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  • Havilah Resources Confirms New Mineralised Gold Zone At Kalkaroo 0 comments
    Jul 26, 2013 1:07 AM

    Havilah Resources' (ASX: HAV) aircore drilling program has confirmed that a new shallow gold mineralised zone is present at its Kalkaroo copper-gold project in South Australia.

    Notably, the presence of shallower gold mineralisation potentially lowers start up project risk and when combined with improved metallurgical recoveries, further improves the case for constructing a central processing plant.

    This mineralisation occurs just 23 metres to 36 metres below surface in a distinctive more organic rich, darker coloured basal part of the Tertiary (BOT) clay sequence.

    It forms a "mushroom cloud" halo lying above the well drilled bedrock Kalkaroo copper-gold resource as defined by the previous feasibility study.

    Notable assays from the aircore drilling at West Kalkaroo include:

    - KKAC420: 37 metres at 4.8 grams per tonne gold from 61 metres to end of hole;
    - KKAC421: 45 metres at 0.96% copper from 59 metres and 50 metres at 0.76g/t gold from 72 metres to end of hole; and
    - KKAC419: 8 metres at 1.2% copper from 78 metres to end of hole and 6 metres at 4.95g/t gold from 74 metres.

    Previous drilling at Kalkaroo had occasionally unearthed gold at this base of the BOT cover sequence.

    Assuming that the shallow Tertiary gold mineralisation proves to be sufficiently laterally extensive and can be economically treated, access to this material at an early stage of mining could potentially lower the start-up project risk in bringing forward project revenue.

    This will also contribute to recovering the cost of overburden removal.

    These and future aircore drilling results will be progressively added to the conceptual starter open pit mine design in order to continually refine the Kalkaroo mining model.

    With enhanced Kalkaroo mining economics due to improved metallurgical recoveries and now shallower accessible gold mineralisation in the BOT, the case grows for constructing a central processing plant at Kalkaroo.

    Transporting gold and copper material from known resources such as Portia, North Portia and Mutooroo and potential future resources such as Wilkins and Eurinilla to a central integrated facility at Kalkaroo would avoid costly duplication of processing facilities and infrastructure and simplify the permitting requirements for each site.

    Over coming weeks this scenario will be incorporated into the Kalkaroo mining model in order to evaluate the economic advantages of a central processing concept.

    In the meantime, the current air-core drilling campaign will continue to test the BOT gold mineralisation and the underlying bedrock copper and gold mineralisation at West Kalkaroo.


    Kalkaroo has a Measured and Indicated Resource of 124 million tonnes at 0.5% copper and 0.39g/t gold in the main copper-gold deposit and 18.6 million tonnes at 0.74g/t gold in the gold cap on top of the copper-gold deposit.

    This free milling, soft gold cap containing 446,000 ounces of gold with better than 97% recoveries offers early cash flow.

    Copper and gold recoveries of up to 91% and 87% respectively are expected from the chalcopyrite sulphide material, which forms about 66% of the deposit.


    Today's confirmation of a new near-surface gold mineralised zone at Havilah's Kalkaroo project has the potential to improve the economics of the project if its proven to have sufficient lateral extent to be commerically treated.

    This adds further to the potential of the existing gold cap to provide early cash flow by bringing forward project revenue further ahead and contribute to recovering the cost of overburden removal.

    At its current share price of $0.30 and market capitalisation of $36.1 million, Havilah still offers investors a window to gain exposure to a promising copper-gold project with early cash flow potential as well as a iron ore deposit with favourable economics where progress has being made towards restarting exploration.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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