PERTH (miningweekly.com) – ASX-listed Havilah Resources on Wednesday told shareholders that it was investigating the feasibility of a gold-only startup operation at the Kalkaroo copper/gold project, in South Australia.

A 2019 prefeasibility study (PFS) estimated that the $332-million project could produce 30 000 t/y copper and 72 000 oz/y of gold over a mine life of 13 years from a large openpit operation.

However, Havilah on Wednesday noted that since the PFS was completed, there had been a significant rise in the long-term forecast for the gold price, and that the company believed starting the West Kalkaroo deposit as a shallow gold-only openpit could be a realistic development option.

“Taking advantage of the current long-term forecast gold price and pursuing the gold-only startup openpit 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,” said Havilah technical director Dr Chris Giles.

“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 oxidized ores should simplify the startup.”

Initial studies have indicated that between 80 000 oz and 90 000 oz of gold could be recovered with the removal of an estimated seven- to eight-million cubic meters of soft free-dig overburden, and Havilah is now obtaining mining quotes from contractors to assist in determining project feasibility.

Capital and operating costs for the gold plant are also being determined, and Havilah’s technical personnel are currently working towards completion and lodgment of the final environmental approval documentation for a gold-only startup openpit option that will align with the approved mining lease for the copper/gold project.

“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 openpit, 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,” said Giles.