Name of the Project
Kalkaroo copper/gold project.

Location
The project is located at Kalkaroo, in north-east South Australia.

Project Owner/s
Havilah Resources.

Project Description
Kalkaroo has mineral ore reserves estimated at 100.1-million tonnes grading 0.47% copper and 0.44 g/t gold.

The prefeasibility study (PFS) supports a large-scale openpit mine, with an average production of 30 000 t/y of copper and 72 000 oz/y of gold expected over a 13-year production period.

The PFS is based on an owner-operated fleet.

The mining method is conventional opencut bulk mining using truck and excavator equipment.

The pit development is in a staged cutback to sequence extraction from generally high value to lower value, and shallower to deeper ore over the life of the mine.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at a 7.5% discount rate, of $564 million and an internal rate of return of 26%.

Capital Expenditure
Preproduction capital expenditure is estimated at $332-million.

Planned Start/End Date
Not stated.

Latest Developments
Havilah Resources is investigating the feasibility of a gold-only startup operation at the Kalkaroo copper/gold project.

The company has noted, however, that since the PFS was completed, there has been a significant increase in the long-term forecast for the gold price, and that 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 . . .  makes business sense, given the considerably reduced upfront capital . . . compared with the full-scale copper/gold project contemplated in the PFS,” Havilah technical director Dr Chris Giles has said.

“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 metres 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 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.

“. . .  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,” Giles has said.

Key Contracts and Suppliers
RPMGlobal Asia (PFS).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Havilah Resources, tel +61 8 8155 4500 or email info@havilah-resources.com.au.