Ann: Rights Issue Announcement, page-17

Havilah is an exploration company but has NOT added to its JORC Mineral Resources since 2012.

Luckily, Havilah is about to embark on a program to "rejuvenate exploration" using part of the proceeds from this Rights Issue.

The Company plans to undertake a gravity survey, shallow MT survey and geochemical 'sniffing' sampling at the Jupiter MT target. As I have pointed out before (Post # 40505375), the cost of the gravity survey was estimated at $20,000-$30,000. A gravity survey, in my opinion, would have a better chance of attracting a JV partner to potentially drill at Jupiter.

In addition, Havilah is going to drill at Mutooroo to define additional shallow open pit copper [and cobalt] resources along strike outside of the existing JORC Mineral Resource.

Most importantly, the focus on the 'western end' of the Grants Iron Basin (GIB) deposit is smart for a number of reasons, particularly given the lack of overburden at that location. The western end is also where the discovery hole (GTRC007) was made during 2012 . GTRC007 intersected 69 metres @ 31.7% Fe from 15 to 84 metres depth (see page 2 of the Havilah 5 October 2012 ASX release). GTRC007 ended in iron ore and had the highest average iron grade intersection of all holes drilled in the GIB area.

Defining a 1 to 1.5 billion tonne resource at the GIB, in my opinion, looks doable in the short-term and would allow Havilah to actively market it (to find a suitable JV partner or an outright sale) to realise the true 'fair value' of this iron ore asset.

From the Havilah website:
Havilah Resources Limited (Havilah  listed on the Australian Securities Exchange during March 2002, sponsored by its two founding shareholders, geologists Dr Bob Johnson and Dr Chris Giles. Since then, the funds entrusted by shareholders have been used to carry out highly successful exploration drilling programs in the northeast of South Australia that have generated the Company’s current 1.3 million tonnes of copper, 3.1 million ounces of gold, 31,600 tonnes of cobalt and 451 million tonnes of iron ore in JORC Mineral Resources.

Dr Chris Giles, one of the original founding shareholders, still retains all of his original shares and has supported the Company in its entitlement issues over the years. As a substantial shareholder his interest is closely aligned with other Havilah shareholders.


Bob and Chris look like they are 'Getting the band back together':



The culture at Havilah had to change from a 'lifestyle' type company back to being a successful explorer. That is not up for debate.

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.