Havilah Resources Ltd (ASX:HAV) (FRA:FWL) has reported further economic-grade copper and gold drilling results in the last three reverse circulation (RC) drill holes from its 2020 West Kalkaroo drilling campaign.
The three holes were drilled into the fault intersection zone that lies to the east of the planned gold open pit at West Kalkaroo, an area which is considered favourable for vein and breccia style copper-gold mineralisation due to greater fracturing intensity caused by the combined fault dislocations.
Key intercepts returned from the fault intersection zone, in part lying outside of the current Kalkaroo JORC Mineral Resource envelope, include:
- 16 metres of 1.31 g/t gold from 69-85 metres;
- 10 metres of 1.51 g/t gold from 102-112 metres; and
- 13 metres of 1.37% copper and 0.55 g/t gold from 133-146 metres.
“Consistently mineralised intersections”
Havilah technical director Dr Chris Giles said: “Kalkaroo continues to deliver consistently mineralised copper and gold drilling intersections.
“These results confirm a continuous gold-copper mineralised zone over 100 metres wide in the fault intersection zone, with substantial scope to materially increase resource tonnages in this part of the Kalkaroo deposit.
“Kalkaroo is a structurally controlled, replacement style disseminated sulphide copper-gold deposit of similar type to that found in the Paterson Province in Western Australia, such as the Winu and Havieron copper-gold deposits, and compares favourably with these large new discoveries.
“Our primary focus remains on advancing the West Kalkaroo gold open pit towards development during 2021, subject to receipt of required approvals and financing.”
Drillhole cross-sections in the fault intersection zone and the planned West Kalkaroo gold open pit outline (blue) - which is being advanced towards development during 2021 subject to approvals and financing.
Looking forward
Drilling at Kalkaroo during 2021 will initially focus on sterilisation drilling in the vicinity of planned West Kalkaroo mining infrastructure (processing plant, waste dump).
Further exploration drilling along the main Kalkaroo fault to the east will be undertaken subject to drilling rig availability, due to the good prospects for extending the fault-controlled mineralisation in this direction.
Notably, the West Kalkaroo project economics will be assisted by a recent decision by the South Australian government that the Kalkaroo project will be eligible for a new mine reduced royalty rate of 2% for the first five years of production.