Name of the Project
Kalkaroo copper/gold project.

Location
Kalkaroo, in north-east South Australia.

Project Owner/s
Havilah Resources.

Project Description
Kalkaroo is one of the biggest undeveloped openpit copper deposits in Australia on a 0.89% copper equivalent ore reserve basis. 

​It contains 1.1-million tonnes of copper, 3.1-million ounces of gold and 23 200 t of cobalt in measured, indicated and inferred resources.

The project proposes the construction of a large-scale openpit mine.

Production is estimated at 30 000 t/y copper and 72 000 oz/y of gold  over a minimum 13-year mine life.

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 A$1.16-billion.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Copper/gold miner Oz Minerals has signed a term sheet with Havilah Resources to option the Kalkaroo copper project.

OZ Minerals will have 18 months to evaluate the potential of the Kalkaroo project, and the option to acquire the project for A$205-million.

Under the conditions of the term sheet, OZ Minerals could elect not to exercise the option at any time during this year, provided that 5 000 m of exploration drilling has been done or with a shortfall payment to Havilah.

In addition, the agreement provides a deferred contingent consideration of A$65-million, upon a 30% uplift in Kalkaroo’s measured and indicated resource estimate, as well as a copper price-linked contingent payment in every year of production up to a maximum cumulative amount of A$135-million.

During the evaluation, the team will focus on opportunities to identify additional value by assessing a range of modern mining opportunities, innovation, processing improvements and local infrastructure that reduce project costs and improve productivity.

The aim of the evaluation is to improve OZ Minerals’ understanding and confidence in the project, and will include an infill drilling programme to confirm the current mineral resource estimate, before a decision to exercise the option to acquire 100% of the Kalkaroo project is made.

Key Contracts, Suppliers and Consultants
RPMGlobal Asia (PFS).

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