Name of the Project
Kalkaroo copper/gold/cobalt project.

Location
Kalkaroo, north-east South Australia.

Project Owner/s
Havilah Resources’ shareholders approved the grant of an option to fellow-listed OZ Minerals in August 2022 to acquire the project.

The two companies signed a term sheet over the project in May 2022, giving OZ Minerals 18 months to evaluate the potential of the project and the option to acquire it for A$205-million.

Under the strategic alliance, OZ Minerals will pay Havilah A$1-million a month during the option and alliance period, with 50% of the payments directed towards Havilah’s identifying and advancing nearby exploration opportunities within the Curnamona province.

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

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

​The project comprises a mineral resource estimate of 245-million tonnes at 0.45% copper and 0.39 g/t gold for 1.1-million tonnes of copper, 3.1-million ounces of gold and 23 200 t of cobalt.

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
The strategic alliance between Havilah Resources and takeover target Oz Minerals has started with exploration drilling at the Kalkaroo copper/gold/cobalt deposit.

The exploration drilling programme will initially focus on seven separate high-priority copper prospect areas within Havilah’s 100%-owned exploration licence that surrounds Kalkaroo to locate additional copper resources close to the project that could add to the existing Kalkaroo mineral resource and so enhance its development prospects.

Up to 19 900 m of reverse exploration drilling will be undertaken in the A$4-million programme.

“Funding provided under the strategic alliance will allow Havilah to accelerate exploration for new copper deposits in the area of interest tenements in the highly prospective and underexplored Curnamona province,” Havilah technical director Dr Chris Giles has said.

“. . . we have selected a series of prospects, each with known copper mineralisation, which lie within potential trucking distance of Kalkaroo. A minimum number of firm drillholes is planned to test each prospect, with the capacity to complete further contingent drillholes if initial results are encouraging.”

Havilah and Oz Minerals signed a binding term sheet in May comprising an 18-month option to buy Kalkaroo and for a strategic alliance. Oz Minerals will conduct a study programme over this period, focused on confirming and expanding its existing mineral resource, and will determine whether to proceed with the acquisition of the Kalkaroo project for A$205-million.

Under the strategic alliance, up to A$9-million will be directed towards exploring copper targets within Havilah’s surrounding highly prospective Curnamona Copperbelt over the 18-month period.

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.