The Asia Miner

JAN-FEB 2018

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

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Volume 15 • Issue 1 | 2018 | ASIA Miner | 65 Australia Copper late May covering the completion by Wan- bao of a pre-feasibility study (PFS) on the project. At Wanbao's expense, it has en- gaged independent consulting firm RPM- Global to manage and complete the PFS drawing on RPM's extensive combined Chinese and Australian experience and ex- pertise. The objective of the PFS, which was expected to be completed by the end of 2017, was to provide sufficient information for Wanbao to make a decision on future participation in project financing and devel- opment. The MOU is non-binding in terms of further investment beyond the PFS and Havilah has granted Wanbao an exclusivity period for the duration of the PFS and an additional two months, until about the end of February 2018. Chris Giles says, "We are delighted to have formed a co-operative relationship with Wanbao, which is a well-respected and successful Beijing based off-shore copper and cobalt producer with sizeable mining operations in Myanmar and the Democratic Republic of Congo (DRC). "The PFS is primarily addressing develop- ment implications of the recently upgraded resource, and will increase confidence in the final processing circuit and associated capital and operating costs for an expand- ed operation. At this time a large portion of the PFS evaluation work has been com- pleted and results, including validation of the resources estimate, are consistent with Havilah's past work." Havilah has taken care of the ground- work in purchasing the pastoral property on which Kalkaroo is situated and has reached agreement with the Native Title Claimants for the compensation and other terms of a Native Title Mining Agreement (NTMA). The compensation arrangement takes a fair and balanced approach where Havilah will have protection in a low metals price environment, while the claimants would see the benefit in a higher metals prices envi- ronment, thus sharing in the upside. This approach supports Havilah's ability to raise development finance for the project. The agreement also focuses on import- ant non-financial benefits such as employ- ment, training and business development opportunities for the claimants over the life of the mine. Chris Giles says it is an im- portant milestone because execution and finalisation of the NTMA paves the way for the regulators to finalise the Mining Lease Application. Moving ahead on Mutooroo Due to positive developments in the copper and cobalt markets, Havilah has moved the Mutooroo project to the front of its devel- opment agenda aided by the proximity of infrastructure, including the Transcontinental rail line and the regional city of Broken Hill. "We are moving ahead on the higher grade Mutooroo project," Chris Giles says, "with a pre-feasibility study and permitting approval work under way. We hope to have this work largely complete in about 12 months and will be looking at financing options for devel- opment, which could include advance sales of copper concentrates." To this end, the company has com- menced drafting a mining lease proposal for submission to the Department of Premier and Cabinet of South Australia. It has also made a preliminary approach to the Native Title Claimants with the view to initiating ne- gotiations on the possible terms of a native title mining agreement for the area. The company intends to utilise a 500,000 tonnes/annum conventional grinding and flotation circuit that will recover copper con- centrate and pyrite concentrate for cobalt. "If all elements fall into place, it is a great project," he says. "We have brought it for- ward due to the buzz around copper and cobalt, and because we have longer term solutions to deal with the excess sulphide." The deposit is marked by consistent wide copper and cobalt intersections in massive sulphide ore, including 13 metres from 36 metres at 2.20% copper and 0.29% cobalt, 27 metres from 130 metres at 1.75% cop- per and 0.22% cobalt, and 27 metres from 84.5 metres at 2.26% copper and 0.25% cobalt. There is an estimated JORC measured and indicated sulphide resource of 5.9 mil- lion tonnes at 1.31% copper and 0.14% cobalt within a total sulphide estimate of 12.5 million tonnes at 1.53% copper for 192,000 tonnes of copper and 17.54 mil- lion kg of cobalt, along with 92,700 ounc- es of gold. There is scope to materially increase the resource as only a portion of the known 2.1km strike has been drilled to JORC resource status. The traditional mining centre of Broken Hill is not far from Havilah's projects within the Curnamona Craton.

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