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Havilah Resources focuses on developing gold-only starter open pit at West Kalkaroo

Havilah Resources Ltd (ASX:HAV) (FRA:FWL) will focus on determining the feasibility of developing the gold-only startup open pit at the West Kalkaroo Gold Project in South Australia.

This decision comes on the back of strong results from drilling, high gold prices and the shallow nature of the proposed open pit targeting oxidised gold resources.

A West Kalkaroo open pit would provide cash flow to develop the larger Kalkaroo copper-gold sulphide project and make development of that project easier because the gold operation would effectively expose the underlying copper-gold sulphide ore body.

More conducive for financing[hhmc]
Havilah believes this approach will also be more conducive to attracting financing for West Kalkaroo and, in turn, enhance the future development prospects of Kalkaroo.

With much of the overburden removed, the Kalkaroo project would potentially become a more attractive mining investment proposition that is more likely to attract the funding required to develop..

Havilah Resources Ltd (ASX:HAV) (FRA:FWL) will focus on determining the feasibility of developing the gold-only startup open pit at the West Kalkaroo Gold Project in South Australia.

This decision comes on the back of strong results from drilling, high gold prices and the shallow nature of the proposed open pit targeting oxidised gold resources.

A West Kalkaroo open pit would provide cash flow to develop the larger Kalkaroo copper-gold sulphide project and make development of that project easier because the gold operation would effectively expose the underlying copper-gold sulphide ore body.

More conducive for financing


Havilah believes this approach will also be more conducive to attracting financing for West Kalkaroo and, in turn, enhance the future development prospects of Kalkaroo.

With much of the overburden removed, the Kalkaroo project would potentially become a more attractive mining investment proposition that is more likely to attract the funding required to develop the large-scale open pit copper-gold mine.

“Makes business sense”


The companys technical director Dr Chris Giles said: “Taking advantage of the current long-term forecast gold price and pursuing the gold-only start-up open pit option at West Kalkaroo makes business sense, given the considerably reduced upfront capital as compared with the full-scale copper-gold project contemplated in the PFS.

“We have a good understanding of the mining and materials handling of the overburden and ore based on our Portia gold mining experience. Dealing with the soft oxidised ores should simplify the startup.

“Havilah retains a high degree of optionality as the project copper production could be initiated at any time after completion of the West Kalkaroo stage 3 open pit, if sufficient capital was available.

“In the meantime, the gold-only mining will remove much of the overburden at West Kalkaroo, which should make the ultimate copper-gold operation a potentially more attractive investment proposition.”

High degree of confidence


Infill drilling at 25 x 25-metre spacing over the last four months within the planned open pit shell has delivered a high degree of confidence in the gold resource.

Until recently, development of Kalkaroo was predicated on a large-scale copper-gold mine as outlined in the published Kalkaroo PFS that was compiled for Wanbao Mining by independent mining consultants, RPM Global Asia Limited.

That PFS contemplated average annual production of 30,000 tonnes of copper and 72,000 ounces of gold as recovered metal over a 13-year production period from a large open pit based on an ore reserve of 100.1 million tonnes that contains 474,000 tonnes of copper and 1.41 million ounces of gold.

As documented in that PFS, the estimated pre-production capital expenditure is A$332 million, including mining fleet of A$76 million and a contingency of A$46 million.

Total capital expenditure over the life of mine is A$680 million, including A$149 million for the mining fleet and A$82 million in contingency.

Such amounts are challenging for Havilah to fund given its sub A$50 million market capitalisation.

Strong gold market


Over the past 12 months, there has been a 25% rise in the long-term forecast USD gold price from US$1,200 an ounce used in the PFS to US$1,500 an ounce (Source: World Bank, JP Morgan) and this week prices have been close to US$2,000.

Directors note that in view of this, the commencement of West Kalkaroo as a shallow gold-only open pit has potentially become a realistic development option.

Accordingly, Havilah has focused drilling efforts this year at West Kalkaroo where it has completed more than 90 aircore holes for over 8,000 metres, mostly within the limits of a conceptual starter open pit.

The objective was to gain greater confidence in the shallow gold resources, particularly grade and distribution, at West Kalkaroo, which has largely been achieved.

Open pit design


Havilahs senior mine planning engineer Richard Buckley has incorporated the results into the design of a series of progressively larger open pits at West Kalkaroo.

The largest optimised shallow gold-only open pit design is estimated to contain around 80,000-90,000 ounces of Read More – Source

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Australia

Lake Resources to present ‘clean’ lithium story at OTC virtual conference this week

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) managing director Steve Promnitz will present the company's 'clean' lithium story at OTCs virtual conference on VirtualInvestorConferences.com this week.

The virtual conference is on Thursday, August 7, at 6.30 am AEST, which is Wednesday, August 6, at 4.30pm ET in the US.

It will be a live interactive online event where investors are invited to ask the company questions in real-time.

An archived webcast will also be made available after the event for those unable to join the live event.

Investors are recommended to pre-register and run the online system, check to expedite participation and receive event updates.

The link for registrations is https://www.tinyurl.com/August6VICPR and details of the event can be found at www.virtualinvestorconferences.com.

Update on progress[hhmc]
Promnitz will provide an update on progress and discuss the looming crisis in the supply of high purity lithium and the need for a disr..

Lake Resources NL (ASX:LKE) (OTCMKTS:LLKKF) (FRA:LK1) managing director Steve Promnitz will present the company's 'clean' lithium story at OTCs virtual conference on VirtualInvestorConferences.com this week.

The virtual conference is on Thursday, August 7, at 6.30 am AEST, which is Wednesday, August 6, at 4.30pm ET in the US.

It will be a live interactive online event where investors are invited to ask the company questions in real-time.

An archived webcast will also be made available after the event for those unable to join the live event.

Investors are recommended to pre-register and run the online system, check to expedite participation and receive event updates.

The link for registrations is https://www.tinyurl.com/August6VICPR and details of the event can be found at www.virtualinvestorconferences.com.

Update on progress


Promnitz will provide an update on progress and discuss the looming crisis in the supply of high purity lithium and the need for a disruptive tech solution to meet the demand.

The presentation will be available on the companys website before the conference timeslot at: https://lakeresources.com.au/investors/presentations/

Clean lithium technology


Lake Resources uses disruptive, clean, direct extraction technology to develop the production of sustainable, high purity lithium.

Its products are sourced from its flagship Kachi Lithium Brine Project in Argentina, within the prolific Lithium Triangle.

The direct lithium extraction process developed by technology partner Lilac Solutions Inc has the ability to produce a premium, battery-grade product sought by batterRead More – Source

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Australia

Red River Resources has solid final quarter, more copper and better earnings: Hartleys

Red River Resources Limited (ASX:RVR) achieved record copper production at its Thalanga Operation in Northern Queensland for the quarter ending June 30, 2020.

An increase in copper grade of ore milled to 1.0% and a record copper recovery to copper concentrate of 84.7% resulted in quarterly production of 2,697 tonnes of high-quality copper concentrate, compared to 2,310 tonnes in the previous quarter.

Hartleys has increased the price target for Red River to 20 cents per share from 19 cents (current price: 12 cents) following the release of June quarterly figures.

The following is an extract from Hartleys research update:

Red River Resources (RVR) reported stable production from its Thalanga Operations in Northern QLD in the JunQ, with production of 4,544t of zinc (+5% qoq), 1,133t of lead (+1% qoq) and 2,697t of copper (+17% qoq, record result) concentrates. The Thalanga Operations reported a positive site EBITDA of A$3.5M (up from negative A$2.6M MarQ), with increased revenue, lowe..

Red River Resources Limited (ASX:RVR) achieved record copper production at its Thalanga Operation in Northern Queensland for the quarter ending June 30, 2020.

An increase in copper grade of ore milled to 1.0% and a record copper recovery to copper concentrate of 84.7% resulted in quarterly production of 2,697 tonnes of high-quality copper concentrate, compared to 2,310 tonnes in the previous quarter.

Hartleys has increased the price target for Red River to 20 cents per share from 19 cents (current price: 12 cents) following the release of June quarterly figures.

The following is an extract from Hartleys research update:

Red River Resources (RVR) reported stable production from its Thalanga Operations in Northern QLD in the JunQ, with production of 4,544t of zinc (+5% qoq), 1,133t of lead (+1% qoq) and 2,697t of copper (+17% qoq, record result) concentrates. The Thalanga Operations reported a positive site EBITDA of A$3.5M (up from negative A$2.6M MarQ), with increased revenue, lower concentrate treatment charges and improved operating costs.

Cash at bank at JunQ end was A$8.1M (down 36% from A$12.7M), after payment of A$3.3M on Far West mine development, A$0.2M on exploration and A$1.5M (US$1M) debt repayment from a facility provided by metal trader Trafigura. Debt is now ~A$7.3m (US$5M) and due to be repaid by 30Sep20. Another US$5M (~A$7.3M) is available to draw for Thalanga, should it be required. RVR has a good working relationship with Trafigura (offtake partner for zinc and lead concentrates), and some flexibility could likely be afforded for the repayment schedule, though not guaranteed. Due to sales timing, a gold concentrate shipment provided another US$1.6M for estimated cash of A$10.4M and Net Cash position A$3.1M. We also note RVR ended the JunQ with higher concentrate inventories further improving the balance sheet.

JunQ result largely in-line


Processed throughput for the JunQ was 82Kt (-2% qoq) at a ~9.2% ZnEq grade (up 8% qoq), with improved zinc, lead and copper recoveries for 5% more zinc concentrate, 1% more lead concentrate and 17% higher copper concentrate production qoq. Payable zinc metal production was 4.6Mlb (up 5% qoq). Reported payable C1 cash costs of US$0.30/lb Zn (down 59%) and C3 costs of US$0.86/lb Zn (down 29%). We had previously forecast slightly higher throughput with zinc, lead grades in-line but lower copper grade. The historic gold tailings processed through Thalanga produced 475dmt of gold in concentrate grading over 62g/t Au for ~950oz and net revenues of US$1.6M.

FY20 delivered less zinc and lead, but more copper


In FY20, RVR delivered payable zinc metal production of 18.8Mlb (or 8.5kt) at a reported C3 cost of US$1.27/lb payable Zn, down from payable zinc metal production of 34.5Mlb (or 15.7kt) at C3 cost of US$0.87/lb payabRead More – Source

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Australia

Kalamazoo Resources adds two highly credentialed senior exploration geologists to team

Kalamazoo Resources Ltd (ASX:KZR) has secured two, highly credentialed senior exploration geologists to advance its newly acquired Ashburton Gold Project in Western Australia.

Matthew Rolfe joins Kalamazoo as a senior exploration geologist for the Ashburton project with extensive experience over Archean and Proterozoic terrains and comes from Northern Star Resources Ltd (ASX:NST), where he was senior exploration geologist for the Pilbara region.

His deep understanding of the Ashburton Gold Project will be particularly beneficial to Kalamazoo and will play an important part in expediting exploration at the project.

Dr Margaret Hawke has also been employed by the company as senior exploration geologist for the Ashburton Gold Project.

“Highly regarded individuals”[hhmc]
Non-executive director and project manager Paul Adams said: “Kalamazoo has been extremely fortunate in securing these two highly credentialed and highly regarded individuals.

“Matt and Margy are both extremely experie..

Kalamazoo Resources Ltd (ASX:KZR) has secured two, highly credentialed senior exploration geologists to advance its newly acquired Ashburton Gold Project in Western Australia.

Matthew Rolfe joins Kalamazoo as a senior exploration geologist for the Ashburton project with extensive experience over Archean and Proterozoic terrains and comes from Northern Star Resources Ltd (ASX:NST), where he was senior exploration geologist for the Pilbara region.

His deep understanding of the Ashburton Gold Project will be particularly beneficial to Kalamazoo and will play an important part in expediting exploration at the project.

Dr Margaret Hawke has also been employed by the company as senior exploration geologist for the Ashburton Gold Project.

"Highly regarded individuals"


Non-executive director and project manager Paul Adams said: “Kalamazoo has been extremely fortunate in securing these two highly credentialed and highly regarded individuals.

“Matt and Margy are both extremely experienced and will form the nucleus of our technical capacity at Ashburton, as we move quickly to generate value from this significant gold system.

“Both have come to Kalamazoo recognising the significant opportunity that the Ashburton Gold Project Read More – Source

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