It is an exciting addition to the () portfolio: a joint enterprise on two copper exploration licences just a several kilometres absent from the ground famously labored up by MOD, Steel Tiger () and Sandfire ().
The official joint enterprise was signed in mid-February next an first memorandum of comprehending that was agreed in September of 2019. But it’s not probably to end there.
“We’re in the process of placing with each other pretty a significant land package in that area,” states Kavango’s chief government Mike Foster.
“We have ideas to lengthen our ground keeping even further.”
Partly that’s mainly because of the substantial prospectivity of the spots Kavango is targeting, but it’s also mainly because of the beneficial reception the go has got in the market.
Following all, investors are only way too cognizant of the change Steel Tiger was ready to make on its investment decision in the nearby T3 venture, which was sooner or later taken wholly-in residence by MOD just before MOD in change was obtained by Sandfire.
The area is, states Foster, “one of the world’s most promising below-explored copper provinces
So, this is common territory for investors, and in the weeks just after the MoU was to start with signed Kavango’s shares virtually doubled, even though they have given that fallen back.
An exploration programme, which will get underway, should really supply even further appealing newsflow and may possibly yet stimulate the market even further.
In the meantime however, Foster, and non-government director Mike Moles, are the two keen to emphasise that the company’s primary venture – the just one it was stated on – remains crucial.
“The new copper ground doesn’t necessarily acquire any of the pizazz absent from the Kalahari Suture Zone,” states Foster.
“We don’t want persons to consider we’ve moved on to a different venture,” he states. “I consider the enthusiasm is to give investors a drop-back situation. The Kalahari Suture Zone has superior danger, and nobody else has got any effects from there.”
But the factor about the KSZ is that permitting that it’s superior danger, the prospective reward is equally superior. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the most important polymetallic projects anywhere in the globe.
“Most of the other large bodies of gabbro in very similar circumstances as KSZ do have large deposits of enormous sulphides in them,” he states.
“Indeed, there could be a huge quantity of enormous sulphides.”
The trick is to locate them. To that end, Kavango has by now carried out an airborne geophysical study which has penetrated down to depths of 400 metres, ground electromagnetics, and it has carried out some drilling.
“We are ready to map,” states Moles. “We’re constructing up a image.”
In a perception, he states, it’s a box ticking work out. “You know what requirements you need for a venture like Voisey’s Bay or Norilsk, you need to tock the ideal boxes, and so far we have. If we don’t locate a enormous sulphide on KSZ, then someone else will in the long run. But provided we can retain funding, we consider we will.”
Far more magnetic study work is planned, in particular the deployment of a even larger transmitter built to develop a even larger existing and permit the firm to see previous all the salted groundwater that’s beforehand interfered with the interpretation of facts. And just after that there should really be additional drilling.
At the exact same time, work on the copper ground will be beginning to obtain momentum, so all advised, it looks like there should really be a nutritious circulation of news around the coming calendar year. By the end of that process the firm could appear incredibly distinctive indeed.