Minerals explorer Havilah Resources NL has been given the green light for its Portia gold project, 120km north west of Broken Hill.
State Government approvals were completed this week, opening up the way for Havilah to seek finance for the project which has an expected operational life of 18 months.
“At current gold prices and exchange rates the project is economically robust and it is Havilah’s intent to proceed with the mine development as soon as practicable,” the company said in a statement today.
“The company aims to bring current discussions regarding various financing and mining contracting arrangements to a conclusion prior to the end of the year.”
Havilah’s managing director Dr Chris Giles said that approval was the culmination of several years of hard work by Havilah employees.
“We acquired the project in 2003, and following three years of exploration and feasibility work and grant of the Portia mining lease we began work on obtaining the final mining approvals, so it has been quite a long process,” Giles said.
“We are grateful for the assistance of Department of State Development in patiently guiding us through this process and pay tribute to professionalism and courtesy of the DSD personnel we have dealt with over the years.
“Our challenge is now to finance and mine the Portia gold project without putting the company at undue risk and without excessively diluting the interests’ of our shareholders.
“We are determined to develop Portia as soon as possible because the project is able to generate meaningful cashflow that will facilitate development of our nearby and much larger Kalkaroo copper-gold project.”
Havilah Resources was formed in 1996 to explore for gold and other metals in South Australia.
In mid 1997 Lion Selection Group Ltd became a cornerstone investor in Havilah and subsequently invested $1.9m.
Havilah listed on the ASX on 21st March 2002, following a successful $6 million capital raising.
During the following three years the company acquired holdings in the Curnamona Province, which now covers more than 6,000 square kilometres of highly prospective Broken Hill age rocks.
The exploration covers six significant mineral deposits, including Kalkaroo, Portia, North Portia, Mutooroo, Maldorky and Grants.
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