Kalkaroo Copper Project Peer Comparison, page-21

Kalkaroo Project Peer Comparison (Undeveloped Projects, Ore Reserves, PFS or FS)

The table below shows a comparison of Havilah's 18 June 2019 Kalkaroo copper-gold project PFS (revised for the 2 December 2020 ASX Media Release new LT metal prices) with Sandfire Resources Limited's Black Butte copper project FS (SEDAR announcement on 10 December 2020).

Sandfire only owns 85% of the Black Butte project, with a third party owning the other 15% (NPV and tonnage numbers in the table are based on 100%). Black Butte is currently involved in USA environmental legal challenges on its MOP and leased water rights.

	Column 1	Column 2	Column 3
0		Kalkaroo Copper-Gold Project (South Australia)​	Black Butte Copper Project (Montana, USA)​
1	Company​	Havilah Resources Limited​	Sandfire Resources Limited​
2	Ownership of project​	100%​	85% (all numbers below are based on 100%) ​
3	Status​	PFS published 18 June 2019; Mining Leases granted; ownership of land on which project is located is via Kalkaroo pastoral lease; PEPR not yet granted​	Feasibility Study published 8 December 2020; Mine Operating Permit, some environmental permits issued. ​
4	Pre-tax NPV A$​	A$903 million​	US$125 million​
5	Discount rate​	7.5% (2019 real)​	5% (2020 real)​
6	A$/US$ exchange rate​	0.75​	0.68​
7	Copper price (long-term)​	US$3.10/lb​	US$3.20/lb​
8	Gold price (long-term)​	US$1,500/oz​	-​
9	IRR​	26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)​	17%​
10	JORC Ore Reserve​	474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification​	226,100 copper tonnes. 27% in 'Proven'; 73% in 'Probable' classification​
11	Mining Method​	Open pit​	Underground​
12	Copper cut-off grade​	Saprolite gold resources 0.2 g/t gold cut-off grade, while for the main Kalkaroo copper-gold resource a 0.4% CuEq cut-off grade​	1.2% copper cut-off grade​
13	Average production (as recovered metal) anticipated​	Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.​	Approximately 24,000 tonnes copper p.a.​
14	Life of mine (processing)​	Minimum 13 years​	8 years​
15	Waste: Ore ratio (including pre-strip)​	3.5:1​	Not Available​
16	Mine distance to nearest port​	~350 km (road and/or rail) to Port Pirie, South Australia​	~1,100 km by (road and rail) to Port Everett, Washington, USA ​

Sources for above table:
Kalkaroo https://www.asx.com.au/asxpdf/20190618/pdf/445xm614yw5s9f.pdf



Black Butte (accessible via SEDAR) Sandfire filed an independent technical report prepared under National Instrument 43-101 entitled “Sandfire Resources America Inc., Black Butte Copper Project, Feasibility Study (Johnny Lee Deposit) and Mineral Resource Estimate Update (Lowry Deposit) – Technical Report NI 43-101”. The report was dated 8 December 2020. The report is 29 Mb on www.sedar.com (make sure you search for 10 December 2020 as date of lodgement), file too large to post here.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.