Kavango Resources, a London Stock Exchange-listed metals exploration company, has reported a significant underground discovery at its Hillside Project in Matabeleland, Zimbabwe—a breakthrough that could reshape the project’s future.
By Ryan Chigoche
During restoration work at the historic Main Shaft, the company uncovered a previously inaccessible reef, rich in quartz and sulphide-bearing veins. This discovery marks a pivotal moment for the company, unlocking considerable exploration potential.
The Hillside Project spans 44 gold claims covering 503 hectares and is one of three mining operations that Kavango runs in Zimbabwe. The findings at Prospect 1, previously overlooked, are especially crucial as they may play a significant role in the company’s near-term production strategy.
In addition to Prospect 1, the company is advancing Prospects 3 and 4 as part of its broader pipeline. The restoration work at the Main Shaft revealed strong lateral and vertical continuity of the gold-bearing reefs, suggesting even greater potential for future mining.
Recent mapping and sampling during the rehabilitation of both the Main and West Shafts have confirmed that mineralization extends deeper, with grades increasing with depth. This discovery significantly enhances Kavango’s production prospects and its position in the market.
The timing of this find is especially noteworthy, coinciding with a historic surge in gold prices. With gold surpassing US$3,000 per ounce—its highest point ever—economic uncertainty has driven heightened demand for gold as a safe-haven asset. This surge could boost Kavango’s market position and production capacity in the coming months.
In light of these developments, Ben Turney, Chief Executive of Kavango Resources, emphasized the strategic importance of the discovery, particularly with the soaring gold market:
“We are extremely pleased with the latest results from Prospect 1. 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. We look forward to bringing the drill rig back to Prospect 1 as soon as we can. The new reefs are open on strike, with grades appearing to increase with depth. After establishing the reefs’ extent, we hope to move into defining a resource we can bring into production as quickly as possible.”
Gold’s continued rise emphasizes its value as a reliable store of wealth during uncertain economic times. Gold prices have increased tenfold over the past 25 years, outpacing the S&P 500, which has only quadrupled in the same period. Historically, gold price spikes have coincided with global crises, such as surpassing US$1,000 after the global financial crisis, reaching US$2,000 during the COVID-19 pandemic, and now breaking US$3,000 amid ongoing trade tensions.
Capitalizing on this favourable market climate, Kavango has already advanced the Hillside Project. Earlier this month, the company completed its initial resource drilling program at Prospect 3, gathering crucial geological data and samples for assay, metallurgical, and geotechnical testing. These results will inform Kavango’s mining plans, helping to expedite production.
As Kavango strengthens its strategic position within Zimbabwe’s gold sector, it is fast-tracking its resource definition and moving toward production to capitalize on the current bullish gold market.
In December 2024, Kavango completed restoration work on the Main Shaft and West Shaft at Prospect 1, paving the way for gold mining to resume. During the restoration, the removal of historic waste material from the first two levels of the Main Shaft revealed a deeper third level, which Kavango believes was deliberately blocked by a previous owner to protect the underlying ore body from illegal mining and preserve it for future development.
Kavango’s contract mining team intersected a reef at the third level of the Main Shaft, which hosts quartz and sulphide-bearing veins. Recent mapping and sampling confirmed the continuity of these reefs, and channel sampling at Levels 2 and 3 showed increasing grades with depth, further validating the discovery’s potential.
To further explore this, Kavango plans a combination of surface and underground drilling to test the extent of the reefs. The goal is to establish Prospect 1 as a third area of near-term gold production at Hillside, alongside Prospects 3 and 4. If the results are promising, Kavango will move forward with drilling to define a resource suitable for larger-scale underground mining.
Kavango has already made significant infrastructure upgrades at Prospect 1. The company installed new equipment to increase the hoisting capacity of the Main Shaft, commissioned a five-stamp mill to boost milling capacity, and upgraded the static leach tank capacity, among other milestones. These improvements will enable increased production as the project advances.
Looking ahead, Kavango plans an infill drilling program between the West Shaft and Pump Shaft to confirm reef continuity and grade distribution. Additionally, a surface exploration program will test the full strike length of the Bills Luck Reef, helping to better understand the mineralization’s extent.
Kavango continues to explore gold deposits in Zimbabwe that can be quickly brought into production using modern mechanized mining techniques. In addition to Hillside, the company is advancing the Nara Project, located on the same greenstone belt, focusing on high-priority areas for near-term production.
Having acquired the Hillside Project in April 2024, Kavango is now advancing Prospects 3 and 4, which it hopes to bring into production within the next 18 months. At Prospect 3, Kavango is exploring selective open-pit mining, while at Prospect 4, the focus is on high-grade mechanized underground mining.
