Havilah Resources NL (ASX:HAV) First Quarter Activities And Cash Flow Reports
Perth, Nov 30, 2009 AEST (ABN Newswire) - Havilah Resources NL (ASX:HAV) is pleased to provide to shareholders the activities and cash flow report. Which provides a summary of the progress made by the company.
REVIEW OF OPERATIONS
KALKAROO FEASIBILITY STUDY (Havilah 100%, copper-gold-molybdenum)
Havilah Resources NL continued to focus on completion of the Kalkaroo feasibility study during the quarter.
Work concentrated on running various production and open pit optimisation scenarios in order to determine which alternatives provide the best return on capital invested. With its higher grade oxidised cap, Kalkaroo potentially offers the opportunity of a relatively low capital start up that initially focuses on free gold and native copper production.
The feasibility study completion date has been further extended, in order to provide sufficient time to determine the economics of the various production options.
NORTH PORTIA (Havilah 100%, copper-gold-molybdenum)
During the quarter a 3,200 metre, 27 hole shallow air core drilling program was completed. The objective of the drilling program was to define a JORC resource for the previously incompletely drilled secondary copper sulphide mineralization at North Portia. Potential copper-gold ore from North Portia could provide supplementary feed to a mining operation at Kalkaroo in order to boost total copper and gold production.
The drilling returned several significant intersections, including:
52 metres of 1.44% copper and 0.89 g/t gold in NPAC 39.
This supports previously reported Havilah (and Pasminco) drilling results, including:
38 metres of 3.01% Cu and 0.66 g/t Au in NPAC003
36 metres of 1.55% Cu and 1.0 g/t Au in NPAC015
Better drilling results from the current program for which assays have been received are as follows:
Hole No From To(m) Interval Cu% Au ppm Mo ppm-----------------------------------------------------NPAC 37 93 119 26 0.79 0.61 196NPAC 39 97 149 52 1.44 0.89 162NPAC 43 92 107 15 2.00 1.27 934NPAC 44 84 119 35 0.80 0.50 536NPAC 49 82 89 7 1.80 0.28 666-----------------------------------------------------
The material drilled is typically completely weathered to saprolite clays, and as a consequence is very soft and would not require blasting to mine. The main copper sulphide minerals are chalcocite, bornite and chalcopyrite. The molybdenum levels at North Portia, are often quite significant and could add appreciable value to the potential ore, depending on metallurgical recovery factors.
Havilah's drilling appears to have closed off the economic mineralization along strike, but not down plunge. Drilling information is now adequate to calculate a resource figure for the secondary copper-gold resource at North Portia, which will be published in due course.
MUTOOROO COPPER-COBALT PROJECT (Havilah 100%, copper-cobalt -sulphuric acid)
An experienced metallurgical consultant has been employed to provide a flow sheet and first pass costs for a sulphuric acid roasting plant to treat Mutooroo ore. Mutooroo continues to present a compelling business proposition given the high combined value of sulphuric acid, copper, cobalt, iron ore and electricity that can be generated from even modest production of the massive sulphide orebody.
Havilah's aims to seek a funding partner to assist with financing completion of the project feasibility study and development of an integrated sulphuric acid-copper-cobalt processing plant.
Discussions were progressed with various parties during the quarter.
LILYDALE IRON ORE PROJECT (Havilah 100%, iron ore)
The Lilydale iron ore project lies 50 km southeast of Yunta, which is located on the Transcontinental Railway, some 200km east of Port Pirie. Aeromagnetic anomalies associated with magnetic ironstone indicate at least 20 km of strike of the Braemar Iron Formation lie within Havilah's 100% owned EL 3519.
A surface sample that contained 55% Fe based on readings from a portable Niton XRF analyzer was submitted for complete laboratory analysis. The results shows a comparatively high iron content of 58.6% and relatively low levels of the main unwanted elements such as Al, P, Ti and V, as summarized in the following table:
ID Fe% SiO2% Al2O3% CaO% K2O%-------------------------------------ORT1 58.6 10 2.32 0.26 0.028-------------------------------------ID MgO% Mn% Na2O% P% TiO2% V% LOI%-------------------------------------------------------ORT1 0.16 0.016 0.04 0.078 0.16 0.009 2.7-------------------------------------------------------
To assist in locating the highest concentrations of iron, Havilah completed a detailed gravity survey along a portion of the Braemar Iron Formation within EL 3519 where it is interpreted to be thickest and best developed, based on the highest magnetic intensity. Gravity readings were carried out at 50m spacing along traverses 200m apart, covering approximately 2 km of strike of the western limb of the iron formation. Strong positive gravity anomalies closely match the areas of intense magnetism, indicating higher density material and hence higher iron contents in the underlying iron formation. Notably, the sample containing 58.6% Fe, lies in a comparatively moderate intensity part of the gravity and magnetic anomalies.
Both the gravity and magnetic data confirm that the iron formation is considerably thickened in the area of the gravity survey. This may be the result of thicker accumulation of iron-rich sediments in the original sedimentary basin, and / or subsequent structural repetition caused by folding or faulting. It is possible that heating and fluid input from the underlying granite remobilised and concentrated iron in this area, resulting in the high magnetic intensity.
The gravity anomalies, coincident with the magnetic ridge, represent priority target areas for high grade iron ore. A reverse circulation drilling program is planned to target this and other areas of interpreted higher grade iron indicated by the gravity and magnetic data.
CURNAMONA ENERGY LIMITED (Havilah 45.4% ownership)
Curnamona Energy's main effort has been establishment of monitor boreholes and one pattern of production and injection wells required for the field recovery trial at Oban. This has involved careful drilling, casing and grouting and has been completed with the Company's own equipment and personnel. All of the monitor boreholes have been logged, and some have returned ore-grade intersections outside of the current resource. This is encouraging for the expansion of uranium resources in the immediate vicinity of Oban.
GEOTHERMAL RESOURCES LIMITED (Havilah 58% ownership)
Geothermal Resources Limited completed a 27 km long seismic survey line at the Frome project during the quarter. The objective was to accurately map the top of the granite body along an approximately east-west profile in the vicinity of the proposed 3.25km deep injection and production wells, Frome 15 and 16.
At the Penola-Robe project (formerly Crower project) work continued on interpreting the extensive historic seismic data for the region, via "in house" developed software that enhances the image and aids interpretation.
FINANCE
As at 31 October 2009 the Company had available funds of approximately A$8.7 million.
Expenditure during the quarter was spread over a number of projects, including the Kalkaroo feasibility study that is being funded by Glencore International.
About Havilah Resources Ltd
Havilah Resources Ltd (ASX:HAV) is a debt free South Australian gold producer having recently financed and developed its first gold mine at Portia in north-eastern South Australia. It plans to follow on with three copper-gold-cobalt mining developments at North Portia, Kalkaroo and Mutooroo, which are underpinned by a JORC resources mineral inventory of over 1.4 million tonnes of copper, 3.6 million ounces of gold, and 18,000 tonnes of cobalt.
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