London Stock Exchange-listed mining and exploration company Kavango Resources Plc saw its stock jump by 23% this week following promising news of substantial underground gold deposits in Zimbabwe, Mining Zimbabwe can report.
By Rudairo Mapuranga
The junior mining firm, which focuses on uncovering world-class base and precious metal deposits in Zimbabwe and Botswana, announced a significant upgrade to its underground mining potential in the Matabeleland region.
The company’s exploration efforts are concentrated on reviving historic high-grade gold mines in Zimbabwe, with a particular emphasis on bulk mining possibilities. This latest discovery at the Hillside Project has sparked investor excitement, driving Kavango’s share price up to 0.77 pence in London.
Kavango Resources reported the discovery of a quartz- and sulphide-bearing reef in a previously unreachable section of the main shaft at Prospect 1 within the Hillside Project. This new reef adds to the growing potential of the site, further validating the company’s focus on Zimbabwe’s underexplored mining areas.
CEO Ben Turney expressed optimism about the discovery, calling the results “extremely impressive” and highlighting the potential for near-term gold production.
“We are thrilled with the latest results from Prospect 1,” Turney said. “The new reefs we’ve identified present a significant opportunity for gold production. We’re eager to resume drilling to explore the strike of these reefs, as their grades seem to increase with depth. Our goal is to quickly define a resource we can bring into production as soon as possible.”
Kavango’s geological team has been actively mapping and sampling the new reef, which has revealed even more mineralization than expected. The company plans to follow up with extensive surface and underground drilling to better understand the reef’s lateral and vertical continuity. Early indications suggest that the newly discovered reef could support a larger and more sustainable underground mine than originally projected.
Additionally, Kavango intends to develop Prospect 1 as a third potential site for near-term gold production, complementing the ongoing work at Prospects 3 and 4 within the Hillside Project. The company is already planning to expand processing capacity at Prospect 1 to accommodate the anticipated increase in production, providing greater operational flexibility.
The discovery at Hillside highlights the untapped potential of Zimbabwe’s gold sector, particularly in the historically rich Matabeleland region. Kavango Resources is positioning itself as a key player in the country’s mining resurgence, focusing on projects that can be developed quickly to generate cash flow and support long-term growth.
The company’s expansion plans align with its broader strategy to explore and develop high-grade metal deposits across southern Africa. With the latest results at Hillside, Kavango is well-positioned to capitalize on Zimbabwe’s mining potential, which has largely been overlooked by major players in recent years.
This positive development not only boosts Kavango’s stock performance but also increases the firm’s appeal to investors looking for exposure to Africa’s mining sector, particularly as the global demand for precious metals remains strong.
As the company moves forward with its drilling and resource definition plans, Kavango’s Hillside Project could soon become a significant gold producer, contributing to Zimbabwe’s economy and solidifying the company’s presence in the region.
Kavango’s stock surge reflects growing confidence in the company’s ability to deliver on its exploration promises, with investors eagerly awaiting further updates on the Hillside Project’s progress.
