It always seems strange to me that these Copper comparisons...

It always seems strange to me that these Copper comparisons leave off Kalkaroo (Havilah Resources Limited's flag ship project in South Australia) even though based on the metrics on the slide it should have qualified for inclusion. But they include Winu (Rio Tinto Limited) and Hillside (Rex Minerals Limited, also in South Australia).

At both a copper equivalent % and copper equivalent tonnage basis (at each of 0.45% and 0.2% CuEq cut-off grades), the Kalkaroo copper-gold project is actually better than Rio Tinto's copper-gold-silver Winu project based on my analysis. Kalkaroo also has a JORC Ore Reserve, whereas Winu currently does not have a JORC Ore Reserve (Rio Tinto is working on it for 2021-2022).

Based on the Kalkaroo project grade/tonne classification graph ( below), from page 7 of Havilah' ASX Media Release dated 29 March 2017, the following would be the copper equivalent ('CuEq') tonnage and CuEq % grades for Kalkaroo compared to the Winu project using the same lower cut-off grades:

	Column 1	Column 2	Column 3	Column 4
1
2
3
4		Resource Tonnes (Mt)	CuEq %	CuEq tonnes
5	CuEq 0.45% cut-off grade
6	Winu	188	0.68	1,278,400
7	Kalkaroo	200	0.87	1,740,000
8
9	CuEq 0.2% cut-off grade
10	Winu	503	0.45	2,263,500
11	Kalkaroo	472	0.53	2,524,372

Like Kalkaroo, Winu is not only a major copper deposit but also a major gold deposit in its own right. Kalkaroo has the economic advantage of the Oxide Gold Cap of 514,500 ounces of gold on top of the main copper sulphide deposit.




When reading the above Kalkaroo graph, use your ruler in the vertical position. Read the red line for CuEq tonnage. Read the blue line for CuEq %.

For example, at a 0.2% CuEq cut-off grade, there are 472,374,934 tonnes at a CuEq grade of 0.5344%.

Note: it easier to say 0.2% or 0.45% 'CuEq cut-off grade' rather than 2,000 or 4,500 ppm 'Cutoff' on the bottom axis.

Notes
1. Kalkaroo copper-gold deposit mineral resource estimate from 29 March 2017 was 232.5 million tonnes at 0.49% copper and 0.37 g/t gold (equivalent of 0.7936% copper), using a 0.4% copper equivalent lower cut-off grade. This excluded the substantial gold cap of 21.7 million tonnes at 0.74 g/t gold for 514,500 ounces of contained gold (which was reported using a 0.2 g/t lower cut-off grade).

2. For the Kalkaroo main copper-gold resource a 0.4% copper equivalent lower cutoff grade was applied by Havilah. Mineral resources had been reported using a copper equivalent grade calculated using a six month average World Bank copper and gold price from 1 July 2016 to 31 December 2016 with gold set at US$1,287/oz (A$1,727/oz at AUD = 0.74USD) and a copper price of US$5,030/tonne (A$ 6,797 / tonne at AUD = 0.74 USD) and assuming comparable recoveries for both metals. On this basis, 1 ppm Au = 8,169 ppm Cu using a conversion factor of 32,151 troy ounces per metric tonne.

Copper equivalent grades in the saprolite mineralisation had been set to zero by Havilah.

3. For Winu, copper equivalent was determined using Rio Tinto forward-looking pricing and preliminary metallurgical recovery assumptions. I could not find a copy of the Rio Tinto forward-looking pricing assumptions.

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.