Havilah Resources Ltd (ASX:HAV) has acquired a tenement near Broken Hill of importance to its iron ore strategy and with potential to enhance its cobalt holdings.
Acquisition of Exploration Licence 5393 from Exco Operations (SA) Pty Ltd and Polymetals (White Dam) Pty Ltd secures ownership of the greater part of the Grants iron resource.
The Grants resource, which was discovered by Havilah, comprises 300 million tonnes at 24% iron.
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CEO Walter Richards said: “This is an important acquisition for Havilah as it adds a critical piece in the iron ore jigsaw puzzle that we have been putting together in this area for some time.”
EL 5393 in relation to Grants iron ore deposit, Grants Iron Ore Basin and Mutooroo Cobalt District.
The acquisition provides Havilah with ownership of the Grants Iron Ore Basin of about 17 square kilometres, which has appreciable upside for a very large iron ore discovery.
It also potentially increases Havilah’s coverage of the Mutooroo Cobalt District.
Bridge between Wilkin’s and Mutooroo
The tenement bridges the gap between Havilah’s Wilkin’s copper-cobalt-gold project and the copper-cobalt-gold resource at the Mutooroo project.
Previous drilling at Wilkin’s returned 30 metres of 0.44% copper, 0.32 g/t gold and 240 ppm cobalt.
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Richards said: “This transaction completes our consolidation of 100% control of the entire Grants Iron Ore Basin and potentially expands our foothold in the emerging Mutooroo Cobalt District.”
Mutooroo has a JORC-compliant measured and indicated sulphide resource of 5.9 million tonnes at 1.31% copper and 0.14% cobalt within a total sulphide resource of 12.5 million tonnes at 1.53% copper.
There is scope to materially increase the resource as only a portion of the known 2.1-kilometre strike has been drilled to JORC resource status.
Sale and purchase agreement
Havilah has executed a sale and purchase agreement with Exco and Polymetals that requires a payment of $75,000 upon transfer of the tenement and a 1.25% royalty on all minerals produced from the tenement.
This replaces a farm-in agreement with Exco and Polymetals over the licence that required expenditure of $1.2 million to earn a 75% interest with respect to iron ore only.