The company has now commenced mining the first gold ore at Portia, northeast of Broken Hill, 3.5 months ahead of schedule.
The vastly improved timeline was achieved due to a recent redesign of the mining plan.
By the end of this week it is expected that several thousand tonnes of high grade ore will have been mined and stockpiled on the ore pad adjacent to the processing plant.
Construction of the processing plant is progressing as planned and at this stage is expected to be commissioned by the middle of April.
Havilah shares last traded 6.4% higher at $0.415, but taking a two-month view, the valuation of the company has doubled.
Dr Chris Giles, managing director for Havilah, commented:
"It is pleasing to note that in spite of the numerous challenges presented by the soft clay overburden and ongoing dewatering requirements, mining of the Portia open pit has largely gone according to plan and the ore zone is as expected, which augers well for the remainder of the mining operation.
"Our next major milestone will be commencement of processing of the stockpiled ore, which we expect to achieve during April once construction and commissioning of the processing plant is completed."
Consolidated Mining & Civil Pty Ltd's activities
Since commencement of mining operations on 30 March 2015, Havilah's mining contracting partner, Consolidated Mining & Civil Pty Ltd (NYSE:CMC) has removed more than 70 metres of overburden and last week mined to within 5 metres of the high grade ore horizon.
Havilah drilled 13 holes from this temporary pit floor in order to accurately determine the top and bottom of the high grade ore surface.
This information was then entered into the GPS controller on the 120 tonne excavator that allows the operator to mine the high grade ore horizon with some precision, resulting in minimal dilution from lower grade material above and below.
Given the potential value of the high grade ore, Havilah's geologists are continually monitoring the mining to ensure it remains on track and that each truck load of ore material is delivered to the correct location on the stockpile.
On 3rd March 2016, Proactive Investors Australia said:
"Havilah's share of gross cash flow generated from the mine could amount to $40 million in 2016 at current gold prices and relative to its market cap of circa $50 million is undervalued as the Portia gold mine is fully funded."
Since then the company has been a top ASX performer, with its valuation passing $70 million.
Havilah remains one of our top commodity picks for 2016.
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