It is an fascinating addition to the () portfolio: a joint enterprise on two copper exploration licences just a handful of kilometres absent from the ground famously labored up by MOD, Steel Tiger () and Sandfire ().
The official joint enterprise was signed in mid-February adhering to an original memorandum of knowledge that was agreed in September of 2019. But it is not probable to end there.
“We’re in the process of placing alongside one another rather a sizeable land package in that area,” states Kavango’s main executive Mike Foster.
“We have programs to extend our ground holding additional.”
Partly that is because of the huge prospectivity of the places Kavango is targeting, but it is also because of the positive reception the go has obtained in the market.
Immediately after all, buyers are only much too cognizant of the switch Steel Tiger was ready to make on its expenditure in the nearby T3 challenge, which was ultimately taken wholly-in household by MOD in advance of MOD in switch was acquired by Sandfire.
The area is, states Foster, “one of the world’s most promising below-explored copper provinces
So, this is common territory for buyers, and in the weeks soon after the MoU was initial signed Kavango’s shares pretty much doubled, while they have considering that fallen again.
An exploration programme, which will get underway, need to offer additional intriguing newsflow and may nonetheless encourage the market additional.
In the meantime although, Foster, and non-executive director Mike Moles, are both of those eager to emphasise that the company’s authentic challenge – the a single it was shown on – remains essential.
“The new copper ground doesn’t necessarily acquire any of the pizazz absent from the Kalahari Suture Zone,” states Foster.
“We do not want people to think we’ve moved onto another challenge,” he states. “I think the drive is to give buyers a drop-again position. The Kalahari Suture Zone has substantial chance, and no person else has obtained any final results from there.”
But the issue about the KSZ is that permitting that it is substantial chance, the probable reward is equally substantial. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the most important polymetallic projects wherever in the world.
“Most of the other significant bodies of gabbro in identical scenarios as KSZ do have significant deposits of significant sulphides in them,” he states.
“Indeed, there could be a big variety of significant sulphides.”
The trick is to find them. To that end, Kavango has currently carried out an airborne geophysical survey which has penetrated down to depths of four hundred metres, ground electromagnetics, and it has carried out some drilling.
“We are ready to map,” states Moles. “We’re creating up a photo.”
In a perception, he states, it is a box ticking exercise. “You know what conditions you require for a challenge like Voisey’s Bay or Norilsk, you require to tock the correct packing containers, and so much we have. If we do not find a significant sulphide on KSZ, then anyone else will in the upcoming. But furnished we can hold funding, we think we will.”
Additional magnetic survey operate is prepared, in individual the deployment of a larger transmitter intended to make a larger current and allow the business to see previous all the salted groundwater that is formerly interfered with the interpretation of info. And soon after that there need to be more drilling.
At the identical time, operate on the copper ground will be beginning to acquire momentum, so all instructed, it appears to be like there need to be a nutritious movement of information more than the coming year. By the end of that process the business could glimpse really distinct certainly.