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Kavango Eye Golden Zimbabwe Acquisition

26 July 2023 12:02
LSE: KAV
Zimbabwe Gold

Kavango Resources continue to build momentum across its Africa-focused portfolio, with the explorer having secured an option to acquire two new prospective gold projects in Zimbabwe as it prepares to commence a 30km induced polarisation survey at its Karakubis Copper Project in Botswana.

Gaining Golden Ground

The two projects under the option agreement the explorer signed are the Hillside and Leopard Projects located within the Southern Simbabwes Matabeleland region, with the Company believing the Projects each have the potential to host bulk minable gold deposits.

Hillside covers 40 contiguous gold claims containing a historic high-grade underground mine that has historically produced 18,000 ounces (“oz”) of gold at a grade of 7.7 grams per tonne (“g/t”) over a strike length of more than 350m, with the Company having outlined three priority prospects within zones parallel to the trend responsible for the Project’s historical production.

Hillside is also located on the same greenstone belt that hosts the Nara Project, where the Company is currently completing due diligence exploration work after entering into an exclusive 2-year purchase option to acquire the Project just over a month ago, with Nara sitting just 20km from Hillside.

Leopard meanwhile comprises 44 contiguous gold claims and covers two historic producing gold mines, with the first mine being reported to have produced more than 2,000oz from ore grading 3.5g/t gold while the second has reportedly produced more than 1Moz at an average grade of 0.5g/t gold.

Signing the option agreement gives Kavango a 6-month exclusive period to acquire the Projects, allowing the Company plenty of time to undertake a number of exploration activities to give it accurate insight into the Projects potential, with the Company now planning individual plans comprising mapping, surveying, sampling and drilling for the Projects.

“I’m very pleased to announce that we have already been able to expand our footprint in Zimbabwe after signing the Nara Project last month. The Hillside and Leopard Projects both contain historically producing mines and have been underexplored with modern-day exploration techniques,” Chief Executive Ben Turney said.

Surveying Copper Promise

Alongside the option, the Company has now placed a contract for the 30km IP survey at Karakubis, which aims to identify sulphide bodies within the Project’s tenure which will be ranked as targets for future drilling.

Equipment for the survey is now being mobilised to the site and line cutting is already underway, with the Company planning on using Gradient Array IP on 500m spaced lines, followed up with IP Sections for drill planning.

Exploration at the Project has already confirmed that it hosts a major copper target, with an extensive mapping, surveying and soil sampling program uncovering a 5km long by 3.5km wide zone of anomalous copper values up to 73ppm Cu.

Kavango is confident that the survey will result in the identification of drill targets and is already planning its approach to drilling, with the Company anticipating a two-phase program comprising of phase 1 testing target areas with shallower Reverse Circulation to refine targets for deeper diamond drilling.

The Company said it plans to drill the Project in the first quarter of next year.

“We believe the Karakubis licences are particularly prospective due to the known mineral potential in the surrounding geology. Karakubis sits on the same regional structural trends that have yielded a number of major discoveries. So far, our airborne EM, CSAMT surveys and surface soil geochemistry have given us encouraging results,” Ben Turney said.

“The aim of the 30km of IP survey lines will be to identify and rank possible sulphide bodies as future drill targets. If present, these bodies could represent an opportunity for the near-term detection of a metal-bearing alteration system.”

KAV’s London Stock Exchange-listed share price has risen 8.7 per cent today and is currently selling at 0.63 pence (11:30 pm UTC+ 8 hours).

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