South Australia is about to become the home of the smallest gold mine in the country.
The South Australian Government has granted approval for Havilah Resources’ Portia Gold Project, located 120km north-west of Broken Hill. The mine is expected to have an operational life of 18 months.
“This approval signals Havilah Resource’s transition from explorer to miner – which is a significant milestone for the local company. I congratulate Havilah Resources along with our world’s-best regulators who work tirelessly to ensure projects like these are assessed diligently and efficiently,” said Mineral Resources and Energy Minister Tom Koutsantonis in a media release.
“The Portia project has robust economics and it is Havilah’s intent to proceed with the mine development as soon as possible.”
Havilah Resources will now seek financial backing for the development of the project. The company revealed that the gold in the deposit will be cheaper to mine due to the fact that it will not have to be leached during the extraction.
The project is expected to generate around 50 jobs. The company will pay $1.9 million for mine site rehabilitation, as well as $166,000 to clear native vegetation.
Commenting on the full operational approval for the Portia gold project from the Department of State Development (DSD), Havilah’s Managing Director, Dr Chris Giles said the that approval of the Portia Program for Environmental Protection and Rehabilitation (PEPR) was the culmination of several years of hard work by Havilah employees, who deserve the credit for helping the Company achieve this important milestone.
“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. We are grateful for the assistance of DSD 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,” said Dr Giles in a media release.
“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 cash flow that will facilitate development of our nearby and much larger Kalkaroo copper gold project.”