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 enterprise on two copper

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

The formal joint enterprise was signed in mid-February next an preliminary memorandum of comprehension that was agreed in September of 2019. But it is not most likely to stop there.

“We’re in the system of placing jointly very a sizeable land deal in that area,” suggests Kavango’s chief executive Mike Foster.

“We have designs to prolong our ground keeping even more.”

Partly that’s for the reason that of the enormous prospectivity of the areas Kavango is focusing on, but it is also for the reason that of the optimistic reception the shift has obtained in the market.

Following all, traders are only also cognizant of the change Steel Tiger was able to make on its financial investment in the nearby T3 job, which was eventually taken wholly-in house by MOD prior to MOD in change was obtained by Sandfire.

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

So, this is acquainted territory for traders, and in the weeks right after the MoU was very first signed Kavango’s shares nearly doubled, while they have because fallen again.

An exploration programme, which will get underway, really should provide even more attention-grabbing newsflow and may possibly however promote the market even more.

In the meantime although, Foster, and non-executive director Mike Moles, are both equally eager to emphasise that the company’s primary job – the 1 it was detailed on – remains important.

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

Moles agrees.

“We don’t want people to consider we have moved onto one more job,” he suggests. “I consider the inspiration is to give traders a drop-again place. The Kalahari Suture Zone has high chance, and no one else has obtained any benefits from there.”

But the thing about the KSZ is that making it possible for that it is high chance, the prospective reward is equally high. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the greatest polymetallic jobs wherever in the world.

“Most of the other big bodies of gabbro in similar scenarios as KSZ do have big deposits of significant sulphides in them,” he suggests.

“Indeed, there could be a huge selection of significant sulphides.”

The trick is to find them. To that stop, Kavango has currently carried out an airborne geophysical study which has penetrated down to depths of four hundred metres, ground electromagnetics, and it has completed some drilling.

“We are able 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 will need for a job like Voisey’s Bay or Norilsk, you will need to tock the correct packing containers, and so far we have. If we don’t find a significant sulphide on KSZ, then any person else will in the foreseeable future. But furnished we can preserve funding, we consider we will.”

More magnetic study operate is planned, in specific the deployment of a more substantial transmitter developed to generate a more substantial latest and allow for the organization to see earlier all the salted groundwater that’s formerly interfered with the interpretation of info. And right after that there really should be extra drilling.

At the identical time, operate on the copper ground will be commencing to acquire momentum, so all informed, it appears to be like like there really should be a healthy stream of information over the coming calendar year. By the stop of that system the organization could search pretty distinct certainly.