The Asia Miner

JAN-FEB 2018

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

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The story doesn't end there with the com- 64 | ASIA Miner | Volume 15 • Issue 1 | 2018 Australia Copper AFTER transitioning from explorer to pro- ducer in 2016 Havilah Resources is not resting on its laurels and intends to trans- form into a sizeable copper producer, sup- ported by continued production of gold as well as other minerals including cobalt, molybdenum, tungsten and tin. Havilah's clearly articulated Copper Growth Strategy is a blue-print for how the company plans to progressively develop its impressive suite of copper projects in South Australia. This strategy is underpinned by Havilah's large JORC resource metals inventory, its proven exploration prowess, its operational suc- cess with partner Consolidated Mining and Civil (CMC), cash flow from Portia, and now with strong interest from a major Chinese company. Production is continuing at Portia, north- west of the traditional mining centre of Bro- ken Hill, while planning is well advanced to mine the adjoining Portia North copper-gold deposit and Havilah is also making plans to develop the Mutooroo copper-cobalt de- posit southwest of Broken Hill. However, the company maker will be the large Kalkaroo project around 20km south of Portia which contains at least 1.4 million tonnes of copper and 3.3 million ounces of gold as well as significant quantities of mo- lybdenum, cobalt and sulphur. pany having recent exploration success at copper-gold and IOCG targets close to Portia, the copper skarn deposit at Croziers midway between Portia and Kalkaroo, and tin prospects at Prospect Hill in the northern Flinders Ranges. Havilah's managing director Chris Giles says while gold is presently a good high margin business, supported by a lower Australian dollar, copper is a solid long-term story backed by increasing consumerism in developing economies along with the im- pending boom in electric vehicles and re- newable energy. "New copper mining developments have slowed at the time when usage is expand- ing with the highly copper intensive renew- able energy generation and storage revolu- tion, not to mention electric vehicles (EVs) and antimicrobial applications. "The metal still has its traditional uses, which put it in great demand in the emerg- ing economies of China, India and South- East Asia, while the rapidly growing EV and renewable energy markets use a lot of copper. The average EV uses about 80kg of copper as opposed to around 20kg in conventional vehicles." He says the company's copper story is enhanced by cobalt as there are appre- ciable quantities of the 'energy metal' in Havilah's copper resources, particularly at Kalkaroo and Mutooroo. "I believe this will be the decade of cop- per and the strong fundamentals for cobalt demand, will add icing to our copper cake." Kalkaroo no longer a pipe-dream A resource estimate completed this year at Kalkaroo saw contained copper metal in- crease by more than 80% to 1.14 million tonnes and contained gold by more than 60% to 2.77 million ounces, excluding a 550,000-ounce higher grade gold cap. The resource now stands at 232.5 mil- lion tonnes at 0.49% copper and 0.37 grams/tonne gold for a copper equivalent of 0.79%, using a 0.4% copper equivalent lower cut-off. The estimate does not include significant unquantified credits of molybde- num, cobalt and sulphur or the gold cap. The deposit, which represents one of Australia's largest undeveloped cop- per-gold deposits, remains open at depth and along strike, with considerable scope for expansion. Kalkaroo hosts a potential- ly large cobalt resource with substantial zones containing more than 500ppm co- balt. It is estimated that it contains 5-10 mil- lion tonnes of cobaltian pyrite ranging from 1-3% contained cobalt. The new estimate includes data from an additional 74 holes and extensive re-inter- pretation, block modelling and re-estimation by an experienced, independent resource geologist. Substantial additional inferred re- sources underscore the potential to consid- erably extend mine life. Havilah has always held high hopes for its major project and Chris Giles says the re- source upgrade has added to expectations, but the size of the project and the costs involved with developing it are challenging for a junior company. However, Havilah be- lieves a new agreement with China's Wan- bao Mining, a substantial international cop- per and cobalt producer, could change this. Following several months of due diligence by Wanbao on Kalkaroo and the resource upgrade, the two parties signed an MOU in Focus of Havilah transitions to copper The open pit at the Portia Gold Project, northwest of Broken Hill.

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