North Portia contains a total Measured + Indicated + Inferred JORC Resource of 13 million tonnes for a total contained 101,000 tonnes of copper, 259,000 ounces of gold and 600 tonnes of cobalt. The deposit lies 500 metres north of the Portia gold mine and within the same mining lease (ML 6346).
Havilah has completed several rounds of resource drilling that have specifically targeted the shallower supergene copper-gold resource, which lies above a wide zone of primary copper sulphide mineralisation at depth. This has resulted in a revised JORC resource estimate for the supergene sulphide copper-gold ore of 3.86 million tonnes of 0.73% copper, 0.51 g/t gold and 0.015% cobalt for a total of 28,200 tonnes of copper, 63,200 ounces of gold and 594 tonnes of cobalt.
CMC and Havilah have recently closed a deal in which Havilah sold the Portia mining lease to CMC for a sum of $14.7 million and a 2% NSR. The agreement provides for $13.5 million in staged cash payments over an expected 18 month period commencing at the end of June 2018. The current Portia 15% gold revenue stream will remain in place until 30 November 2018. The transaction involved the immediate replacement of Havilah’s share of the Portia rehabilitation bond of $1.2 million, with Havilah having no further exposure to rehabilitation liabilities.
Based on the shared Portia mining experience, Havilah is confident that CMC has the capability to mine and process the North Portia copper-gold ore and to generate significant future royalty cash flow for Havilah. This transaction both realises value for Havilah and allows it to focus on higher priority projects such as the Mutooroo copper-cobalt project.