Proactiveinvestors United Kingdom Havilah Resources Ltd https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Havilah Resources Ltd RSS feed en Wed, 26 Jun 2019 13:31:31 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Havilah Resources Ltd reveals long life gold mining potential of Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155750/havilah-resources-ltd-reveals-long-life-gold-mining-potential-of-portia-70178.html Havilah Resources Ltd (ASX:HAV) latest drilling has supported the potential that the company's Portia Gold Mine in South Australia could transition to a long life gold mining operation.

High grade bedrock gold drilling intersections from the southern extensions yielded highlights such as: 6 metres of 53.6g/t gold from 68 metres; and 13 metres of 8.4g/t gold from 79 metres.

These results corroborate earlier high grade bedrock intersections in this vicinity, such as: 26 metres of 15.4g/t gold from 75 metres; and 13 metres at 33.5g/t gold from 84 metres.


Dr Chris Giles, managing director, commented:

“While we have always suspected on geological grounds that Portia harboured something much larger at depth, it is satisfying to now have the indicative physical evidence before our eyes.

“We are very familiar with the vein/replacement style of mineralisation we are now seeing exposed at Portia, from Kalkaroo and many other prospects we have drilled in the region.

“Experience tells us that such mineralised systems tend to be wide and strike and depth persistent."

Given that the company now have a much clearer picture from mine exposures, its forward drill targeting can be more precisely directed.

Giles added: “We have removed the bulk of the overburden, have a proven operational gold plant and will soon be debt free, so any incremental increase in gold recovered will materially affect our cash flow in a positive way.”


Work flow

- Drill-testing the extent of the gold mineralisation from south of Portia (including the Lorenzo prospect) all the way through to North Portia and beyond – a distance of more than 2 kilometres within the current mining lease.

- Revising mine plans and mine designs to incorporate new bedrock resources as they are defined by drilling.

- Permitting work to ensure timely delivery of permits to allow expanded mining plans to proceed in an orderly manner.


Analysis

Revisions to the mining plan will transform the Portia Gold Mine into a long life mining operation, and will outline the potential for sustained cash flow beyond its current life of six months.

This will require reworking of the current mine design and the longer term mine plans going forward to ensure the full potential of the Portia gold deposit is unlocked.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 02 Aug 2016 08:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155750/havilah-resources-ltd-reveals-long-life-gold-mining-potential-of-portia-70178.html
<![CDATA[News - Havilah Resources Ltd's gold production success provides debt payments ]]> https://www.proactiveinvestors.co.uk/companies/news/155749/havilah-resources-ltds-gold-production-success-provides-debt-payments-70161.html Havilah Resources Ltd (ASX:HAV) gold production success at the Portia Gold Mine northwest of Broken Hill, is allowing the company to reduce its debts.

Havilah has now made its first debt repayment of $0.5 million on the Investec Group Loan Facility, with the outstanding reduced to $3.5 million.

The company has outlined a series of additional payments are planned in August based on bullion that is currently being refined.

With the construction of the Portia Gold Mine processing plant and the ramp up to the first production of gold the company drew down $4 million of the $6 million facility.

This repayment is made five months before the first scheduled repayment is due.

Dr Chris Giles, managing director, commented:

“We are very grateful to Investec for its support over the last 12 months, which provided us with the funds to construct the processing plant.

“This first repayment, well before it is due, represents the achievement of yet another milestone.

“Production of gold has ramped up over the last few weeks and we recently had a 40 kg gold pour in a single day which has allowed Havilah to commence repayment of its modest debt much earlier than anticipated.”

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 01 Aug 2016 17:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155749/havilah-resources-ltds-gold-production-success-provides-debt-payments-70161.html
<![CDATA[News - Havilah Resources Ltd delivers $2M golden pay day from Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155748/havilah-resources-ltd-delivers-2m-golden-pay-day-from-portia-69963.html Havilah Resources Ltd (ASX:HAV) continues to ramp up gold production from its Portia Gold Mine northwest of Broken Hill with the pouring of 40 kilograms of gold.

The gold bars are estimated to be worth $2 million at current gold prices representing the highest single gold pour to date.

Open pit mining has progressed to the high grade portion of the deposit.

Steady progress has been made on increasing the ore throughput rates with 24 hour operation and improved availability of the processing plant.

Dr Chris Giles, managing director, commented: “A few weeks ago we reported our first million dollars of gold income, now we have achieved double that in just one day.

“Portia is living up to our expectations both in terms of gold grade reconciliation and grade distribution.”


Portia gold project

Portia is Havilah's first producing project and contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Mining commenced in March, 2015 with experienced Broken Hill contractor, Consolidated Mining and Civil under an innovative revenue sharing funding agreement.

Portia's first ore was accessed 3.5 months ahead of schedule, which has led to the stockpile of high grade gold ore ready for processing.

Over the last week alone Over the last week Havilah’s mining partner delivered more than 14,000 tonnes of high grade ore and 20,000 tonnes of medium grade ore to the processing plant stockpile.

Portia gold mineralisation continues to the south beyond the current open pit design.


Analysis

Pouring $2 million of gold in a single day highlights the cash generating opportunity Portia is for Havilah.

As a producer, Havilah is directly leveraged to a rising AUD gold price, currently trading strongly at A$1,760 per ounce.

Havilah will be able to potentially fund exploration, development and expansion through revenue received from gold sales.

Shares in Havilah are up 70% year to date, trading at $0.40 as the company continues to deliver results on and ahead of schedule.

Outside of Portia, Havilah is in the process of generating a Probable Ore Reserve for the Kalkaroo Copper-Gold Project in South Australia.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 21 Jul 2016 14:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155748/havilah-resources-ltd-delivers-2m-golden-pay-day-from-portia-69963.html
<![CDATA[News - Havilah Resources Ltd banks first payment from Portia gold sales ]]> https://www.proactiveinvestors.co.uk/companies/news/155747/havilah-resources-ltd-banks-first-payment-from-portia-gold-sales-69078.html Havilah Resources Ltd (ASX:HAV) has received $266,000, marking the first payment received from refined gold produced from the Portia Gold Mine,  located in South Australia.

The company sold about 165 ounces of gold under the 50% revenue sharing agreement with mining contractor, Consolidated Mining and Civil.

Havilah recently received an award for this innovative funding model that enabled Portia to come to fruition.

Additional gold shipments have been dispatched and payments will be received in due course.

Dr Chris Giles, managing director commented: "This is the first mining income received by Havilah and is the most significant financial milestone achieved in our history.

“We have now succeeded in executing the entire process from exploration through mining, processing and sale of gold, which is a great tribute to the persistence and dedication of our staff over many years”.


Portia gold project

Portia is Havilah's first producing project and contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Mining commenced in March, 2015 with experienced Broken Hill contractor, Consolidated Mining and Civil under an innovative revenue sharing funding agreement.

Portia's first ore was accessed 3.5 months ahead of schedule, which has led to the stockpile of high grade gold ore ready for processing.

Portia gold mineralisation continues to the south beyond the current open pit design.

Havilah plans to carry out a targeted drilling program commencing in early June to gain an improved understanding of the continuity of the mineralisation towards the south.


Analysis

Havilah will now be able to partly fund exploration, development and expansion through revenue received from gold sales.

Havilah's successful development of Portia was recently recognised through an award presented at the South Australian Chamber of Mines and Energy's (SACOME's) annual resources industry dinner.

As a producer, Havilah is directly leveraged to a rising AUD gold price, currently trading at A$1,690 per ounce.

Shares in Havilah are trading around $0.38, up 60% year to date as the company continues to deliver results on and ahead of schedule.

Havilah is now in the process of generating a Probable Ore Reserve for the Kalkaroo Copper-Gold Project in South Australia.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 07 Jun 2016 10:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155747/havilah-resources-ltd-banks-first-payment-from-portia-gold-sales-69078.html
<![CDATA[News - Havilah Resources Ltd's transition to gold producer at Portia complete ]]> https://www.proactiveinvestors.co.uk/companies/news/155746/havilah-resources-ltds-transition-to-gold-producer-at-portia-complete-68527.html Havilah Resources Ltd (ASX:HAV) has produced its first bar of gold bullion from its Portia gold mine, located in South Australia.

The trial gold pour came from gold concentrate produced during plant commissioning phase.

Dr Chris Giles, managing director, commented: “We are delighted to have poured our first gold, just over 13 months after starting mining.

“We have succeeded in executing the entire process from exploration to mining to processing and pouring gold, which is a great tribute to the skill of our dedicated team and the support of our shareholders.

“This represents Havilah’s first mining production, which is a great achievement and milestone for our company”.


Portia gold project

Portia is Havilah's first producing project and contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Mining commenced in March, 2015 with experienced Broken Hill contractor, Consolidated Mining and Civil (CMC) under an innovative revenue sharing funding agreement.

Portia's first ore was accessed 3.5 months ahead of schedule, which has led to the stockpile of high grade gold ore ready for processing.

Havilah's geologists have previously identified significant gold in the bedrock beneath the interim sub-pit. Follow up work has been flagged to assess the economic feasibility of the material.


Analysis

As a producer, Havilah is directly leveraged to a rising AUD gold price, currently trading at A$1,730 per ounce.

Shares in Havilah are trading around $0.455, up 93% year to date as the company continues to deliver results on and ahead of schedule.

With the company now successfully producing gold at Portia, an update on the development progress of Havilah's exploration portfolio is expected.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Tue, 10 May 2016 13:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155746/havilah-resources-ltds-transition-to-gold-producer-at-portia-complete-68527.html
<![CDATA[News - Havilah Resources Ltd plans first gold pour this week from Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155745/havilah-resources-ltd-plans-first-gold-pour-this-week-from-portia-68499.html Havilah Resources Ltd (ASX:HAV) will resume mining later this week following a recent pit wall slip at the Portia gold mine located circa 90 kilometres north west of Broken Hill.

The mining downtime has had no effect on production due to the gold plant being able to treat already stockpiled ore.

The processing plant continues to process high grade ore and is being optimised to maximise processing.

Havilah expects to complete its first gold pour this week.

Dr Chris Giles, managing director, commented: “We are pleased that CMC can continue mining largely in accordance with the current mine design with an acceptable level of safety.

“Our gold plant continues to treat stockpiled ore and is producing gold concentrate over a wide size range, which we aim to smelt this week.

“Our operating team have been working tirelessly on optimising plant performance and maximising throughput and plant availability."


Background

Portia is Havilah's most progressed project and contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Mining commenced in March, 2015 with experienced Broken Hill contractor, Consolidated Mining and Civil (CMC)  under an innovative revenue sharing funding agreement.

As a matter of prudence, CMC decided to recently temporarily suspend mining operations while they investigated and updated past geotechnical models following the pit wall slip.

It has been determined that mining can safely proceed down to approximately 35 metres below surface with no change to the current design.


Processing plant

After two weeks of commissioning, the processing plant is now processing high grade gold ore.

The commissioning phase has progressed from running water to treating low grade ore and finally treating high grade ore.

Ore is being sourced from the stockpile that came from mining the interim sub-pit.

The stockpile contains sufficient material to last several weeks.


Analysis

Havilah Resources Ltd plans first gold pour this week from its Portia gold mine, located 90 kilometres north west of Broken Hill.

Havilah continues to benefit from a strong AUD gold price, which has risen A$50 over the past week to be trading at circa A$1,750 per ounce.

Shares in Havilah are trading around $0.465, up nearly 100% year to date as the company continues to deliver results on and ahead of schedule.

News flow surrounding the company's maiden gold pour is expected within the week.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 09 May 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155745/havilah-resources-ltd-plans-first-gold-pour-this-week-from-portia-68499.html
<![CDATA[News - Havilah Resources Ltd processes first high grade gold ore at Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155744/havilah-resources-ltd-processes-first-high-grade-gold-ore-at-portia-68384.html Havilah Resources Ltd (ASX:HAV) recently became Australia's newest gold producer through the processing of ore at the Portia gold project located circa 90 kilometres north west of Broken Hill.

After two weeks of commissioning, the processing plant is now processing high grade gold ore. 

The commissioning phase has progressed from running water to treating low grade ore and finally treating high grade ore.

Ore is being sourced from the stockpile that came from mining the interim sub-pit.

The stockpile contains sufficient material to last several weeks.

Dr Chris Giles, managing director, commented: “We are pleased to have commissioned our gold plant and see it operating according to design."

“Although I have often said it is a “simple” gravity plant, there is no room for error if we are to maximise gold recoveries."


Portia gold project

Portia is Havilah's most progressed project and contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Since mining commenced in March 2015, overburden was removed by an experienced Broken Hill contractor under an innovative revenue sharing funding agreement.

Portia's first ore was accessed 3.5 months ahead of schedule, which has led to the stockpile of 10,000 tonnes of high grade gold ore ready for processing.

The Portia open pit wall has recently experienced a slip in an area where ore was previously mined.

Havilah said that this area had been showing signs of movement for several months and was being closely monitored.

As a matter of prudence, Consolidated Mining and Civil has decided to temporarily suspend their mining operations while they investigate and update past geotechnical models.


Analysis

While the slip is a setback, it will not affect gold production due to the 10,000 tonnes of stockpiled ore.

Havilah continues to benefit from a strong AUD gold price, which has recently broken through A$1,700 per ounce.

Shares in Havilah are trading around $0.46, up nearly 100% year to date as the company continues to deliver results on and ahead of schedule.

Havilah's geologists have identified significant gold in the bedrock beneath the interim sub-pit. Follow up work to assess the economic feasibility of the material will be watch closely.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 02 May 2016 11:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155744/havilah-resources-ltd-processes-first-high-grade-gold-ore-at-portia-68384.html
<![CDATA[News - Havilah Resources Ltd is Australia's newest gold producer ]]> https://www.proactiveinvestors.co.uk/companies/news/155743/havilah-resources-ltd-is-australias-newest-gold-producer-68216.html Havilah Resources Ltd (ASX:HAV) have fed their first ore through the processing plant at the Portia gold project located circa 90 kilometres north west of Broken Hill.

This follows recent news of the first ore being delivered to surface and the commissioning of the nearby processing plant.

Gold production remains imminent with high grade gold ore stock-piled ready for processing.

Expected cash flow over the next six months is set to be transformational for the company.

Dr Chris Giles, managing director, commented: "It is very pleasing to have achieved completion of plant construction and to see ore going through the process plant."

"Once we are satisfied that the plant is operating according to design on the low grade ore, we will move to processing the high grade ore stockpile in order to maximise gold production over the next few weeks”.


Portia gold project

Portia contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Portia is Havilah's most progressed project with mining having commenced in March 2015.

Over the following 12 months overburden was removed by an experienced Broken Hill contractor under an innovative revenue sharing funding agreement.

Portia's first ore was accessed 3.5 months ahead of schedule, which has led to the stockpile of 10,000 tonnes of high grade gold ore ready for processing.

Havilah's geologists have recently identified significant gold in the bedrock beneath the interim sub-pit. Follow up work will be done to assess the economic feasibility of the material.


Processing plant

Construction, start-up and commissioning of the processing plant has been completed on schedule.

The plant is presently being commissioned on low grade ore to identify and address any operational issues with the objective of optimising the plant ahead of commencement of processing of high grade ore.

Ore will be sourced from the stockpile generated from mining the interim subā€pit.


Analysis

Shares in Havilah have rallied to $0.43 after starting 2016 at $0.23 as the company continues to deliver results on and ahead of schedule.

Havilah is set to benefit from a strong AUD gold price, which is currently trading at circa A$1,600 per ounce and the AUD gold price will remain a key catalyst for the stock.

Follow up news on the gold that has been found in the bedrock beneath the interim sub-pit will be watched closely.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 21 Apr 2016 10:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155743/havilah-resources-ltd-is-australias-newest-gold-producer-68216.html
<![CDATA[News - Havilah Resources Ltd mines gold ready for processing at Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155742/havilah-resources-ltd-mines-gold-ready-for-processing-at-portia-67800.html Havilah Resources Ltd (ASX:HAV) has successfully completed the first phase of gold ore mining from the Portia interim sub-pit, which is located northeast of Broken Hill.

Mining is proceeding according to plan and Havilah said that the geologists could readily visually identify the high grade gold ore layer.

This allowed for very selective mining with limited dilution.

The lower grade material above and below the main ore zone have also been stockpiled on the ore pad for processing at a later stage.

Dr Chris Giles, managing director, commented:

“As the result of mining this interim sub-pit some three and a half months ahead of schedule, we now have a stockpile of gold ore available and ready for processing as soon as the processing plant is commissioned over the next few weeks.

“We have also proven it is possible to successfully and safely mine through the overburden and deal with the groundwater to allow us to selectively dig out the high grade ore layer some 75 metres below surface, which is no mean feat.

“In the meantime, Consolidated Mining & Civil are rapidly removing the overburden on the western side of the open pit, which will expose the ore layer in the remainder of the open pit within the next two months.”


Processing plant

Roughly ten thousand tonnes of high grade ore and considerably more lower grade ore was mined and stockpiled on the ore pad adjacent to the processing plant.

Construction of the processing plant is progressing as planned with the continuing expectation of start-up and commissioning by the middle of April.


Analysis

Shares in Havilah have doubled in value since late-January 2016 to around $0.40, as the company continues to progress Portia ahead of schedule.

Even with the increase, Havilah remains one of our top commodity picks for 2016.

The key catalyst will be the commissioning of the processing plant over the next few weeks.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Thu, 31 Mar 2016 12:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/155742/havilah-resources-ltd-mines-gold-ready-for-processing-at-portia-67800.html
<![CDATA[News - Havilah Resources Ltd mines first high-grade gold ore from Portia open pit ]]> https://www.proactiveinvestors.co.uk/companies/news/155741/havilah-resources-ltd-mines-first-high-grade-gold-ore-from-portia-open-pit-67604.html Havilah Resources Ltd (ASX:HAV) shares continue to receive a positive re-rating on the back of achieving milestones.

The company has now commenced mining the first gold ore at Portia, northeast of Broken Hill, 3.5 months ahead of schedule.

The vastly improved timeline was achieved due to a recent redesign of the mining plan.

By the end of this week it is expected that several thousand tonnes of high grade ore will have been mined and stockpiled on the ore pad adjacent to the processing plant.

Construction of the processing plant is progressing as planned and at this stage is expected to be commissioned by the middle of April.

Havilah shares last traded 6.4% higher at $0.415, but taking a two-month view, the valuation of the company has doubled.


Dr Chris Giles, managing director for Havilah, commented:

“It is pleasing to note that in spite of the numerous challenges presented by the soft clay overburden and ongoing dewatering requirements, mining of the Portia open pit has largely gone according to plan and the ore zone is as expected, which augers well for the remainder of the mining operation.

“Our next major milestone will be commencement of processing of the stockpiled ore, which we expect to achieve during April once construction and commissioning of the processing plant is completed.”


Consolidated Mining & Civil Pty Ltd's activities

Since commencement of mining operations on 30 March 2015, Havilah’s mining contracting partner, Consolidated Mining & Civil Pty Ltd (CMC) has removed more than 70 metres of overburden and last week mined to within 5 metres of the high grade ore horizon.

Havilah drilled 13 holes from this temporary pit floor in order to accurately determine the top and bottom of the high grade ore surface.

This information was then entered into the GPS controller on the 120 tonne excavator that allows the operator to mine the high grade ore horizon with some precision, resulting in minimal dilution from lower grade material above and below.

Given the potential value of the high grade ore, Havilah’s geologists are continually monitoring the mining to ensure it remains on track and that each truck load of ore material is delivered to the correct location on the stockpile.


Analysis

On 3rd March 2016, Proactive Investors Australia said:

"Havilah's share of gross cash flow generated from the mine could amount to $40 million in 2016 at current gold prices and relative to its market cap of circa $50 million is undervalued as the Portia gold mine is fully funded."

Since then the company has been a top ASX performer, with its valuation passing $70 million.

Havilah remains one of our top commodity picks for 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 18 Mar 2016 12:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/155741/havilah-resources-ltd-mines-first-high-grade-gold-ore-from-portia-open-pit-67604.html
<![CDATA[News - Havilah Resources Ltd sells forward 300 ounces of Portia Gold ]]> https://www.proactiveinvestors.co.uk/companies/news/155740/havilah-resources-ltd-sells-forward-300-ounces-of-portia-gold-67460.html Havilah Resources Ltd (ASX:HAV) has earned first revenues from the sale of 300 ounces of gold from the Portia gold project to a long term shareholder ahead of first gold production.

The gold price for the sale was struck at A$1,691 per ounce free of costs resulting in $0.5 million in forward revenue received by Havilah.

The unrefined gold, with individual masses with a diameter of more than 1 centimetre will be delivered by agreement with the purchaser.

The obligation will be satisfied from run of mine gold production if no plus 1 centimetre masses are available.

This prepayment for future gold delivery is secured by the contingent obligation to issue 1.6 million Havilah shares (at a fixed price of 32.25 cents).

Dr Chris Giles, managing director, commented:

"Portia is a unique deposit and there is potential for some nuggets to be mined, although the size and quantity will only become clear once processing of ore commences.

"We have concluded this transaction with a long time shareholder who has demonstrated his faith in the project by entering into this gold sale in advance of first gold production.

"The price received of A$1,691 per ounce supplements the 10,000 ounces of gold already hedged at A$1,618."


Portia Gold Project

Portia provides a low-cost low-risk, entry point into production, with commencement in July/August 2016 using a simple gravity recovery operation.

On forecast production levels, this could generate $28 million in free-cash for over a six-month period.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 11 Mar 2016 09:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/155740/havilah-resources-ltd-sells-forward-300-ounces-of-portia-gold-67460.html
<![CDATA[News - Havilah Resources: State One Stockbroking has target price of $0.44 ]]> https://www.proactiveinvestors.co.uk/companies/news/155739/havilah-resources-state-one-stockbroking-has-target-price-of-044-67344.html Near term gold producer Havilah Resources (ASX:HAV) is the subject of a research report from State One Stockbroking. The current share price is $0.33.

The broker has a Speculative Buy rating on the company.


Transitioning to a producer by mid-2016

While Portia is small (355kt at 4.7g/t Au for 67koz), it offers HAV an attractive low-cost, and relatively low-risk, entry point into production. We calculate gold production (from simple gravity recovery) starting in July/August 2016, furnishing some A$28 million in free-cash for the group over a six-month period.

At the same time, management is also moving its flagship Kalkaroo Cu-Au Project (620kt Cu and 2Moz Au Resource) through permitting and feasibility milestones, with a view to securing financing and increasing its appeal to prospective project partners.

Certainly, 2016 is shaping up to be a watershed year for South Australia’s newest gold miner.


Valuation: A$0.44ps with upside potential

Our NPV-derived target price of A$0.44ps (fully-diluted) is underpinned by an NPV valuation of A$28 million (A$0.13ps) for the Portia Gold Mine and A$47m (A$0.22ps) for the Kalkaroo Cu-Au Project. However, we see scope for this valuation to increase significantly.

There is potential to access additional gold below the current optimised open-pit floor at the Portia Gold Mine.

Mining of oxidised ore (3.7Mt) at the adjacent North Portia could extend the simple, low-cost gravity recovery operations at Portia beyond late-2016.

Most importantly, progressively de-risking the Kalkaroo Project in 2016 by completing feasibility studies to BFS status and/or securing financing, could see our 20% risk-weighted project value approach our un-risked project value of A$233m (A$1.10ps).

Our forecast long-term (post FY16E) Australian copper and gold prices are similar to the current spot prices of A$6,525/t and A$1,507/oz respectively. In a 10% higher (A$) commodity price environment, our target price increases by 35% to A$0.59ps.


Corporate activity / valuation per Resource ounce

Our A$94m SOTP valuation for HAV equates to A$14 per Au Eq.

However, the A$46/oz average price (A$63-A$30/oz range) paid in recent corporate transactions indicates the potential upside if HAV becomes an acquisition target - either at a corporate or asset level.

 

Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.

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Fri, 04 Mar 2016 14:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/155739/havilah-resources-state-one-stockbroking-has-target-price-of-044-67344.html
<![CDATA[News - Havilah Resources delivers best ever copper, gold drilling result at North Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155738/havilah-resources-delivers-best-ever-copper-gold-drilling-result-at-north-portia-67315.html Havilah Resources (ASX:HAV) has returned a best ever combined intersection of 32 metres of 3.95% copper and 1.45 g/t gold from a drill hole that tested the grade potential of the North Portia copper-gold resource in South Australia.

The drilling is part of a fast-tracked feasibility study aiming to determine the economic viability of mining the upper oxidised portion of the North Portia deposit as a follow on operation from the adjacent Portia gold mine.

The 82-114 metres downhole intercept was drilled within the existing resource envelope and is positive confirmation of the high grade core of the deposit.

Four other drill holes tested the limits of the economic mineralisation at the up-dip (western) margins of the deposit. These returned sub-economic copper and gold results, but with elevated molybdenum, which future metallurgical test work will determine whether is economically recoverable.

This included results of 12 metres of 1.1 g/t gold and 685 molybdenum from 58-70 metres downhole as well as 29 metre and 38 metre intervals of > 500 ppm molybdenum.

The current total Indicated and Inferred Resource at North Portia is 11.3 million tonnes of 0.89% copper, 0.64 g/t gold and 500ppm molybdenum.

Significantly with an eye to development, there is estimated to be 3.7 million tonnes of mainly oxidised material that is the target of the current mining feasibility study.

Havilah’s managing director, Dr Chris Giles, said:

“Infill drilling of the oxidised portion of the North Portia copper-gold resource has continued to confirm the excellent copper and gold grades within the central part of the resource, while better defining the limits of the economic  grades at the margins of the deposit.

“This information will be vital as we re-estimate the resource tonnage and grade for the oxidised ore and re-design an optimised open pit to capture the bulk of this resource”.


Portia Gold Mine

The new mining plan will see the first gold ore accessed by early April 2016, some three months ahead of the original schedule.

This involves development of an interim sub-pit on the high grade (>9 g/t gold) northern ore zone.

Construction of the processing plant on site has commenced with the assistance of CMC personnel and cranes. All major components of the processing plant are now on site and are being installed ready for commissioning.

The current drilling and metallurgical work at North Portia is a key part the fast-tracked feasibility study aiming to determine the economic viability of mining the upper oxidised portion of the North Portia deposit following on immediately after the Portia gold mine.


Analysis

The best ever combined copper and gold grade will be central to a re-estimate of the resource tonnage and grade to re-design and optimise the open pit to capture the bulk of the North Portia resource.

The copper-gold project is adjacent to Portia Gold mine on the same mining lease, containing 235,000 ounces of gold and 100,000 tonnes of copper in the previously released global resource.

Mining of the oxidised ore could potentially continue on immediately after Portia, to exploit the available infrastructure synergies.

There are a plethora of price catalysts ahead for Havilah with first gold ore accessed at the Portia gold mine by early April 2016, some three months ahead of the original schedule and gold production to commence shortly thereafter.

Havilah's share of gross cash flow generated from the mine could amount to $40 million in 2016 at current gold prices and relative to its market cap of circa $50 million is undervalued as the Portia gold mine is fully funded.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 03 Mar 2016 13:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/155738/havilah-resources-delivers-best-ever-copper-gold-drilling-result-at-north-portia-67315.html
<![CDATA[News - Havilah Resources on gold paved road to early production at Portia ]]> https://www.proactiveinvestors.co.uk/companies/news/155737/havilah-resources-on-gold-paved-road-to-early-production-at-portia-66718.html Havilah Resources (ASX:HAV) is likely to mine gold from the Portia mine as early as April in far eastern South Australia, three months ahead of schedule, bringing forward cash flows from gold sales.

The key has been a new mine plan that reduces the volume of overburden to access first ore at Portia.

Broken Hill mining contractor Consolidated Mining & Civil Pty Ltd has been instrumental in the momentum to produce early gold at Portia.

The revised plan would modify the original whole of pit mining plan to a staged plan that would see development of an interim sub-pit on the high grade zone of >9 g/t gold.

Havilah has a $6 million Investec loan facility which has not needed to be drawn down to date.

At a current Australian dollar gold price of A$1,595 an ounce it remains a good time to bring a mine into production.

However, Havilah took advantage of the spike in the gold price and locked in a realised average price of $1,618 for 40% of Havilah’s share or 10,000 ounces of the production from Portia.

This would take Havilah down the road to achieving $40 million in gross revenue from Portia.

Havilah is not the only string in the bow as it has fast tracked a feasibility study of mining oxidised ore at North Portia immediately following on from Portia.

One thing is for certain, with earlier access to cash flows and the add on North Portia project, Havilah looks to be significantly undervalued with the current share price of $0.21 and market cap of $35 million.


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Wed, 27 Jan 2016 16:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/155737/havilah-resources-on-gold-paved-road-to-early-production-at-portia-66718.html
<![CDATA[News - Havilah Resources uses hedge for certainty of cash flow ]]> https://www.proactiveinvestors.co.uk/companies/news/155736/havilah-resources-uses-hedge-for-certainty-of-cash-flow--65353.html Havilah Resources (ASX:HAV) has taken advantage of a rising Australian Dollar gold price, and locked in sales of 10,000 ounces at A$1,618 per ounce.

A falling Australian Dollar has meant the price of gold, which is traded in U.S. dollars, has climbed.

The gold sales hedged represent 40% of Havilah’s share of the production from the Portia gold Mine, and provide certainty of cash flow.

The mine is located near Broken Hill, and is in an area well serviced by road, rail and labour.

Portia is a unique coarse-grained gold deposit that lies under 75 metres of barren clay overburden, with a simple gravity recovery method for gold.

Havilah has the prospect of generating over $40 million gross in cash flow in 2016.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 30 Oct 2015 13:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/155736/havilah-resources-uses-hedge-for-certainty-of-cash-flow--65353.html
<![CDATA[News - Havilah Resources in new copper discovery at Birksgate ]]> https://www.proactiveinvestors.co.uk/companies/news/62822/havilah-resources-in-new-copper-discovery-at-birksgate-73399.html 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.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 17 Oct 2014 12:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/62822/havilah-resources-in-new-copper-discovery-at-birksgate-73399.html
<![CDATA[News - Havilah Resources: MMG discovers Olympic Dam style IOCG alteration ]]> https://www.proactiveinvestors.co.uk/companies/news/55003/havilah-resources-mmg-discovers-olympic-dam-style-iocg-alteration-65065.html Havilah Resources (ASX:HAV) should trade higher after the discovery of new copper mineralisation at its Croziers Dam prospect, and Olympic Dam style iron ore-copper-gold (IOCG) alteration signatures at other locations within the project in South Australia.

The project is a joint venture with MMG Exploration, a subsidiary of MMG Limited (HKSE 1208), one of the world's largest producers of zinc as well as a substantial producer of copper, lead, gold and silver.

A best intersection of 12.5 metres at 0.46% copper from 213.5 metres was returned depth at the Croziers Dam prospect. 

Dr Chris Giles, managing director for Havilah, said that the discovery of copper bearing skarn on Havilah’s tenements was an exciting new development.

“Apart from the untested potential at the Croziers Dam prospect, there are extensive areas of granite contact on Havilah’s exploration licences that could potentially spawn similar mineralisation.

“The indications of IOCG style alteration are also significant because they are evidence that such mineralised systems were possibly active on the Benagerie Ridge, warranting further drilling of likely targets.”

This drillhole was designed to follow up copper indications in earlier shallow aircore drilling and showed copper anomalism for almost its entire length. 


Croziers Dam

Croziers Dam prospect lies roughly half way between Havilah's Portia and Kalkaroo deposits.

The observed abundance of magnetite and green calc-silicate minerals in association with chalcopyrite in drillcore is indicative of skarn style mineralisation; skarns host some of the world’s largest and richest copper deposits.

MMG drilling also found red hematite alteration often with associated hydrothermal brecciation in four separate diamond drillholes scattered over a wide area. 

Such features are commonly observed in the alteration zones marginal to IOCG deposits, for example in the vicinity of the giant Olympic Dam deposit.


Joint venture agreement

Under the joint venture agreement, MMG may secure a 60% participating interest in any potential development projects that it identifies within Havilah’s exploration licences, provided that it has spent an amount of $12 million within a five year period.


MMG Limited

Havilah's joint venture partner MMG Limited is 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 owns and operates the Lane Xang Minerals Limited Sepon mine in Laos, the Kinsevere mine in the Democratic Republic of the Congo and the Century, Golden Grove and Rosebery mines in Australia.

It also has development projects including Dugald River, a high-grade zinc-lead-silver deposit in northwest Queensland, Australia, and the Izok Corridor base metals project in Nunavut, northwest Canada.


Analysis


The discovery of copper mineralisation and IOCG (Olympic Dam) style alteration signatures at the Croziers Dam prospect is a positive for Havilah Resources given that the exploration risk is carried by MMG Limited, an international upstream base metals company.

In addition, Havilah will retain meaningful exposure to any upside if MMG chooses to secure a 60% participating interest in any potential development projects that it identifies within its exploration licences.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 22 Jan 2014 00:50:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/55003/havilah-resources-mmg-discovers-olympic-dam-style-iocg-alteration-65065.html
<![CDATA[News - Havilah Resources reports on Portia Gold Mine permitting ]]> https://www.proactiveinvestors.co.uk/companies/news/53428/havilah-resources-reports-on-portia-gold-mine-permitting-63399.html Havilah Resources (ASX: HAV) has submitted a revised Program for Environmental Protection and Rehabilitation document for its Portia gold project in South Australia.

This addressed the key issue of disposing excess water generated by dewatering of the Portia open pit with the company proposing to inject the water into the nearby Shylock palaeochannel.

Extensive hydrogeological test work and modelling has demonstrated that its viable under a most likely scenario and that the Shylock palaeochannel could potentially take all excess water from dewatering of the Portia open pit that is not required for processing and other site usage purposes.

Havilah added that while evaporation ponds to achieve the disposal of excess water, it had the disadvantage of a large footprint and potentially increased soil salinity.

This new information was incorporated into the PEPR document, together with additional detail and clarification required on the Project’s water management strategy and proposed tailings storage facility design and operation.

The design modifications for the tailings storage facility are likely to save Havilah significant capital expenditure, while eliminating the need for evaporation ponds should considerably reduce rehabilitation costs.

The document submitted to the Department for Manufacturing, Innovation, Trade, Resources and Energy will allow Government regulators to now re-commence regulatory assessment and approval of the Portia project.

Portia

Portia has an Inferred Resource of 67,000 ounces of gold with the company having drilled 205 aircore holes.

Mineralisation has been proved over a 600 metre by 100 metre area and ranges from 1 metre to 4 metres thick.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 20 Nov 2013 05:55:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/53428/havilah-resources-reports-on-portia-gold-mine-permitting-63399.html
<![CDATA[News - Havilah Resources restructuring board ]]> https://www.proactiveinvestors.co.uk/companies/news/53120/havilah-resources-restructuring-board-63072.html Havilah Resources (ASX: HAV) is restructuring its board as it transitions towards becoming a minerals producer with executive chairman Dr Bob Johnson stepping down.

The board has elected directors Ken Williams as its independent non-executive chairman and Dr Chris Giles as its managing director.

Giles will remain in this role until the company appoints a suitably qualified and experienced senior executive, who will be responsible for management of the development and operation of Havilah’s three advanced mineral projects, namely Portia gold, Kalkaroo copper-gold and Maldorky iron ore.

He will then return to his role as technical director, exploration and corporate development.

“As one of the founders and a driving force within Havilah, Dr Bob Johnson has played a key role in Havilah’s extraordinary exploration success over the last decade,” Williams said.

“Bob has stepped aside to allow Havilah to engage a different skill set in order to focus on the next stage of its development as it becomes a mineral producer.”

The company had recently appointed the former head of NAB Corporate, South Australia, Paul Mertin as an independent non-executive director of the company and chair of the audit committee.

It has recently identified a potential economic extension to the current cooper-gold resource at its West Kalkaroo conceptual open pit.

Havilah has also submitted a Mining Lease Proposal document to the Department for Manufacturing, Innovation, Trade, Resources and Energy for Maldorky that specifies details of the mining operations and supports its application for a mining lease over the mine.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 11 Nov 2013 01:20:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/53120/havilah-resources-restructuring-board-63072.html
<![CDATA[News - Havilah Resources appoints former NAB executive as director ]]> https://www.proactiveinvestors.co.uk/companies/news/52868/havilah-resources-appoints-former-nab-executive-as-director-62781.html Havilah Resources (ASX:HAV) has appointed Paul Mertin as an independent non-executive director of the company and chair of the audit committee.

He recently retired as head of NAB Corporate, South Australia after a 33 year career at National Australia Bank (ASX: NAB) is a broad range of roles.

Mertin will commence a thorough review of Havilah’s corporate policies and procedures as the company prepares to develop its West Kalkaroo copper-gold project and Maldorky iron ore mine in South Australia.

“As a recently retired senior banking executive Mr Mertin brings a very broad and current understanding of funding options available to Havilah as the company enters the development financing phase of its transition towards a minerals producer,” chairman Bob Johnson said.

“Havilah will also benefit from Mr Mertin’s extensive contacts across all levels of the South Australian business community and SA State Government organisations.”

The company has recently identified a potential economic extension to the current cooper-gold resource at its West Kalkaroo conceptual open pit.

It has also submitted a Mining Lease Proposal document to the Department for Manufacturing, Innovation, Trade, Resources and Energy for Maldorky that specifies details of the mining operations and supports its application for a mining lease over the mine.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 31 Oct 2013 22:56:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/52868/havilah-resources-appoints-former-nab-executive-as-director-62781.html
<![CDATA[News - Havilah Resources finds drill success at West Kalkaroo, outside open pit ]]> https://www.proactiveinvestors.co.uk/companies/news/52558/havilah-resources-finds-drill-success-at-west-kalkaroo-outside-open-pit-62434.html Havilah Resources’ (ASX: HAV) drilling has identified a potential economic extension to the current cooper-gold resource at its West Kalkaroo conceptual open pit in South Australia.

A drillhole had tested a new interpreted anticlinal structural position south of the open pit with assays returning 30 metres at 0.72% copper and 0.63 grams per tonne gold from 79 metres.

It indicates that economic grade copper-gold mineralisation continues southwards beyond the current resource into the interpreted anticlinal axis zone and opens up a new structural zone for discovery of additional mineralisation.

Should this be proven, it could require a redesign of the conceptual starter open pit in order to capture the new mineralisation.

“We have always known that Kalkaroo is a large mineralised system, and a characteristic of big systems is that mineralisation typically occurs in a variety of structural settings and rock types,” chairman Dr Bob Johnson said.

“Apart from copper-gold mineralisation in the Kalkaroo fault and replacement style mineralisation in the prospective sequence, we now find evidence of strong mineralisation in an anticlinal structure, where brittle fracturing is likely to be concentrated. We are very excited at the exploration upside possibilities this presents for Havilah.”

Havilah’s technical team are currently focussed on completing the mining lease proposal (MLP) document for submission to DMITRE in support of a mining lease application over the Kalkaroo copper-gold deposit.

Tailings storage facility and process plant design is being advanced by specialists in the field.

New drilling and mining data will also help measure the financials of the starter open pit.

West Kalkaroo

The company is currently incorporating results from the successful shallow aircore drilling program into a new resource and mining model for West Kalkaroo.

This drilling has outlined shallow tertiary gold mineralisation and confirming expected gold and copper grades in the gold saprolite and native copper zones.

Notably, at the end of the program, several reverse circulation drillholes were completed on deeper bedrock targets, one of which tested the new potential southern extension.

Kalkaroo has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

The free milling, soft gold cap contains 446,000 ounces of gold with better than 97% recoveries while copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.

Analysis

An extension of the current open pit mineralisation could add substantially to the economics of the West Kalkaroo project, which is already to have low capital expenditure and a stage development that would allow the company to increase production in stages.

While this means that a ramp up to full production would take longer, it also raises the likelihood that expansions would be funded by operating surplus, which would reduce dilution and risk.

The company has long term production targets of 70,000 tonnes per annum of copper and 100,000 ounces per annum of gold.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 23 Oct 2013 05:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/52558/havilah-resources-finds-drill-success-at-west-kalkaroo-outside-open-pit-62434.html
<![CDATA[News - Havilah Resources' scoping studies to measure starter open pit financials ]]> https://www.proactiveinvestors.co.uk/companies/news/52357/havilah-resources-scoping-studies-to-measure-starter-open-pit-financials-62189.html Havilah Resources (ASX: HAV) is incorporating results from shallow aircore drilling program at West Kalkaroo in South Australia into a new resource and mining model.

Scoping studies are underway to determine financial returns of the starter open pit design while key engineering work is underway for the Mining Lease Proposal.

The drilling program, which is nearing completion, has outlined shallow tertiary gold mineralisation and confirming expected gold and copper grades in the gold saprolite and native copper zones.

This is focused on then tailings storage facility design, updated groundwater model, processing study and laser site survey.

Negotiation of native title mining agreement are also underway with the Adnyamathanha people.

Aircore Drilling

The aircore drilling has met its objective of outlining shallow Tertiary gold mineralisation and confirming expected gold and copper grades in the gold saprolite and native copper zones.

Recent results include:
-    61 metres grading 1.2 grams per tonne gold from 73 metres including 21 metres of 0.63% copper from 95 metres;
-    13 metres at 3.4g/t gold from 83 metres; and
-    17 metres at 3.5g/t gold and 0.78% copper from 77 metres.

At the eastern and western ends of the conceptual open pit, tertiary clay hosted gold mineralisation appears to diminish, replaced at slightly greater depth by economic grades in the upper saprolite bedrock.

The company has completed 200 drillholes in the West Kalkaroo area and the preliminary resource model shows consistency and continuity between the previous drilling and the current round of aircore drilling.

The new drilling results are presently being incorporated into a new resource and mining model specifically for the stage 1 to 4 open pit mine design at West Kalkaroo.

Viability of the starter open pit will be determined by the economic model generated from the new data.

Processing plant capital and operating cost inputs for the financial model are being provided by a processing engineering consultant, with construction and testing of the financial model provided by a mining finance consultant.

Mining Lease Proposal

The company is currently undertaking a number of engineering studies in order to provide key information to allow completion of the Mining Lease Proposal, which is required to support the mining lease application.

These studies include:
-    Design of the tailings storage facility;
-    UIpdated groundwater modelling to reflect expected dewatering yields in the conceptual open pit design;
-    Waste rock characterisation;
-    Laser scanning survey to produce an extremely detailed and accurate topographic base over the entire area of planned mining and related infrastructure; and
-    A processing study to optimise plant throughput rates and update OPEX and CAPEX figures.

Initial scope of the project will be for a five year, low capital start up mining operation that draws most revenue from processing the softer, higher grade oxidised ore material.

This will generate adequate returns to fund construction of the larger scale and longer term sulphide treatment operation.

Havilah aims to have the MLP document ready for submission during the first quarter of 2014.

Native Title Mining Agreement

A recent meeting with the Adnyamathanha people has resolved that Havilah should employ an independent mineral economist to evaluate the compensation proposal in the draft agreement.

The economist would then report back to the Native Title Claimants on the appropriateness and fairness of the proposal.

This work will commence once the final revised economic model has been generated.

Kalkaroo

Kalkaroo has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

The free milling, soft gold cap contains 446,000 ounces of gold with better than 97% recoveries while copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.

Analysis

With the aircore drilling program outlined shallow tertiary gold mineralisation and confirming expected gold and copper grades in the gold saprolite and native copper zones, the viability of the starter open pit at West Kalkaroo will soon be known.

In addition, should the aircore drilling and subsequent studies prove the gold-bearing basal Tertiary clays are extensive enough to be processed, this could reduce start-up risk by providing early cashflow to offset the overburden removal costs for the starter pit.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Wed, 16 Oct 2013 06:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/52357/havilah-resources-scoping-studies-to-measure-starter-open-pit-financials-62189.html
<![CDATA[News - Havilah Resources edges closer to Mining Lease for Maldorky iron mine ]]> https://www.proactiveinvestors.co.uk/companies/news/52220/havilah-resources-edges-closer-to-mining-lease-for-maldorky-iron-mine-62044.html Havilah Resources (ASX: HAV) is advancing development of its Maldorky iron ore mine in South Australia with the submission of a Mining Lease Proposal document to the Department for Manufacturing, Innovation, Trade, Resources and Energy.

This specifies details of the mining operations and supports its application for a mining lease over the mine, which has a Resource of 147 million tonnes grading 30.1% iron from surface.

The current mining proposal is for a 5 year mining plan, in which 24 million tonnes of iron ore will be mined to produce 8.5 million tonnes of saleable concentrate.

This will be revised to cater for expanded mining rate beyond five years, subject to available infrastructure capacity.

Maldorky

Maldorky is planned as a 2 million tonne per annum open cut mining operation with a mine life of more than 20 years.

Notably, the low life of mine strip ratio – estimated at just 1:12 – translates to favourable mining economics with total operating costs estimated at $66 per tonne on ship.

Initial capital expenditure is estimated at $60 million to $70 million.

This will produce a combined magnetite-hematite iron ore concentrate that will be shipped via existing rail and port facilities in order to minimise upfront capital expenditure.

First production is targeted for the second half of 2015, subject to timely receipt of mine operating permits, financing and satisfactory resolution of other key development issues.

Production will begin at 1Mtpa in Year 1 before ramping up to 1.5Mtpa in Year 2 and 2Mtpa in Year 3.

Further increase in production can be supported by available resources, but is dependent on expansion of shipping facilities.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 11 Oct 2013 05:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/52220/havilah-resources-edges-closer-to-mining-lease-for-maldorky-iron-mine-62044.html
<![CDATA[News - Hughes Drilling completes acquisition of JSW Australia ]]> https://www.proactiveinvestors.co.uk/companies/news/52019/hughes-drilling-completes-acquisition-of-jsw-australia-61813.html Hughes Drilling (ASX: HDX) has closed its acquisition of JSW Australia, bringing together two of Australia’s leading drilling contractors following the issue of Hughes shares to the latter’s shareholders.

The acquisition is expected to be earnings accretive for Hughes on a forward nomalised 12 month basis.

It issued JSW shareholders 26,918,080 priced at $0.26 each, or about $ 6,998,900.80. It will also retain JSW’s existing debt of $17.4 million.

JSW is a leading drilling contractor located in Western Australia with 24 specialist drill rigs (4 rigs subcontracted), extending the company’s core blast hole drilling operations into the iron ore mines of northwest Western Australia.

Last financial year, JSW had a turnover of $30.6 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 04 Oct 2013 05:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/52019/hughes-drilling-completes-acquisition-of-jsw-australia-61813.html
<![CDATA[News - Havilah Resources hits near surface gold over 250 metres strike at West Kalkaroo ]]> https://www.proactiveinvestors.co.uk/companies/news/52018/havilah-resources-hits-near-surface-gold-over-250-metres-strike-at-west-kalkaroo-61812.html Havilah Resources (ASX:HAV) should trade higher today after intersecting shallow clay-hosted tertiary gold mineralisation over 250 metres of strike at its West Kalkaroo copper-gold project, South Australia.

Previously discovered clay-hosted tertiary gold mineralisation has been shown to persist in at least six drill lines that are neatly confined to the limits of the stage 1 conceptual open pit.

Notable results include 10 metres of 4.7 grams per tonne gold from 82 metres; 15 metres of 3.9 grams per tonne gold from 77 metres; 29 metres of 1 gram per tonne gold from 82 metres; and 40 metres at 1% copper from 85 metres.

Preliminary modelling suggests that the target resource of 5,000 ounces of tertiary clay hosted gold at an average depth of 30 metres has been confirmed by the drilling.

At the eastern end of the conceptual open pit, tertiary clay-hosted gold mineralisation diminishes, replaced at slightly greater depth by gold mineralisation in the upper saprolite bedrock.

In most cases where aircore holes were able to penetrate to greater depths in the bedrock, relatively high grades of gold and native copper typical of West Kalkaroo were returned.

The new drilling data is currently being incorporated into an updated resource and mining model specifically for the stage 1 to 4 open pit mine design.

The Kalkaroo copper-gold project currently hosts has a measured and indicated resource of 124 million tonnes at 0.5% copper and 0.39 grams per tonne gold in the main copper-gold deposit, and 18.6 million tonnes at 0.74 grams per tonne gold in the gold cap on top of the copper-gold deposit.

This equates to 622,500 tonnes of contained copper and 2 million ounces of gold.

Analysis

While more work remains to be done, the aircore drilling lends further support to the gold-bearing basal Tertiary clays overlying the main deposit at its Kalkaroo copper-gold project being extensive enough to be processed.

This will provide early cash flow for the company while reducing start-up risk.



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Fri, 04 Oct 2013 05:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/52018/havilah-resources-hits-near-surface-gold-over-250-metres-strike-at-west-kalkaroo-61812.html
<![CDATA[News - Havilah Resources shallow gold could deliver early cashflow at West Kalkaroo ]]> https://www.proactiveinvestors.co.uk/companies/news/51116/havilah-resources-shallow-gold-could-deliver-early-cashflow-at-west-kalkaroo-60797.html Havilah Resources (ASX: HAV) shares will rise today as it continues to extend shallow gold in the targeted base of Tertiary clays within the confines of the West Kalkaroo conceptual starter open pit in South Australia.

Importantly, the recovery of gold from this shallow clay material has a potentially significant positive impact on the economics of a starter open pit at West Kalkaroo by providing early cashflow.

Aircore drilling has now traced the gold bearing clay layer, which occurs from 23 metres to 36 metres below surface in a distinctive darker coloured horizontal layer near the base of the Tertiary clay sequence, across four drill lines over a distance of at least 200 metres.

The latest results from the drilling include 7 metres at 0.48 grams per tonne gold from 28 metres and 4 metres at 0.69g/t gold from 27 metres.

In addition, good copper and gold intersections, typical of the known Kalkaroo Resource, continue to be returned from the underlying bedrock.

These include 29.5 metres at 1.54% copper from 103 metres and 24 metres at 0.54g/t gold from 100 metres in KKAC438 and 20 meters at 2.24% copper from 110 metres an 55 metres at 1.35g.t gold from 75 metres at KKAC349.

The holes stopped in bedrock mineralisation in most cases due to the inability of the aircore blade bit to penetrate the harder, less weathered rock at depth.

Additional drillholes are planned in coming weeks on several lines to the west of the current drilling with the objective of establishing the full extent of the shallow gold mineralisation within the confines of the conceptual stage 1 open pit design.

This drilling will be interspersed with geotechnical drilling to obtain samples for tailings dam footing testwork and also some holes for tailings dam permeability testwork.

Gold recovery

Previous cyanide leach test results of samples recovered from the basal Tertiary clay had returned 80% gold recoveries within a comparatively rapid eight hours while consuming low levels of cyanide.

The company noted this 80% recovery rate appears to be achievable in a conventional CIP gold plant and that better dissolution of the clays may even improve recoveries.

The Tertiary clay gold mineralisation appears to form a “mushroom cloud” halo lying above and separate from the main bedrock Kalkaroo copper-gold resource.

Kalkaroo

Kalkaroo has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

The free milling, soft gold cap contains 446,000 ounces of gold with better than 97% recoveries while copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.

The Life-of-Mine strip ratio of 3.2:1 allows for 5% dilution of all grade blocks while the optimised open pit to 200 metres depth captures roughly 80% of the current total resource.

Free digging material occurs to about 120 metres, or roughly the top of the chalcopyrite zone and development capital cost is estimated at approximately $500 million.

Analysis

Havilah Resources’ drilling has to date confirmed that the gold-bearing basal Tertiary clays overlying the main deposit at its Kalkaroo copper-gold project stretches over at least 200 metres.

Further successes from planned drilling could well establish that this resource is extensive enough to be process, supporting increases to the company’s share price.

This will provide early cash flow for the company while reducing start-up risk by covering a substantial portion of the overburden removal costs for the starter open pit.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 06 Sep 2013 03:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/51116/havilah-resources-shallow-gold-could-deliver-early-cashflow-at-west-kalkaroo-60797.html
<![CDATA[News - Havilah Resources intersects more gold in shallow tertiary clays at West Kalkaroo ]]> https://www.proactiveinvestors.co.uk/companies/news/50692/havilah-resources-intersects-more-gold-in-shallow-tertiary-clays-at-west-kalkaroo-60322.html Havilah Resources (ASX: HAV) continues to build up evidence that the shallow Tertiary clay could provide early cash flow to underpin the conceptual starter open pit at West Kalkaroo in South Australia as drilling continues to intersect gold mineralisation.

This clay hosted mineralisation envelope, which has good gold recoveries, now extends across four drill lines covering more than 150 metres.

“Our drilling is indicating a persistent layer of shallow clay hosted gold mineralisation, which is readily recovered by conventional cyanide leaching,” chairman Dr Bob Johnson said.

“This is extremely positive for a low capital start up of Kalkaroo. Treatment of this material could provide the vital early cashflow required to underpin the starter open pit concept at West Kalkaroo, which we are presently evaluating.”

To date, 35 aircore drillholes have been completed with a similar number planned over the next few weeks at West Kalkaroo.

Latest results include:

-    4 metres at 1.1 grams per tonne gold from 27 metres;
-    7 metres at 0.88g/t gold from 28 metres;
-    6 metres at 1.1g/t gold from 28 metres; and
-    4 metres at 1.1g/t gold from 27 metres.

This gold mineralisation occurs from 23-36m below surface in a distinctive darker coloured, roughly horizontal layer near the base of the Tertiary clay sequence.

Assay results are awaited for drillholes already completed on three further drill lines to the east.

Additional drillholes will also be completed on several lines to the west of the current drilling with the objective of establishing the full extent of the shallow gold mineralisation within the confines of the conceptual stage 1 open pit.

Gold recovery

Cyanide leach test results from samples recovered from the basal Tertiary clay had returned 80% gold recoveries within a comparatively rapid eight hours while consuming low levels of cyanide.

The company noted this 80% recovery rate appears to be achievable in a conventional CIP gold plant.

Analysis

While more assay results are still pending, Havilah Resources is already receiving early signs that the gold-bearing basal Tertiary clays overlying the main deposit at its Kalkaroo copper-gold project is extensive enough to be processed.

This will provide early cash flow for the company while reducing start-up risk.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 23 Aug 2013 02:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/50692/havilah-resources-intersects-more-gold-in-shallow-tertiary-clays-at-west-kalkaroo-60322.html
<![CDATA[News - Havilah Resources: gold recoveries at Kalkaroo could lead to early cash flows ]]> https://www.proactiveinvestors.co.uk/companies/news/50647/havilah-resources-gold-recoveries-at-kalkaroo-could-lead-to-early-cash-flows-60269.html Havilah Resources (ASX: HAV) has returned 80% gold recoveries from initial test work on two samples of Tertiary clays above the main deposit at its Kalkaroo copper-gold project in South Australia.

Importantly, the recovery of gold from this shallow clay material has a potentially significant positive impact on the economics of a starter open pit at West Kalkaroo.

“These excellent cyanide leach test results are vitally important to our continuing assessment of a smaller scale start-up open pit mining strategy at West Kalkaroo,” chairman Dr Bob Johnson said.

“This clay material will not require crushing or milling and contains no significant coarse fraction. The shallow gold mineralisation, at depths of only 25-35 metres, which we now know is readily recoverable from these tests, could provide an early cash flow.

“It could potentially cover a substantial portion of the overburden removal costs for the starter open pit, hence reducing the start-up project risk.”

The testwork was carried out on representative composite drill samples collected during an aircore drilling program, which is continuing to assess this Tertiary clay gold resource within the confines of the first year conceptual open pit design.

To date, 34 aircore holes have been drilled with many assay results pending.

Tetiary Clays

Havilah had carried out aircore drilling to assess the Tertiary cover sequence where previous drilling had occasionally intersected gold in a distinctive more organic rich, darker coloured basal part of the sequence, but which was not included in the scope of previous Feasibility Study work.

This gold mineralisation appears to form a “mushroom cloud” halo lying above and separate from the main bedrock Kalkaroo copper-gold resource.

In order to assess the gold recovery in this material, bottle roll leach tests using sodium cyanide reagent were carried out by ALS Metallurgy Services in Adelaide on two representative samples composited from two drillholes.

The individual one metre drill samples were composited together and the composite sample was then riffle spilt and re-assayed.

It is notable that the composite sample re-assays, which are slightly higher grade than the original assays, are likely to be more representative of the true gold grades in the interval.
One kilogram of each composite sample was bottle rolled in cyanide solution and sampled five times during a 48 hour period. For both tests results indicate that 80% recovery of gold occurs in 8 hours, which is comparatively rapid. No significant increase in gold recovery was achieved after that time.

This consumed low levels of cyanide and the 80% recovery rate appears to be achievable in a conventional CIP gold plant. It is possible that better dissolution of the clays may even improve recoveries.

Kalkaroo

Kalkaroo has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

The free milling, soft gold cap contains 446,000 ounces of gold with better than 97% recoveries while copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.

The Life-of-Mine strip ratio of 3.2:1 allows for 5% dilution of all grade blocks while the optimised open pit to 200 metres depth captures roughly 80% of the current total resource.

Free digging material occurs to about 120 metres, or roughly the top of the chalcopyrite zone and development capital cost is estimated at approximately $500 million.

The company is also building the case for a central processing plant at Kalkaroo that could take gold and copper material from known resources such as Portia, North Portia and Mutooroo and potential future resources such as Wilkins and Eurinilla.

This would avoid costly duplication of processing facilities and infrastructure and simplify the permitting requirements for each site.

Analysis

The confirmation that the near-surface clay gold mineralisation can readily produce gold is a strong positive by reducing start-up project risk and potentially allowing the company to enjoy early cash flow.

This adds substantial value to the project and could provide an uptick to the company's share price as assay results from the aircore drilling are released. A further boost made come from defining a resource to this near-surface gold mineralisation.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Thu, 22 Aug 2013 02:35:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/50647/havilah-resources-gold-recoveries-at-kalkaroo-could-lead-to-early-cash-flows-60269.html
<![CDATA[News - Havilah Resources confirms new mineralised gold zone at Kalkaroo ]]> https://www.proactiveinvestors.co.uk/companies/news/49893/havilah-resources-confirms-new-mineralised-gold-zone-at-kalkaroo-59407.html Havilah Resources’ (ASX: HAV) aircore drilling program has confirmed that a new shallow gold mineralised zone is present at its Kalkaroo copper-gold project in South Australia.

Notably, the presence of shallower gold mineralisation potentially lowers start up project risk and when combined with improved metallurgical recoveries, further improves the case for constructing a central processing plant.

This mineralisation occurs just 23 metres to 36 metres below surface in a distinctive more organic rich, darker coloured basal part of the Tertiary (BOT) clay sequence.

It forms a “mushroom cloud” halo lying above the well drilled bedrock Kalkaroo copper-gold resource as defined by the previous feasibility study.

Notable assays from the aircore drilling at West Kalkaroo include:

-    KKAC420: 37 metres at 4.8 grams per tonne gold from 61 metres to end of hole;
-    KKAC421: 45 metres at 0.96% copper from 59 metres and 50 metres at 0.76g/t gold from 72 metres to end of hole; and
-    KKAC419: 8 metres at 1.2% copper from 78 metres to end of hole and 6 metres at 4.95g/t gold from 74 metres.

Previous drilling at Kalkaroo had occasionally unearthed gold at this base of the BOT cover sequence.

Assuming that the shallow Tertiary gold mineralisation proves to be sufficiently laterally extensive and can be economically treated, access to this material at an early stage of mining could potentially lower the start-up project risk in bringing forward project revenue.

This will also contribute to recovering the cost of overburden removal.

These and future aircore drilling results will be progressively added to the conceptual starter open pit mine design in order to continually refine the Kalkaroo mining model.

With enhanced Kalkaroo mining economics due to improved metallurgical recoveries and now shallower accessible gold mineralisation in the BOT, the case grows for constructing a central processing plant at Kalkaroo.

Transporting gold and copper material from known resources such as Portia, North Portia and Mutooroo and potential future resources such as Wilkins and Eurinilla to a central integrated facility at Kalkaroo would avoid costly duplication of processing facilities and infrastructure and simplify the permitting requirements for each site.

Over coming weeks this scenario will be incorporated into the Kalkaroo mining model in order to evaluate the economic advantages of a central processing concept.

In the meantime, the current air-core drilling campaign will continue to test the BOT gold mineralisation and the underlying bedrock copper and gold mineralisation at West Kalkaroo.

Kalkaroo

Kalkaroo has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

This free milling, soft gold cap containing 446,000 ounces of gold with better than 97% recoveries offers early cash flow.

Copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.

Analysis

Today's confirmation of a new near-surface gold mineralised zone at Havilah's Kalkaroo project has the potential to improve the economics of the project if its proven to have sufficient lateral extent to be commerically treated.

This adds further to the potential of the existing gold cap to provide early cash flow by bringing forward project revenue further ahead and contribute to recovering the cost of overburden removal.

At its current share price of $0.30 and market capitalisation of $36.1 million, Havilah still offers investors a window to gain exposure to a promising copper-gold project with early cash flow potential as well as a iron ore deposit with favourable economics where progress has being made towards restarting exploration.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 26 Jul 2013 06:06:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/49893/havilah-resources-confirms-new-mineralised-gold-zone-at-kalkaroo-59407.html
<![CDATA[News - Havilah Resources drilling to better define starter open pit at Kalkaroo gold project ]]> https://www.proactiveinvestors.co.uk/companies/news/49733/havilah-resources-drilling-to-better-define-starter-open-pit-at-kalkaroo-gold-project-59228.html Havilah Resources (ASX: HAV) has started a carefully targeted aircore drilling program to more precisely define the gold resource of the conceptual starter open pit at the Kalkaroo copper-gold project in South Australia.

This is also designed to accurately determine the expected copper and gold production in the initial years of this mining plan at West Kalkaroo.

Ore from the low capital start-up pit could be treated in a relatively low cost processing plant that would be progressively upgraded to treat sulphide ore as the mine expanded at depth.

Initial indications from conceptual mine plan work carried out by consultant mine planning engineer Richard Buckley appear to be encouraging with further details to be released when the mine planning work is complete.

In the meantime, the current drilling campaign is designed to provide greater confidence in the resource that lies within the conceptual starter open pit mine design. All new drilling results will be incorporated into the revised mining model in order to confirm its robustness.

Previous drilling at Kalkaroo had occasionally unearthed gold at the base of the Tertiary (BOT) cover sequence where exposure of the bedrock gold saprolite zone during earlier erosion cycles had shed gold over the undulating pre-Tertiary land surface.

This had result is some strong drilling results including 3 metres at 88 grams per tonne gold, though most most results were in the 1-2g/t range. The shallowest intersection was at a downhole depth of about 25m below the surface.

Evaluation of this gold zone was beyond the feasibility study work plan at the time, which was largely focussed on copper resources.

As a result, the BOT gold occurrences were not defined to JORC standards and have not been included in any resource or mining models for Kalkaroo to date.

While any BOT gold is not likely to add significantly to the total 2 million ounce gold resource at Kalkaroo, it could make an early contribution to mining cash flow because it will be mined to access the gold and copper mineralisation below.

It could also serve to commission the gold treatment plant ahead of the main gold ore delivery from the saprolite gold cap that overlies the main copper mineralisation.

The aircore drillholes will be continued on into the underlying gold saprolite zone until bit refusal in order to complete a close-spaced drilling pattern.

Previous drillholes in this zone returned long intervals of gold mineralisation, which it is hoped will be duplicated in the new drillholes.

This included 74 metres at 1.81g/t, 60 metres at 2.23g/t, 58 metres at 1.44g/t and 78 metres at 1.4g/t.

Metallurgical studies previously reported indicate > 97% gold recoveries in this material by conventional CIL/CIP processing.

Kalkaroo

The Kalkaroo Copper-Gold Project has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

This free milling, soft gold cap containing 446,000 ounces of gold with better than 97% recoveries offers early cash flow.

Copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.

Havilah will use a conventional flotation circuit to produce a high quality copper concentrate, containing 29% copper for chalcopyrite material and 34% for chalcocite material and no deleterious elements.

The Life-of-Mine strip ratio of 3.2:1 allows for 5% dilution of all grade blocks while an optimised open pit to 200 metres depth is estimated to capture about 80% of the current total resource.

Development capital cost have been estimated at about $500 million.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Mon, 22 Jul 2013 05:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/49733/havilah-resources-drilling-to-better-define-starter-open-pit-at-kalkaroo-gold-project-59228.html
<![CDATA[News - Havilah Resources completes successful site survey over Maldorky iron ore deposit ]]> https://www.proactiveinvestors.co.uk/companies/news/49691/havilah-resources-completes-successful-site-survey-over-maldorky-iron-ore-deposit-59181.html Havilah Resources (ASX: HAV) has completed a site survey over the Maldorky iron ore deposit in northeastern South Australia that has not identified any visual sites of cultural significance that would prevent development.

The survey was carried out in conjunction with representatives of the Wilyakali people, who indicated that mining of the Maldorky deposit was likely to be acceptable provided due care was taken to respect the cultural and heritage values of the area.

Havilah’s next task is to negotiate a native title mining agreement with the Wilyakali people over the Maldorky deposit to formalise the obligations and benefits for each side going forward.

A draft agreement is being prepared and will be provided to the Wilyakali legal representatives for consideration in due course.

“We take our relationship with the native title claimants seriously as we will have a lot of work to do with them over coming years on our various projects, including Maldorky, Grants, Mutooroo, Wilkins and Lilydale, all of which lie on the Wilyakali people’s claim area,” chairman Dr Bob Johnson said.

“We are genuine in our desire to see real benefits from our mining activities flow directly to the Wilyakali people, especially via training and employment opportunities.

“Fortescue Metals’ sustainable business development model with aboriginal groups in the Pilbara region is a wonderful example of what can be achieved with a positive and co-operative attitude.

“We recognise that the Wilyakali people are an untapped source of potential employees who live in the area and who are keen to work.”

Johnson added that technical director Dr Chris Giles’ efforts in establishing a mutually respectful relationship with the Wilyakali people had set a good framework for the future, which will be critical to Havilah building its mines within their native title claim area.

Site survey

The chief objective of the survey was to check earlier drill sites and ground disturbance that Havilah had undertaken prior to lodgement of the Wilyakali native title claim in early 2012.

No visual cultural sites were identified during the survey though there was insufficient time to clear areas proposed to be occupied by surrounding mining related infrastructure, including tailings dam, camp, raw water dam and waste stock pile.

Future surveys will be conducted to clear these areas and also prior to any further drilling or sampling required for tailings dam design work.

Maldorky

Havilah has been working to obtain key metallurgical data on bulk iron ore samples to assist in the design of a processing plant capable of upgrading the iron ore from mining grades of about 30% to a consistent saleable grade of more than 60%.

The deposit, which was discovered in 2011, has a Resource of 147 million tonnes at 30.1% iron from surface.

The shallow deposit presents favourable mining economics with life of mine strip ratio estimated at just 0.19.

Capital expenditure has been estimated at $50 million while production costs are anticipated to be about $69 per tonne including rail transport to Port Adelaide and Government royalty payments.

Analysis

The site survey results and positive indications given by the native title claimants – the Wilyakali people – could ease the way for Havilah Resources as it prepares a Native Title Agreement.

This will in turn allow the company to resume work on the Maldorky iron ore deposit, which has favourable mining economics, as well as other projects such as Maldorky, Grants, Mutooroo, Wilkins and Lilydale that lie in the same claim area.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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Fri, 19 Jul 2013 07:10:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/49691/havilah-resources-completes-successful-site-survey-over-maldorky-iron-ore-deposit-59181.html
<![CDATA[News - Havilah Resources edges closer towards gold mining at Portia project with camp acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/49360/havilah-resources-edges-closer-towards-gold-mining-at-portia-project-with-camp-acquisition-58791.html Havilah Resources (ASX:HAV) is progressing towards gold production from its 67,000 ounces Portia project in South Australia, having acquired a 48 room mining camp from Polymetals Mining (ASX:PLY).

Glencore and MMG are both substantial shareholders, chairman Bob Johnson and Chris Giles have partnered in Havilah and together have drilled out eight JORC resources in the region.

Acquiring the mining camp is an important pre-requisite for Havilah to start developing the Portia project, and will allow cost and time efficiencies at the site.

A key attribute of Havilah's Portia project is to develop it as a single year production that will give quick cash flows over the one year, with an extension likely.

As the Resource size could be expanded as high grade gold drill intercepts indicate potential resource expansion in bedrock while low grade gold halo in bedrock may form a viable resource.

It is hoping to produce 51,130 ounces per annum at a capex of $29.1 million and cash cost of $124 per ounce.

The White Dam mining camp is complete and includes a kitchen and septic system and the company has until end of this year to move the camp from its current location about 80 kilometres from the Portia project site.

It is also progressing the permitting work for an Environmental Protection Agency approval, which also includes establishing to government regulators that the dewatering water from the open cut at Portia can be re-injected into the nearby Shylock palaeochannel.

Havilah will construct a dam in the next few weeks in order to conduct a pump test to test the suitability of reinjection of the water.

The new pump test results will be applied by the groundwater consultants to develop a new water re- injection model which in turn will be incorporated into the final Program for Environmental Protection and Rehabilitation (PEPR) document to be re-submitted to SA state regulators.

While the company awaits mining approval, it will also issue tenders for contract mining.



Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

 

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Tue, 09 Jul 2013 05:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/49360/havilah-resources-edges-closer-towards-gold-mining-at-portia-project-with-camp-acquisition-58791.html