SIMEC Mining has extended its exclusivity period at Havilah Resources’ Maldorky and Grants iron ore projects in South Australia.
The GFG Alliance-owned SIMEC will make a payment of $1 million, in accordance with the companies’ extension agreement, to extend the exclusive period to the end of March 2019, an additional two months.
This extension will allow SIMEC to complete due diligence at the mines and develop their “commercialisation potential”, according to a statement from Havilah.
The two deposits are positioned near GFG’s Whyalla operations and feature a continuous rail link to port.
Havilah plans to partner with SIMEC over the iron ore deposits to shift the company’s focus on its core copper and cobalt deposits.
The due diligence, which has been funded by SIMEC, includes infrastructure studies that have led to expansions on three drillholes across the two prospects. This builds on the material provided by Havilah to SIMEC for metallurgical testing, such as RC drill samples from both deposits and drillcore from Maldorky.
Havilah Resources recently completed the drillhole at the Grants iron ore basin to a depth of 624.4 metres.
“SIMEC Mining’s decision to extend its exclusivity is a positive development for the potential commercialisation of Havilah’s iron ore projects,” SIMEC Mining chief executive officer Walter Richards said.
“We are encouraged by the recently completed diamond drill hole into the Grants Basin which intersected 486 metres at 24.06 per cent iron.”