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 Kalkaroo 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
Since the proposed transaction between Havilah and OZ Minerals in May, Havilah’s project team has been planning work programmes, engaging with suppliers and working closely with the Havilah team to allow for the study to start immediately upon Havilah shareholder approval.

The study, to be conducted over the 18-month option period, 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 study is to improve Havilah’s understanding and confidence in the project, and it will include an infill drilling programme to confirm the current mineral resources estimate before deciding on whether to exercise the option to acquire the Kaklaroo project.

Havilah CEO and MD Andrew Cole has said that if the option is exercised, timing for the development of the project will remain.

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.