Kavango Resources Launches Ambitious Expansion Plan to Bolster Gold Mining in Zimbabwe
London Stock Exchange-listed mining and exploration junior Kavango Resources is making notable advances in the Southern African metals exploration sector, with a strong focus on Zimbabwe.
by Patricia Rwafa
The company recently announced its Capital Investment & Financing Programme (Cap-Ex Programme), signalling its intention to significantly develop its mining projects and tap into Zimbabwe’s abundant mineral wealth.
The Cap-Ex Programme is centred around the Hillside Gold Project, where Kavango aims to unlock significant value through targeted exploration and development.
The initial phase of this programme is designed to enhance the project’s potential, setting the stage for a robust expansion of gold mining activities in the region.
In a press release dated August 29, 2024, Kavango detailed its plans for the first phase of the Cap-Ex Programme, emphasizing the potential of the Hillside Gold Project to host mineable ore bodies. This phase will be financed in part by a £2 million convertible loan note issued to Purebond Limited, Kavango’s major shareholder.
According to Ben Turney, CEO of Kavango Resources, the company is satisfied with its progress in Zimbabwe.
“We are extremely pleased with the rapid progress and achievements Kavango is making in Zimbabwe. So far, this approach has delivered highly encouraging results,” he said.
The Kavango CEO highlighted the company’s accomplishments over the past year, which have paved the way for Kavango to embark on this ambitious capital investment programme.
He noted that since the initiation of small-scale gold production at Hillside in March 2024, Kavango has successfully built a competent mining and production team, made key improvements to the plant and site, and hosted several site visits by industry experts to further refine their operations.
“Our exploration team has worked diligently to deepen our understanding of Hillside’s geology and structural setting,” Turney added.
“This groundwork has enabled us to move forward with resource drilling, bringing us closer to our goal of expanding gold production,” he concluded.
The first phase of Kavango’s Cap-Ex Programme is designed to maximize near-term revenue generation in Zimbabwe through a disciplined and focused approach. The primary activities planned for this phase include:
Capital Investment in Hillside Mining Operations
Kavango will enhance the existing small-scale gold production at Hillside by improving current processes and reactivating historic mine shafts. The company anticipates that these efforts will double gold production to 3 kilograms per month by the end of Q4 2024.
Resource Drilling at Hillside
Resource drilling will be conducted on Kavango’s top-ranked targets at Hillside, to establish a gold resource of at least 10,000 ounces within the top 100 meters and an additional 5,000 ounces in the next 50 meters below. The aim is to identify 73,000 tonnes of mineable ore, sufficient to sustain continuous operations for two years.
Commissioning of a 100-tonne/day Gold Processing Plant
If exploration targets are met, Kavango plans to commission a 100-tonne/day gold processing plant at Hillside. The company is collaborating with a South African manufacturer experienced in designing and installing modern gold production plants across Africa. The plant is expected to begin gold production by Q2 2025.
Investment in Equity Drilling Zimbabwe (Pvt) Limited
Kavango will acquire a 45% stake in its drill partner, Equity Drilling Zimbabwe, for US$22,500. This investment is part of a broader strategy to build a supply chain that supports metals exploration in Zimbabwe, a country with limited modern exploration activities. The company has already extended a US$240,000 loan to Equity Drilling in Q2 2024, with plans to provide an additional US$240,000 in Q3 2024 for the purchase of new drill rigs.
Kavango Resources’ Cap-Ex Programme marks a significant step forward in the company’s efforts to expand its gold mining operations in Zimbabwe. By focusing on the Hillside Gold Project, Kavango is positioning itself as a key player in the country’s mining sector. The successful implementation of this programme could not only enhance the company’s profitability but also contribute to Zimbabwe’s economic growth by promoting sustainable mining practices.
As Zimbabwe continues to attract international investment, Kavango’s progress at Hillside could set a benchmark for future projects in the region. With strong backing from its shareholders and partners, Kavango Resources is well-positioned to drive the next phase of gold mining in Zimbabwe, unlocking new opportunities in one of Africa’s most promising mining destinations.