It’s an thrilling addition to the () portfolio: a joint venture on two copper exploration licences just a few kilometres away from the floor famously labored up by MOD, Metal Tiger () and Sandfire ().
The formal joint venture was signed in mid-February pursuing an initial memorandum of knowing that was agreed in September of 2019. But it is not possible to close there.
“We’re in the system of placing alongside one another really a considerable land deal in that location,” states Kavango’s main government Mike Foster.
“We have plans to extend our floor holding even further.”
Partly that is because of the big prospectivity of the locations Kavango is concentrating on, but it is also because of the constructive reception the move has bought in the sector.
Right after all, traders are only way too cognizant of the change Metal Tiger was in a position to make on its investment in the nearby T3 challenge, which was finally taken wholly-in house by MOD right before MOD in change was acquired by Sandfire.
The location is, states Foster, “one of the world’s most promising less than-explored copper provinces
So, this is common territory for traders, and in the months immediately after the MoU was initially signed Kavango’s shares practically doubled, though they have because fallen again.
An exploration programme, which will get underway, should really present even further interesting newsflow and may possibly still encourage the sector even further.
In the meantime though, Foster, and non-government director Mike Moles, are each eager to emphasise that the company’s original challenge – the one particular it was listed on – continues to be vital.
“The new copper floor does not automatically take any of the pizazz away from the Kalahari Suture Zone,” states Foster.
“We never want folks to think we have moved on to another challenge,” he states. “I think the motivation is to give traders a tumble-again situation. The Kalahari Suture Zone has large threat, and nobody else has bought any final results from there.”
But the factor about the KSZ is that permitting that it is large threat, the opportunity reward is similarly large. When Moles talks of comparisons he mentions Voisey’s Bay and Norilsk, two of the biggest polymetallic assignments anyplace in the environment.
“Most of the other major bodies of gabbro in similar situations as KSZ do have major deposits of huge sulphides in them,” he states.
“Indeed, there could be a huge amount of huge sulphides.”
The trick is to obtain them. To that close, Kavango has previously undertaken an airborne geophysical survey which has penetrated down to depths of four hundred metres, floor electromagnetics, and it has completed some drilling.
“We are in a position to map,” states Moles. “We’re making up a image.”
In a sense, he states, it is a box ticking physical exercise. “You know what criteria you require for a challenge like Voisey’s Bay or Norilsk, you require to tock the appropriate containers, and so far we have. If we never obtain a huge sulphide on KSZ, then any individual else will in the long term. But delivered we can hold funding, we think we will.”
Far more magnetic survey perform is planned, in certain the deployment of a even larger transmitter made to create a even larger present and allow for the company to see earlier all the salted groundwater that is previously interfered with the interpretation of information. And immediately after that there should really be far more drilling.
At the exact time, perform on the copper floor will be starting to collect momentum, so all told, it appears to be like there should really be a wholesome movement of news above the coming calendar year. By the close of that system the company could appear pretty distinct indeed.