The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I understand that JP2000, more reading into the text of the tweet as to why the gold mineralization may have been overlooked previously.
https://twitter.com/KavangoRes/status/1633938499379384322?s=20
mmmmmmmmmmmmmicroscopic gold anyone?
a$r$s$enic (crazy brits)
This review paper on South African gold deposits hosted in BIFs is worth a read for anyone catching up like me: https://doi.org/10.1007/BF00205259
"Irrespective of their formation, gold enrichment in BIF only occurs if the S- and/or As-contents of the BIFs exceed specific threshold values, i.e. gold mineralization is always associated with increased contents of the iron-sulfides pyrite, ****nopyrite and pyrrhotite."
"Microscopic gold was observed, closely associated with sulfides, in samples from six different localities (Table 1). It forms small (5-30 lam) rounded inclusions in the sulfides, or heals micro-fractures in cataclastic pyrite or ****nopyrite. Occasionally it occurs as free grains attaining a grain size of up to 75 ~tm in diameter (Fig. 8 b). Gold particles from the Vubachikwe, Golden Kopje, Camperdown and Devonian mines contain silver ranging from 4 to 8 wt.-% Ag"
It seems the gold and silver may be associated with the sulfides shown in the core, supported by elevated ****nic values and obvious hydrothermal brecciation. These BIF deposits can be laterally extensive and as Ben mentioned the thickness implies plenty of contact time.
Seems like the main question left is can KAV find the controlling structures? Can they use a similar technique to that which located the brecciated zones in the KCB?
Whoops, I meant to say they found a significant amount of hydrogen in their recent helium well.
It's funny you mention HE1 because I've been following the He space for some time now. I'm heavily investing in DME since they are a CAD company and should be in production by end of Q3 (fingers crossed) but the whole space is very exciting. Hard to imagine what the spot price of crude He (80-95%) will be over the coming years, not to mention refined 99.999+% grade. When you lose a significant amount of He in transit, makes for a very complex and tight market. I'd look for the proximity of discoveries to end users such as semiconductor fabrication plants or data processing centers (used as a super coolant). Glad to see others, especially informed investors such as KeithOz, are looking into it as well. I hope commodities are just beginning a supercycle like some are predicting.
While we're on the topic of gasses, I've been wondering about the potential to tap natural hydrogen deposits, or more actually fluxes, produced from hydrolysis or venting from the mantle. I only heard of such a thing because DME found a significant amount of helium in one of their recent helium wells and determined it to be very young using tritium (half-life of ~12.3 years) so it must be a regenerative source. There are only a few papers I could find even discussing naturally generated hydrogen as it was assumed it would be too reactive to remain pure H2. I looked around and found a few private companies getting into the space but wanted to see if anyone else has been down this rabbit hole and found anything of interest. Seems like it could be a lucrative solution to the high cost of green hydrogen while still being carbon neutral and not depending on electrolysis (white hydrogen). The new green version of hydrocarbons, just get rid of the carbons!
Just thought I'd let you British folks know the OTC market popped +90% today (to $0.05), albeit on very low volume. Maybe someone knows something we don't?
Very low volume on the OTC so it probably won't impact much but still encouraging. I'm really looking forward to the ditau assay results. I didn't have high hopes for the carbonatite model but this new mineralization is very intriguing.
Legalwolf, I just want to clarify that KAV isn't targeting diamonds but Rare Earth Elements (REEs) that are commonly found in carbonates (which are always in demand). To me, Ditau seems like a perfect project for a potential short-term turnaround because the targets are so shallow. That said I still have a lot of reading to do here so happy to hear other opinions.
Thank you all for posting! Exciting stuff (:
Now that the drill is moving on to Ditau I was wondering if anyone would be able to bring me up to speed with what we know so far/why we are heading there now. I only got into KAV about 6 months ago so I don't know much about the projects other than the KSZ. I remember hearing something about a diamond drilling company giving up early on a drill, presumably because they found a carbonate system not conducive for diamonds, but they wouldn't elaborate on why. I'm not so familiar with carbonate systems and would appreciate any background people can provide (looking at you KeithOZ).
It's the Feb 28th special feature StockBox interview. I recommend watching the entire video because it answers a lot of questions people have. As KeithOz has been saying, potential feeder dyke is huge!
Bozi - Ben explains why the B1 drill hit in between the two conductors in his StockBox interview. Basically, the electromagnetic anomaly observed from the surface is just a bunch of noise that needs to undergo complex modeling to make any sense of it. To even begin placing bounds on the model, key assumptions are required such as assuming one plate. The 3D graphical models you see are just that, simplistic depictions of model output. It's not like the geos can just look down through 100's of meters of overburden and see some nice green shapes and drill towards those. It's more similar to looking at a shadow that could be from one object or from two objects with two light sources opposite of eachother.
In hydrology, we measure accuracy in orders of magnitude, so we'd be happy they hit the right continent. Obviously, exploration mining is a more refined field BUT I feel the need to remind everyone how uncertain Geology can be! Modeling the KSZ is an iterative process and the last drill pointed out errors in our assumptions (number of plates, orientation, size). It may seem like a step backward (echoed by the price drop) but we only have more information than before (a step away from an incorrect assumption). Admittedly, I am more of an academic than an investor, but I like the rocks and hope their worth the weight (;
Wonderfully put KeithOz. I don't think the potentially identified feeder zone next to the 16,000-siemens conductor can be overstated enough!
I'm with you JP2000, I think the attention and money should all go to our 16,000-siemens target. However, I think it is a smart move to show restraint and conduct more TDEM surveys because IF the large 2,500-siemens conductor is a feeder dyke then there could be many similar "clusters" in the area. From a geologic standpoint, drilling the 2,500-siemens target is almost more important. Obviously with expensive deep drilling and the market only looking for grades, I bet they will go for the 16,000-siemens, possible massive sulfide, target first to secure intrest/money.
In my eyes, it's as simple as doing your own research, focusing on the data available, and coming to your own conclusions. I agree that it's easy to go down the rabbit hole of Ben's tweets and let expectations rise, I did the same thing. However, I bought into KAV because they are data-driven, which is how I will continue to make my decisions in this company.
I think it's important to remember what a model is, an oversimplification of reality. To assume the model is correct is an over expectation! All models have underlying assumptions, such as the number of conductors, which are needed to set boundaries to our numerical model so it can converge on a solution. Turning a bunch of waves into a 3-D model of the subsurface, buried under 500 m of sand, is no simple task.
IMHO this seems like a gross market overreaction to encouraging news. If you take a step back, KAV is only getting closer and closer to making a discovery (upgrading conductance, upgraded 2 plate model, etc.). The only thing they failed to do was live up to unrealistic expectations of an immediate discovery.
Forgive me, but I still am very confused about what a conductance reading tells us. If someone can clarify that would be great! Here is my stab at trying to make sense of it (probably very poorly). More a post to spark a discussion and learn from the experts.
Is a conductance reading a function of thickness and conductivity of the conductor as both impact the magnitude of the secondary field produced? E.g. the amount of water coming from a hose depends on both the thickness and flow rate. If the magnitude of the current traveling through the conductor is proportional to the magnitude of the secondary magnetic field produced, then a highly conductive but thin conductor would still produce a relatively weak field.
But then it might seem like a high conductance reading could be produced from a very thick but not all that conductive media, which obviously would be cause for worry IF the distance from the signal source didn't matter AND various frequencies can be used to analyze different depth domains. Instead, the signal gets weaker and weaker the further from the source so there is some limit to the thickness of the conductor which produces a significant magnetic field. I have no idea but I think a high value like 11,000 siemens requires a significant conductivity and thickness?