Havilah Resources Ltd has been advised that the Kalkaroo PFS is substantially complete and that RPM Global plans to deliver a draft of the PFS to its client Wanbao Mining Ltd by the middle of January 2018. The document was to be delivered by the end of December 2017, but there was a minor delay due to late receipt of certain metallurgical test results. Havilah has used this period to do further reviews of PFS data provided to date and to perform some additional analysis and trade-off studies of certain aspects of the project. As planned, there will be a period of consultation following delivery of the PFS document and Havilah technical personnel will meet with Wanbao in Beijing for a joint review and evaluation of the PFS results later this month. Part of the objective would be to ensure the PFS properly reflects the value, potential upside, and opportunities related to the Kalkaroo copper-gold project.

Following this period of consultation between Havilah and Wanbao and upon receipt of RPM Global’s final PFS document, Havilah will be in a position to make a further announcement regarding the PFS outcomes, which is expected to be before the end of the first quarter of 2018. This will include a Probable Ore Reserve, expected capital cost of the project and an NPV for the project.

Under the non-binding memorandum of understanding, Wanbao has two months after delivery of the final PFS document to make an investment participation decision.

Kalkaroo in South Australia is one of the largest undeveloped copper-gold projects in the country, containing JORC Measured, Indicated and Inferred resources of 232 Mt of copper and gold for over 1.1 Mt of copper and 3.3 Moz of gold. The project is capable of producing high quality copper-gold concentrates plus copper metal (as native copper) and gold dore. To develop the Kalkaroo project at an optimum mining and throughput rate requires a major capital investment and considerable operational expertise.