THE BOURSE WHISPERER: Hannans Reward (ASX: HNR) has been informed by Swedish mining company, Lovisagruvan AB of its decision to proceed to Stage 2 of the Pahtohavare Joint Venture.
The Pahtohavare copper-gold project is located approximately 8km south-west of Kiruna, a full service mining town in northern Sweden and comprises three deposits – Central, Southern and South Eastern.
The Central deposit contains a current JORC Compliant Inferred Mineral Resource Estimate of 1.4 million tonnes at 1.8 per cent copper and 0.6 grams per tonne gold (2.4 per cent copper equivalent [CuEq]).
“Lovisagruvan AB is funding the costs of exploration pursuant to the Joint Venture announced to ASX on 27 March 2015 with Hannans to retain a 25 per cent free carried interest through to a Decision to Mine,” Hannans Reward explained in its ASX announcement.
“Hannans and Lovisagruvan will now incorporate a corporation (a Swedish aktiebolag) through which the joint venture will be administered.”
Under the terms of the JV, Lovisagruvan Stage 2 commitment will consist of:
Preparation and lodgement of an exploitation concession application (i.e. a mining lease application) for the Central deposit within approximately 12 months; and
Provide Hannans’ wholly-owned subsidiary Kiruna Iron AB with a $0.475 million interest free working capital facility.
As part of its Stage 1 commitment Lovisagruvan has already spent $0.7 million and completed the following:
Eight new diamond holes and one diamond tail for a total of 760.3 metres. The drilling program confirmed the wide, high-grade nature of the copper-gold-silver mineralisation at Central but also showed that the mineralisation is complex, likely due to the insitu weathering and subsequent supergene overprinting of the deposit;
Copper speciation testwork that showed the majority of the copper mineralisation is associated with cuperiferous clays. Copper speciation testwork, undertaken using an aggressive acid (H2SO4) concentration of 50g/L over 1 hour, indicated the percentage of acid soluble copper for each of the three composites ranged from 83.10 to 87.85 per cent; and
A preliminary environmental review that showed the waste rock is most likely not acid producing and no major environmental problems are expected from the existing waste dumps.