During the first ten months of the subject reporting period, Havilah continued to carry out exploratory drilling on its Kalkaroo exploration licence and on the embedded two new mining claims, MCs 3826 and 3827, to support the preparation of its...
During the first ten months of the subject reporting period, Havilah continued to carry out exploratory drilling on its Kalkaroo exploration licence and on the embedded two new mining claims, MCs 3826 and 3827, to support the preparation of its mining feasibility study for the Kalkaroo deposit, as part of a campaign employing four drilling rigs which began in August 2007. The plan was to complete the drill-out of Cu-Au-Mo resources in the Kalkaroo West and Kalkaroo Main Dome sectors of the deposit, to a nominal depth of 200 m below surface. Drillholes were located on fences spaced at nominal 100 m intervals along the strike of the deposit, closing to 50 m intervals at Kalkaroo West. The holes were sited nominally 40 m apart along each drill fence. In total, 172 holes were drilled then for 29,849 m of penetration that included 11,101 m of diamond coring. Although most of the holes were drilled for delineation purposes, many were also used to obtain metallurgical samples and geotechnical data. Orientated core was obtained where possible, using a spear on every second 3 metre core barrel run (i.e. a check made every 6 metres). All core was routinely photographed, and measurements made of core recovery. Geological and structural logging was routine, and many of the later holes were geotechnically logged. Sample weight, wetness and magnetic susceptibility were recorded for RC samples. The RC holes were sampled on a 2 metre basis, the samples passing from the cyclone through a 50/50 'pants leg' splitter and then through a riffle splitter to produce a nominal 2-3kg sample for assay. Core was assayed on a nominal 1 metre basis. Only core which was visibly or potentially mineralised was assayed, whereas all RC samples were assayed. In April-May 2007, assay results (previously reported) relating to all 3 m composite samples from the 2006 RC drilling program (holes KKRC0097-103 and 113-142) were reviewed by Havilah, and those samples which had returned “significant” gold and/or copper results (typically > 0.4 ppm Au and/or 0.4% Cu) were identified and the component 1m bulk samples targeted for splitting and infill assaying to confirm grades and produce assay intervals suitable for use in resource estimation. Between May and August 2008, a ground gravity survey was completed over the Kalkaroo deposit and surrounding region, including the Main, North, South and Deep Well Domes and the Kalkaroo West structure. 2940 new stations were read at a nominal 200 m spacing along 76 east-west lines spaced 200 m apart. The stations on intermediate lines were offset by 100 m to produce a diamond patterned grid of data points. While the gravity crew was on site, the opportunity was taken to accurately survey as many of the past and current drillhole collars as possible, using their differential GPS equipment. During the year to 28/10/2009, the Kalkaroo Main Dome and Kalkaroo West orebodies' delineation drilling program was completed in November 2008, with a total of 13 RC holes for 1516 m drilled on Kalkaroo West. These holes too were sampled for assaying on a 2 metre basis. Rehabilitation of all of the resource area drillholes was completed late in the period. Only the PVC drill collars were left in place to allow for possible future surveying. Preparation of the Kalkaroo Mining Feasibility Study report was concluded: it contains drilling, metallurgical, engineering design, geotechnical and hydrological study results [this report and its associated data have been separately provided to PIRSA, and will be made available to the public in due course, if and when the mining project proceeds]. In August 2009, surface lag geochemical sampling was undertaken (41 x minus 6 mm to plus 1 mm size fraction samples) to test an area of shallow cover to subcrop where there is a surface ironstone lag occurrence. This area, on the northern Kalkaroo Dome approximately 9 km NW of Kalkaroo Homestead, coincides with a weak radiometric anomaly and is close to the interpreted position of the “Kalkaroo Mine Sequence” where it is cross-cut by an ESE structure. Samples were collected at 100 m intervals along E-W lines spaced 200 m apart. Samples were initially analysed for base metals using a handheld Niton XRF spectrometric device, then for gold down to 1 ppb detection limit by a commercial analytical laboratory. No coherent anomalies of significance were detected. During the year to 28/10/2010, exploration work undertaken comprised the drilling of 23 combined aircore precollar and RC inclined holes totalling 3415.5 m at the (Kalkaroo) South Dome, Johnny Hill Dam, Kalkaroo West and (Kalkaroo) North Dome prospects. Assay results for 3 metre grab sample composites of 1 metre intervals were received for all of these holes. Some anomalous to significant gold and copper values were reported from the South and North Dome prospects, requiring further follow-up drilling. Progressive partial rehabilitation of the new drill sites was undertaken during the year. During the next 16-month period to 17/1/2012, that included the first year of renewed EL 4645, exploration work undertaken comprised the drilling of 27 combined aircore precollar (cased) and RC inclined holes totalling 4493 m at the Kalkaroo North, Kalkaroo Far West, Kalkaroo West and Kalkaroo South prospects. Assay results for 3 metre grab sample composites of 1 metre intervals were received for all of these holes. Progressive partial rehabilitation of the drill sites was undertaken during the period. The North Dome prospect was targeted to follow up encouraging copper and gold results from several holes that were drilled during 2010 into a major cross-cutting east-west structure (breccia/fault) in the centre of the (Kalkaroo) North Dome. In addition, a fence of holes was drilled 800 m to the east, and a further three holes tested a stratigraphic target in the interpreted position of the prospective horizon to the west. The eleven drillholes involved returned some anomalous to significant gold and copper assay values. Kalkaroo Far West prospect is an interpreted NE-SW trending structure defined by a combined magnetic high and gravity low, which lies ~4 km west of the western end of the Kalkaroo West orebody. One of the four new holes drilled to test it made an encouraging long, low grade copper intercept within weakly veined "prospective horizon" rocks (93 m @ 0.4% Cu, including 12 m @ 0.85% Cu), that requires further drilling investigation. The eight new holes at the Kalkaroo West prospect were drilled primarily to obtain metallurgical samples from the uppermost gold saprolite zone, from locations more or less equidistantly spaced along the strike of the planned Kalkaroo West starter open pit. These holes, drilled within the already defined resource footprint, produced long gold intercepts as predicted, as well as some base-of-Tertiary gold mineralisation in a few instances. The four new holes drilled at the (Kalkaroo) South Dome prospect tested an interpreted major cross-cutting east-west structure (breccia/fault) in the centre of the South Dome. This feature is marked by a prominent linear magnetic anomaly. All of these holes encountered weakly veined and mineralised footwall rocks containing pervasive fine-grained magnetite. During the 2012-2013 licence year, the only activity undertaken by Havilah was the drilling of 10 inclined aircore/RC open holes plus 5 inclined aircore/RC/diamond cored holes at the Kalkaroo, Kalkaroo Saddle, Kalkaroo North and Kalkaroo South prospects over the period April to May 2012, in a campaign totalling 4316.3 m which included 491.1 m of HQ diamond drilling and 1201.6 m of NQ diamond drilling, Holes KKDD0401, 404, 411 and 412 were designed to test for, and effectively confirmed, the continuation of the main Kalkaroo deposit replacement style Cu-Au mineralisation, 120 m to 200 m down dip from the previous deepest intersections, at four locations along the western side of the deposit. Holes KKRC0403, 405, 413 and 414 and diamond tail cored hole KKDD0406 were drilled in the Saddle area between the North and South Domes, to test the ‘Prospective Sequence’ at depth where it should be intersected by a number of interpreted potentially mineralised subvertical north-east trending structures, which the company considered could be conduits from which Kalkaroo replacement style Cu-Au mineralisation might have been sourced. Hole KKDD0406 intersected only weakly mineralised ‘Prospective Sequence’ from 499.5 m, but at shallower depth hit a significant interval of chalcopyrite mineralisation (13 m @ 0.99% Cu + 1.05 g/t Au from 196 m) in the ‘Hangingwall Pelite’, which also contain intervals of common pyrrhotite-pyrite and trace to minor sphalerite and chalcopyrite mineralisation throughout. The four RC holes penetrated variably weakly pyritic and graphitic ‘Hangingwall Pelite’ showing no significant mineralisation. Holes KKRC0407, 409, 410 and 415 were drilled on the southern nose and eastern side of the North Dome, aimed at testing the ‘Prospective Sequence’ at a number of structural sites. Hole KKRC0407 intersected weakly pyritic and graphitic ‘Hangingwall Pelite’, with a 31 m wide interval from 84 m averaging 3208 ppm Zn. Holes KKRC0409 and 410 intersected interpreted ‘Footwall’ rocks showing no significant mineralisation. Hole KKRC0415 intersected the ‘Prospective Sequence’, with sample assays disclosing intervals of weak Cu and As plus moderate Zn anomalism. Hole KKRC0408 tested the ‘Prospective Sequence’ on the western side of the South Dome, 200 m along strike to the south from a previous line of three holes (KKRC070, 071 & 365) that had encountered significant Cu-Au mineralisation. It returned sample assay broad intervals of moderately anomalous Cu and Au values. During the 2013-2014 licence year, Havilah drilled 69 aircore holes and 6 aircore precollared deeper RC holes at the Kalkaroo West, Kalkaroo Saddle and Kalkaroo South prospects. Total metreage drilled was 6833 m, comprising 5991.5 m of aircore and 841.5 m of RC penetration. At Kalkaroo West, 64 infill aircore holes were drilled at 25 m intervals along traverses 50 m apart, to confirming and give greater confidence about the saprolite gold and native copper resource. The drilling also defined a thin (<8 m) low grade (generally <0.5 g/t Au) hydromorphic gold zone within the Namba Formation cover sequence, and provided samples to submit for further metallurgical and geotechnical testwork, including waste rock characterisation. 2 RC holes for 324 m, KKRC0471-0472, confirmed projected updip extensions of the known mineralisation in gaps in the previous drilling, and tested for structurally controlled mineralisation in the hinge zone of an interpreted E-W striking anticlinal fold. The latest drillhole information is to be combined with the existing resource and mining models, to aid in the evaluation of the economic viability of a proposed starter pit at Kalkaroo West. To the west of the Kalkaroo West resource area, 5 broadly spaced 30 m aircore holes were drilled across the area of a proposed tailings dam, to obtain geotechnical and hydrological information. Bottom-of-hole samples were assayed, with no significant results. One RC hole for 171 m was drilled at the Kalkaroo Saddle prospect to follow up a significant Cu-Au intersection reported from hole KKDD0406, which was drilled in 2012. However, this new hole, KKRC0480, had to be abandoned before reaching its target. 3 RC holes for 537.5 m, KKRC0481-0483, were drilled at Kalkaroo South. Two of these tested a subtle magnetic stratigraphic horizon within the ‘Footwall’ on the western limb of the dome, and encountered variably red rock – altered, magnetite-carbonate-biotite-pyritic albitite with only trace to minor chalcopyrite mineralisation and minor quartz-carbonate veining. The other hole was designed to test a significant E-W structure that crosses the southern end of the Kalkaroo South dome, which was interpreted to be a quartz-carbonate breccia zone with an intense magnetite alteration halo. This hole encountered magnetic and red rock altered albitite showing weak magnetite-biotite spotting. The hole was abandoned prematurely and no significant veining or mineralisation were encountered. The target structure remains to be properly tested. During the 2014-2015 licence year, most activities were related to the feasibility study for the Kalkaroo copper-gold project, and to preparation of the Kalkaroo mining lease proposal, which was posted for public comment on DSD’s website in December 2014. In brief, the work covered was as follows: - revising the proposed mine design to incorporate a conceptual starter open pit at West Kalkaroo (undertaken by Maptek consulting resource geologist and mining engineer); - performing economic modelling of various development scenarios including of the starter open pit concept (undertaken by a financial consultant); - tailings storage facility experimental work and design (undertaken by BTM Solutions Pty Ltd); - waste dump experimental work and design (undertaken by BTM Solutions Pty Ltd); - additional metallurgical work on improving copper concentrate production (ALS Metallurgical Laboratory and a consultant); - preparation of a landfill environmental management plan (Havilah staff with assistance from BTM Solutions Pty Ltd); and - devising a flood mapping and erosion and sediment control plan related to the required diversion of a local drainage channel (undertaken by Inside Infrastructure consultants). During the 2015-2016 licence year, Havilah did further work directed at getting approvals for its Kalkaroo Copper-Gold Project mining proposals, in particular formulating the company's response to government and public submissions that were received following scrutiny of the Mining Lease Proposal document that had been submitted to DSD in 2014. Preparation of the Response Document required a number of external specialist studies to be commissioned as well as further internal studies. Components involved here were: - a review and update of the proposed site access route; - further hydrogeological studies undertaken by Australian Groundwater Technologies that required a review of the numerical groundwater model and giving clarification around hydrogeological uncertainties; - doing updated sulphur modelling (block model) to estimate the volumes and locations of potentially acid forming materials present; - undertaking a review and update of the Environmental Impact Assessment for the project; and - performing additional metallurgical testing of the chalcopyrite ore to improving copper concentrate production. During the 2016-2017 licence year, Havilah Resources undertook further work towards advancing the Kalkaroo Copper-Gold Project milestone approvals, in particular the grant of a Mining Lease. Additional information on the extended life of mine plan for Kalkaroo was provided to and accepted by DSD in early 2017. Negotiations were also continued between Havilah and the Adnyamathanha Native Title Claimants. A Native Title Mining Agreement for Kalkaroo is yet to be finalised. During the 2017 licence year to 17th January 2018, Havilah undertook further work to advance the Kalkaroo Copper-Gold Project approvals, with the completion of a draft Pre-Feasibility Study expected to be completed in the first quarter of 2018. Havilah Resources signed a Memorandum of Understanding (MOU) with Wanbao Mining Limited (Wanbao) for the completion of a Pre-Feasibility Study (PFS) at Kalkaroo. Negotiations have also continued between the Adnyamathanha Native Title Claimants and Wilyakali Claimants with Havilah Resources Limited. A Native Title Mining Agreement for Kalkaroo is yet to be finalised. During the 2018 reporting year to 17th January 2019, A draft of the Kalkaroo Pre-Feasibility Study (PFS) was completed in January 2018 but Wanbao Mining Limited (Wanbao) elected not to continue funding the study. Havilah considered further metallurgical test work and optimisation necessary and continued with the PFS work. Three large diameter PQ3 sized diamond drill holes were completed in July 2018, to supply material for the additional metallurgical test work, which was still in progress at the end of the reporting period. The three inclined holes reached a total length of 483.4 m. Consent Determination SCD2018/002 (Adnyamathanha, Ngadjuri and Wilyakali Overlap Claim) was determined on 14 December 2018 and subsequently the Kalkaroo Native Title Mining Agreement (NTMA) between Havilah Resources and the Ngadjuri Adnyamathanha Wilyakali Native Title Aboriginal Corporation was signed.