Havilah Resources NL
Havilah Resources NL
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Chinese-based international copper and cobalt producer Wanbao Mining has linked up to partner South Australian miner Havilah on development of its Kalkaroo copper-gold project.
Havilah has given Wanbao exclusive rights until about end-Jan 2018 to complete a PFS and submit plans for financing and development of the project. Wanbao has appointed independent consultant RPMGlobal to conduct the PFS.
South Australian miner Havilah has posted an after-tax profit of $A3.4M for the 6 months to end-Jan (H1FY17), a turnaround from its $0.8M loss in the corresponding period prior to the commencement of gold production at its Portia mine. Net cash inflow of $7M saw Havilah end the period with cash balance of $1.9M.
Portia, being mined under a 50-50 shared risk/revenue deal with Consolidated Mining & Civil, produced 15,756oz gold for the period. Work to overcome bottlenecks are expected to lift processing plant operations to maximum capacity in H2.
New work has lifted JORC measured-indicated-inferred contained copper at Havilah Resources’ 100%-owned Kalkaroo Copper-Gold Project is S Australia by more than 80% to 1.14Mt and contained gold by more than 60% to 2.77Moz.
And the new resources don’t include a 520,000oz gold cap, lacking copper and modelled separately, within 21.7Mt at 0.74g/t gold using a 0.2g/t cut, which the company says provides a potential early cash flow bonus to be mined to access the deeper copper-gold resource near Broken Hill, 450km NE of Adelaide.
Mining of saprolite ore with lower recovered gold grade saw production at Havilah's Portia gold mine in NE South Australia decline to 7,618oz in the Jan qtr (Q2FY17), down from 8,138oz in the Oct qtr. Works to increase processing capacity as Portia transitions to a longer-term operation saw ASIC spike 44% to $A751/oz (Q1: $523/oz). Timing issues reduced gold sales to 9,134oz (7,504oz).
Havilah can proceed immediately with the 120m southern cutback under the MoU with partner Consolidated Mining and Civil at its Portia gold project in South Australia after gaining state development approval for its southern and northern mining extensions.
The prompt approval will allow ore mining and processing to continue without a break, extending the mine life by at least 12 months. MD Dr Chris Giles says Havilah's focus now is on ramping up gold production.
South Australian miner Havilah has posted daily records of 34kg gold concentrate production and 49kg gold pour at its Portia mine on the way to lifting Oct qtr output to 8,138oz from the processing of 73,000t wet at 3.4g/t. The result compares with 4,962oz (32,000t @ 2.4g/t) from the 2 months of commercial production in the May qtr.
Havilah's 50% share of gold production was 4,069oz at AISC of $A523/oz (May qtr: 2,516oz at $585/oz). The company reported no pitwall slips after adopting a modified mining plan based on geotechnical advice.
Havilah aims to extend the life of its Portia gold project in South Australia another 12 months after signing an MoU with mining partner Consolidated Mining and Civil by extending the openpit 120m to the south. With mining of the original pit design largely completed, the companies will continue their 50:50 revenue sharing arrangement.
MD Dr Chris Giles says their hard-won mining experience at Portia means the second stage of the project is largely de-risked. Recent drilling continues to indicate significant gold-bearing saprolite material below the current pit floor.
South Australian miner Havilah expects mining to resume this week at its Portia gold project after yet another weather interruption. Havilah poured its first gold in May but rainstorms almost every week for the last 3 months have forced stoppages due to hazardous driving conditions.
South Australian miner Havilah expects more cost improvements as its Portia gold project progresses to steady-state production. After pouring its first gold bar at end-May, Havilah's 50% share of production was 2,446oz gold at AISC of $A541/oz to the end of the July qtr (Q2 FY16).
Its mining partner Consolidated Mining and Civil has achieved consistent throughput of 1,000tpd since taking over operation of the processing plant on July 1. Havilah retains operation of the gold room.
South Australian miner Havilah sees emerging long-term potential for its Portia gold project after drilling and bedrock sampling confirmed a primary gold mineralised system. Best recent drilling results were 6m @ 53.6g/t from 68m and 13m @ 8.4g/t from 79m.
The project NW of Broken Hill has current remaining life expectancy of 6 months, but MD Chris Giles says Havilah now has physical evidence that it harbours something much larger at depth. The mining plan is being revised and new approvals sought to realise its potential.