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
Havilah Resources has executed definitive transaction documents with fellow-listed copper/gold miner Oz Minerals and its exploration arm Oz Exploration over the Kalkaroo copper project.

Under the agreement, 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.

The company could elect not to exercise the option at any time during this period, provided that 5 000 m of exploration drilling had been done, or with the payment of 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 each year of production up to a maximum cumulative amount of A$135-million.

Including the monthly payment, Oz Minerals expects to spend up to A$76-million during the option and alliance period to undertake studies and for exploration activities at the Kalkaroo project and on alliance activities.

The execution of the transaction documents satisfies one of the conditions precedent necessary for the proposed transaction.

Havilah will hold a general meeting allowing shareholders to vote on the proposed transaction, including the grant of the Kalkaroo option, and the disposal of the company’s interest in the project, on August 31.

The Kalkaroo project is currently at prefeasibility study (PFS) stage.

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.