Kavango Resources PLC’s new foray into the Kalahari copper belt won’t distract it from upside at KSZ

It is an remarkable addition to the () portfolio: a joint venture on two copper exploration licences just a couple kilometres absent from the ground famously worked up by MOD, Steel Tiger () and Sandfire ().

The official joint venture was signed in mid-February pursuing an preliminary memorandum of knowing that was agreed in September of 2019. But it is not very likely to close there.

“We’re in the method of placing together really a sizeable land package deal in that spot,” says Kavango’s chief executive Mike Foster.

“We have options to increase our ground keeping even further.”

Partly that is since of the huge prospectivity of the places Kavango is targeting, but it is also since of the good reception the move has bought in the current market.

Just after all, traders are only much too cognizant of the turn Steel Tiger was in a position to make on its financial commitment in the close by T3 project, which was finally taken wholly-in household by MOD ahead of MOD in turn was obtained by Sandfire.

The spot is, says Foster, “one of the world’s most promising beneath-explored copper provinces

So, this is familiar territory for traders, and in the weeks just after the MoU was initial signed Kavango’s shares pretty much doubled, while they have given that fallen again.

An exploration programme, which will get underway, must present even further exciting newsflow and may but stimulate the current market even further.

In the meantime however, Foster, and non-executive director Mike Moles, are both of those eager to emphasise that the company’s first project – the a single it was detailed on – continues to be essential.

“The new copper ground doesn’t always take any of the pizazz absent from the Kalahari Suture Zone,” says Foster.

Moles agrees.

“We do not want people to consider we’ve moved on to yet another project,” he says. “I consider the commitment is to give traders a slide-again situation. The Kalahari Suture Zone has significant threat, and no person else has bought any effects from there.”

But the factor about the KSZ is that letting that it is significant threat, the possible reward is equally significant. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the major polymetallic initiatives wherever in the environment.

“Most of the other major bodies of gabbro in very similar scenarios as KSZ do have major deposits of huge sulphides in them,” he says.

“Indeed, there could be a large range of huge sulphides.”

The trick is to discover them. To that close, Kavango has by now undertaken an airborne geophysical survey which has penetrated down to depths of 400 metres, ground electromagnetics, and it has finished some drilling.

“We are in a position to map,” says Moles. “We’re building up a photograph.”

In a perception, he says, it is a box ticking workout. “You know what standards you have to have for a project like Voisey’s Bay or Norilsk, you have to have to tock the appropriate containers, and so much we have. If we do not discover a huge sulphide on KSZ, then somebody else will in the foreseeable future. But presented we can retain funding, we consider we will.”

Extra magnetic survey work is planned, in unique the deployment of a bigger transmitter made to deliver a bigger recent and enable the organization to see previous all the salted groundwater that is earlier interfered with the interpretation of details. And just after that there must be much more drilling.

At the exact same time, work on the copper ground will be commencing to acquire momentum, so all informed, it appears like there must be a healthful stream of news more than the coming yr. By the close of that method the organization could search incredibly distinctive in truth.