RE: Raise ???9 Mar 2022 19:54
Part 1.
Kavango Resources (LON: KAV) shares are pretty much unchanged after the company announced “new TDEM loop designs” in the KSZ. Of course, it would be nice to know what this means but more important to us as traders the question is will this move the Kavango share price? In this very short term, we already have our answer – the share price hasn’t moved much, a percentage point or two, on the back of the announcement.
The point though is to work through what this might mean in the medium to longer term. What is really being said here is that some interesting things have been found, it has been possible to sort through to the things which need to be investigated more thoroughly and that’s what is going to be done.
This is just how it works for junior miners like Kavango Resources. In order to build a mine and create revenue and profits it is necessary, obviously, to find a mineral deposit that is worth mining – that is defined as one that will produce a profit if you do mine it. The work of a junior mining company is that process of finding and proving a mineral deposit that is worth mining.
Which is exactly what Kavango is attempting to do in the Kalahari Suture Zone (KSZ). The basic problem is that there’s an awful lot of geology out there. So, it’s necessary to be selective, which can be started by aerial surveys, a bit of Mark I Eyeballing and checking old artisanal workings. That gives an idea of where there might be something.
Further investigation then happens, which is what Kavango is doing right now. For example, there are a couple of areas (“conductor targets” in the jargon here) which are definitely something different. They show different magnetic and conduction properties than the surrounding areas. Those differences are also those associated with nickel and copper occurrences – both are electrical conductors of course and one is highly magnetic.
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