Havilah Resources to deliver new studies and resource definition work to market

  • Havilah has multiple commodities in its portfolio focused on northeast South Australia in the Broken Hill area.
  • The company is focused on increasing project attractiveness and is open to selling off or farming out appreciate projects to deliver improved shareholder value.
  • Two projects are likely to have new PFS studies in the coming horizon, as the company refines results.

The company is being redirected to … maximise the value of the multi-commodity mineral portfolio and to make new mineral discoveries in a way that generates sustainable share price appreciation.

Havilah Resources directors Victor Previn, Dr Simon Gray and Chris Giles, November 2019

What does Havilah Resources do?

Havilah Resources Ltd (ASX:HAV) (FRA:FWL) is a South Australian explorer with ground near the traditional mining centre of Broken Hill.

The South Australian companys corporate strategy is to increase shareholder value by progressing pre-feasibility studies (PFS) at its projects and embarking on an active drilling program to increase shareholder value.

Adelaide-based Havilahs project list includes ground prospective for copper, nickel, gold, cobalt, iron ore and tin.

The companys two lead projects are in the copper space and the company is hopeful of uplifts in value with improved commodity cycles.

It plans to divest of projects when strategic, by selling or farming out appreciated assets.

Who leads Havilah Resources?

The company is led by an experienced board of directors and management team.

Havilahs directors include professional engineer and non-executive director Victor Previn, exploration geologist and technical director Dr Simon Gray and director and accountant Chris Giles.

What does Havilah Resources own?

Among Havilahs key assets is the Kalkaroo Copper-Gold-Cobalt Project in northeast South Australia.

Considered the flagship project for the company, a JORC resource of 1.1 million tonnes of copper, 3.15 million ounces of gold and 23,200 tonnes of cobalt has been estimated for the project to date.

The resources are found in the measured, indicated and inferred mineral resource categories and an update to the PFS is in progress.

A previous PFS for the project modelled a large-scale open pit copper-gold mine with average yearly production of 30,000 tonnes of copper and 72,000 ounces of gold as recovered metal over a 13-year mine life.

The June 2017 study by RPMGlobal Asia Limited for Wanbao Mining Limited was based on a smaller resource estimate and had an estimated pre-tax net present value (NPV7.5) of A$564 million calculated at a 7.5% discount.

Kalkaroos internal rate of return of 26% was based on a US$2.89 a pound copper price, a US$1,200 an ounce gold price and an Australian-US dollar exchange rate of 75 Australian cents.

Pre-production capital expenditure has been estimated at A$332 million.

Another project for the company features the lode-style Mutooroo massive sulphide copper-cobalt deposit about 60 kilometres west of Broken Hill.

The Mutooroo Copper-Cobalt Project has a measured, indicated and inferred JORC resource of 13.1 million tonnes of 1.48% copper for a total contained 195,000 tonnes of copper, 8,400 tonnes of cobalt, 44,600 ounces of gold.

Havilah hopes to wrap up a PFS for the project that narrows the focus to a standalone open pit copper deposit.

The study woRead More – Source

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