UNITED Kingdom-based Kavango Resources is exploring the feasibility of large-scale underground bulk mining at its Nara gold project in Zimbabwe, a significant development in the project’s development.
Kavango owns three projects in the country — Hillside, Nara Gold, and Leopard — with Hillside being the company’s primary focus due to its high potential. Covering 503 hectares, Hillside consists of 44 gold claims. The Nara Gold project includes four mines near Bulawayo, historically producing over 90 000 ounces (oz) of gold, while Leopard comprises two claim groups with a recorded output of 2 000oz
“The company is assessing the potential for large scale underground bulk mining at the Nara Gold project,” Kavango chairman David Smith said in the miner’s financial results for the period ended December 31, 2024.
“The option for the acquisition of claims expires on June 30, 2025 and our work in 2024 leads us to believe that Nara could be developing into a significant opportunity for Kavango.”
He said the miner began and ended 2024 in a strong position, something executives wanted to continue.
The Nara project comprises 45 contiguous gold claims.
In June 2023, the company entered into an exclusive two-year option agreement to acquire the claims for US$4 million in cash, plus an earn out based on a declaration of a code compliant resource estimate.
The option fee is US$220 000 payable in six monthly instalments in advance, and as part of the agreement, the company is required to spend a minimum of US$500 000 on exploration in the first year, with a total exploration spend of US$2 million over the option term.
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“Kavango started and ended 2024 in a strong position, and as 2025 progresses, the company continues to build a robust operation with the immediate focus on near term free cashflow generation, with the potential to maximise shareholder value whilst also striving for excellence by adhering to the highest ethical principles, demonstrating unwavering integrity through its actions and committing to sustainable practices in all aspects of the business,” Smith said.
