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Havilah Resources Edges Closer Towards Gold Mining At Portia Project With Camp Acquisition

Jul. 09, 2013 12:59 AM ET
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Havilah Resources (ASX:HAV) is progressing towards gold production from its 67,000 ounces Portia project in South Australia, having acquired a 48 room mining camp from Polymetals Mining (ASX:PLY).

Glencore and MMG are both substantial shareholders, chairman Bob Johnson and Chris Giles have partnered in Havilah and together have drilled out eight JORC resources in the region.

Acquiring the mining camp is an important pre-requisite for Havilah to start developing the Portia project, and will allow cost and time efficiencies at the site.

A key attribute of Havilah's Portia project is to develop it as a single year production that will give quick cash flows over the one year, with an extension likely.

As the Resource size could be expanded as high grade gold drill intercepts indicate potential resource expansion in bedrock while low grade gold halo in bedrock may form a viable resource.

It is hoping to produce 51,130 ounces per annum at a capex of $29.1 million and cash cost of $124 per ounce.

The White Dam mining camp is complete and includes a kitchen and septic system and the company has until end of this year to move the camp from its current location about 80 kilometres from the Portia project site.

It is also progressing the permitting work for an Environmental Protection Agency approval, which also includes establishing to government regulators that the dewatering water from the open cut at Portia can be re-injected into the nearby Shylock palaeochannel.

Havilah will construct a dam in the next few weeks in order to conduct a pump test to test the suitability of reinjection of the water.

The new pump test results will be applied by the groundwater consultants to develop a new water re- injection model which in turn will be incorporated into the final Program for Environmental Protection and Rehabilitation (OTC:PEPR) document to be re-submitted to SA state regulators.

While the company awaits mining approval, it will also issue tenders for contract mining.

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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