HAV - Havilah Resources

[56gsa]

Don't u hate that! Had nice long post ready to go telling you all about HAV... and then I get logged out for some reason.

So not going to punch it all in again - have a look at the research reports on the website (potential target $3) - just got Chinese buy-in on Cu/Co deposit - portia gold deposit is high risk but huge if it comes off - resource upgrade recently on other major project... it's all happening!

And ST this has potential - currently held down by people selling their $1.30 entitlements, but these went ex-E on 31 Jan and since then CUY and GHT investments have gone up 50% (which means extra $18m for HAV) and HAV sp hasn't moved.

DYOR and let me know what you think.

 

[56gsa]

HAV looks interesting - now at $1.41 but buyers for options at up to 11cents (with ex-price of $1.60) so they see upside (options should be listed Thursday I think)

So despite the drop HAV investments have held up well - infact GHT has gone up 50% from 28Feb lows - I value holdings in CUY, GHT and MOX at close today at $43.2m . Cash is now $10.4 m after entitlements. So total $53.6m.

Mkt Cap is $1.41 x approx 80m = $112.6m

So for $59m you get: (from research on their website)

Mutooroo In-Pit Resource Cu% Co%
11.5 mt @ 1.10% 0.10%
Containing Kt 127 11
Current Price US$ per lb $ 2 .55 $ 18
Insitu value $ 100 per tonne
At Mutooroo, Havilah has signed a Memorandum of Understanding (MOU) to form a Joint Venture with Chinese metallurgical group, Heilongjiang Resources Limited which could see it fund a FS and development of a mine to earn a 50% interest in the project. The most favoured option is to produce a simple, gravity concentrate, containing most of the cooper, cobalt plus iron, which would be shipped to China for processing and extraction of valuable metals.


Kalkaroo In-Pit Resource Cu% Au g/t Mo %
100mt @ 0.47% 0.46 0.012%
Containing Kt/Moz 470 1.5 12.4
Current Price US$ $ 2 .55 $ 6 20 25.7
Insitu value $ 54 per tonne
Estimated contains at least 100 million tonnes of mineable mineralisation, containing close to 0.5 million tonnes of copper plus 1.5 million ounces of silver and 12,000 tonnes of molybdenum. Recent drilling has extended known zones of mineralisation at higher grades than the previously calculated resource, holding out promise for additional tonnes and a higher grade starter pit zone.


Portia Gold
target mineralisation is very nuggetty and the company is now moving to dig a trial pit and treat the target mineralisation in a gravity recovery circuit to more accurately determine insitu gold grades. A positive outcome would most likely lead to a long life gold project on site. The company has identified up to 7 kilometres of prospective strike zone which may prove to be mineralised. If just 3 km of strike is found to be gold bearing, as much as 8 million tonnes of mineralisation could be present, if it averages 15 metres thick and 100 metres wide with a density of 1.8 tonnes per cubic metre. Final grades will need to await results from trial mining, but results from bulk assay work indicate grades ranging from 10 to 43 g/t gold in the best zone so far identified.

+++ other projects....

DYOR and let me know what you think...

 

[56gsa]

Crazy

There are now buyers @ 0.22 for HAVO (ex-1.60) that begin trading tomorrow - thats equivalent to $1.82 when sp is $1.48...

why the premium?

 

[rub92me]

Crazy

There are now buyers @ 0.22 for HAVO (ex-1.60) that begin trading tomorrow - thats equivalent to $1.82 when sp is $1.48...

why the premium?

The short answer: time value and leverage.

 

[56gsa]

Up 7% today but on small volume, people prepared to pay 0.42 for the $1.60 Apr 2010 options listed today...

Chart has ascending triangle with $1.65-1.68 key area to be broken through on volume for blue sky potential

 

[56gsa]

once again approach 1.60 - has a nice trading band of 1.40 to 1.60

will need something to push through the 1.60 resistance :
- either all the SPP people have taken their profits on their 1.30 entitlements
- investee companies CUY GHT MOX have a good run (which they have been having of late)
- project wise doesn't seem much in near-term - waiting for ann that portia trial will commence - and commence of FS on Kalkaroo

 

[56gsa]

HAV trying desparately to reach blue sky 1.69+ but won't make it... sellers do however appeared to have thinned and so could find support at 1.60 or 1.50 before having another go...

anyone else looked at this? any comments?

 

[56gsa]

I'm not disappointed I called this wrong... but how wrong I was - since 27 March it has almost added $1 - about 60%

Interesting too - despite a number of encouraging drilling results and progress of the JV on Mutooroo the value of HAVs projects had tended to remain around 80-90 cents per share from December, while the value of the investments went up (CUY, GHT, MOX - they've gone from 35 cps to now 120cps since Dec)

On Friday however we now see the projects are worth 121 cps - whether this is just due to people wanting exposure to CUY or a greater confidence in the projects not sure

HAV will probably continue to fluctuate in line with CUY - but at some stage I think we'll be hearing news of the portia gold trial pit which is potentially a cash cow... drilling also continues on Mutooroo to get a JORC resource in 6 mths... and FS is starting on Kalkaroo

A sleeper is the U potential at Radium Hill in Curnamona which is around an old 1950s mine that produced 1100t. In Jan HAV talked about surface sampling, trenching and drilling this over 1st half but haven't heard much else. EXS has tennements to the north of HAVs which they've talked of spinning off - and TOE has Bonython which is next door to the east - might be a deal done on these?

Fib works nicely with a 52c bottom and 38.2% @ 1.55 - this gives a target of $3.22

HAV is also a winner for LSG which has 14m HAV shares

anyone else have HAV?

 

[Nifty49]

Yes I have them too..

Yes rising atm on the back of CUY, but

I agree have potential in their own right!

Wish I had more.... Nifty

 

[56gsa]

Just found out that one of GHT's sites for geothermal power (63% owned by HAV) is right near HAVs Kalkaroo copper deposit - thats good vertical integration eh.... Both GHTs sites are also near electricity grid altho they appear to be 2 years away from possible generation

HAVs projects still valued around 80-90 cent mark - fluctuates mainly in relation to CUY which is currently a whopping $73m investment for HAV (GHT worth $23m and MOX $5m).

ann today re initial drilling on Gawler Craton site that Red Metal is farming in to...

 

[56gsa]

Someone playing games with CUY - had big sell order this morning @ 230 and then pulled it - now sell 227 / buy 238

HAV has dropped yesterday well below its normal range which values projects between 83 & 93 cents - at thje current CUY buy/sell its on 71-75 cents ... while the bulk of HAVs investments are in CUY, GHTs up again today which makes it a not insubstantial $28m worth in HAVs portfolio...

HAV could return to 225-230 today - particularly if CUY returns to 240 level

 

[56gsa]

well - i thought HAV was oversold yesterday - but today went to 189 - even with the pullback in CUY this means you are getting those 3 projects listed above for $48m ... bargain!! i'd be taking this over if I had the cash! projects haev gone from 121 cps a month ago to now a low of 55cps - this shows an obvious overreaction to the CUY drop - at some stage we'll see HAV pullback ... CUY could be $1.45 and HAVs projects would be worth 83cents which is somethign of an average...

 

[56gsa]

the ann today is good news for shareholders altho does relate to a longer term timeframe but means HAV sp will be more closely underpinned by value of its investments for the near future... also has implications for CUY in that the buyer of a significant parcel may presumably be also interested in a JV of some nature with CUY....

HAVILAH TO DISTRIBUTE INVESTMENT ASSETS TO SHAREHOLDERS
Havilah Resources NL (Havilah – ASX:HAV) is pleased to announce that it plans to progressively distribute a substantial portion of its more than $100 million investment portfolio in its subsidiary mining and energy companies to shareholders over the next two years.
This includes :
• 29 million shares in listed uranium explorer Curnamona Energy Limited (ASX : CUY) currently valued at approximately $65 million, and
• 21 million shares in listed hot rock energy developer, Geothermal Resources Limited (ASX : GHT) currently valued at approximately $29 million.

Havilah has taken this decision having regard to the advanced stage of the current global commodities cycle, and the fact that these investments currently make up more than 60% of Havilah’s present market capitalization. The opportunity has only recently become available to Havilah with the release from April this year of its holding of 29 million Curnamona Energy shares previously subject to escrow provisions.

It is planned that the benefits will be progressively returned to shareholders either via:
• An in-specie distribution of shares, or
• As cash dividends raised by placement of shares, or
• A combination of both.

Some of the funds raised by placing shares may also be used to expand the planned flagship mine development activities of Havilah at its Portia (gold) and Kalkaroo (copper, gold, molybdenum) projects west of Broken Hill, and where the Company considers that its main long-term value adding focus lies.
The exact details and dates have not been determined at this stage, and there are various taxation issues that await resolution. The distributions will be managed in such a way as to maximize the benefit to all Havilah shareholders, while at the same time maintaining control and supporting the growth of subsidiary companies. For example, it is expected that some of Havilah’s Curnamona Energy stock will be placed to long term investors who understand the growth potential and who may have the ability to assist Curnamona Energy with future uranium production and marketing.

 

[56gsa]

More good news for HAV holders...

ASX / Media Release 2 July 2007
GLENCORE INTERNATIONAL JOINS KALKAROO COPPER PROJECT
Havilah Resources NL (Havilah – ASX:HAV) is pleased to announce that it has signed a legally binding Heads of Agreement with Glencore International (“Glencore” www.glencore.com), to fund a $14 million feasibility study on the Kalkaroo Copper Project. Glencore shall arrange project financing for the subsequent mining joint venture taking a 14% participating interest and metals offtake. The feasibility study is to commence immediately.

could be breakout potential here although would want to see more volume....

 

[56gsa]

now testing all time highs - could hover around $2.60 which if 38.2% level would mean target of $3.60 based on fib - certainly on projects plus investments this is not out of the question... April 2010 options are ex price of $1.60

 

[56gsa]

Didn't stop at 2.60, pushed on into blue sky and seems to be forming a pennant ... with glencore on board now this has delinked the HAV price from its previous valuation of projects of 83-93 cents - now 133 cents (with invests in CUY, GHT, MOX + cash making up the rest). With two FS's being undertaken (other one with Chinese partner) and finance in place to start gold extraction there's potential for more good news on HAV ... anyone else following?

 

[Flipper15]

Yes 56gsa

I have followed them fairly closely since mid last year and as you say this is an excellent company.

I have been in and out of them, unfortunately at my own peril as the time I had to buy back in it was at a much higher price. This in itself is a sign of a very good stock. You usually get stung for being out, so therefore the stock commands that you must be in.

I have read all about their projects numerous times and this coy is the real deal. Talk of $5.00 a share in the next 3 years is not silly. It could even go higher, but as always DYOR.

Personally I think with a lot of investor focus on Portia, Muturoo gets pushed into the background a little. I'm sure the market rates it but just doesn't talk about it as much.

The cobalt at Muturoo is very valuable and they should make a lot of money from this project in coming years.

Good luck, I will try to post more regularly here re HAV.

Flipper

 

[56gsa]

cheers flipper - nice to know someone else on board!

what i like about this now too is it seems to have de-linked to some extent from the CUY,MOX,GHT investments and now valued on basis of the 3 excellent projects - all since glencore came on board.

i still like my fib estimate with 2.60 (38%) and 3.00 (61%) giving 3.60 as possible target - which also alines with some of the broker research. Hopefully some good news re portia soon, and possible disinvestment of investments - altho i read under the GDY link that GHT is considered a bit of a sleeper when it comes to geothermal...

anyway lets enjoy the ride !

 

[ormond]

Dont know why this company doesn't get more attention considering the potential of their projects.

Expecting drill results soon from their recently aquired Tin project.

Havilah Resources NL (ASX:HAV) has entered a farm-in agreement with the owners of Exploration Licence 3605, centred on Prospect Hill in the northern Flinders Ranges.

Havilah may earn up to an 85pc interest in the tenement by completing a feasibility study.

Thereafter, the vendors may contribute their 15pc share of development costs or revert to a net smelter royalty.

EL 3605 contains the Prospect Hill tin and base metal project, where previous shallow drilling established an inferred resource of 172,000 tonnes of 1.15pc tin on the South Ridge prospect.

The tin mineralisation is associated with anomalous copper, zinc, lead, uranium and silver identified along a strike length of more than 1200 metres.

The North Ridge prospect contains a siliceous lode horizon that can be traced for 2.85 kilometres.

This lode system has never been drilled but rock chip sampling and trenching returned high levels of copper (up to 15pc), gold (up to 5.5g/t), silver (up to 98g/t), bismuth (up to 1350 ppm) and tin (up to 1050 ppm to 2080 ppm).

***** Havilah says the project, which is South Australia's largest known tin resource, has lain dormant for more than a decade, and interest has been rekindled by the current high tin prices.

The company plans to commence an 1100-metre reverse circulation drilling program next week that will target depth extensions to the existing tin resource at the South Ridge prospect, and will drill wider lode positions of the North Ridge prospect for the first time.

The eastern portion of EL 3605 also has considerable potential for the discovery of Tertiary palaeochannel-hosted uranium deposits, in a geological setting that is comparable to the Beverley-4 Mile area that lies roughly 40 kilometres to the south.

Also the portia gold poject should start producing next year.

They seem to have most commodities covered[copper cobalt gold tin molybdenum uranium geothermal] but not iron ore,so this may explain why this company has not had the coverage it will get shortly imo.

 

[sharemadder]

POSITIVE RESULTS FROM MUTOOROO FEASIBILITY STUDY​

Havilah Resources NL (Havilah – ASX:HAV) announces that it has now completed 50 holes for 7921m at Mutooroo during 2007 as part of the feasibility study resource delineation work. Three of these were large diameter PQ diamond core holes through the main ore zones, designed specifically to obtain representative metallurgical samples. The results for the diamond drillholes are comparable with earlier RC drill intersections in the vicinity and indicate the high tenor of the copper-cobalt massive sulphide mineralization (refer to results for MTDD112, 113, 114 in the table below). Drillholes MTD112 and 113 were drilled into the "fat zone" discovered last year, while MTD114 sampled a new thick footwall mineralized zone at depth roughly 300 metres to the north (see attached diagram). ​

​

Drilling to date is supportive of the geological model, and significant widths of new footwall lode mineralization has been intersected in many drillholes (identified as F/W in the table below), including MTRC107, 109, 115 and 117, which will add appreciably to the mineral resource. Of note is 24 metres of 1.3% Cu and 1280 ppm Co in MTRC 115 and 17 metres of 1.34 % Cu and 1441 ppm Co in MTRC 107, which lies within a broader 39 metre interval with a net ore value of $141 / tonne.