Kavango Grow Gold Holdings

27 June 2023 13:41

UK-listed explorer Kavango Resources bolster its already strong African gold portfolio having signed an exclusive two-year option to acquire the Nara Project in Southern Zimbabwe, which covers historic mines with a total historic production of 92,000oz gold averaging 9.76g/t.

Gaining Golden Ground

The two-year binding option gives Kavango the opportunity to buy the 45 contiguous gold claims that comprise the Project outright, paying an option fee of US$220 thousand dollars over the two-year period and spending US$1 million on exploration to back up the explorer’s belief that the Project could host a bulk mineable gold deposit.

Each of the 45 claims is ten hectares in size and cumulatively covers four historic gold mines, supporting high-grade underground mining and continuous surface small-scale mining and custom milling over the last 30 years. Historic mines within the Project have also produced notable credits for tungsten and silver.

Alongside the significant gold production, work over the last thirty years at the Project has generated approximately 150,000 to 250,000 tonnes of tailings, giving Kavango a compelling avenue for near-term revenue generation.

This historic pedigree, combined with favourable geological conditions and continued small-scale mining operations, has given the explorer confidence in the Project’s potential for a modern commercial gold operation.

Getting to Work

Despite having just signed the agreement, Kavango is wasting no time getting to work unveiling the Project’s potential, with the option providing the explorer full access to the Project area to conduct a comprehensive exploration program before deciding whether to exercise the option to acquire the Nara Project.

The exploration program will commence in the coming days and will comprise surveying of both tailings and soil geochemistry along the Project’s strike extent, assessment of the historic mine shaft, scout drilling to test artisanal workings/shafts as well as potential underground drilling and channel sampling if deemed safe.

Exploration will not be limited to what’s listed above, with further drilling and surveying alongside other exploration activities planned as the budget will allow.

Looking Ahead

The Company said it is excited to have taken its first steps into Zimbabwe with a project that will complement its current Botswana-focused portfolio.

“The greenstone belts in Zimbabwe host prospective rocks for bulk-mineable gold deposits, according to Kavango’s internal review and analysis. Many of these belts share notable similarities with some of Australia’s most prolific gold-producing regions,” Chief Executive Ben Turney said.

“Zimbabwe has a strong tradition of mining. However, exploration and investment has been severely limited over recent decades. In 1980, Zimbabwe produced more gold than Australia but the country has yet to experience the bulk-mining boom Australia did midway through that decade. We believe this presents a significant opportunity for Kavango and a commercial discovery.”

KAV’s London Stock Exchange-listed share price is currently selling at 1.08 pence (1:40 pm UTC+ 8 hours).

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