It’s an thrilling addition to the () portfolio: a joint undertaking on two copper exploration licences just a couple of kilometres away from the ground famously labored up by MOD, Steel Tiger () and Sandfire ().
The formal joint undertaking was signed in mid-February pursuing an preliminary memorandum of comprehending that was agreed in September of 2019. But it is not very likely to end there.
“We’re in the process of placing jointly rather a sizeable land deal in that place,” claims Kavango’s main executive Mike Foster.
“We have ideas to prolong our ground holding more.”
Partly which is simply because of the huge prospectivity of the parts Kavango is concentrating on, but it is also simply because of the beneficial reception the go has acquired in the sector.
Right after all, buyers are only also cognizant of the transform Steel Tiger was equipped to make on its financial commitment in the close by T3 task, which was inevitably taken wholly-in household by MOD prior to MOD in transform was acquired by Sandfire.
The place is, claims Foster, “one of the world’s most promising beneath-explored copper provinces
So, this is familiar territory for buyers, and in the months soon after the MoU was first signed Kavango’s shares virtually doubled, though they have since fallen back again.
An exploration programme, which will get underway, really should provide more attention-grabbing newsflow and may perhaps but encourage the sector more.
In the meantime nevertheless, Foster, and non-executive director Mike Moles, are both of those keen to emphasise that the company’s first task – the one particular it was listed on – remains key.
“The new copper ground does not automatically get any of the pizazz away from the Kalahari Suture Zone,” claims Foster.
“We really don’t want folks to feel we have moved onto another task,” he claims. “I feel the determination is to give buyers a fall-back again position. The Kalahari Suture Zone has large risk, and no person else has acquired any effects from there.”
But the point about the KSZ is that letting that it is large risk, the possible reward is equally large. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the largest polymetallic assignments everywhere in the world.
“Most of the other large bodies of gabbro in very similar situations as KSZ do have large deposits of substantial sulphides in them,” he claims.
“Indeed, there could be a large range of substantial sulphides.”
The trick is to uncover them. To that end, Kavango has presently carried out an airborne geophysical survey which has penetrated down to depths of four hundred metres, ground electromagnetics, and it has accomplished some drilling.
“We are equipped to map,” claims Moles. “We’re building up a picture.”
In a sense, he claims, it is a box ticking exercise. “You know what conditions you will need for a task like Voisey’s Bay or Norilsk, you will need to tock the ideal boxes, and so significantly we have. If we really don’t uncover a substantial sulphide on KSZ, then anyone else will in the upcoming. But supplied we can retain funding, we feel we will.”
Much more magnetic survey work is prepared, in certain the deployment of a larger transmitter developed to generate a larger present-day and enable the business to see previous all the salted groundwater which is formerly interfered with the interpretation of info. And soon after that there really should be more drilling.
At the exact time, work on the copper ground will be beginning to acquire momentum, so all told, it appears to be like there really should be a healthy stream of news in excess of the coming calendar year. By the end of that process the business could seem pretty diverse indeed.