Member Info for JP2000

KAV have suggested PL082 is analogous to Khoemacau’s banana zone so what does that look like:

https://www.khoemacau.com/our-portfolio/mineral-resources-and-ore-reserve-estimate
https://www.khoemacau.com/news-media/presentations

Pre 2015, Khoemacau drilled 580 diamond & 451 RC holes vs KAV’s 6 hole campaign (unfair comparison)
The underlying mineralisation is c0.6% which is borderline commercial but this is supplemented with bonanza grade narrow carbonate quartz veins at 8% giving a more respectable overall resource of 1.3% Cu and c16g/t Ag and some Mo. Khoemacau’s banana zone is larger than KAV’s and from those 1000 holes have identified 5 distinct commercial deposits. Khoemacau’s focus however is a different area, Zone 5 which has 2% Cu so the banana zone won’t be developed any time soon.
Khoemacau are looking at new exploration in the banana zone; the banana peel, a dome structure and HG deposits.

I’m slightly nervous that KAV only have 6 holes because 0.6% Cu isn’t going to work, the key is finding high grade quartz grades and if it turns out KAV are sitting on a 20km strike of high grade copper in quartz then we’re rich but that’s not what Khoemacau found.

Yesterday was reach for the sky 27000m we have a detailed strategy so Ben needs to explain the reality.

On the one hand great news but only 1250m.

What's happening is cash must be low and Mindea are not accepting 4p equity. So strategy is 6 holes in a mini proof of concept on the strongest targets.

Broad costs for RC $70 per meter as it’s a third of the cost of diamond. KAV did have a deal with Mindea offsetting half the fee with KAV equity at 4p but seems unlikely this time as might be using another company. Assuming KAV drills 45 holes into Pl082 in the central zone, looking at c600k without a deal.

PL082 is not dependent on Kanye but the availability of drill rig which is not confirmed at this point which is a little disappointing.

Was it 15 drills and 3000m in the campaign, at least 3 months of drilling which indicates 2023 start.

Never in doubt really but still good news. I am slightly surprised they are still ‘analysing’ and have not announced a mining contractor but surely a matter of weeks.

Forward PE of 1 from coal and 2m oz Au.

Strong buy.

I'm confused about Dotted Lake and you could sense Mark Fairburn's lack of interview enthusiasm.

This was meant to be a gold play, except they found mediocre grades and failed to release half the assay. Are they still looking for gold or have they given up? remember this is 20KM from Hemlo so of course they'll find high grade Au.

Now they found some historical data showing elevated Ni/Co/Cu in soil so a bit surprising it hasn't been drilled already?

The underlying concern is the general approach to exploration which seems random and limited to a hairy geologist roaming round the woods with a hammer and divining rods. Not heard much about surveying techniques TDEM (arial or ground)/DHEM/CSMAT which should be the precursor to target acquisition and ranking. Has anyone ever seen a 3D view of the orebodies or even a 2D sideview.

You would think there was a systematic evaluation of Dotted Lake but it all seems rather random and half ****ed.

The LVR licences won’t be transferred until KAV has 100% ownership of Kanye otherwise a freebie for PJ and he’s taken the 4X already.

If PL082 sits outside Kanye then drilling is not dependent on Kanye deal and it’s some distance from the other Kanye licences so a discovery wouldn’t bump up the value of the other licences.. It’s a big licence area with a 28km mineralisation zone and warrants a drill campaign in its own right. If it’s remotely commercial I suspect KAV will auction it off for much needed cash but KAV need to establish a reserve for top dollar. KAVs capital is so tight they need to focus on PL082 and B1.

BT said the rainy season and was mid Jan onwards but note KAV drilled B1 mid jan-Feb 22. I wasn’t sure if the ‘rainy season’ question was a random presenter question or a planted question. Regardless KAV have said KCB drilling in Q3 and more recently in H2 so definitely not expecting this to be delayed until Mar.

PL082 is one of the most advanced licences and is a JV with LVR GeoExplorers (Pty) Ltd, KAV has a 90% earn-in and this is not currently part of Kanye so subject to RC rig/crew/available cash, its ready to drill.

https://www.kavangoresources.com/media-library/news-release-media/rns26august2022

Re KCB: I agree, this represents the low hanging fruit and anyone of those 12 licences is a company maker; PL082 28km strike at 1-2% copper open at depth costing $10-20m creating JORC reserves and a BFS but then sitting on a $100m asset (KAV gets 10% of a $1bn NPV).

A short presentation so worth listening to a couple of times and good to hear other opinions:

Ben has already pitched to 80 companies. Over the last month KAV has been working with Tamesis to create a teaser (typically 3-4 page key highlights and data document). 60 potential companies identified and its going to take c6 months to get a partner on-board. My personal view is Ben has made zero progress finding partners because firstly they're not interested in wildcat drilling, they want KAV to do the risky part (which is fine) and deeper targets require higher grades. At the moment KAV has found mineral systems but nothing remotely commercial.

Consequently Ben wants KAV to "drill the B conductors under its own steam" i.e. without a partner as soon as the Molopo Farms 2600m campaign is over. The reality is KAV won't get a deal before they drill the B conductors.

KCB: "phenomenal progress", identified dozens of locations and currently ranking to create top priorities. Keen to drill "this year".

This is the presentation from last night:

https://media.moneyam.com/a/2022/09/2-Kavango-Resources.pdf

BT mentioned the independent valuation of Kanye was currently $8m which is about the same as the market cap, obviously that changes if they find mineralisation. No real mention of KSZ effectively valued at zero. I get a sense that someone is going to buy out Kanye but how imminent is anyone's guess and KAV have not appointed specialist advisors as per KSZ. BT said the KCB area is red hot for exploration and KAV have 5500km2.

Events:

Kanye update - has gone very quiet, wonder why?

KCB drill targets and plan. Could there be a connection with the Kanye deal?

KCB drilling expected in the next couple of months.

Possible KCB JV, personally I don't think they need it at this point because KAV have sufficient resources to make a discovery if they concentrate on one or two targets (7 or 8 to choose from).

Possible KSZ JV, KAV appointed city advisors 23 Aug suggesting it would be a major transaction, unclear which licences in the KSZ would be in-scope, hopefully GRS and the northern licences. Would prefer KAV to go in alone on the shallower southern KSZ.

KSZ B1 drill, a difficult if shallow drill. Lots of speculation if part of the JV, BT seems almost scared to drill it in case it turns out to be a block of iron which could then kill a JV. The conductance suggests otherwise.

KSZ B3 & 4 targets

Lots of Eldorado stuff on the KSZ GRS.

https://www.sharesmagazine.co.uk/events/event/shares-investor-webinar-070922

Wed 18.05 with a Q&A

Its a bit hit & miss whether they'll drill KSZ this year as POW have the drill team with a 2600m programme starting in mid Sept. The Christmas break is broadly a month so mid-late Jan seems likely.

John Lauderdale has jumped ship or been poached by Sandfire, the KAV geo's on the ground re Ditau stopped drilling prematurely (assume they were unimpressed), seems KAV is now lacking experience on the ground. BT very excited by the cores.

KCB 8 targets and defo drilling this year.

There are 12 licences, 10 owned by Kanye and 2 by KAV (90% earn-in), and some of the licences contain multiple targets.

The RNS covers Mamuno licences PL049/2020 & 052/2020 which are on the border with Namibia near to RIO etc.

KAV have not said much about priority targets in the KCB except the last presentation showed PL082 near the banana zone, north east of the main KAV licences. PL082 has a significant amount of analysis and looks target ready.

Looking purely at the soil sampling, licence PL036/2020 looks extremely promising and there's been extensive work.

The RNS today doesn't point to drilling this year and the additional works Tromino/AEM/CSMAT are specific to a licence/target. But clearly there are more mature targets in the portfolio which are near term ready.

Molopo rig is diamond, KCB rig reverse circulation. Secondly POW have little cash so they won't be drilling very long.