Havilah Resources Ltd has signed a Memorandum of Understanding (MOU) with Wanbao Mining Ltd for the completion of a pre-feasibility study (PFS) for the Kalkaroo copper-gold project in northeast South Australia. This follows on from a six month period of due diligence conducted by Wanbao on the project and the recent announcement of an upgrade of the Kalkaroo resource. Wanbao, at its expense, has engaged RPMGlobal (RPM), an independent mining consulting firm, to manage and complete the PFS work that will draw on RPM’s extensive combined Chinese and Australian experience and expertise.
Wanbao Mining is a substantial, Beijing based, international copper and cobalt producer.
The objective of the PFS, which is scheduled to be completed in six months, is to provide sufficient information for Wanbao to make a decision on its future participation in financing and development of Kalkaroo (the MOU is non-binding in terms of any further investment beyond the PFS at this time). Havilah has agreed to provide Wanbao with a period of exclusivity for the duration of the PFS study plus an additional two months, until approximately the end of January 2018.
Commenting on the MOU, Havilah Managing Director, Dr Chris Giles: “We are delighted to have formed a co-operative relationship with Wanbao Mining, which is a well-respected and successful Beijing based off-shore copper and cobalt producer, with sizeable mining operations in Myanmar and the Democratic Republic of Congo.
“The PFS will primarily address the development implications of the recently upgraded resource for Kalkaroo and will increase the confidence in the final processing circuit and associated capital and operating costs for an expanded operation.
“This will be very much a co-operative effort with Wanbao bringing its extensive copper processing expertise to the table and Havilah contributing its resource and mine planning knowledge of the Kalkaroo deposit. RPM will co-ordinate the PFS and utilize its pool of highly experienced technical experts across the mining value chain to validate and add value to the study.
“It is our shared intention that at the end of the PFS Wanbao will be in possession of all required information to enable a decision on participation in the future development of the Kalkaroo project.
Kalkaroo is one of the largest undeveloped copper-gold projects in Australia, 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 doré. To develop the Kalkaroo project at an optimum mining and throughput rate requires a major capital investment and considerable mining and processing expertise.
Wanbao Mining is a Beijing-based specialist international mining company with substantial copper mining operations in Myanmar and copper and cobalt mining and smelting operations in the DRC. Currently Wanbao controls resources of more than 9 Mt of copper, 400,000 t of cobalt and 800 t of platinum. This year Wanbao is targeting 150,000 t of cathode copper production from its Myanmar operations, where it has successfully developed and applied proprietary bacterial leaching technology.