Havilah Resources Limited, listed on the Australian Securities Exchange (ASX: HAV), recently announced promising new copper drilling results from its Mutooroo copper-cobalt-gold deposit, located 60 kilometres southwest of Broken Hill, Australia. These results suggest significant potential to expand the resource base at Mutooroo, enhancing the economic prospects for the project.

Havilah’s open pit resource expansion drilling program at Mutooroo has intersected well-mineralised sulphide lodes, suggesting the potential for resource expansion at shallow depths. Drillhole MTRC260, situated approximately 200 metres outside the existing JORC Measured Resource envelope, revealed 12 metres of 1.57% copper, 0.16% cobalt, and 0.39 g/t gold. This result is encouraging as it indicates that the mineralisation extends beyond the currently defined resource area, making it accessible through open-pit mining methods.

In addition to MTRC260, other significant drilling results include:

• MTRC259: 2 metres of 1.49% copper, 0.10% cobalt, and 0.09 g/t gold from 40 metres.
• MTRC258: 9 metres of 0.54% copper, 0.09% cobalt, and 0.09 g/t gold from 149 metres.
• MTRC257: 2 metres of 0.78% copper, 0.09% cobalt, and 0.09 g/t gold from 108 metres.

Dr Chris Giles, Technical Director of Havilah Resources, highlighted that expanding the Mutooroo resource base is a key priority, as a larger resource and increased scale enhance the economic case for the project’s development. These new drill results align with the company’s objective to expand the shallow open-pit mineral resources.

JX Advanced Metals Corporation Study Program

Havilah has also begun the JX Advanced Metals Corporation (JXAM) study program, which involves the completion of eight reverse circulation (RC) precollar drill holes to collect metallurgical samples. This initiative aims to accelerate the study program by focusing on obtaining early samples for testing. Under a binding Memorandum of Understanding (MOU), JXAM is funding the Mutooroo study program, including RC precollar and diamond drilling. This collaboration seeks to optimise the project’s returns by focusing on potential revenues from byproducts such as cobalt, gold, and sulphur.

Recent Stock Performance and Market Sentiment

Currently, Havilah Resources’ stock is trading at around AUD 0.210, with a recent decline of 2.33%. Over the past year, the stock price has fluctuated between AUD 0.135 and AUD 0.310, reflecting considerable volatility. The average weekly movement is approximately 9.4%, which is stable compared to the industry average but higher than the broader Australian market.

Havilah’s stock has underperformed compared to both the Australian Metals and Mining industry and the broader market. While the industry saw a decline of 10.4%, Havilah’s stock fell by 56.3%. This significant drop may be due to investor concerns about the company’s financial health, cash burn rate, and uncertainties around its exploration projects.

Despite these challenges, there is cautious optimism among financial analysts. The recent successful drilling results and strategic partnerships, such as the collaboration with JX Advanced Metals Corporation, could offer upside potential in the medium to long term. The market will be closely watching the outcomes of Havilah’s further exploration activities and potential acquisitions for any positive shifts in stock performance.

Expert Opinion: Future Outlook for Havilah

Experts believe that if Havilah Resources continues to deliver strong drilling results and strategic partnerships, the company could see a significant turnaround in its stock performance. The intersected mineralisation at Mutooroo, located well outside the current resource envelope and at shallow depths, presents a compelling case for resource expansion. Future drilling campaigns targeting deeper levels beneath the recent intersections could yield more substantial findings, potentially enhancing the project’s overall value.

Havilah’s strategy of combining RC and diamond drilling to save time and reduce costs demonstrates a pragmatic approach to exploration. If this approach continues to yield results, it could lead to increased investor confidence and improved stock performance.

What’s Next for Havilah Resources?

Havilah Resources intends to proceed with a deeper tier of drill holes beneath the latest intersections, targeting depths of 150 to 200 metres. This phase aims to upgrade the existing resource classification and test for potential extensions of the known mineral resource. The success of these exploration activities will be crucial in shaping the next steps for the development of the Mutooroo project, including the potential shift from an open cut to a long-term underground mining operation.

  Broken Hill, copper drilling, Havilah Resources, JX Advanced Metals Corporation, Mutooroo