The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
On reflection the observations about grades at depths is missing some important points. The drill was designed to intersect 7 or 8 shear zones, going right to left so some of the intersects were always going to be deep. Because its only a single drill the results don't tell what the grades are above the intersection point to the surface, therefore there's a lot more gold than indicated. eg 1m @3.1g/t from 156m, is that part of a shear zone & what are the grades vertically above to surface? In hindsight KAV might have drilled a second hole left to right & I think Lobo Tiggre picked up on this 3 weeks ago...from KAV's point of view it was a limited scoping drill campaign but Lobo raised a good point. Note drills rarely go vertically because it gives less information.
The artisans are targeting much shallower free gold & as BT said historic grades c12g/t .A lot of that material will have been mined but KAV clearly thinks there's potential & want a follow up bulk sample.
Its quite difficult to come to any firm conclusions from this drill other than gold mineralisation has occurred within the shear zones, grades were reasonable but a lot more drilling (June) is required. KAV have 3d IP resistivity & chargeability models & aligning these with the drill results will give a good indication where to drill next.
The drill campaign was proof of concept prior to option exercise so there’s a lot more drilling to come before anyone knows the scale of the deposit. One snippet from the previous result was the alignment of IP to gold deposits.
KAV didn’t quantify copper, it merely said 2-10% sulphides &vast majority will be iron based. The multi element analysis is done in JHB and likely available June.
Two observations, the better grades are quite deep & secondly KAV thinks the grades should be better based on artisan findings. KAV will need this for bulk mining.
Not sure if this is good or bad. Obvious signalling but an open period, not sure if directors can buy if imminent news.
Quite difficult not to make discoveries on Zim greenbelt but the real question will be scale & commercial attractiveness, tbc.
Botswana & KCB would be the real deal and hopefully they'll start in the next month.
The share has risen recently without any real substance, lots of chatter Telegram/X but in reality nothing tangible. Company not replying to emails, no assays etc. MM's do take the pss but not surprised SP starts to drift
Trust in Ben Turney was at rock bottom 12 months ago given multiple failures, operationally the situation improved, but then he gifts himself 3% of the company, withholds information from the market, suppresses the share price & raises , then renegotiates an atrocious deal, also says they're not going to bother with JORC, FFS. KAV is a main market listed PLC, suggest if Ben wants to continue these shenanigans he takes the company private.
This deal is between $1.6m and up to $3-5m depending on the share price worse for KAV shareholders who incidentally were diluted yesterday by issue of 19% more shares.
What on earth is the 5% royalty for??????
Leopard North resource is 200,000oz non compliant & we know nothing about grades, cut offs, depths, or upside potential. Total option cost $1.6m-2m so c$10/oz on the stated resource. Realistically KAV would have to find 1m-1.5m oz to justify that price
Why is POW worth less than the sum of the parts, could it be the conglomeration model went out of fashion in the 80s for good reason. According to POW's business model they count an IPO as crystallisation of shareholder value when it is nothing of the sort. I'd also caution against applying any value for Molopo, Haneti & Tati because they found diddly squat so far. The only thing to drive the share price will be commercial discoveries, GMET & FCM should come good .
There is something about the Karakubis drill/results which KAV is not disclosing, why they are rushing the drill? I don't buy KAV saying "it saves overheads", its either got something to do with warrants expiring or a major fund raise or a deal they're working on. Normally they'd do a quick proof of concept campaign, mull over the results and then decide next drilling taking 6-12 months. I just hope KAV management extract maximum value for shareholders.
Book build has completed.......private investors not convinced:
Of 257m new shares, Purebond take 221m, Directors 18m, private investors 18m (£22k).
Is anyone really surprised given the shenanigans? Predict an RNS on Friday for withheld assay results & RNS Monday outlining huge targets in KCB.
Legal, the main value drivers are KCB and getting into production and it should spike on any declared discovery. Until last week I thought Hillside/Nara resource would have a big impact particularly if they find 3m oz but the Ariana/Rockover deal for 1.3m oz was very low c$10/oz, nuts when gold is $2300/oz.
I think they'll be another raise in Nov/Dec.
§ Diamond drilling to test presence of multiple economic gold ore bodies in Hillside/Nara gold belt, Zimbabwe
§ 5,000m diamond drill campaign to prove the Kara Anticline is a copper-mineralising system in the Kalahari Copper Belt, Botswana
§ Completion of Hillside acquisition (announced >>> 23 April 2024)
§ Capital investment into Kavango Mining to increase gold production (announced >>> 08 March 2024)
§ Increasing project footprint in Zimbabwe, through securing additional options on projects
Should read, nothing factored into POW's share price
POW sells KAV @0.8p to fund a highly speculative deep drill at Molopo, meanwhile KAV shares hitting 1.3p today, talk about destroying shareholder value. And just when you think POW will jettison the dross & focus, they open up new fronts.
POW geos will have a very good idea what the cores contain, PGE is a little more complicated because the grades are always lower so a whole rock sample is required. Sean has evidently not given any interviews as doesn't want to give false hope.
In terms of the share price; they've been exploring at Molopo for 50 years so nothing is factored into KAV's SP. Its not a disaster so only a 3% fall. The market wants/needs commercial discoveries from POW.
What's the minimum spend?
Understood they have a limited time and if no discovery is made within a time frame then a third of the licence gets handed back.
Other than Karakubis, KAV have made it clear that KSZ/Ditau/KCB (odds & sods) are no long priority, too much cover, lots of geological risk, size of Bots teams dramatically reduced over last year. Ironic because KAV was looking to combine the Bots assets into Kanye and float but ultimately the drill failures led to a dramatic change of strategy.