It is an remarkable addition to the () portfolio: a joint enterprise 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 enterprise was signed in mid-February next an original memorandum of comprehending that was agreed in September of 2019. But it is not probable to close there.
“We’re in the approach of placing alongside one another very a significant land package deal in that place,” suggests Kavango’s chief executive Mike Foster.
“We have designs to extend our floor keeping further.”
Partly that is because of the enormous prospectivity of the areas Kavango is targeting, but it is also because of the favourable reception the shift has received in the current market.
After all, investors are only too cognizant of the flip Metal Tiger was ready to make on its financial investment in the nearby T3 project, which was at some point taken wholly-in dwelling by MOD just before MOD in flip was obtained by Sandfire.
The place is, suggests Foster, “one of the world’s most promising below-explored copper provinces
So, this is familiar territory for investors, and in the weeks after the MoU was to start with signed Kavango’s shares nearly doubled, though they have since fallen back.
An exploration programme, which will get underway, really should deliver further exciting newsflow and may perhaps however stimulate the current market further.
In the meantime however, Foster, and non-executive director Mike Moles, are both equally keen to emphasise that the company’s original project – the a person it was outlined on – stays critical.
“The new copper floor does not automatically just take any of the pizazz away from the Kalahari Suture Zone,” suggests Foster.
“We don’t want persons to think we have moved onto a different project,” he suggests. “I think the drive is to give investors a drop-back situation. The Kalahari Suture Zone has substantial threat, and nobody else has received any effects from there.”
But the point about the KSZ is that making it possible for that it is substantial threat, the probable reward is equally substantial. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the biggest polymetallic assignments wherever in the world.
“Most of the other massive bodies of gabbro in similar cases as KSZ do have massive deposits of massive sulphides in them,” he suggests.
“Indeed, there could be a big amount of massive sulphides.”
The trick is to locate them. To that close, Kavango has now undertaken an airborne geophysical survey which has penetrated down to depths of four hundred metres, floor electromagnetics, and it has carried out some drilling.
“We are ready to map,” suggests Moles. “We’re setting up up a photo.”
In a perception, he suggests, it is a box ticking exercise. “You know what standards you need for a project like Voisey’s Bay or Norilsk, you need to tock the suitable packing containers, and so far we have. If we don’t locate a massive sulphide on KSZ, then somebody else will in the potential. But supplied we can retain funding, we think we will.”
Additional magnetic survey function is planned, in individual the deployment of a more substantial transmitter developed to generate a more substantial latest and make it possible for the company to see earlier all the salted groundwater that is previously interfered with the interpretation of information. And after that there really should be far more drilling.
At the very same time, function on the copper floor will be beginning to collect momentum, so all informed, it seems like there really should be a healthier flow of information around the coming yr. By the close of that approach the company could seem quite different indeed.