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

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

The formal joint venture was signed in mid-February adhering to an initial memorandum of being familiar with that was agreed in September of 2019. But it is not probable to stop there.

“We’re in the course of action of placing alongside one another rather a significant land deal in that space,” suggests Kavango’s main government Mike Foster.

“We have strategies to prolong our ground holding more.”

Partly which is due to the fact of the big prospectivity of the regions Kavango is focusing on, but it is also due to the fact of the positive reception the go has received in the sector.

Right after all, traders are only too cognizant of the flip Metallic Tiger was able to make on its investment decision in the nearby T3 undertaking, which was inevitably taken wholly-in residence by MOD just before MOD in flip was acquired by Sandfire.

The space is, suggests Foster, “one of the world’s most promising underneath-explored copper provinces

So, this is common territory for traders, and in the weeks following the MoU was very first signed Kavango’s shares almost doubled, despite the fact that they have since fallen back.

An exploration programme, which will get underway, should provide more exciting newsflow and may however promote the sector more.

In the meantime however, Foster, and non-government director Mike Moles, are both equally eager to emphasise that the company’s authentic undertaking – the one particular it was outlined on – continues to be critical.

“The new copper ground does not always acquire any of the pizazz absent from the Kalahari Suture Zone,” suggests Foster.

Moles agrees.

“We do not want individuals to believe we have moved onto a different undertaking,” he suggests. “I believe the determination is to give traders a fall-back placement. The Kalahari Suture Zone has large threat, and no person else has received any outcomes from there.”

But the matter about the KSZ is that allowing for that it is large threat, the prospective reward is equally large. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the major polymetallic initiatives everywhere in the earth.

“Most of the other massive bodies of gabbro in identical predicaments as KSZ do have massive deposits of enormous sulphides in them,” he suggests.

“Indeed, there could be a huge amount of enormous sulphides.”

The trick is to come across them. To that stop, Kavango has now undertaken an airborne geophysical study which has penetrated down to depths of 400 metres, ground electromagnetics, and it has accomplished some drilling.

“We are able to map,” suggests Moles. “We’re setting up up a picture.”

In a feeling, he suggests, it is a box ticking work out. “You know what requirements you require for a undertaking like Voisey’s Bay or Norilsk, you require to tock the ideal containers, and so much we have. If we do not come across a enormous sulphide on KSZ, then anyone else will in the upcoming. But supplied we can continue to keep funding, we believe we will.”

Additional magnetic study do the job is prepared, in unique the deployment of a more substantial transmitter created to produce a more substantial present-day and let the business to see previous all the salted groundwater which is formerly interfered with the interpretation of information. And following that there should be extra drilling.

At the similar time, do the job on the copper ground will be starting to collect momentum, so all instructed, it seems to be like there should be a wholesome movement of news above the coming year. By the stop of that course of action the business could appear pretty various without a doubt.