It is an interesting addition to the () portfolio: a joint venture on two copper exploration licences just a number of kilometres absent from the ground famously labored up by MOD, Metal Tiger () and Sandfire ().
The formal joint venture was signed in mid-February following an first memorandum of comprehension that was agreed in September of 2019. But it’s not probably to finish there.
“We’re in the approach of putting collectively very a sizeable land package in that region,” states Kavango’s main executive Mike Foster.
“We have programs to extend our ground holding further more.”
Partly which is simply because of the substantial prospectivity of the spots Kavango is concentrating on, but it’s also simply because of the favourable reception the go has received in the market.
Just after all, investors are only far too cognizant of the convert Metal Tiger was equipped to make on its investment in the close by T3 job, which was ultimately taken wholly-in property by MOD prior to MOD in convert was acquired by Sandfire.
The region is, states Foster, “one of the world’s most promising under-explored copper provinces
So, this is familiar territory for investors, and in the months after the MoU was initially signed Kavango’s shares virtually doubled, whilst they have considering that fallen back.
An exploration programme, which will get underway, must give further more intriguing newsflow and may perhaps nevertheless stimulate the market further more.
In the meantime nevertheless, Foster, and non-executive director Mike Moles, are both equally eager to emphasise that the company’s original job – the one particular it was listed on – continues to be critical.
“The new copper ground does not always consider any of the pizazz absent from the Kalahari Suture Zone,” states Foster.
“We never want individuals to consider we’ve moved onto a different job,” he states. “I consider the inspiration is to give investors a fall-back posture. The Kalahari Suture Zone has higher possibility, and nobody else has received any effects from there.”
But the matter about the KSZ is that allowing for that it’s higher possibility, the possible reward is equally higher. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the biggest polymetallic initiatives any place in the planet.
“Most of the other big bodies of gabbro in similar conditions as KSZ do have big deposits of substantial sulphides in them,” he states.
“Indeed, there could be a substantial selection of substantial sulphides.”
The trick is to locate them. To that finish, Kavango has now carried out an airborne geophysical study which has penetrated down to depths of four hundred metres, ground electromagnetics, and it has accomplished some drilling.
“We are equipped to map,” states Moles. “We’re setting up up a photograph.”
In a perception, he states, it’s a box ticking exercising. “You know what conditions you will need for a job like Voisey’s Bay or Norilsk, you will need to tock the proper containers, and so significantly we have. If we never locate a substantial sulphide on KSZ, then any person else will in the potential. But supplied we can maintain funding, we consider we will.”
Far more magnetic study operate is prepared, in unique the deployment of a even bigger transmitter built to make a even bigger present and enable the enterprise to see earlier all the salted groundwater which is formerly interfered with the interpretation of information. And after that there must be much more drilling.
At the very same time, operate on the copper ground will be starting to assemble momentum, so all instructed, it appears like there must be a nutritious movement of information over the coming calendar year. By the finish of that approach the enterprise could search really different in truth.