Havilah Resources Ltd (ASX:HAV) will be watching intently the progress of Benagerie Gold & Copper Pty Ltd (BGC) with the first diamond drill hole underway on the promising Bassanio IOCG target in northeast South Australia.
This hole has a planned depth of at least 500 metres in order to test both the gravity and magnetic features of particular exploration interest.
Havilah is leveraged to this drilling after recently signing an exploration agreement with BGC, a wholly-owned subsidiary of Consolidated Mining and Civil Pty Ltd (CMC), covering the Bassanio target.
This agreement provides for BGC to complete two diamond drill holes at pre-agreed target positions at Bassanio during the first year.
During the second year, BGC must complete at least 5,000 metres of drilling at Bassanio with the objective of establishing a 500,000-tonne copper equivalent measured and indicated JORC resource using a cut-off grade of 0.4% copper.
Net Smelter Royalty
Havilah retains a 10.5% Net Smelter Return royalty from any mining production.
Havilah’s technical director Dr Chris Giles said, “This exploration arrangement is consistent with Havilah’s strategy of progressing its prospects and projects in a prudent manner that sees them advanced with external funding and leaves Havilah shareholders with a fair residual benefit in the event of success.”
Three holes planned
Detailed 3D inversion modelling of the available high-quality aeromagnetic and gravity data has been carried out over the area of Bassanio, which covers approximately 1500 metres x 800 metres.
Initially, three holes have been planned and sited in order to provide the best tests of the interpreted key target zones.
In most cases, these are at or near coincident gravity and magnetic features within the greater Bassanio target area.
Bassanio is a gravity-magnetic feature in the core of the regional Benagerie dome above a large granite body at depth.
Previous Havilah diamond drill hole BADD009 was directed at the shallower eastern portion of Bassanio and intersected prospective brecciated and fractured iron-rich rocks, with many characteristics of IOCG mineralisation.