JOHANNESBURG (miningweekly.com) – South Australia copper-focused junior Havilah Resources and mining partner Consolidated Mining and Civil (CMC) have agreed to jointly advance the North Portia copper/gold deposit, which is a key element of the miner’s copper growth strategy.
The parties have signed a binding memorandum of understanding (MoU), which commits them to jointly conduct a prefeasibility study (PFS) and detailed mine design for the North Portia deposit, which shares a mining lease with the existing Portia gold mine.
The aim is to complete the PFS by the end of June next year.
In terms of the MoU, CMC will be responsible for funding and engaging technical specialists to complete the detailed metallurgical testwork on drillcore samples and process design studies while Havilah will be responsible for funding and delivering a Joint Ore Reserves Committee-compliant measured and indicated resource, the independent verification of the North Portia copper/gold resource, and for securing all permitting required.
Havilah and CMC will aim to agree on a development plan for North Portia by June and to start overburden removal by July.
Initial mining will be about five-million tonnes of free digging secondary saprolite gold and copper/gold material above 150 m depth. This material will be processed in the Portia gold plant, with the addition of a flotation circuit to recover the finer free gold and copper sulphides.
Commenting on the MoU on Wednesday, CMC MD Steve Radford said that it made “perfect sense” for CMC to be involved in the North Portia development, having already worked with Havilah on the current Portia gold mine.
Havilah recently restructured its revenue stream at the Portia gold mine to give it more capacity to focus on its copper growth strategy. CMC has taken over the day-to-day management of the Portia gold mine and now has an 85:15 revenue agreement in place.