Member Info for JP2000

Just an observation on BTs tweet, 1.9g/t at >200m might be ok if there's volume, not clear if bulk mining/open pit opportunity because grades above were quite poor except for 90m. This greenstone rock is 2-3bn years old and extremely tough pointing to underground mining.

The current investment case is:

1) Targeting 2,600,000 oz Nara

2) Nara tailings, small but could generate $5m of free cashflow, enough to either pay for the licence or drilling.

3) Hillside targeting 1,000,000 oz

4) Hillside 4th rated target, not bulk mining but a strong near surface intercept >200g/t over 34cm

5) Hillside assays on top 3 targets TBA

6) Hillside option exercise Mon or Tue

7) Leopard, basically a free spin of the dice

8) Fledgling mining operation

9) Karakubis drilling by end of May 5,000m including ENRG's top 3 targets

10) Karakubis has considerable scale if they find anything.

11) Cornerstone investor with $40m available

12) Over £8m of warrants come into play with positive news flow

13) CEO in-country, 2% equity + another 3% options

14) Pambili c10-15% stake

Min 2% because depths >800m but this is also a PGM play. I suspect they'll take a view via XRF results & then decide whether to assay (3 months). Needs to be pointed out previous drills albeit different targets have not got anywhere close to commercial grades but the geophys looked good going into this drill.

Re Ben: true he has got over excited in the past, Ditau has gone from priority to back burner.

But what I will say is you are now looking at KAV 2.0 which is very much Ben's creation whereas the original portfolio was put together by Michael Foster & in hindsight there was too much geological risk. Behind Ben is Peter Wynter Bee, Purebond, Steve Smith (Zimbabwe gold consultant) & Dave Catterall (KCB expert). KAV (& Ben) has matured , the reality is get rich quick schemes rarely work so KAV 2.0 is tightly focussed by these experts. There's been a series of RNS's, small steps but nonetheless showing progress on the ground. Nara & Karakubis both company makers are being drilled Q1/Q2 24. As a LTH things are looking up for KAV.

There is suppose to be some upside in the resource & gold has migrated over the last 60 years to lower parts of the tailings. Remains to be seen, but its a c$10m project over 3 years and probably throw off $5m of cash which pays for further drilling at Nara. KAV have a fledgling business KAV Mining with perhaps 3-4 projects on the go, none of them earth shattering but its about learning & creating cashflow before larger gold production at Hillside, Leopard & Nara which is a good 3 years away. I do wonder if Pambili NR (KAV c10% holding) gets rolled into KAV Mining as very similar operations.

They've also said today they expect to exercise the Hillside option before 23 April i.e. within the next week

From Telegram Hive:

"Dee, if you work on a shaft sinking cost of US$1,000 a meter, it will only cost us $100,000 to get a 2m x 2m shaft down to the ore zone.

If you work on the basis each level in a mine is roughly 30m to 40m we’re only talking about getting down to 4 Level to start mining

We then need to put a concrete collar and headgear on the shaft. Prospect 4 already has power and there is a small lake about 300m away

We still need to calculate the true width of the vein but the 29g/t grade is nearly an ounce a ton. That is exceptional

Prospect 4 sits about 10km north of Prospect 1, where our stamp mill processing plant is. That is easily in trucking distance

As you can see in the RNS today the gold in the high grade zone is visible, strongly suggesting it is free gold. We need to do further testing work on this but if this is correct it will mean the ore can be processed easily

We are very encouraged that the geology confirms the IP survey. This gives us a clear roadmap for testing this zone further with drilling and (more importantly) gives us confidence that we can test what we believe are 3 other shear zones in the close proximity. Artisanal work strongly suggests these are also gold bearing, offering potential for future expansion

Prospect 4 doesn’t look like it will be an open-pit opportunity but we never expected that. Instead it looks like a near surface, extremely high grade underground opportunity that we can hopefully bring into production for relatively little investment and very quickly

Having set Kavango Mining up, we’ve positioned ourselves to move swiftly on an opportunity like this if one presented itself, while pursuing exploration for the much larger, open pit style of mineralisation"

Https://www.youtube.com/watch?v=mzpWGAbT_FU

From Telegram, when asked about mining strategy this morning BT said:

"Our strategy will change on specific results. Ultimately we are looking for mineable deposits we can bring into production quickly

As you’ve correctly deduced this looks like a very high-grade, near surface opportunity, which is why we’ve highlighted KAV Mining

This is running at nearly an ounce a ton and sinking a shaft to it will be no problem

This is a massive step forward for KAV

The 3 untested shear zones are very exciting because they all seem to be being mined by artisanals (meaning they likely host gold at a good grade) and we seem to have picked them up accurately using the geophysics (the current drill results align perfectly with the IP result over the shear zone we tested)

Prospect 4 remains our 4th ranked target at Hillside, so this project is looking really strong for our 1Moz overall goal"

Just remember the Hillside strategy is bulk mining and normally a cut off grade is used for establishing resources.

PJ & BT are best buddies from numerous businesses, so no surprise to hear an endorsement. Not sure if PJ is a direct shareholder in KAV but he hold a chunk of POW which has 60m warrants at c2p exp Jan 25. It could be a win-win with KAV getting £1.2m at 2p.

Legal: the new target is slightly odd because its been 500-2600koz for the last 3 months before the current drills started. I suspect what BT means is their confidence has improved particularly if they confirmed a 200m x 5000m zone. I think the new mapping is welcome although I'd have like to see an interview with a detailed explanation.

Genuine shareholders will be looking for positives such as the extensive news flow over the next 12 weeks. Perhaps you’d like to point out just two value adds expected.

Investors would like to see some rapid results, a quick proof of concept (real targets) followed by more extensive drilling to create resources. KAV have one of the largest land packages in KCB, in theory two mineral systems and multiple targets within each area. There are many “ifs” but the gist is massive scale with majors in similar post codes; RIO to the west, Sandfire to the east, Khoemacau (sold to Chinese $1.8bn) to north east.

There’s been a sea change in approach to KCB exploration recognising the geological complexity. Even large well funded companies such as Sandfire haven’t always got it right. Ground IP is the final piece of geophysicss to identify conductors which is where the copper/silver should be. A good result is 2% Cu & 20g/t Ag.

In your opinion, is there a case for investing in KAV?

The drill date has clearly slipped to Q2, they have preliminary targets but want more ground based IP on those targets. BT’s “cautious optimism” but recognising KCB geology is complex seems the right tone. If this comes off it has the potential to be district size.

He did say on Telegram KAV is “light years ahead” in its geophysics/exploration under Dave Catteral.

Hoping for news on KCB drill targets although RNS wasn't suggesting imminent news. There's also Hillside Zim assays in 4 weeks. The underlying reason for the rise is one buyer building a position & an absence of selling.

The primary target was Nickel, & to a lesser extend copper & PGMs.

Botswana has multiple exploration licences so if a licence is for diamonds, it doesn't count for metals. We don't know who (if anyone) held the metal exploration licences. De Beers wouldn't get out of bed for trace gold.

I'm not seeing much evidence of ramping on the boards or twitter because as you point out KAV is 3:0 down. KAV is vastly different from 2018 to early 2023. Mike Foster (geologist) put the portfolio & hypotheses together grossly underestimating the geological risks. Yes Turney was the wrong person, too inexperienced to realise he held a poor set of cards.

In 2023/24, KAV has parked the entire Foster portfolio.

In the KCB Dave Catteral, the leading geological expert has focussed attention on two potential mineral systems in between ground held by Rio & Sandfire (operating mine).

In Zimbabwe KAV swapped a chunk of geological risk for country risk with a portfolio largely put together by Steve Smith, another regional expert. The strategy is;

Identifying gold resources > 500koz, Nara estimates are 500-2,600koz

Small scale production which has already begun, positive cashflow to fund exploration.

Large scale bulk mining, probably 3-4 years time.

CEO has moved to Zimbabwe which is really important.

I don't understand how a prospective (ex) investor like Swako can accentuate the negative for several years and then claim he might invest depending on upcoming drill results. Sure a lot of investors would like to hear his buy side case (without ramping of course).