Drilling Constraints Cloud Outlook Despite High-Grade Uranium Hits
Havilah Resources has detailed its recent drilling at Johnson Dam, revealing standout uranium grades that reinforce the prospect's potential as a new hard rock uranium deposit.
- Two of nine drillholes intercepted significant uranium mineralisation
- Highest grade intercept – 1m at 8,984 ppm U3O8 from 112m depth
- Drilling constrained by cultural heritage survey limits
- Additional low-grade copper, cobalt, and rare earth elements detected
- Future drilling planned to expand uranium zone and define resource
Context and Results
Havilah Resources Limited has provided an update to its September 8 announcement, offering further clarity on its recent reverse circulation drilling program at the Johnson Dam uranium prospect in South Australia. The company drilled nine holes, with two intersecting noteworthy uranium mineralisation. The standout result came from drillhole KKRC0706, which returned an exceptional 1 metre intercept grading 8,984 parts per million (ppm) uranium oxide (U3O8) from 112 metres depth. This intercept is the highest grade recorded at Johnson Dam to date, underscoring the prospect’s potential.
Another hole, KKRC0712, intersected 3 metres at 527 ppm U3O8 from 119 metres. While the remaining seven holes did not yield reportable uranium grades, this was largely due to drilling challenges, structural complexities, or encountering granite formations. These factors, combined with pre-determined drill locations constrained by cultural heritage surveys, limited the ability to optimally position drillholes during this program.
Broader Mineralisation and Geological Insights
Beyond uranium, some drillholes intersected low-grade copper and cobalt mineralisation, as well as rare earth elements such as neodymium. For instance, KKRC0711 returned 9 metres at 0.33% copper and 411 ppm cobalt, while KKRC0713 showed 48 metres of neodymium-enriched clay-rich saprolite from surface. These findings hint at a complex mineral system that could have broader exploration implications.
Havilah’s technical director, Dr Chris Giles, emphasized that the recent drilling has significantly enhanced geological understanding and validated the existing geological model for Johnson Dam. The company has interpreted a mineralised envelope exceeding 120 ppm U3O8 based on cumulative drilling data, providing a framework for future exploration.
Next Steps and Challenges Ahead
Looking forward, Havilah plans further drilling to extend the known uranium mineralised zone and potentially delineate an initial mineral resource. However, the company must first navigate cultural heritage survey requirements to secure new drill collar positions, which will allow for more strategically placed holes to better target mineralisation. This procedural step is critical to overcoming the limitations experienced in the current program.
While the high-grade uranium intercepts are promising, Havilah cautions that variability in mineralisation and smaller sample sizes mean future drilling results may differ. The company remains optimistic but prudent, acknowledging the inherent uncertainties in exploration.
Bottom Line?
Havilah’s latest drilling confirms Johnson Dam’s uranium potential but highlights the need for strategic drilling to unlock its full value.
Questions in the middle?
- How will cultural heritage survey outcomes influence the timing and scope of future drilling?
- Can Havilah translate these high-grade intercepts into a defined, economically viable resource?
- What impact might fluctuating uranium market prices have on advancing the Johnson Dam project?
