"My question is, is Havilah so cash starved that they can't drill test this themselves? Surely you do a deal with the majors after you've ground truthed the geophysics... Don't want to sell the farm before the harvest"
HAV does currently have limited funds, and the last capital raising has already been allocated out to the end of calendar year 2018.
Exploration/drilling on the Jupiter MT anomaly is a big dollar proposition and way beyond HAV's existing capabilities (IMLTHO).
It is a question also of risk. Which is why in the minerals and oil/gas industry, Joint Ventures are the favoured way for exploration.
You try to get an Operator in as a JV partner that already has the relevant long-term IOCG experience (such as BHP at Olympic Dam; Rio; or even Oz Minerals at Prominent Hill). The last thing you want is HAV 'recreating the wheel' and/or distracting HAV's Management's time further away from its existing projects that are coming to fruition.
Better to get a 'major' in to fund all of the exploration surveys/initial exploration drilling work for a share of the pie (but not giving away the farm).
Which, for the Jupiter MT anomaly, that funding could be anywhere from $2 million to upwards of $10 million.
The more important point, Havilah has complete and contiguous tenement coverage over the entire area of the MT anomaly thereby facilitating a regional approach, which would be attractive to a 'major'.
I understand HAV Management has begun completing a thorough assessment of all previous exploration work in the region of the Jupiter MT anomaly.
Going forward, the best approach to exploration of the Jupiter MT anomaly, by a 'major', would initially be gravity and magnetic surveys over the main spout target, afterwards with possible seismic to better profile the subsurface strata.
Only after the above is completed would exploration drill tests of the Jupiter MT target be ultimately undertaken.
While there are many unknowns still with the Jupiter MT anomaly, and as I have previously stated it is "highly speculative", I still remain excited as it looks like a chance of being an IOCG deposit in HAV's mineral tenements in the Curnamona Province.
Schofield (2012) did indicate that the Curnamona Province may contain medium sized or small IOCG deposits.
For me, the Jupiter MT anomaly remains technically fascinating (who doesn't like a good geological story or a potential 'elephant').
Cheers
These are only my random (happy) 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 expert
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