Havilah Resources NL (ASX:HAV) Quarterly Report For The Period Ended 31 December 2009
Perth, Feb 25, 2010 AEST (ABN Newswire) - Havilah Resources NL (
ASX:HAV) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.
Kalkaroo project
Further information for the Kalkaroo feasibility study is presently being compiled incorporating initial comments by funding partner, Glencore International, on a draft version produced just prior to Christmas. Results of the feasibility study will be released upon finalisation and subject to approval by Glencore.
Mutooroo Project
A processing flow sheet and first pass costs for a 500,000 tonne per annum roaster and sulphuric acid plant to treat Mutooroo ore has been prepared by an experienced metallurgical consultant.
Based on this study, several options are potentially available:
1. Construct a roaster and acid plant to treat the high value ore in South Australia. This will involve a high capital cost (of the order of A$200 million, based on the first pass cost estimates), but will supply sulphuric acid that is presently in high demand locally in addition to non-CO2 producing electricity via co-generation.
2. Ship the sulphide ore to an offshore smelter for processing. This eliminates the high capital component and the onerous local regulatory hurdles, but bypasses value adding in South Australia, replacement of sulphuric acid imports and the opportunity to generate non-CO2 producing electricity for local consumption.
3. Some combination of both alternatives above, with local production of a copper concentrate via a conventional milling and flotation circuit, and roasting the sulphide rich tailings offshore to recover cobalt, sulphuric acid and energy.
Havilah is presently working on a detailed resource and financial model for Mutooroo in order to evaluate the best development scenario. It is evident that the Mutooroo project will require appreciable capital and technical know how, and Havilah is therefore actively seeking an experienced partner to assist in the future development.
Benagerie Project
At Portia, a Mining Lease has been offered by PIRSA. Before this can be granted a Mining and Rehabilitation Plan (MARP) must be prepared by Havilah and accepted by PIRSA. This document requires details of mine design and mining methods and engineering design for the gold processing circuit. Havilah is currently evaluating various exploitation alternatives in order to minimize project risk by reducing start up capital costs, specifically concerning removal of overburden. Delays in the field work have been caused by recent heavy rains, which have flooded the area. Subject to weather and access, it is planned to complete this work during the next quarter so that the MARP document can then be completed for approval by PIRSA.
At North Portia, encouraging feasibility study drilling results were reported last quarter, including 52 metres of 1.44% copper and 0.89 g/t gold in drillhole NPAC 39. Resource calculations are now in progress to determine the size and grade of the secondary copper-gold resource. Without further extensions being discovered, North Portia is unlikely to represent a stand-alone copper mine, however owing to similarities with Kalkaroo secondary copper ore, it is expected that it could be treated in the same processing plant. Planned economic modelling based on the resource model will test the profitability of this alternative.
Lilydale Iron Ore Project
During the quarter a gravity survey was conducted over the area of highest magnetic intensity of the poorly exposed Braemar Iron Formation on EL 3519. Gravity readings were carried out at 50m spacing along traverses 200m apart, covering approximately 8 km of strike of the western limb of the non-outcropping iron formation.
Strong positive gravity anomalies coincide with the areas of intense magnetism along at least 4 km of this strike length. This coincidence is further highlighted by the superimposed oblique 3D views of both the magnetic data (reprocessed from PIRSA open files) and the new gravity data shown at the right.
While the magnetic anomalies show the location of the magnetic iron formation in the subsurface, the gravity peaks indicate where the denser iron rich material within the iron formation is best developed or concentrated. The gravity results suggest that the iron formation is considerably thickened to widths of more than 100m within much of the survey area, thus representing a high priority iron ore target.
At the time of writing, drilling had commenced, with up to ten shallow percussion (RC) holes planned to test the high priority target area.
So far all holes have intersected appreciable thicknesses of magnetite-bearing ironstone. Further details will be released when drilling is complete and iron assays have been received.
Regional Exploration
With drilling requirements on its advanced projects largely completed, Havilah plans to carry out an active regional exploration program this year with the objective of making new discoveries on its extensive prospective tenement holdings in the Curnamona province.
Curnamona Energy Limited (Havilah 45.4% ownership)
The major highlight was commencement of construction of a well house unit to facilitate field recovery trials at the Oban uranium deposit. It is expected this unit will be operational by the end of March, and systematic uranium recovery tests can commence shortly thereafter for the five hole well field that was installed late last year.
Geothermal Resources Limited (Havilah 58% ownership)
Final processed seismic data for the 27 km long seismic survey line at the Frome project was received. It confirms a thick sequence of insulating Cambrian and Proterozoic sediments overlying the basement rock (granitic) heat source. A comprehensive business plan was prepared for drilling two deep proof of concept wells.
Detailed interpretation of extensive seismic data for the Penola-Robe project continued in order to identify zones of higher porosity within the prospective Pretty Hill Formation. These areas are considered most favourable for the occurrence of an economically exploitable hot sedimentary aquifer geothermal resource. In the meantime Panax Geothermal continued to successfully progress their proof of concept well, Salamander 1, on an adjoining GEL.
Finance
As at 31 October 2009 the Company had available funds of approximately A$8 million. Expenditure during the quarter was spread over a number of projects, with the major expenditure being drilling at North Portia and Kalkaroo south dome.
For further information visit the Company website
http://www.havilah-resources.com.au
For the complete Havilah Resources Quarterly Report for the period ended 31 December 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/62356-ASX-HAV-176993.pdf
About Havilah Resources Ltd
Havilah Resources Ltd (ASX:HAV) is a debt free South Australian gold producer having recently financed and developed its first gold mine at Portia in north-eastern South Australia. It plans to follow on with three copper-gold-cobalt mining developments at North Portia, Kalkaroo and Mutooroo, which are underpinned by a JORC resources mineral inventory of over 1.4 million tonnes of copper, 3.6 million ounces of gold, and 18,000 tonnes of cobalt.
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