UK-listed Kavango bullish about Zim gold prospects

THE jump in the global gold price to a record US$3 000 per ounce and encouraging exploration results from the Hillside gold project have made London-listed Kavango Resources more bullish about its gold mining prospects in Zimbabwe.

Kavango said exploration results from the Hillside project, near Bulawayo, suggest significant near-term gold production potential at Hillside.

Gold prices, which recently climbed 13,6 percent to breach the psychological barrier of US$3 000/oz last week have also bolstered prospects for Zimbabwean operations.

Geopolitical tensions and global economic uncertainty driven by a hotchpotch of Trump trade tariffs have driven haven investments, fuelling the rally.

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 and the rehabilitation of the historic Main Shaft and West Shaft, have uncovered previously unknown mineralisation at Kavango’s Hillside gold mining project, suggesting both lateral and vertical continuity of gold-bearing reefs. In an update, Kavango Resources chief executive Mr Ben Turney expressed enthusiasm about the latest findings.

“The new reefs identified 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.

“Up to now, it appears a previous owner of Hillside’s efforts to protect the future mining potential at Prospect 1 hid 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.

Removal of historical 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 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 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 mining industry.

Gold is Zimbabwe’s largest export earner, with the mining sector contributing over 75 percent of annual export revenue.-herald