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Havilah Resources Ltd is Australia's newest gold producer

Havilah Resources Ltd (ASX:HAV) have fed their first ore through the processing plant at the Portia gold project located circa 90 kilometres north west of Broken Hill.

This follows recent news of the first ore being delivered to surface and the commissioning of the nearby processing plant.

Gold production remains imminent with high grade gold ore stock-piled ready for processing.

Expected cash flow over the next six months is set to be transformational for the company.

Dr Chris Giles, managing director, commented: "It is very pleasing to have achieved completion of plant construction and to see ore going through the process plant."

"Once we are satisfied that the plant is operating according to design on the low grade ore, we will move to processing the high grade ore stockpile in order to maximise gold production over the next few weeks".

Portia gold project

Portia contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Portia is Havilah's most progressed project with mining having commenced in March 2015.

Over the following 12 months overburden was removed by an experienced Broken Hill contractor under an innovative revenue sharing funding agreement.

Portia's first ore was accessed 3.5 months ahead of schedule, which has led to the stockpile of 10,000 tonnes of high grade gold ore ready for processing.

Havilah's geologists have recently identified significant gold in the bedrock beneath the interim sub-pit. Follow up work will be done to assess the economic feasibility of the material.

Processing plant

Construction, start-up and commissioning of the processing plant has been completed on schedule.

The plant is presently being commissioned on low grade ore to identify and address any operational issues with the objective of optimising the plant ahead of commencement of processing of high grade ore.

Ore will be sourced from the stockpile generated from mining the interim subā€pit.

Analysis

Shares in Havilah have rallied to $0.43 after starting 2016 at $0.23 as the company continues to deliver results on and ahead of schedule.

Havilah is set to benefit from a strong AUD gold price, which is currently trading at circa A$1,600 per ounce and the AUD gold price will remain a key catalyst for the stock.

Follow up news on the gold that has been found in the bedrock beneath the interim sub-pit will be watched closely.

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