FREE DAILY STOCK MARKET NEWS

FREE DAILY STOCK MARKET NEWS

Kavango moves closer to Kalahari drilling as copper continues to strengthen

10 August 2022 14:53
LSE: KAV
Exploration in the Kalahari Copper Belt

Kavango Resources large licence package in northern Botswana’s Kalahari Copper Belt, or “KCB”, is perhaps the asset in the exploration firm’s portfolio that offers it the greatest chance of a discovery. So, it is particularly encouraging to learn that the company is moving towards the point of drilling the project at a time when the outlook for the red metal looks so strong.

Used in everything from EVs to solar panels and wind turbines–demand for copper is set to increase considerably. However, due to supply chain underinvestment, many believe supply is not equipped to keep pace over the long term.

This is leading the search for new economic copper deposits to escalate globally and when it comes to finding these deposits, the KCB seems like a great place to start.

The region has experienced an accelerated discovery rate over the past 15 years. Firms like Khoemacau and Sandfire have enjoyed significant progress in their development of copper-silver mines on the 1,000km-long geological structure and Cobre caught the eye of the market recently after repeatedly hitting copper in its ongoing KCB drilling programme.

However, most KCB exploration to date has focused either on areas where mineralisation outcrops or is only covered by a thin layer of sand. The western half of the belt, where this sand cover is thicker and obscures much of the regional geology has remained largely underexplored.

Breaking through this sand cover would have been difficult historically. However, exploration technology has come on a long way in recent years and validating the area’s prospectivity for copper mineralisation before drilling is now more achievable.

It is for this reason that Kavango has consolidated more than 5 thousand square kilometres of land in the western portion of the KCB through its Kanye Resources operating subsidiary and its joint venture with LVR GeoExplorers.

 

Exploration in the Kalahari Copper Belt

Kavango’s licenses in the KCB

 

To give itself the optimal chance of success when drilling these licences the company’s first step was to make sure it understood its geology using a variety of modern methods. Ultimately, this led it to announce three key geochemical features on its PL036 licence last year called Acacia, Morula, and Happy.

These targets boast promising stratigraphy and an encouraging amount of anomalous copper but are also very large. So, to zone in on areas where the likeliness of drilling success stands to be greatest, Kavango got to work on geological mapping across PL036 as well as its PL082 and Mamuno licences last year.

The company deployed a seismic-based Tromino unit to quickly estimate the depth of sand cover and help decide where to take soil samples and how to interpret them.

Significantly, Kavango’s work was able to identify several instances of what is known as “Ngwako Pan-D’kar formational contact” across its licence package.

These points are closely associated with many of the KCB copper-silver deposits and discoveries that already exist.

As announced last week, a soil sample programme on PL036 has confirmed four copper targets that fit Kavango’s mapped Ngwako Pan-D’kar formational contacts and conform to Acacia, Morula, and Happy as well.

From here, work remains ahead of drilling.

At PL036, Kavango will use its latest results to reinterpret the geophysical data it acquired in 2021 and complete infill soil sampling where needed to help it rank its targets. Meanwhile, it also expects complete ongoing soil sampling and target delineation at PL082 and Mamuno by the end of August.

The company is moving ever closer to drilling the KCB, with preliminary discussions underway with contractors for a planned programme later this year.

If this ultimately leads it to discover one or more areas of economic copper mineralisation, then the backdrop right now is ideal for this to create considerable shareholder value.

The Market Bull Logo

FREE DAILY STOCK MARKET NEWS

Join our mailing list to receive the latest stock market news.

You have Successfully Subscribed!

Share This