Havilah Resources (ASX:HAV) is going to set up a gold mine in South Australia. Located in the far north east of the state, the Portia gold project in the Curnomona region will see development work start in the coming year.
The Portia site, west of Broken Hill in New South Wales, is estimated to hold 67,000 ounces of gold. The company hopes to begin production within the next six months as per company chairman Bob Johnson. He said that the costs were quite competitive and it was economical to develop the site now.
North Portia Copper-Gold - Molybdenum Project. Image Credit: Havilah Resources
The Portia gold deposit will be developed into an open cut mine. The 1 to 3 meters of gold ore lie below about 70 meters of soft clay soil at the project site. The rising price of gold has made it possible for the new mine to be developed. The company is now awaiting the government approvals and completion of project financing.
Bob Johnson said that the discussions were under way with mining contractors and potential financiers for the operation. He said that the company expected to generate a cash surplus of $40 million in the first year of operation as it intends to mine 50,000 ounces of gold.