Havilah Resources Ltd (ASX:HAV) (FRA:FWL) has highlighted the company’s achievements for 2018 as part of its Copper Growth Strategy - Enhanced by Cobalt, with these milestones including native title mining agreement for its Kalkaroo Copper-Cobalt-Gold Project in South Australia.
The achievements, flagged by Havilah non-executive chairman Mark Stewart and technical director Dr Chris Giles, also included a maiden 100 million tonne ore reserve for the project, which was independently estimated by RPMGlobal.
Ninety per cent of the resource is in the proven category.
Stewart told the market yesterday he believed the company’s extension of a due diligence period for its 100%-owned Maldorky and Grants iron ore projects in South Australia was another achievement.
GFG Alliance affiliate SIMEC Mining is sole-funding and undertaking an assessment of the future development and commercialisation potential of Havilah's iron ore projects.
Stewart pointed to the achievements in the annual general meeting presentation he delivered last month.
Among the achievements highlighted was the discovery of the Grants iron ore basin, which Stewart and the company believed was a significant event for Havilah.
The company picked up the entire basin in a series of tenement grabs over the last two years.
Havilah chief executive officer Walter Richards reported last month, “The outcome of the recent drilling program resulting in discovery of the Grants iron ore basin deposit is one of the highlights of 2018.
“While our primary focus remains the Copper Growth Strategy — Enhanced by Cobalt, it remains Havilah’s objective to realise value from its multi-commodity portfolio which includes the iron ore projects.”
Havilah chairman Mark Stewart told the market yesterday he was “strongly motivated to see Havilah transformed into a great South Australian resource success story.
“In the short-term this includes getting Havilah into a debt-free position and to minimise delays in the North Portia divestment payments.
“In the longer-term this involves working closely with the technical team and the corporate and administrative team to see Havilah deliver the anticipated value in its various advanced projects and exploration prospects.”
North Portia divestments require permitting milestones
North Portia Copper-Gold Project west of Broken Hill has supergene copper-cobalt-gold in the upper 150 metres of its deposit.
Havilah is contracted to sell the asset to Consolidated Mining and Civil Pty Ltd (CMC) for $3.5 million once a stage I permitting approval is secured.
CMC is picking up the full Benagerie Mining Lease sale as part of the extended $14.7 million transaction.
As well as North Portia, the lease also includes the adjoining Portia open pit gold operation.
Havilah last year largely upgraded the North Portia deposit to measured resource and improved its understanding of its metallurgical quality.
It secured a $6 million 12-month standby funding facility with Investec Group to progress its sale, expected to bring in a total of $7 million to the company.
Havilah was to start drawing down on the facility in the December 2018 financial quarter.
Approval of the updated Portia Program for Environmental Protection and Rehabilitation (PEPR) document has been extended to the June 2019 quarter.
The extension was needed to incorporate proposed modifications into the processing flowsheet and tailings storage facility design.
The PEPR document is then to be updated, with a second $3.5 million payment to follow.
Mutooroo Copper-Cobalt Project prospective for cobalt at depth
When copper-cobalt-focused Havilah chose to sell off its Portia and North Portia assets, its plans were to develop its two core projects, Kalkaroo and Mutooroo.
At Mutooroo Copper-Cobalt Project, Havilah hopes to find additional resources within trucking distance of the main 195,000-tonne copper and 8,400-tonne cobalt resource.
Havilah technical director Giles highlighted a 2018 achievement at Mutooroo was to confirm the cobalt potential of deeper ground at the project, with economic cobalt, copper and gold found.
He told investors at the company’s AGM the "exceptional" copper-cobalt sampling results had highlighted “the potential for new copper-cobalt gold discoveries” in the region near Broken Hill.
Giles spoke to Proactive Investors’ Stocktube video channel last month, saying Mutooroo looked "promising".
“It’s looking like we’ve actually found a completely new copper-cobalt province and we’ve come across that through a sampling of the surface material.
“We’re sampling on the surface and we’re getting very high copper and cobalt results from this type of material, which is telling us that at a depth just below the surface, we may have other Mutooroo-style deposits.”
Havilah was able to re-assay historical deep drilling from a Broken Hill mining company's effort.
The 300-500 metre deep assays were historically assayed for copper, but Havilah’s re-assaying also found cobalt.
Giles told Proactive, “We were able to assay it for cobalt and we established that the cobalt values that we see in our resource near the surface actually extend to depth.
“So, it means, ultimately, that there’s probably going to be a lot more cobalt in the Mutooroo deposit.”
Kalkaroo Copper-Cobalt-Gold Project has ‘significant’ cobalt
Kalkaroo Copper-Cobalt-Gold Project in had additional pre-feasibility study work undertaken last year by RPMGlobal.
An oblique image of the Kalkaroo project.
Giles told Proactive Havilah planned to follow up RPM’s tightly-budgeted work to answer some open-ended questions.
“In order to do justice to the project and to show its full economic potential, we’ve decided to follow-up some of those issues ourselves and mostly, they relate to improving the gold recoveries.
“And of course, the original PFS never included any consideration of the cobalt.
“The cobalt in the Kalkaroo deposits is quite significant — there’s 23,000 tonnes.
“That wasn’t considered in the PFS, so we’re also addressing that at the present time.”
Giles signed the Kalkaroo Native Title Mining Agreement with the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation (NAWNTAC) last month on behalf of Havilah.
Reserves at the Kalkaroo project.