper Gold deposits, for example in the vicinity of the giant Olympic Dam deposit.
Anomalous uranium and light rare earth element association in one of the drillholes supports the IOCG association.
The target was an undrilled 600 metre long magnetic anomaly lying some 200 metres beneath younger cover rocks, and there are a number of similar magnetic anomalies yet to be drilled.
MMG an international upstream base metals company and one of the world's largest producers of zinc as well as a substantial producer of copper, lead, gold and silver.
MMG Limited owns and operates the Sepon mine in Laos, the Kinsevere mine in the Democratic Republic of the Congo and the Century, Golden Grove and Rosebery mines in Australia.
Under the Option and Joint Venture Agreement, MMG may secure a 60% participating interest in any development projects identified within Havilah’s licences, provided that it has spent at least $12 million within a five year period.
A development project will be operated under a normal joint venture arrangement in which Havilah may contribute to maintain its 40% participating interest, or dilute to a 20% project interest carried through to the mine development.
Havilah will retain 100% ownership of the exploration licences and may continue with exploration of them on its own account.
The company holds $1.25 million in cash and is capitalised at $18 million.
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