Ann: New Copper Mineralisation at Kalkaroo , page-2

The results from the assays prove HAV Management's theory that the Kalkaroo resource is open down dip.

My calculations indicate that KKDD406 (upper part) has significantly higher grades (approx 1.76% Cu equivalent) compared to the main deposit of 0.79% Cu equivalent; whereas KKDD404 has 28% less grading than the main deposit.

The only disappointment for me from KKDD406 (upper part) was the fact that it was only 13m.

I still believe KKDD411 and KKDD 412, as they are closer to the West Kalkaroo zone on the map in today’s ASX release, will have assays higher than 0.7% copper grades and gold grades approaching 1.5 g/t.

Remember, for the Kalkaroo JORC copper-gold resource a 0.3% Cu equivalent lower cut-off grade is applied (Source: cut-off parameters, Kalkaroo “Estimating and Reporting of Mineral Resources” on HAV website.)

I hope the following analysis helps (someone please check my calculations).

KKDD401 (58m interval averaging 0.48% Cu and 0.45 g/t Au from 291m depth)

0.48% Cu = A$37 per tonne
0.45 g/t = 0.015873 oz/t = A$25.4 per tonne
A$62.4 per tonne (0.81% Cu equivalent)
Based on an SG of 2.68, one cubic metre would be valued at A$167 (3.1% better grading than the main deposit)
Therefore, 58 cubic metres would be valued at A$9,699
KKDD406 (the upper part of hole only, 13m of mineralisation averaging 0.99% Cu and 1.05 g/t Au from 198m down hole)

0.99% Cu = A$76.2 per tonne
1.05 g/t = 0.037037 oz/t = A$59.3 per tonne
A$135.5 per tonne (1.76% Cu equivalent)
Based on an SG of 2.68, one cubic metre would be valued at A$363 (significantly better grading than the main deposit)
Therefore, 13 cubic metres would be valued at A$4,719
KKDD404 ( 33m of 0.37% copper and 0.27 grams per tonne of gold from 365m downhole)

0.37% Cu = A$28.5 per tonne
0.27 g/t = 0.009523 oz/t = A$15.2 per tonne
A$43.7 per tonne (0.56% Cu equivalent)
Based on an SG of 2.68, one cubic metre would be valued at A$117 (28% less grading than the main deposit)
Therefore, 33 cubic metres would be valued at A$3,861


Main Kalkaroo Project Deposit (124.5 Mt 0.50% Cu and 0.39 g/t Au)

0.50% Cu = A$38.5 per tonne
0.39 g/t = 0.013756 oz/t = A$22.0 per tonne
A$60.5 per tonne (0.79% Cu equivalent)

Assumptions:
Based on copper price of A$7,700 per tonne
Based on gold price of A$1,600 an oz
Based on chalcopyrite (per HAV website) of SG 2.68, therefore there are 2.68 tonnes per cubic metre.
Excludes any value for Mo and Co.

Cheers