Havilah Rseources

In the month or so after the Minotaur (MNR) strike at Prominent Hill, every company and their dog came out with an announcement that they had acquired ground in SA that was prospective for 'Olympic Dam' type deposits. Obviously, since Prominent Hill's mixed success in thev last month or so, things have cooled off and even the more advanced and creditable players like GUN and TAS have fallen largely out of favour.

MNR have the only real runs on the board, but are capitalised at around AUD40 (AUD7 cash) for a 19% stake in the MT Woods JV area, implying on a value of say AUD200 for the JV area.

Putting aside MNR, for my money, Havilah resources (HAV) are the best 'Olympic Dam' junior. This is based on their extensive work to date, technical expertise and experience, quality of first target at Mattaweara (exploration should benefit from the lessons gained at Prominent Hill) and having 100% ownership of the ground (much of which has been pegged for years) and being capitalised at around AUD8 (AUD5 cash). On the other side, one disadvantage compared to Prominent Hill is the increased depth of the target rock: about 250-300m (though this is equivalent to Olympic Dam).

They start the first of the first three holes next month (see announcement 17 May). Obviously HAV is a punt. There may have technical success, but failed to find economic ore. Or their modelling may simply be wrong. However, the risk reward ratio is in my view a good one.

Angus

I hold HAV