Large copper resource inventory Low sovereign risk South Australia Clear development strategy. Havilah s Copper Strategy August 2017

Transcription

1 Large copper resource inventory Low sovereign risk South Australia Clear development strategy Havilah s Copper Strategy August 2017

2 2 Cautionary Statement The information contained in this presentation is not financial product advice. The presentation is for information purposes and is of a general and summary nature only. Neither Havilah Resources Limited (Havilah) nor any member of the Havilah Group of companies, gives no warranties in relation to the statements and information in this presentation. Investors should seek appropriate advice on their own objectives, financial situation and needs. This presentation contains certain statements which may constitute forward-looking statements. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements. Havilah disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Investors are cautioned that forward-looking statements are not guarantees of future performance and investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. Competent Person Statement The information in this presentation that relates to Exploration Targets, Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by geologist, Dr Chris Giles, a Competent Person who is a member of The Australian Institute of Geoscientists. Dr. Giles is a director of the Company and is employed by the Company on a consulting contract. Dr. Giles has sufficient experience, which is relevant to the style of mineralisation and type of deposit and activities described herein to qualify as a Competent Person as defined in the 2012 Edition of Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Giles consents to the inclusion in the presentation of the matters based on his information in the form and context in which it appears. Information for Kalkaroo and Croziers has been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. All other information was prepared and first disclosed under the JORC Code 2004.

3 3 Foundation of Havilah s Copper Strategy Large JORC copper resource inventory in three deposits..1.4 M tonnes of copper, 3.6 M ounces gold, 17,500 tonnes of cobalt 1 Three advanced copper projects progressing towards development decision..kalkaroo Cu-Au, North Portia Cu-Au, Mutooroo Cu-Co Low sovereign risk location, with a genuinely supportive government..assets will not be expropriated and there is an orderly process of permitting Exploring in copper endowed Curnamona Province SA s copper belt..an unrecognised highly prospective Central African copper belt setting 1 Refer to table on last page of presentation

4 4 Havilah s Strategic Objectives Develop what is within our reach fundable and manageable Mutooroo is a very attractive copper-cobalt project for Havilah Prepared to sell or JV large capex projects - eg Kalkaroo and Wanbao MOU Scoping indicates A$350m capex for a large > 15 year project Work with strategic partners where there are good synergies Portia and North Portia with CMC of Broken Hill Replenish the project pipeline with new discoveries A valuable knowledge base, key tenement holdings, successful track record

5 5 Reasons to Support Havilah Successfully funded, developed and operated Portia gold mine Critical learning experiences that can be applied to other projects Skilled and motivated management, technical and administrative team Experienced, ready and able to handle new and bigger challenges Capable of expediting local permitting issues, including native title Have fully permitted Portia, largely permitted Kalkaroo Strategic relationship with local Broken Hill contractor CMC have a well proven ability to mine, construct, operate and maintain Vast local knowledge due to focus of work in one region only Enhances discovery success, efficiency of expenditures, stakeholder liaison

6 6 Focus On South Australia Curnamona Craton North Portia Copper-Gold : Synergies with adjacent operating Portia Gold Mine. Ongoing co-operation with a local Broken Hill contracting partner. Kalkaroo Copper-Gold Project: One of the largest undeveloped copper-gold deposits in Australia. Wanbao Mining MOU for PFS, aiming for a decision on development and funding by early For all resource numbers cited in this presentation please refer to the resource table on the last page of this presentation. Mutooroo Copper-Cobalt: High value copper-cobalt deposit close to Broken Hill. Lower capex project with opportunity for Havilah to advance without a partner

7 7 Kalkaroo Large Copper-Gold Deposit One of the largest undeveloped copper-gold deposits in Australia Copper-gold deposit m tonnes Cu & 2.77 m ounces Au contained within %Cu, 0.37g/t Au. Gold cap deposit 1 515,000 ounces Au contained within 21.7 m 0.74g/t Au. Orebody open in directions shown by the arrows. 1 Refer to ASX release 29/03/17 and resource table at end of presentation 500m

8 8 Kalkaroo Project Current Status Recent milestones: Kalkaroo contained copper metal increased by more than 80% to 1.14 million tonnes and contained gold by more than 60% to 3.3 million ounces. Grant of Mining Licence imminent now that native title terms agreed. MOU with Wanbao Mining to fund PFS leading to investment decision. Own Kalkaroo Station no locked gates. Key tasks to be completed over the next twelve months: Complete all mine permitting requirements with regulators. Complete PFS and mine financing decision by Wanbao early 2018.

9 Wanbao Mining Strategic Partnership

10 10 North Portia Copper-Gold Project To follow-on from Portia Gold Mine Just north of Portia gold mine on same mining lease expect simplified mine permitting. Can utilize existing Portia infrastructure camp, workshop, access roads, water supply and other benefits. Portia open pit is valuable it provides a solution to disposal of PAF overburden and tailings and a large water balance pond. Portia gravity gold plant can be used to treat saprolite gold ore and front end for coppersulphide ore. Mining Lease boundary Portia gold mine final open pit design North Portia seconday copper-gold resource and conceptual open pit

11 11 North Portia Secondary Enriched Copper-Gold Ore Secondary copper-gold resource in weathered zone 1 Initial mining target of 3-4 M tonnes of secondary Cu-Au 1 ore : 0.5 M 1.65 g/t gold cap on the top 2 3 M 1% copper and 0.6 g/t gold (1.5% copper eqv). Upper part of an 11.3 M 0.89% copper and 0.64 g/t gold sulphide resource containing 235,000 ounces gold and 100,000 tonnes copper 1. Simple metallurgy and produces a high quality concentrate with no penalty elements. Secondary copper sulphide ore envelope within conceptual open pit 21 metres of 1.05 g/t Au from 63-84m 8 metres of 4.90% Cu and 2.03 g/t Au 2 32 metres of 3.95% Cu and 1.45 g/t Au 3 14 metres of 3.31% Cu and 1.27 g/t Au 15 metres of 2.79% Cu and 1.39 g/t Au KEY TASKS TO BE COMPLETED OVER NEXT 12 MONTHS Agreement with Portia contractor on joint co-operation Completion PFS and mine permitting. Funding plant additions and pre-strip - possibly forward sale of copper concentrates. 1 Refer to ASX release 24/11/10 and table at end of this presentation Refer Refer to ASX to ASX releases releases on on 2 03/03/ /03/16 and and 3 03/02/ /02/16

12 12 Successful Portia Gold Mine on Same Lease Gold plant is operating 24 hours per day and campaign ore mining to maintain stockpiles Recovery of free gold High grade ore stockpile Gold room Knelson concentrator

13 1 cm 13 Portia Gold is Patchy and Presents Challenges Milestones: > 25,000 oz produced to date. Has funded debt repayment, $6M gold plant and exploration Learned how to mine the soft overburden. A very tough couple of quarters while we mined a patch of low grade ore and upgraded plant. Plenty of life yet Saturday s nugget haul as we move into a higher grade patch.

14 14 Mutooroo High Value Copper and Cobalt Ore Total resource % Cu and 0.14% Co Stage 1 One tonne of sulphide ore could yield: Copper 15kg $110 / t Cobalt 1.4kg $ 70 / t Acid 1.1 t $110 / t Iron ox 1 t $110 / t (63% Fe) TOTAL VALUE $400 / t Plus 20 MW electricity and 0.2 g/t Au Stage 2 Mutooroo conceptual open pit to 220 metres captures approximately 6 Mt sulphide ore at 1.5% Cu and 0.14% Co Massive sulphide ore

15 15 Mutooroo Copper-Cobalt Project Current Status A higher grade sulphide copper-cobalt deposit close to Broken Hill. Project economics work on copper alone (1.5% Cu in open pit) with a cobalt bonus. Stage 1 flotation of copper and cobaltian pyrite concentrate is estimated to have a relatively low capex of the order of $30-40M. Objective over the next twelve months is to complete Mutooroo PFS and mining approval documentation in order to facilitate financing and development. A project manager appointed with relevant technical, permitting and stakeholder engagement skills and experience. A large amount of technical data has already been generated.

16 Mutooroo Project Work Program Planned 12 month work program to complete PFS, mine permitting, resource extensions. 7 Year mine life conceptual open pit to 130 m depth Initial mining plan: 3.5 Mt to max. 130 m depth. 0.5 Mt / year throughput. 7 year mine life. Potential to increase production or extend mine life by deepening open pit or extending mining along strike. Area of proposed resource extension drilling to 150 m depth Copper-cobalt sulphide resource envelopes

17 17 Stage 2 Integrated Minerals Processing Industry > 20 years feed supply based on Havilah Resources current JORC resource inventory High quality copper concentrates and large cobaltian pyrite resources North Portia 101,000 t Cu 235,000 oz Au 20km Kalkaroo 1.14m t Cu 3.3m oz Au Mutooroo 192,000 t Cu 17.5m kg Co Stage mtpa grinding and flotation plant at Mutooroo 7 mtpa grinding and flotation plant at Kalkaroo +30% revenue Up to 400,000 tpa pyrite conc. with cobalt, sulphur, gold 0.5 mtpa roaster and acid plant Located along main highway by railway line Up to 400,000 tpa pyrite -pyrrhotite conc. with cobalt, sulphur, gold Stage 1 Copper concentrate and gold Cobalt Sulphuric acid Iron ore Cogenerated electricity Copper concentrate and cobaltian pyrite concentrate

18 18 SA s Copper Belt - Key To Havilah s Discoveries Near Kalkaroo Example Latest example discovered Strong Central African Copper Belt Analogies copper dominant mineralisation follows a very persistent layer at a major REDOX boundary that can be traced for hundreds of km around a series of granite-cored domes.

19 19 Strategic Work Plan Next 12 Months AIM : Secure cash flow for development and exploration Develop North Portia (Cu-Au) as an extension of the existing Portia Gold Mine aim to generate a steady cash flow that can fund ongoing exploration. Permit and develop the low capex Mutooroo copper-cobalt deposit good logistics, good grades, no overburden, long term cobalt source. Strategic partnership with Wanbao to develop Kalkaroo (Cu-Au) subject to PFS $350m of capital required, trade project equity for finance, JV structure. Delineate new resources that are material to Havilah (Croziers, Eurinilla) track record of success, highly prospective geology, many drilling targets.

20 20 Contact Details : Havilah Resources Limited 164 Fullarton Road, Dulwich, South Australia 5065 New copper project developments Exceptional exploration upside Cash flow from gold production

21 21 Sustaining The Development Model A strong project development pipeline

22 22 Copper-Gold Resource Metal Inventory Copper: 1.43 million tonnes (Kalkaroo + Mutooroo + North Portia) Gold: 3.6 million ounces (Kalkaroo + Mutooroo + Portia + North Portia) Cobalt: 17.5 M Kg (Mutooroo) Copper (%) Molybdenum: Project* 8.45 Resource M Category Kg (Kalkaroo + North Tonnes Portia) Gold (g/t) Cobalt (%) Contained Copper (tonnes) Contained Gold (ounces) Contained Cobalt (kg) Gold Cap Meas. Ind. Inf 21,700, ,000 Kalkaroo 1 CuAu Measured 74,500, ,139,000 2,770,000 CuAu Indicated 46,200, Added to above Added to above CuAu Inferred 111,800, Added to above Added to above Portia 4 Inferred 300, ,000 North Portia 3 Indicated (supergene) 2,750, , ,500 Inferred (sulphide) 8,610, Added to above Added to above Mutooroo 2 Measured sulphide 4,149, ,000 92,700 17,540,000 Indicated sulphide 1,697, Added to above Added to above Added to above Inferred sulphide 6,683, (est 0.14) Added to above Added to above Measured oxide 598, Total all projects All categories (rounded) 278,987,000 1,432,000 t 3,642,200 oz 17,540,000 kg Based on JORC resources, details released to ASX on : 1. 29/3/ /10/ /10/ /6/09