Havilah Resources has signed a Memorandum of Understanding (MOU) with China’s Wanbao Mining Limited for completion of a pre-feasibility study (PFS) on the Kalkaroo Copper-Gold Project in South Australia. This follows completion of six months of due diligence on the project by Wanbao and a recent upgrade of the Kalkaroo resource.
Wanbao, at its expense, has engaged independent mining consultants RPMGlobal to manage and complete the PFS work that will draw on RPM’s extensive combined Chinese and Australian experience and expertise. Wanbao is a substantial international copper and cobalt producer.
The objective of the PFS, which is expected to be completed in six months, is to provide sufficient information for Wanbao to make a decision on its future participation in financing and development of the Kalkaroo project.
The MOU is non-binding in terms of any further investment beyond the PFS at this time. Havilah has agreed to provide Wanbao with a period of exclusivity for the duration of the PFS study plus an additional two months, until approximately the end of January 2018.
Havilah’s managing director Chris Giles said, “We are delighted to have formed a cooperative relationship with Wanbao Mining, which is a well-respected and successful Beijing-based off-shore copper and cobalt producer, with sizeable operations in Myanmar and the DRC.
“The PFS will primarily address the development implications of the recently upgraded resource for Kalkaroo, and will increase the confidence in the final processing circuit and associated capital and operating costs for an expanded operation.
“This will be very much a cooperative effort with Wanbao bringing its extensive copper processing expertise to the table and Havilah contributing its resource and mine planning knowledge of the Kalkaroo deposit.
“RPM will coordinate the PFS and utilise its pool of highly experienced technical experts across the mining value chain to validate and add value to the study.
“It is our shared intention that at the end of the PFS Wanbao will be in possession of all the required information to enable a decision on participation in the future development of the Kalkaroo project,” Chris Giles added.
Wanbao currently controls resources of more than 9 million tonnes of copper, 400,000 tonnes of cobalt and 800 tonnes of platinum. This year it is targeting 150,000 tonnes of copper cathode production from its Myanmar operations, where it has successfully developed and applied proprietary bacterial leaching technology.
Kalkaroo is one of Australia’s largest undeveloped copper-gold projects, containing JORC measured, indicated and inferred resources of 232 million tonnes of copper and gold for over 1.1 million tonnes of copper and 3.3 million ounces of gold.