Havilah Resources higher after lifting cobalt resource 144% at Mutooroo Copper-Cobalt-Gold Project

By Deputy Chief EditorJune 5, 2020

139 2 minutes read

Havilah Resources Ltd (ASX:HAV) (FRA:FWL) is higher after increasing total cobalt metal contained in sulphide ore at the Mutooroo Copper-Cobalt-Gold Project near Broken Hill by 144% to 20,000 tonnes.

A new cobalt and gold inferred resource estimate totals 6.683 million tonnes at 0.17% cobalt and 0.17 g/t gold, confirming Mutooroo as one of Australias highest-grade sulphide cobalt deposits associated with copper.

When added to previously estimated measured and indicated resources the total combined Mutooroo sulphide resource is 12.53 million tonnes at 1.53% copper, 0.16% cobalt and 0.20 g/t gold for 20,000 tonnes of cobalt and 80,600 ounces of gold.

Large cobalt inventory[hhmc]

The new cobalt estimate combined with the Kalkaroo project resource expands the companys total cobalt metal inventory by 37% to 43,400 tonnes with appreciable upside potential.

Havilahs technical director Dr Chris Giles said: “Mutooroos 0.16% cobalt resource grade makes it one of the highest-grade sulphide cobalt deposits with associated copper in Australia.

“Such sulphide cobalt deposits are generally rarer and smaller than nickel-cobalt laterite deposits but they usually have significant mineral processing advantages.”

Mutooroo JORC mineral resource summary.

Shares higher[hhmc]

Havilah shares have been almost 10% higher at 10 cents intra-day, up from 5.3 cents at close on March 13.

The new JORC-compliant cobalt and gold inferred resource was estimated by Havilah using the previously reported Mutooroo copper sulphide inferred mineral resource shell.

In that previous resource estimation, there was insufficient assay data to define either a JORC inferred cobalt or gold resource, as noted at the time.

Subsequently, diamond drill core from five deep Mines Exploration Pty Ltd (MEPL) Mutooroo drill holes dating from the 1960s was located and re-sampled in the South Australian Drill Core Reference Library and then re-assayed.

The mineralised sulphide intervals in each hole were analysed for a number of elements, including cobalt and gold that were not previously assayed.

Diamond core re-assayed[hhmc]

These re-assays provided the critical additional cobalt and gold data required to allow the estimation for these metals in the deeper part of the sulphide lode.

There is good potential to convert the deeper inferred resources to the indicated and measured categories by infill drilling between the existing, widely-spaced, MEPL 1960s diamond drill intersections. Thus far, only approximately 700 metres of the more than 2,000 metres strike of the sulphide mineralisation has been drilled to JORC measured and indicated resource status by Havilah, predominantly to a depth of less than 200 metres.

The cobalt-bearing iron sulphides are potentially an attractive grade cobalt feedstock for subsequent processing to recover cobalt and also if feasible, significant amounts of associated gold and sulphur.