Gold discovery, price surge boost Kavango Resources in Zim
A global gold price surge to a record high of US$3,000 per ounce, combined with a major gold discovery at its Hillside Project, has reinvigorated Kavango Resources. The company’s exploration activities suggest significant near-term gold production potential at Hillside.
Gold prices recently climbed 13.6 percent, breaching the US$3,000-per-ounce mark last week to set a new all-time high.
Geopolitical tensions and economic uncertainty have driven safe-haven investments, fueling the rally.
However, long-term factors will ultimately determine whether this momentum is sustainable.
Kavango officials believe that a previous owner of Hillside may have deliberately concealed the mine’s true potential at Prospect 1 to safeguard future mining prospects.
Recent mapping and sampling efforts, alongside the rehabilitation of the historic Main Shaft and West Shaft, have uncovered previously unknown mineralisation, suggesting both lateral and vertical continuity of gold-bearing reefs.
In an update, Kavango Resources Chief Executive Officer, Mr. Ben Turney, expressed enthusiasm about the latest findings.
“The newly identified reefs add to the growing number of opportunities for near-term, significant gold production at Hillside. With gold now trading at record highs over US$3,000, the timing of work to define resources at Prospect 3 and Prospect 4 is ideal.
“It appears that a previous owner of Hillside’s efforts to protect the future mining potential at Prospect 1 obscured the true potential of the historic mine, and with it, the opportunity for much greater gold production,” he said.
In December last year, Kavango completed restoration work on the historic Main Shaft and West Shaft at Hillside’s Prospect 1, enabling the resumption of gold mining.
The removal of historic waste material from the first two levels of the Main Shaft revealed a deeper, third level.
Subsequent mapping and sampling have confirmed that the reef structure, which hosts mineralised quartz-sulfide veins, extends to this third level.
“Recently received assay results from channel sampling appear to show grades increasing with depth from level 2 to level 3 at Main Shaft,” the company said.
“This mapping and sampling, together with the assay grades, suggest a significant increase in the underground potential at Prospect 1, exceeding management’s original expectations.”
Kavango now plans to further test the extent of the reefs using a combination of surface and underground drilling.
“If warranted, these results will inform subsequent drilling to define a resource at Prospect 1 for a larger, longer-term underground mine than previously anticipated.
In parallel, Kavango is proposing to increase the processing capacity at Prospect 1 to provide flexibility for greater production.”
Operating through its Zimbabwean subsidiary, Kavango Zimbabwe, established in July 2023, the company is focusing on high-grade gold mines in the Matabeleland region, with an emphasis on economic bulk mining.
Kavango previously described its entry into Zimbabwe’s mining sector as a key milestone, offering access to the country’s lucrative gold industry.
Gold is Zimbabwe’s largest export earner, with the mining sector contributing over 75 percent of annual export revenue.
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