Copper Peer Comparisons (Undeveloped Projects, Ore Reserves, PFS or FS), page-12

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 Hillside copper-gold project FS Update additional information (RXM ASX announcement of 31 July 2020).

Notes:
Apart from Hillside, RXM also has the Hog Ranch gold project in Nevada.

Hillside copper-gold project pre-production capital is stated as $585 million (US$410 million). Project financing has not been sorted. RXM has opened financing discussions on Hillside, whilst pursuing joint venture and funding partner discussions through Grant Samuel.

Cash on the RXM balance sheet at 31 December 2020 was $9 million (estimated 4.45 quarters of funding available).

The current RXM market capitalisation is $73 million.

Top 20 shareholders held 27% of the RXM ordinary shares on the share register at 31 July 2020. There were no substantial shareholders at that date.

It should be pointed out that Rex Minerals used a very favourable discount rate and FX rate in its Hillside Feasibility Study Update.

	Column 1	Column 2	Column 3
0		Kalkaroo Copper-Gold Project (South Australia)​	Hillside Copper-Gold (South Australia)​
1	Company​	Havilah Resources Limited (ASX: HAV)​	Rex Minerals Limited (ASX: RXM)​
2	Ownership of project​	100%​	100%​
3	Status​	PFS published 18 June 2019; Mining Leases granted May 2019; ownership of land on which project is located is via Kalkaroo pastoral lease; Native Title Mining Agreement in place; PEPR not yet submitted for approval​	Feasibility Study Update published 28 July 2020; Mining Lease granted September 2014; PEPR approved​ A Native Title Claim has been lodged covering the entire Yorke Peninsula. However, no Native Title agreements are required in relation to the Hillside ML​
4	Pre-tax NPV​	$903 million​	$751 million​
5	Discount rate​	7.5% (2019 real)​	5% (2020 real)​
6	A$/US$ exchange rate​	0.75​	0.70​
7	Copper price (long-term)​	US$3.10/lb​	US$3.00/lb​
8	Gold price (long-term)​	US$1,500/oz​	US$1,550/oz​
9	IRR (pre-tax)​	26% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)​	N/A​
10	IRR (post-tax)​	21% (based on original PFS long-term copper price of US$2.89/lb and gold price US$1,200/oz)​	16.2%​
11	JORC Ore Reserve​	474,000 copper tonnes; 1.4 million gold ounces. 90% in 'Proved'; 10% in 'Probable' classification​	509,262 copper tonnes; 431,504 gold ounces. 51% and 49% in ‘Proved’ and 'Probable' classification respectively​
12	Mining method​	Open pit​	Open pit​
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​	In reporting the mineral resource, a copper cut-off of 0.2% was used​ ​
14	Average production (as recovered metal) anticipated​	Approximately 30,000 tonnes copper and 72,000 ounces gold p.a.​	Approximately 35,000 tonnes copper and 24,000 ounces gold p.a. ​
15	Life of mine (processing)​	Minimum 13 years​	Initial 12 years​
16	Waste: Ore ratio ​	3.5:1 (including pre-strip)​	6.7:1 (after initial pre-strip)​
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​	The transport of copper-gold concentrate product will be via trucks to Port Adelaide, South Australia, as distance of ~150 km​ ​

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

View attachment 2849504

Hillside
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02261638-3A546066?access_token=83ff96335c2d45a094df02a206a39ff4

For those that are interested see my post # 42160258 , Hillside Deposit - Geological Model & Alteration Paragenesis presented by Graham Teale at the 2-3 December 2019 IOCG Mineral Systems Workshop.

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.