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Havilah Resources to deliver new studies and resource definition work to market

Snapshot

The company is focused on increasing the attractiveness of its projects by delivering pre-feasibility studies and mineral resource updates.

Havilah Resources Ltd - Havilah Resources to deliver new studies and resource definition work to market

Quick facts: Havilah Resources Ltd

Price: 0.093 AUD

ASX:HAV
Market: ASX
Market Cap: $23.71 m
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  • Havilah has multiple commodities in its portfolio focused on northeast South Australia in the Broken Hill area. 
  • The company is focused on increasing project attractiveness and is open to selling off or farming out appreciate projects to deliver improved shareholder value. 
  • Two projects are likely to have new PFS studies in the coming horizon, as the company refines results. 

The company is being redirected to …  maximise the value of the multi-commodity mineral portfolio and to make new mineral discoveries in a way that generates sustainable share price appreciation.

Havilah Resources directors Victor Previn, Dr Simon Gray and Chris Giles, November 2019

What does Havilah Resources do?

Havilah Resources Ltd (ASX:HAV) (FRA:FWL) is a South Australian explorer with ground near the traditional mining centre of Broken Hill.

The South Australian company’s corporate strategy is to increase shareholder value by progressing pre-feasibility studies (PFS) at its projects and embarking on an active drilling program to increase shareholder value.

Adelaide-based Havilah’s project list includes ground prospective for copper, nickel, gold, cobalt, iron ore and tin.

The company’s two lead projects are in the copper space and the company is hopeful of uplifts in value with improved commodity cycles.

It plans to divest of projects when strategic, by selling or farming out appreciated assets.

Who leads Havilah Resources?

The company is led by an experienced board of directors and management team.

Havilah’s directors include professional engineer and non-executive director Victor Previn, exploration geologist and technical director Dr Simon Gray and director and accountant Chris Giles.

What does Havilah Resources own?

Among Havilah’s key assets is the Kalkaroo Copper-Gold-Cobalt Project in northeast South Australia.

Considered the flagship project for the company, a JORC resource of 1.1 million tonnes of copper, 3.15 million ounces of gold and 23,200 tonnes of cobalt has been estimated for the project to date.

The resources are found in the measured, indicated and inferred mineral resource categories and an update to the PFS is in progress.

A previous PFS for the project modelled a large-scale open pit copper-gold mine with average yearly production of 30,000 tonnes of copper and 72,000 ounces of gold as recovered metal over a 13-year mine life.

The June 2017 study by RPMGlobal Asia Limited for Wanbao Mining Limited was based on a smaller resource estimate and had an estimated pre-tax net present value (NPV7.5) of A$564 million calculated at a 7.5% discount.

Kalkaroo’s internal rate of return of 26% was based on a US$2.89 a pound copper price, a US$1,200 an ounce gold price and an Australian-US dollar exchange rate of 75 Australian cents.

Pre-production capital expenditure has been estimated at A$332 million.

Another project for the company features the lode-style Mutooroo massive sulphide copper-cobalt deposit about 60 kilometres west of Broken Hill.

The Mutooroo Copper-Cobalt Project has a measured, indicated and inferred JORC resource of 13.1 million tonnes of 1.48% copper for a total contained 195,000 tonnes of copper, 8,400 tonnes of cobalt, 44,600 ounces of gold.

Havilah hopes to wrap up a PFS for the project that narrows the focus to a standalone open pit copper deposit.

The study would highlight underground mining potential.

Other project efforts for the company are the Grants Iron Ore Project, an hour from Broken Hill, and the conceptual copper-gold Jupiter magnetotelluric (MT) anomaly target, also in northeast South Australia.

What are Havilah Resources’ next steps?

The Broken Hill area player is finishing off an update to its Kalkaroo PFS.

Havilah’s Kalkaroo update will bring in new metallurgical results, particularly those that relate to improving gold recoveries and pyrite concentrate sales.

The company is also hoping to delineate a resource at Grants Iron Ore Project of more than 500 million tonnes.

Havilah’s resource would allow for open pit design work that could focus on ensuring minimal waste.

At Jupiter, drilling of high-conviction copper-gold exploration targets and better geophysical definition have been a focus.

Results of a ground gravity survey over the Jupiter MT target by experienced geophysical contractor Haines Surveys is expected back in the next few months.

Inflection points

  • A Kalkaroo PFS update
  • Grants West End resource definition, allowing for open pit design work to kick-off
  • A Mutooroo Copper-Cobalt Project PFS
  • Continued results from surveying and drilling of targets at Jupiter MT anomaly target, including December-January results from Haines ground gravity survey

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