Havilah Resources has secured a $31.5 million cash payment and $15 million in exploration funding from Sandfire Resources, accelerating plans for drilling and development around the Kalkaroo copper-gold deposit in South Australia.
- Received $31.5 million cash and 4.64 million Sandfire shares as Stage 1 payment
- $15 million strategic alliance exploration funding deposited for regional drilling
- Preparations underway for large-scale resource infill and extension drilling at Kalkaroo
- Focus on promising prospects including Eurinilla Dome and Kalkaroo North Dome Breccia
- Collaboration with Sandfire advancing site infrastructure and regulatory approvals
Strategic Funding Milestone
Havilah Resources Limited has taken a significant step forward in its development of the Kalkaroo copper-gold project with the receipt of a $31.5 million cash payment and 4.64 million shares from Sandfire Resources. This Stage 1 payment, part of a definitive transaction agreement signed earlier this month, provides Havilah with a substantial capital injection that strengthens its financial position without the need for immediate capital raisings.
Alongside this, Sandfire has deposited $15 million earmarked for exploration activities under a strategic alliance. These funds are designated for advancing drilling programs across several high-potential prospects surrounding the Kalkaroo deposit in northeastern South Australia.
Exploration Focus and Regional Potential
The exploration budget will be directed towards systematically testing targets such as Eurinilla Dome, Deep Well, Homestead, and Kalkaroo North Dome Breccia. These areas have previously yielded significant drill intersections, suggesting promising mineralisation that could supplement ore feed for a future processing plant at Kalkaroo.
Havilah’s Technical Director, Dr Chris Giles, emphasised the strategic importance of this funding, noting it enables the company to pursue additional regional opportunities with greater financial flexibility. The alliance with Sandfire also facilitates collaborative planning and resource sharing, enhancing the efficiency and scope of exploration efforts.
Advancing Towards Drilling and Development
Preparatory work is well underway, with joint teams from Havilah and Sandfire progressing plans for site infrastructure, including an accommodation camp and upgraded drillcore handling facilities. Crucially, an application has been submitted to South Australia’s Department for Energy and Mining seeking approval for a substantial resource infill and extension drilling program exceeding 100,000 metres on the Kalkaroo mining lease.
This drilling campaign aims to refine resource estimates and potentially expand the known mineralisation, which could underpin the economics of a future processing operation. The regulatory approval process and subsequent drilling results will be key milestones to watch as the project advances.
Outlook and Market Implications
With this injection of capital and strategic support from Sandfire, Havilah is positioned to accelerate exploration and development activities at Kalkaroo. The partnership not only mitigates financial risk but also leverages Sandfire’s operational expertise, potentially enhancing the project’s value proposition.
However, as with all exploration ventures, outcomes remain subject to geological uncertainties and regulatory approvals. Investors will be keenly observing the progress of drilling campaigns and any new discoveries that could reshape the project’s trajectory.
Bottom Line?
Havilah’s strengthened financial footing and strategic alliance with Sandfire set the stage for a pivotal drilling campaign that could redefine the Kalkaroo project’s future.
Questions in the middle?
- What will the initial results from the planned 100,000+ metre drilling program reveal about Kalkaroo’s resource potential?
- How might discoveries in surrounding prospects impact the scale and timing of a future processing plant?
- What are the key regulatory hurdles remaining before full-scale development can proceed?