BRITAIN-HEADQUARTERED resources firm Kavango Resources plans to fast track gold production in Zimbabwe by targeting known mining areas and developing short-term, high-return projects, chief executive officer (CEO) Matthew Turney said this week.
Kavango, which is listed on the London Stock Exchange (LSE), is set to make a secondary listing on Zimbabwe’s Victoria Falls Stock Exchange (VFEX) later this month. The miner is seeking to raise US$13,5 million to support its local mining exploration efforts.
The proposed VFEX listing follows Kavango’s July announcement that it had intercepted a high gold grade of 11,79 grammes per tonne during drilling at Bill’s Luck Gold Mine, part of its large Hillside Gold Project.
The firm’s strategy centres on identifying initial three-year mineable resources, with an anticipated payback period of about 18 months. Turney said the move from exploration to production marks a pivotal stage for the company, with speed being a key advantage.
“Kavango’s strategy in Zimbabwe is to discover new gold mines, in known producing areas, and bring these into production as quickly as we can. Our investment model is based on initial three-year mineable resources because we are anticipating payback periods in the region of 18 months,” Turney said.
“Now that we are making the progression from gold exploration to production, it is an exciting time to be involved in this business, especially given the speed at which we are moving.”
Kavango has three projects in Zimbabwe — Hillside, Nara Gold and Leopard.
To improve operational clarity, the firm has reverted to using the historic names of the first four gold prospects at Hillside in southern Zimbabwe (out of six). These are Bill’s Luck, Britain, Nightshift and Steenbok, replacing the previous internal references of Prospect 1, 2, 3 and 4, respectively.
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The ongoing drill campaign at Bill’s Luck is aimed at establishing a three year production pipeline to generate cash flow, expand reserves and fund operations.
“This has the potential to generate sufficient free cash flow to fund our operations and drill out larger reserves,” Turney said.
“In the case of Bill’s Luck, our team is of the firm belief that this mine has the capacity to deliver much more gold production over a significantly longer time period.”Turney said the company’s work suggested the gold mineralised strike at Bill’s Luck hosts a series of west-plunging ore shoots.
“Kavango is now targeting the main shoot at Bill’s Luck Main Shaft and will also test potential ore shoots at Roscor and West Shaft,” he said.
“Roscor and West Shaft are currently being mined by local contract miners, and their ore is being processed at our Hillside milling centre. This has provided useful exploration intelligence, ahead of drilling, and increases our confidence.
“A successful campaign will underpin the investment case for the placement of the 200tpd (tonnes per day) production plant at Bill’s Luck, as we work to scale up to a 250tpd gold production operation by the first half of 2026.”
Kavango believes Bill’s Luck offers significant upside potential beyond the initially targeted maiden gold resource.
