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Havilah Resources Ltd Plans First Gold Pour This Week From Portia

Havilah Resources Ltd (ASX:HAV) will resume mining later this week following a recent pit wall slip at the Portia gold mine located circa 90 kilometres north west of Broken Hill.

The mining downtime has had no effect on production due to the gold plant being able to treat already stockpiled ore.

The processing plant continues to process high grade ore and is being optimised to maximise processing.

Havilah expects to complete its first gold pour this week.

Dr Chris Giles, managing director, commented: "We are pleased that CMC can continue mining largely in accordance with the current mine design with an acceptable level of safety.

"Our gold plant continues to treat stockpiled ore and is producing gold concentrate over a wide size range, which we aim to smelt this week.

"Our operating team have been working tirelessly on optimising plant performance and maximising throughput and plant availability."

Background

Portia is Havilah's most progressed project and contains a 67,000 ounce Inferred Resource of gold in a 1-4 metre thick layer of silty material lying immediately on the bedrock.

Mining commenced in March, 2015 with experienced Broken Hill contractor, Consolidated Mining and Civil (NYSE:CMC) under an innovative revenue sharing funding agreement.

As a matter of prudence, CMC decided to recently temporarily suspend mining operations while they investigated and updated past geotechnical models following the pit wall slip.

It has been determined that mining can safely proceed down to approximately 35 metres below surface with no change to the current design.

Processing plant

After two weeks of commissioning, the processing plant is now processing high grade gold ore.

The commissioning phase has progressed from running water to treating low grade ore and finally treating high grade ore.

Ore is being sourced from the stockpile that came from mining the interim sub-pit.

The stockpile contains sufficient material to last several weeks.

Analysis

Havilah Resources Ltd plans first gold pour this week from its Portia gold mine, located 90 kilometres north west of Broken Hill.

Havilah continues to benefit from a strong AUD gold price, which has risen A$50 over the past week to be trading at circa A$1,750 per ounce.

Shares in Havilah are trading around $0.465, up nearly 100% year to date as the company continues to deliver results on and ahead of schedule.

News flow surrounding the company's maiden gold pour is expected within the week.

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