PFS, page-49

A report on the financial viability of a large South Australian copper project is not far off
Cameron England, The Advertiser
January 8, 2018 2:57pm
Subscriber only

Havilah Resources expects to release details of the financial study into its large, Kalkaroo copper project in the state’s east in the first quarter of this year.
The Adelaide company has told investors that the prefeasibility study into the Kalkaroo project is “substantially complete” and a draft would be handed to potential joint venture partner Wanbao Mining by the middle of this month.
The study is being conducted by consultancy firm RPM Global.
Havilah is hoping to do a development deal on Kalkaroo this year, once the PFS results and ore reserves are finalised and published.
It signed a non-binding memorandum of understanding with Wanbao Mining in May last year which involved Wanbao funding the PFS.
Wanbao then has two months from the delivery of the final PFS to make an investment decision regarding the project.
The latest ore resource released by Havilah showed the project contained 232 million tonnes of ore at 0.49 per cent copper and 0.37 grams per tonne of gold.
The company’s website says the project “can potentially sustain a substantial bulk open pit mining operation at an average annual production rate of 34,000 tonnes of copper and 108,000 ounces of gold over a period of at least 14 years’’.
The company’s announcement to the ASX today said there were minor delays to finishing the PFS caused by late receipt of metallurgical results.
“Havilah has used this period to do further reviews of PFS data provided to date and to perform some additional analysis and trade-off studies of certain aspects of the project,’’ the company said.
“As planned, there will be a period of consultation following delivery of the PFS document and Havilah technical personnel will meet with Wanbao in Beijing for a joint review and evaluation of the PFS results later this month.
“Part of the objective would be to ensure the PFS properly reflects the value, potential upside, and opportunities related to the Kalkaroo copper-gold project.
“Following this period of consultation between Havilah and Wanbao and upon receipt of RPM Global’s final PFS document, Havilah will be in a position to make a further announcement regarding the PFS outcomes, which is expected to be before the end of the first quarter of 2018.
“This will include a probable ore reserve, expected capital cost of the project and a net present value for the project.’’
The Kalkaroo project is northwest of Broken Hill, on the South Australian side of the border.
“Wanbao Mining Limited is a Beijing-based specialist international mining company with substantial copper mining operations in Myanmar and copper and cobalt mining and smelting operations in the Democratic Republic of Congo,’’ the Havilah website states.
Havilah shares were 0.5c lower at 22.5c