Ann: Activities Update , page-3

Very interesting post Clark888 – I think I can join the dots and complete the jigsaw puzzle which I think could be a case of I’ll scratch your back and you scratch mine.

The following is what I understand – happy for anyone to clarify if they know more.

Polymetals (PLY) recently listed and has its history in joint venture gold production, i.e., assist juniors to produce from short life gold mines. They did a JV with Exco (EXS) for gold production at White Dam where PLY bring the gold mining and production expertise and EXS supplied the resource to be developed.

What sparked my attention was your post and the follow in Havilah’s announcement today:

“Havilah has signed a binding undertaking on the terms for a farm-in with Exco Resources Limited and Polymetals Mining Limited for the exploration of EL 4200 for iron ore. This EL lies immediately east of Havilah’s EL 3895, and is believed to have similar iron ore potential to Maldorky. Under the terms of the farm-in, Havilah will earn the right to a 75% interest in any ML granted over an iron ore deposit it discovers by expending $1.2m on exploration prior to 31 December 2013. The area was the site of BHP’s quarries to supply flux to the Broken Hill smelters in the late 1800’s. Havilah expects to mobilise its drilling equipment and drilling crew to the area within the next two weeks.”

I did some further research and found this in PLY’s AGM presentation announcement:

“Our immediate exploration focus at Drew Hill remains on near-mine targets in order to provide continuity to the current operation. We are aggressively drilling a number of these targets. However, it remains highly probable that a production gap at White Dam will occur while we prove up further economic Reserves.”

Whilst Maldorky is south of the Barrier Highway, White Dam is North of the Highway as is Havilah's Portia godl resource – I can’t tell how far but given it is a short term mine I’m wondering if it would be trucking distance to White Dam and the transport cost would offset the cost of setting up production at Portia.

To top this off, Havilah have finally resubmitted for MARP approval at Portia which I had been feeling was on the go slow because there was no point unless they had was a means to get the gold out of the ground – thus completing the jigsaw puzzle where PLY gets continued ore supply and HAV get gold mining experience and opportunity to explore for iron ore.

It seems to be a perfect match. I had been concerned about how Havilah would get the gold out of the ground given that they seem to be geologists rather than miners and producers. PLY have stated that iron is not their area of specialty and Exco seem more focussed on copper gold in Queensland. Some nearby iron would add to the economics of Maldorky for Havilah.

Apologies for any one who doesn’t like long posts, but I think there is a lot of great information to summarise. For anyone who wants more details on Portia gold, see AGM presentation from slide 10 onwards.

Whilst I had been getting frustrated that nothing seemed to be happening at Havilah, I know think that is about to change.