Trading Suspension on Havilah Resources stock got lifted immediately after the company released 'retraction of social media statement' on Grants Iron Ore Basin project. However, investors seem to remain unchanged as there has been no price movement in HAV stock as at 28 December 2018 (2:17 PM AEST). The stock last traded at $0.155.
In today’s market release, Havilah Resources Limited (ASX: HAVASX: HAV) provided clarification on the interview taken by Proactive Investors on the iron ore discovery at company’s Grants Basin Project.
On 25 September 2018 and 21 December 2018, Havilah Resources’ Technical Director Dr. Chris Giles was interviewed by a multi-media news organization, Proactive Investors, and the interview videos were subsequently posted on Proactive Investors website.
But Havilah Resources has retracted to the content displayed in Proactive Investors’ video as the company believes that the media firm has edited the video to delete the actual statements. The company also cautioned its investors to not rely on the statements for their investment decisions or otherwise.
The announcement read that Havilah retracts the following two statement as they are contrary to the JORC code:
1.) Dr. Giles stated: “…potential is much greater than that (304 million tonnes Grants Iron Ore Resource) and could be billions of tonnes” in the interview taken on 25 September 2018, titled “Havilah Resources’ multi-commodity exploration strategy in SA delivers substantial results.”
2.) Dr. Giles stated: “I think we managed to achieve their (SIMEC Mining’s) billion tonnes a few times over …” in the interview taken on 21 December 2018 with the title “Havilah Resources confirms new discovery in the Grants Iron Ore Basin.”
The retraction is further based on the fact that Havilah Resources has yet not defined a JORC resource in the Grants Iron Ore Basin project owing to the wide drill hole spacing.
Moreover, in the announcement dated 4 December 2018, the company confirmed a significant new iron ore deposit at Grants Iron Ore Basin. It came after the company discovered thick and consistent iron formation over an area of at least 3.5 square km in the western portion of the basin during its reverse circulation (RC) drilling program. However, the company has covered drilling only approximately 25% of the interpreted Grants Iron Ore Basin till the date of this release.
Havilah stated that this drilling was performed and funded by SIMEC Mining as a part of a comprehensive work program that is currently underway. It outlines the due diligence process being undertaken by SIMEC Mining to realize the commercial potential of Havilah’s Grants iron ore and Maldorky projects.
Over the past year, Havilah Resources’ stock has fallen by 27.91% including the plunge of 16.22% in the past month. Its current market capitalization amounts to $33.83 million as at 28 December 2018.