Havilah Resources (ASX: HAV) continues to build up evidence that the shallow Tertiary clay could provide early cash flow to underpin the conceptual starter open pit at West Kalkaroo in South Australia as drilling continues to intersect gold mineralisation.
This clay hosted mineralisation envelope, which has good gold recoveries, now extends across four drill lines covering more than 150 metres.
"Our drilling is indicating a persistent layer of shallow clay hosted gold mineralisation, which is readily recovered by conventional cyanide leaching," chairman Dr Bob Johnson said.
"This is extremely positive for a low capital start up of Kalkaroo. Treatment of this material could provide the vital early cashflow required to underpin the starter open pit concept at West Kalkaroo, which we are presently evaluating."
To date, 35 aircore drillholes have been completed with a similar number planned over the next few weeks at West Kalkaroo.
Latest results include:
- 4 metres at 1.1 grams per tonne gold from 27 metres;
- 7 metres at 0.88g/t gold from 28 metres;
- 6 metres at 1.1g/t gold from 28 metres; and
- 4 metres at 1.1g/t gold from 27 metres.
This gold mineralisation occurs from 23-36m below surface in a distinctive darker coloured, roughly horizontal layer near the base of the Tertiary clay sequence.
Assay results are awaited for drillholes already completed on three further drill lines to the east.
Additional drillholes will also be completed on several lines to the west of the current drilling with the objective of establishing the full extent of the shallow gold mineralisation within the confines of the conceptual stage 1 open pit.
Cyanide leach test results from samples recovered from the basal Tertiary clay had returned 80% gold recoveries within a comparatively rapid eight hours while consuming low levels of cyanide.
The company noted this 80% recovery rate appears to be achievable in a conventional CIP gold plant.
While more assay results are still pending, Havilah Resources is already receiving early signs that the gold-bearing basal Tertiary clays overlying the main deposit at its Kalkaroo copper-gold project is extensive enough to be processed.
This will provide early cash flow for the company while reducing start-up risk.
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