Member Info for JP2000

KAV will operate one rig initially probably for next 6 weeks. The first drill will likely be ‘geological’ meaning calibration with the geophysics and finding the mineralisation zone. Its shallow & should be straight forwards but PL082 campaign was anything but simple, so interesting to hear why/how Karakubis will be different. A single drill should take 10-14 days providing ground conditions are ok. Costs are c$300/m.

Its unclear at this point if/how Turney will report results, KAV use p-XRF & pretty much know in real time what they’ve found. I’m sceptical of companies showing odd core photos on twitter unless they show several boxes worth of obvious mineralisation. Typically, cores are not sent for assay until after the campaign & lead time is 2-3 months.

Pure guesswork, I think KAV will drill a few targets, evaluate & then decide on second drill rig. If drilling appears very slow or they stick with a single rig it potentially indicates issues. The second rig is probably the best indicator.

In terms of shareholder value, Karakubis is a factor 5 times more important than all the Zim stuff in the short term. KAV is looking for a mineralised regional sized system which would be incredibly valuable with at least 3 majors interested, it would require extensive drilling but could be worth 6-10p/share as an early stage project.

I read somewhere they've found 8Mt of copper reserves across a 1000km of the KCB, its a big place & nothing is guaranteed.

Https://x.com/KavangoRes/status/1801946488274067534

What percentage of VMSs actually contain commercial deposits? not many

What has Panther really found so far? Is that meaningful? its something but not much $$$$

Does Panther know what it's doing?

Is this a geophysics led company?

Why has Darren not released Manitou assay results which probably came through in Feb? Darren put core photos on his personal twitter feed (not Panther) showing metallic deposits and vague statement about the geologists being very happy.

Dotted Lake is a prime example what's going wrong. PALM shared very limited geophysics with the market, not entirely clear what data PALM had or whether it owned the rights. Drilled for gold and found traces

This could be the catalyst to break 6p

Re KCB drilling: I'm slightly perplexed what is actually going on. ENRG discovered 3 domes but when translated onto KAV's latest data, its now 2 or 3 priority targets on just one of their domes(Karakubis) within that licence area. There seems to be additional priority targets identified by KAV. My reading of KAV's RNS is they're going for the shallow domes c200m for the first phase, five priority targets in total. Initially KAV will use one drill rig in the first 6 weeks which is very much proof of concept. RNS talks about looking for pathfinder elements but pretty much every drill finds pathfinders including old ENRG drills. I hope the language toughens up to say they're really targeting commercial mineralisation in those shallow washout traps. The WIP geophysics looking at resistivity & chargeability are very similar to that used at Hillside (Zim), remember KAV drilled first and did the IP afterwards. BT hasn't explained why they're doing this now and not six months ago, in theory it should allow KAV to pinpoint mineralisation in high resolution so it clearly needs running before the drill turns. On timings, ENRG have run similar IP and it took 2.5 months from start to final RNS so is even 30th June drill date realistic? Happy to be wrong but I think drilling is going to slip into July. PWB's buy was a great signal but it wouldn't be allowed if KAV was sitting on actual or near term price sensitive data. KAV has said the last RNS was aimed at a technical audience in large companies, its just nonsense to "lay a breadcrumb trail" when those companies are well aware of events, they'll want to see actual core & how that aligns to the geophysics. It was odd that BT didn't give presentations after the last RNS & not getting any sense he wants to talk about drilling. Its been this way since Jan/Feb with the start dates getting pushed out each time. I really hope KAV is not waiting on Sandfire to agree a JV prior to drilling.

Seems extraordinary that a guy in his early 70's with a genuine track record comes along & actively invests £750k. He's on the inside, been on the ground & is part of the negotiating team for new deals. As people have said, he doesn't need the money but he's got to be targeting £10-20m return. Another aspect is dilution, you know BT wouldn't give a xxxx because he'd find 100 other ways to enrich himself, but PWB holds equity in 0.8-1.5p range so he has to further invest or face dilution. I wonder if the strategy is to make Zim exploration self funding via Nara Tailings & Hillside to limit dilution. Lets hope PWB's strategy aligns with private investors.

Don't know why but always struggled to conceptualise gas reserves verses oil.

In layman's terms how much gas is there & are there any NPV calculations?

Thanks

Have you hear anything about Hillside prospect 1, two drills were completed & you'd think being called Prospect 1 they'd have drilled first but not heard a thing?

1C 148 Bcf net to SOU, multiply 178 for MMBOE = 26,344

Is this correct?

Https://x.com/Ben_Turney/status/1796544344167415840

Pretty much every PI scratching head trying to interpret this RNS & not surprised.

Targets are in range 200-300m suggesting they will drill 15 holes, relatively shallow is good news because impacts commerciality.

Not sure about preparedness to start drilling if they still have data to interpret? We saw similar at Hillside & I commented with hindsight should they have waited for data before drilling.

Very surprised to hear still conducting IP which has been on-going for 18 months. BT needs to explain what & why?

The presentation is massively dumbed down to the point of unhelpful, very little about the priority targets and 3d visualisation, yes lots of targets but nothing about scale. Most of the targets are ENRG licences, expected a bit more from KAV licences. KAV introduces a new term "washout" which needs explanation.

You wouldn't know from the RNS Karakubis represents a major value inflection point for shareholders.

Hillside production should be 3kg, $180k/m by Q3 24, these are quick wins, with new stamp mills. I think they need a certain volume to cover fixed costs but then it should generate free cashflow. Prospect 4 if drilling confirms looks like 12 months away as would need to sink shafts.

Nara tailings is $2-3m CAPEX & then $3-4m revenue/yr. Work done on plant design, likely take 6 months for delivery & 6 months build/operation so lets say Q3 25

KAV would have gone from nothing to $5m revenue in less than 18 months.

Finances have been Turney's worse area, the deal struck with POW was atrocious & some of the others weren't much better. If Karakubis (starts in 2? weeks) comes off then they'll need to figure out the optimum sell/JV point, hint the answer is not immediately. In Zim, KAV needs scale & should be targeting >1m oz sites but they've got to be careful how much they pay otherwise shareholders are holding all the risks, Alex should provide perspective if not the actual analysis.

Good additions brings in much needed finance experience.

Worth a read as Caledonia operate in Zim and are about 10 years ahead of KAV in terms of development.

https://www.thearmchairtrader.com/uk-shares/caledonia-mining-zimbabwe-minerals/

there was a suggestion from bt it could start beginning of june, felt a bit optimistic & i reckon mid june more likely.

i'd expect bt to ramp up publicity a few weeks beforehand, a detailed presentation look at the geophysics and more detail about targets. so far its 5000m, 10-15 drills, which means 300-500m drills. assuming they'll drill shallow targets first so 300m drills, implies a target depth around 200-250m, the implication is commercial at 1% cu 12g/tag & a drill time 10-14 days so early july. to avoid accusations of ramping, kcb does contain large copper deposits but its localised not ****genous, & a bit of a needle in a haystack to find so this campaign is not without geological and drill risks.

Its been very quiet the last few weeks, tweet last week didn't add anything new.

Glad POW won’t be spending anymore cash on this but not sure any value has been created.

Can't see any value to shareholders in constructing a mine, best thing is to maximise reserves/resources, produce proof of concept and then sell.

Good RNS but you have to ask why this wasn’t done two years ago prior to drilling.