The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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38 | ASIA Miner | Volume 14 • Issue 1 | 2017 Australian Copper AFTER becoming a gold producer in 2016 Havilah Resources will return to exploration this year seeking copper and gold resources at targets within trucking distance of the operating Portia Gold Project in South Australia. The planned budget for the 2017 drilling program is $500,000, of which 40% will be funded by the South Australian Government under a Program for Accelerated Exploration (PACE) grant. Managing director Chris Giles said one of the company's strategic objectives for the year was to make new discoveries that were ma- terial to Havilah, using Portia cash flow. "To this end, Havilah plans to commence an exploration drilling program in the first quarter of 2017 after an almost three year hiatus. "The drilling program has been approved by the Department of State Development and an Aboriginal heritage survey will be carried out to clear all planned drilling areas. "It is important to note that this regional exploration will not diminish ongoing drilling in and around the current Portia open pit to expand the mining resource base, which will be operated by a separate drilling crew," he said. Like the Portia mine, the various exploration targets lie on the Benagerie dome, which is viewed by Havilah as having the one of the lowest risk, highest reward greenfields copper-gold exploration profiles of any area within its entire 13,000sqkm tenement holding based on: 1. Extensive mineralisation identified by previous drilling, but with little subsequent follow-up drilling. 2. Within trucking distance of Portia Gold Mine and the proposed Kalkaroo copper processing facility. 3. Geological settings and mineralisation styles that can host world- class mineral deposits. The first priority is the 1.5km-long x 800 metre-wide Bassanio IOCG ironstone target, within 1km of Portia. Based on earlier Pas- minco aircore drilling results it contains anomalous metals, including gold, copper and molybdenum. Havilah attempted to RC drill the magnetic and gravity anomaly in 2005, but drilling was abandoned due to excessive water flows and loss of air pressure. This time it is proposed to drill at least two diamond holes into the target. The second target is up-dip and strike extensions of a shallow copper skarn at Croziers with the initial objective being a shallow, enriched oxidised copper deposit. Target three is Portia-type high grade gold analogues at the near- by Shylock and Lorenzo prospects. Drilling will follow up many en- couraging gold hits from the 1990s. FOLLOW-UP drilling by the Minotaur Exploration and OZ Minerals joint venture at the Iris-Electra copper-gold prospect near Clon- curry in north Queensland has confirmed the potential for copper sulphide mineralisation. All four holes of the program intersected hydrothermally altered breccia zones exhibiting various degrees of chalcopyrite mineralisation. The Iris-Electra copper-gold prospect lies under shallow cover about 5km northeast of the Eloise copper-gold mine. The prospect sits along the Levuka Shear Zone within Mt Norna Quartzite, a re- gionally significant rock unit that hosts the Eloise and Osborne cop- per-gold mines as well as South32's Cannington silver-lead-zinc mine. Minotaur's geological model for Iris-Electra is iron sulphide, copper-gold (ISCG) mineralisation, similar in style to the Eloise de- posit. An accelerated program of four diamond drill holes at Iris was completed by the JV. This followed promising results from the inau- gural two diamond holes at Iris which returned anomalous copper and gold values associated with pyrrhotite over broad intercepts, confirming Iris as a significant new ISCG discovery. Those results prompted the JV to place a further four drill holes into the Iris conductors. These holes utilised existing heritage-cleared drill pads for expediency. Significant intersections from the latest round of drilling include 20 metres from 228 metres @ 0.18% copper and 0.03 g/t gold, and 5.8 metres from 277 metres @ 0.48% copper and 0.06 g/t gold; 26 metres from 168 metres @ 0.73% copper and 0.61 g/t gold, in- cluding 0.4 metres from 175.3 metres @ 12.35% copper and 14.3 g/t gold; 40 metres from 390 metres @ 0.25% copper and 0.06 g/t gold, including 12 metres from 409 metres @ 0.52% copper and 0.17 g/t gold; and 36 metres from 154 metres @ 0.2% copper and 0.09 g/t gold. Copper-gold mineralisation is now documented along 600 metres of strike, reinforcing the potential scale of the mineral system. The persistent nature of mineralisation in the drilling indicates a large mineral system with potential for higher grades in the vicinity of the EM conductors. Mineralisation is open in all directions and the in-fill ground EM grid completed over the Electra EM anomalies shows conductive bodies modelled along 2.7km of strike. The results have given the JV sound reason to continue drill testing. Field activity will diminish during the wet season, until March 2017 and it is anticipated drilling will recommence around that time. Results confirm Iris-Electra potential Drilling by Havilah Resources on one of its tenements in South Australia. Havilah to explore near Portia

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