The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Today 07:21
RNS Number : 7858F
Kavango Resources PLC
06 March 2024
6 March 2024
Kavango Resources
("Kavango" or "the Company")
Zim: Maiden 5,860/oz Indicated Gold Resource
Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals explorer, is pleased to announce that it has received a maiden Resource Estimate (the "Resource Estimate") for the largest tailings dump at the Nara Gold Project ("Nara") in Zimbabwe.
The Resource Estimate highlights the potential for the tailings dump to provide Kavango with a significant near-term source of gold production and early, non-dilutive free cash flow.
HIGHLIGHTS
- The Resource Estimate concludes that the two Nara tailings dumps tested together contain:
- An Indicated Mineral Resource of 293,000 tonnes ("t") at an average of 0.62 grams per tonne ("g/t") gold, for a total of 5,860 ounces gold contained.
- An inferred resource of 11,900t at 0.66g/t gold, for a total of 253 ounces gold contained.
- Some 96% of the Mineral Resource has been categorised as Indicated thus placing it into a relatively high resource category for the early stage of the project, demonstrating confidence in the continuity of the material.
- Future extraction costs will be operational, with no mining required.
- The Mineral Resource Estimate also identified upside potential at the tailings dump, highlighting the opportunity to increase tonnage at as-yet-untested depths.
- Kavango is now assessing options to commercialise the gold in the Nara tailings dump.
- The Company plans to use free cash flow generated by any tailings production to advance its wider exploration activities targeting large-scale, bulk-mineable metal deposit discoveries in Zimbabwe.
Kavango currently has an exclusive 2-year option to buy Nara (announced >>> 26 June 2023).
Ben Turney, Chief Executive of Kavango Resources, commented:
"This Maiden Resource Estimate for gold for the Nara tailings dumps is the first Mineral Resource Estimate Kavango has delivered.
It's a milestone moment for our company and reflects the speed at which we are growing in Zimbabwe.
Given that this is a tailings dump, all material has already been mined and there are no further mining costs. The Resource Estimate and high resource category achieved underline the commercial potential at Nara.
While our primary objective is to discover larger-scale, bulk minable gold deposits, the 6,000 ounces of gold in the main tailings dump present an early opportunity for commercialising this project.
The free cash flow we could generate from processing the gold in the Nara tailings can help fund both our development of this project and our wider exploration across Zimbabwe's highly prospective, under-explored greenstone belts.
We will now commence metallurgical test work to optimise plant design to enable future gold production."
Petroinvestor, how many stocks have you deramped, leaving newbies holding the baby?
You openly declare that to everytone sell yesterday at 0.60 and made people sell when they could have double up then and they you have taken profits and moved elsewhere for your next same liner....
You're the scum of the LSE board.
Https://twitter.com/aimrns/status/1765052160411074907/photo/1