|Havilah Resources deposits and prospects in the Curnamona Province of South Australia.|
FULL operational approval has been granted by the South Australian Government for Havilah Resources’ Portia Gold Project. The company received the green light following written notification from the Department of State Development (DSD) that the Program for Environmental Protection and Rehabilitation (PEPR) had been approved.
The approval allows Havilah to proceed with mining, subject to complying with the conditions attaching to the existing mining lease and the approved PEPR, which include:
Providing a mine closure rehabilitation bond (advised to be approximately $1.9 million).
Significant Environmental Benefit vegetation clearance offset to the value of $166,064.
Obtaining other follow-on routine licence and permit approvals required from other government agencies.
At current gold prices and exchange rates the project is economically robust and it is Havilah’s intent to proceed with mine development as soon as practicable. The company aimed to bring current discussions regarding various financing and mining contracting arrangements to a conclusion before the end of 2014.
Havilah’s managing director Chris Giles said approval of the Portia PEPR was the culmination of several years of hard work by Havilah employees who deserve the credit for helping the company achieve this important milestone. “We acquired the project in 2003 and following three years of exploration and feasibility work, and grant of the mining lease, we began work on obtaining the final mining approvals.
“We are grateful for the assistance of DSD in patiently guiding us through this process and pay tribute to the professionalism and courtesy of the DSD personnel we have dealt with over the years.
“Our challenge is now to finance and mine Portia without putting the company at undue risk and without excessively diluting the interests of our shareholders. We are determined to develop Portia as soon as possible because the project is able to generate meaningful cash flow that will facilitate development of our nearby and much larger Kalkaroo Copper-Gold Project.”
Havilah controls more than 6500sqkm of continuous tenements in the Curnamona Province that is prospective for a variety of commodities, including copper, gold, molybdenum, lead, zinc, cobalt and uranium. The company has an exploration agreement with MMG Exploration, which is owned by Minmetals Resources. MMG is required to spend $12 million over five years on exploration which entitles it to secure a 60% participating interest in any potential development projects it identifies within Havilah’s exploration licences.
This agreement has seen MMG discover significant new copper mineralization at Havilah’s Birksgate prospect, including 10.9 metres @ 0.84% copper and 0.64 grams/tonne gold from 209.5 metres. Also nine of 10 drill holes at Eurinilla intersected typical Kalkaroo-style copper-gold mineralization.