Kavango’s Nara tailings dump Maiden 5,860/oz indicated Gold Resource
London Stock Exchange-listed Southern Africa-focused metals explorer Kavango Resources plc announced that it received a maiden Resource Estimate of 5,860 ounces for its tailings dump at the Nara Gold Project in Zimbabwe.
The Resource Estimate highlights the potential for the tailings dump to provide Kavango with a significant near-term source of gold production and early, non-dilutive free cash flow.
The Resource Estimate concludes that the two Nara tailings dumps tested together contain an Indicated Mineral Resource of 293,000 tonnes at an average of 0.62 grams per tonne of gold, totalling 5,860 ounces of gold contained, and an inferred resource of 11,900 tonnes at 0.66 g/t gold, totalling 253 ounces of gold contained.
According to Kavango CEO Ben Turney, 96 per cent of the Mineral Resource has been categorized as Indicated, thus placing it into a relatively high resource category for the early stage of the project, demonstrating confidence in the continuity of the material with future extraction costs operational, with no mining required.
Turney said the Mineral Resource Estimate also identified upside potential at the tailings dump, highlighting the opportunity to increase tonnage at as-yet-untested depths.
He said Kavango is now assessing options to commercialize the gold in the Nara tailings dump with the company planning to use free cash flow generated by any tailings production to advance its wider exploration activities targeting large-scale, bulk-mineable metal deposit discoveries in Zimbabwe.
“This Maiden Resource Estimate for gold for the Nara tailings dumps is the first Mineral Resource Estimate Kavango has delivered. It’s a milestone moment for our company and reflects the speed at which we are growing in Zimbabwe.
“Given that this is a tailings dump, all material has already been mined and there are no further mining costs. The Resource Estimate and high resource category achieved underline the commercial potential at Nara. While our primary objective is to discover larger-scale, bulk mineable gold deposits, the 6,000 ounces of gold in the main tailings dump present an early opportunity for commercializing this project.
“The free cash flow we could generate from processing the gold in the Nara tailings can help fund both our development of this project and our wider exploration across Zimbabwe’s highly prospective, under-explored greenstone belts.
“We will now commence metallurgical test work to optimize plant design to enable future gold production,” The Kavango CEO said.