It is an thrilling addition to the () portfolio: a joint undertaking on two copper exploration licences just a number of kilometres away from the ground famously labored up by MOD, Metal Tiger () and Sandfire ().
The official joint undertaking was signed in mid-February subsequent an initial memorandum of understanding that was agreed in September of 2019. But it is not most likely to end there.
“We’re in the procedure of putting jointly very a considerable land bundle in that spot,” suggests Kavango’s main govt Mike Foster.
“We have options to prolong our ground keeping additional.”
Partly that’s simply because of the substantial prospectivity of the spots Kavango is concentrating on, but it is also simply because of the optimistic reception the transfer has got in the market place.
After all, traders are only also cognizant of the transform Metal Tiger was in a position to make on its expenditure in the nearby T3 challenge, which was finally taken wholly-in home by MOD prior to MOD in transform was obtained by Sandfire.
The spot is, suggests Foster, “one of the world’s most promising underneath-explored copper provinces
So, this is acquainted territory for traders, and in the months soon after the MoU was very first signed Kavango’s shares virtually doubled, though they have considering that fallen back again.
An exploration programme, which will get underway, need to deliver additional interesting newsflow and may well however stimulate the market place additional.
In the meantime although, Foster, and non-govt director Mike Moles, are both equally keen to emphasise that the company’s unique challenge – the just one it was shown on – stays important.
“The new copper ground doesn’t automatically take any of the pizazz away from the Kalahari Suture Zone,” suggests Foster.
“We never want men and women to imagine we’ve moved on to another challenge,” he suggests. “I imagine the determination is to give traders a fall-back again placement. The Kalahari Suture Zone has substantial possibility, and no person else has got any benefits from there.”
But the point about the KSZ is that allowing for that it is substantial possibility, the likely reward is equally substantial. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the greatest polymetallic jobs wherever in the globe.
“Most of the other significant bodies of gabbro in equivalent conditions as KSZ do have significant deposits of large sulphides in them,” he suggests.
“Indeed, there could be a large variety of large sulphides.”
The trick is to locate them. To that end, 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 in a position to map,” suggests Moles. “We’re creating up a photo.”
In a perception, he suggests, it is a box ticking training. “You know what criteria you need for a challenge like Voisey’s Bay or Norilsk, you need to tock the ideal packing containers, and so far we have. If we never locate a large sulphide on KSZ, then anyone else will in the upcoming. But presented we can retain funding, we imagine we will.”
Far more magnetic study get the job done is prepared, in specific the deployment of a more substantial transmitter designed to develop a more substantial latest and allow the enterprise to see past all the salted groundwater that’s previously interfered with the interpretation of details. And soon after that there need to be a lot more drilling.
At the very same time, get the job done on the copper ground will be commencing to acquire momentum, so all informed, it seems to be like there need to be a nutritious flow of news over the coming 12 months. By the end of that procedure the enterprise could glimpse incredibly various certainly.