April 13, 2024


Make Every Business

Kavango Resources PLC’s new foray into the Kalahari copper belt won’t distract it from upside at KSZ

It’s an interesting addition to the () portfolio: a joint venture on two copper exploration licences just a handful of kilometres away from the floor famously worked up by MOD, Steel Tiger () and Sandfire ().

The official joint venture was signed in mid-February adhering to an first memorandum of comprehending that was agreed in September of 2019. But it is not likely to end there.

“We’re in the system of putting with each other quite a sizeable land package in that area,” claims Kavango’s chief government Mike Foster.

“We have plans to increase our floor keeping even further.”

Partly that is due to the fact of the big prospectivity of the spots Kavango is focusing on, but it is also due to the fact of the good reception the move has bought in the current market.

Right after all, buyers are only much too cognizant of the transform Steel Tiger was able to make on its financial investment in the close by T3 job, which was sooner or later taken wholly-in dwelling by MOD prior to MOD in transform was obtained by Sandfire.

The area is, claims Foster, “one of the world’s most promising less than-explored copper provinces

So, this is common territory for buyers, and in the weeks after the MoU was very first signed Kavango’s shares practically doubled, while they have because fallen back again.

An exploration programme, which will get underway, really should offer even further exciting newsflow and may nevertheless promote the current market even further.

In the meantime however, Foster, and non-government director Mike Moles, are both of those eager to emphasise that the company’s unique job – the a person it was outlined on – remains important.

“The new copper floor doesn’t always acquire any of the pizazz away from the Kalahari Suture Zone,” claims Foster.

Moles agrees.

“We really don’t want individuals to feel we have moved onto a further job,” he claims. “I feel the motivation is to give buyers a drop-back again posture. The Kalahari Suture Zone has substantial possibility, and nobody else has bought any benefits from there.”

But the matter about the KSZ is that permitting that it is substantial possibility, the opportunity reward is equally substantial. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the greatest polymetallic jobs anyplace in the earth.

“Most of the other large bodies of gabbro in very similar circumstances as KSZ do have large deposits of substantial sulphides in them,” he claims.

“Indeed, there could be a massive range of substantial sulphides.”

The trick is to uncover them. To that end, Kavango has by now carried out an airborne geophysical study which has penetrated down to depths of four hundred metres, floor electromagnetics, and it has finished some drilling.

“We are able to map,” claims Moles. “We’re building up a photo.”

In a sense, he claims, it is a box ticking exercise. “You know what conditions you require for a job like Voisey’s Bay or Norilsk, you require to tock the suitable boxes, and so significantly we have. If we really don’t uncover a substantial sulphide on KSZ, then any person else will in the potential. But supplied we can preserve funding, we feel we will.”

Extra magnetic study do the job is planned, in unique the deployment of a greater transmitter made to make a greater present-day and enable the company to see previous all the salted groundwater that is previously interfered with the interpretation of information. And after that there really should be much more drilling.

At the very same time, do the job on the copper floor will be beginning to gather momentum, so all informed, it appears like there really should be a wholesome stream of news over the coming year. By the end of that system the company could appear extremely different indeed.