It’s an remarkable addition to the () portfolio: a joint venture on two copper exploration licences just a few kilometres away from the ground famously worked up by MOD, Steel Tiger () and Sandfire ().
The formal joint venture was signed in mid-February subsequent an first memorandum of knowledge that was agreed in September of 2019. But it is not most likely to conclusion there.
“We’re in the system of putting jointly fairly a considerable land bundle in that region,” states Kavango’s chief government Mike Foster.
“We have plans to extend our ground keeping more.”
Partly that is because of the massive prospectivity of the areas Kavango is focusing on, but it is also because of the beneficial reception the move has obtained in the market.
Right after all, investors are only much too cognizant of the change Steel Tiger was capable to make on its expense in the nearby T3 venture, which was finally taken wholly-in residence by MOD prior to MOD in change was obtained 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 soon after the MoU was first signed Kavango’s shares practically doubled, though they have given that fallen back again.
An exploration programme, which will get underway, should supply more exciting newsflow and may possibly but encourage the market more.
In the meantime nevertheless, Foster, and non-government director Mike Moles, are both keen to emphasise that the company’s first venture – the one it was stated on – stays crucial.
“The new copper ground does not automatically consider any of the pizazz away from the Kalahari Suture Zone,” states Foster.
“We really do not want people today to assume we’ve moved on to an additional venture,” he states. “I assume the commitment is to give investors a tumble-back again position. The Kalahari Suture Zone has higher hazard, and no one else has obtained any outcomes from there.”
But the matter about the KSZ is that letting that it is higher hazard, the likely reward is similarly higher. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the major polymetallic assignments anywhere in the environment.
“Most of the other big bodies of gabbro in related cases as KSZ do have big deposits of large sulphides in them,” he states.
“Indeed, there could be a big selection of large sulphides.”
The trick is to discover them. To that conclusion, 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 capable to map,” states Moles. “We’re constructing up a photo.”
In a sense, he states, it is a box ticking workout. “You know what requirements you will need for a venture like Voisey’s Bay or Norilsk, you will need to tock the suitable packing containers, and so far we have. If we really do not discover a large sulphide on KSZ, then any person else will in the foreseeable future. But furnished we can retain funding, we assume we will.”
Additional magnetic study do the job is planned, in distinct the deployment of a greater transmitter made to deliver a greater present and permit the business to see previous all the salted groundwater that is previously interfered with the interpretation of details. And soon after that there should be extra drilling.
At the exact time, do the job on the copper ground will be beginning to collect momentum, so all told, it appears to be like like there should be a nutritious move of news above the coming year. By the conclusion of that system the business could look incredibly distinctive in truth.