It is an exciting addition to the () portfolio: a joint venture on two copper exploration licences just a several kilometres away from the floor famously labored up by MOD, Metal Tiger () and Sandfire ().
The formal joint venture was signed in mid-February following an preliminary memorandum of understanding that was agreed in September of 2019. But it is not probable to close there.
“We’re in the approach of placing with each other pretty a sizeable land deal in that spot,” says Kavango’s chief govt Mike Foster.
“We have plans to lengthen our floor keeping additional.”
Partly that’s due to the fact of the huge prospectivity of the regions Kavango is focusing on, but it is also due to the fact of the constructive reception the move has received in the sector.
Just after all, investors are only also cognizant of the convert Metal Tiger was capable to make on its financial commitment in the nearby T3 project, which was inevitably taken wholly-in house by MOD right before MOD in convert was acquired by Sandfire.
The spot is, says Foster, “one of the world’s most promising beneath-explored copper provinces
So, this is familiar territory for investors, and in the weeks immediately after the MoU was 1st signed Kavango’s shares almost doubled, while they have because fallen back again.
An exploration programme, which will get underway, should really present additional fascinating newsflow and may possibly still stimulate the sector additional.
In the meantime though, Foster, and non-govt director Mike Moles, are the two keen to emphasise that the company’s unique project – the a person it was outlined on – stays vital.
“The new copper floor doesn’t essentially consider any of the pizazz away from the Kalahari Suture Zone,” says Foster.
“We really do not want persons to think we’ve moved onto one more project,” he says. “I think the enthusiasm is to give investors a tumble-back again place. The Kalahari Suture Zone has high threat, and no person else has received any success from there.”
But the point about the KSZ is that making it possible for that it is high threat, the likely reward is similarly high. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the greatest polymetallic projects wherever in the earth.
“Most of the other huge bodies of gabbro in identical predicaments as KSZ do have huge deposits of substantial sulphides in them,” he says.
“Indeed, there could be a substantial selection of substantial sulphides.”
The trick is to come across them. To that close, Kavango has presently undertaken an airborne geophysical survey which has penetrated down to depths of 400 metres, floor electromagnetics, and it has carried out some drilling.
“We are capable to map,” says Moles. “We’re developing up a photograph.”
In a sense, he says, it is a box ticking exercise. “You know what requirements you require for a project like Voisey’s Bay or Norilsk, you require to tock the suitable packing containers, and so much we have. If we really do not come across a substantial sulphide on KSZ, then any individual else will in the long term. But offered we can maintain funding, we think we will.”
Far more magnetic survey perform is prepared, in unique the deployment of a greater transmitter designed to create a greater present and make it possible for the enterprise to see earlier all the salted groundwater that’s earlier interfered with the interpretation of facts. And immediately after that there should really be additional drilling.
At the very same time, perform on the copper floor will be commencing to assemble momentum, so all explained to, it looks like there should really be a healthful flow of information over the coming 12 months. By the close of that approach the enterprise could search quite unique in truth.