Havilah Resources (ASX:HAV) Further Confirmatory Drill Results Received From Wholly Owned Maldorky Iron Ore Project
Perth, Sep 29, 2010 AEST (ABN Newswire) - Havilah Resources NL (
ASX:HAV), has previously announced two new iron ore discoveries at its 100% owned Lilydale and Maldorky iron ore projects. These discoveries form part of an emerging iron ore province in the northeast of South Australia, that is associated with the folded and deformed Braemar Iron Formation of Precambrian age.
Further drilling results from the Maldorky iron ore project have been received from a fence of three drillholes located 200m west along strike from the previously reported drilling (see ASX announcement 12 August 2010). These include:
- CTRC014 32 metres @ 42.1% Fe, from 1-33 metres
- CTRC015 68 metres @ 37.7% Fe, from 1-69 metres.
These drillholes indicate similar average thicknesses of iron formation (50m vs 53m ) at better than previous grades (average of 40% Fe vs 31% Fe).
In addition, CTRC005 was extended and confirmed strong iron mineralisation down dip from earlier reported results (see ASX announcement 12 August 2010), as follows :
- CTRC005 61 metres @ 35% Fe from 57-118 metres.
In both cases, owing to the shallow, approximately 30 degree dip of the iron formation, the drill intersections are very close to true widths. These results confirm a significant discovery of iron ore, with good strike and down dip exploration potential and extremely favourable open pit mining geometry.
Davis tube test results recently to hand for earlier drillholes, indicate that up to 36% of the iron ore can be upgraded to a magnetite product with more than 70% Fe. The magnetite recoveries are quite variable in spite of consistent iron head grades, indicating varying ratios of magnetic and nonmagnetic iron ore minerals in the rock , due to the effects of weathering.
The Maldorky iron ore project has negligible overburden, limited surface oxidation, shallow dips and lies only 28km south of the Transcontinental Railway. A relatively straightforward route exists for construction of a haul road between the project site and the railway. A metallurgical test program is planned to determine the beneficiation characteristics of the iron ore, and its ability to be upgraded to a premium saleable product for export.
Mutooroo Project
Pre-feasibility reso urce calculations and preliminary mine design are in process of being finalised and will be advised to the market shortly. As stated in previous announcements, in order to unlock full value from this deposit in terms of the contained copper, cobalt, sulphur and iron, it is necessary to roast the ore in a specialized roaster and convert the sulphur to sulphuric acid in a dedicated acid plant. In order to minimize capital requirements, Havilah is seeking to utilize an existing roaster, and to this end has commissioned a consultant to locate suitable partners in China with spare roasting capacity.
Kalkaroo project
Havilah has delivered the final feasibility study and all peer review documents relating to the feasibility study to funding partner, Glencore International, for evaluation. Both parties are presently considering the best options to advance the project.
The Kalkaroo project represents a valuable asset for Havilah containing over 325,000 tonnes of copper and almost 1 million ounces of gold, at a time when both commodities are approaching record prices.
Benagerie Project
No work on the downhole mining method has taken place during the last month as the RC drilling rig, which is required for this work, has been occupied elsewhere.
Resource modelling work on the North Portia oxidized zone by Havilah geologists and consultants, continued.
Regional Exploration
Currently, drilling is taking place on a major east-west structure in the North Kalkaroo dome, which returned 3m of 1.29 g/t gold in quartz vein breccia in the first drillhole. Subsequent drilling has revealed a wide zone of quartz stockwork veining from which visible gold and copper have been panned in drill chips.
For the complete Havilah Resources announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63843-ASX-HAV-179719.pdf
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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