It is an fascinating addition to the () portfolio: a joint enterprise on two copper exploration licences just a handful of kilometres away from the ground famously worked up by MOD, Metal Tiger () and Sandfire ().
The official joint enterprise was signed in mid-February adhering to an preliminary memorandum of comprehension that was agreed in September of 2019. But it’s not likely to finish there.
“We’re in the procedure of putting with each other pretty a substantial land package deal in that location,” suggests Kavango’s main government Mike Foster.
“We have strategies to lengthen our ground keeping additional.”
Partly that is for the reason that of the massive prospectivity of the locations Kavango is targeting, but it’s also for the reason that of the constructive reception the transfer has acquired in the market.
Soon after all, traders are only far too cognizant of the convert Metal Tiger was ready to make on its financial investment in the nearby T3 venture, which was finally taken wholly-in home by MOD right before MOD in convert was obtained by Sandfire.
The location is, suggests Foster, “one of the world’s most promising below-explored copper provinces
So, this is acquainted territory for traders, and in the weeks soon after the MoU was very first signed Kavango’s shares just about doubled, even though they have due to the fact fallen back.
An exploration programme, which will get underway, should give additional exciting newsflow and could nevertheless encourage the market additional.
In the meantime nevertheless, Foster, and non-government director Mike Moles, are each eager to emphasise that the company’s authentic venture – the a person it was outlined on – continues to be critical.
“The new copper ground doesn’t always choose any of the pizazz away from the Kalahari Suture Zone,” suggests Foster.
“We really don’t want folks to assume we’ve moved on to a different venture,” he suggests. “I assume the enthusiasm is to give traders a tumble-back posture. The Kalahari Suture Zone has substantial risk, and no one else has acquired any final results from there.”
But the thing about the KSZ is that allowing for that it’s substantial risk, the potential reward is equally substantial. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the greatest polymetallic assignments everywhere in the earth.
“Most of the other huge bodies of gabbro in similar cases as KSZ do have huge deposits of massive sulphides in them,” he suggests.
“Indeed, there could be a significant quantity of massive sulphides.”
The trick is to locate them. To that finish, Kavango has currently carried out an airborne geophysical study which has penetrated down to depths of 400 metres, ground electromagnetics, and it has done some drilling.
“We are ready to map,” suggests Moles. “We’re constructing up a picture.”
In a feeling, he suggests, it’s a box ticking exercising. “You know what requirements you require for a venture like Voisey’s Bay or Norilsk, you require to tock the suitable containers, and so far we have. If we really don’t locate a massive sulphide on KSZ, then any person else will in the potential. But supplied we can maintain funding, we assume we will.”
Extra magnetic study perform is prepared, in individual the deployment of a larger transmitter made to make a larger present-day and let the firm to see past all the salted groundwater that is previously interfered with the interpretation of details. And soon after that there should be much more drilling.
At the identical time, perform on the copper ground will be beginning to obtain momentum, so all informed, it appears to be like there should be a healthy flow of information over the coming 12 months. By the finish of that procedure the firm could glance pretty distinctive in fact.