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.
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.
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