Copper Peer Comparisons (Undeveloped Projects, Ore Reserves, PFS or FS), page-10

Kalkaroo Project Peer Comparison (Undeveloped Australian Projects, Ore Reserves, PFS or FS)

Continuing my focus on undeveloped Australian copper peer comparisons with JORC Ore Reserves and a PFS or FS, the table below shows a copper peer comparison of Havilah's 18 June 2019 Kalkaroo copper-gold project PFS (revised for the Havilah 2 December 2020 ASX Media Release new LT metal prices) with the Sulphur Springs copper-zinc project DFS (VXR ASX announcement of 10 October 2018).

The Sulphur Springs copper-zinc project is a higher-grade deposit (8.4 Mt @ 1.4% Cu ore reserve) in Western Australia. The DFS assumes copper-zinc concentrate will be transported by road to Port Hedland (a distance of 144 km) and then exported to Asian smelters.

Notes:
Apart from Sulphur Springs, VXR has a number of other JORC Mineral Resource projects in Western Australia.

Sulphur Springs copper-zinc project pre-production capital is stated as $169 million. Project financing has not been sorted.

VXR currently has approximately $26 million in available tax losses.

Cash on the VXR balance sheet at 30 September 2020 was $3.5 million (estimated 2.92 quarters of funding available). Under a Loan Agreement (ASX release 5 December 2019), Northern Star Resources Limited provided a $2 million unsecured loan to Venturex, partially drawn down.

The current VXR market capitalisation is $44 million.

Substantial shareholders (there were 2 shareholders, including Northern Star Resources Limited with 18.5%) held 28% of the share register at 10 September 2020. Top 20 shareholders held 49% of the VXR ordinary shares.

	Column 1	Column 2	Column 3
0		Kalkaroo Copper-Gold Project (South Australia)​	Sulphur Springs Copper-Zinc Project (Western Australia)​
1	Company​	Havilah Resources Limited (ASX: HAV)​	Venturex Resources Limited (ASX: VXR)​
2	Ownership of project​	100%​	100%​
3	Status​	PFS published 18 June 2019; Mining Leases granted; ownership of land on which project is located is via Kalkaroo pastoral lease; Native Title Mining Agreement in place; PEPR not yet granted​	DFS published 10 October 2018; Mining Lease granted; Native Title Mining Agreement in place; environmental approval process complete​
4	Pre-tax NPV​	$903 million​	$472 million​
5	Discount rate​	7.5% (2019 real)​	8% (2018 real)​
6	A$/US$ exchange rate​	0.75​	0.72​
7	Copper price (long-term)​	US$3.10/lb​	US$2.86/lb​
8	Zinc price (long-term)​	-​	US$2,650/tonne​
9	Gold price (long-term)​	US$1,500/oz​	-​
10	IRR​	26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)​	51%​
11	JORC Ore Reserve​	474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification​	119,000 copper tonnes; 261,000 zinc tonnes. 100% in 'Probable' classification​
12	Mining method​	Open pit​	Open pit/ Underground​
13	Copper cut-off grade​	Saprolite gold resources 0.2 g/t gold cut-off grade, while for the main Kalkaroo copper-gold resource a 0.4% CuEq cut-off grade​	N/A​
14	Average production (as recovered metal) anticipated​	Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.​	Approximately 14,000 tonnes copper; 34,000 tonnes zinc p.a.​
15	Life of mine (processing)​	Minimum 13 years​	Initial 10.3 years​
16	Waste: Ore ratio (including pre-strip)​	3.5:1​	8.7:1​
17	Mine distance to nearest port​	~350 km (road and/or rail) to Port Pirie, South Australia​ ​ 95 km northwest of Broken Hill; 50 km from railway by road​	~144 km southeast of Port Hedland, Western Australia, by road ​

Sources for above table:
Kalkaroo
https://www.asx.com.au/asxpdf/20190618/pdf/445xm614yw5s9f.pdf



Sulphur Springs
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2995-02032502-6A903439?access_token=83ff96335c2d45a094df02a206a39ff4


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.