Kavango Resources, a London-based exploration company, has announced promising resource estimates for its Nara gold project in southern Zimbabwe. The project, which covers 45 contiguous gold claims, could host a bulk mineable gold deposit with an estimated 1.6 million ounces of gold.
The resource estimates are based on a due diligence exploration program that Kavango conducted after signing an exclusive two-year option to acquire the project in June 2023. The program included surveying historical tailings, assessing the historic mine shafts, soil geochemical surveying, and scout drilling.
According to Kavango, the Nara project has a history of high-grade underground mining, with a total recorded production of 92,000 ounces of gold at an average grade of 9.76 grams per tonne. The project also has evidence of continuous surface small-scale mining and custom milling over the last 30 years, generating an estimated 150,000 to 250,000 tonnes of tailings.
Kavango believes that the Nara project has considerable prospective potential for a modern commercial bulk mining gold operation, given its size, regional geological setting, and sustained artisanal activity. The company plans to exercise its option to buy the project and advance it to the next stage of exploration and development.
The Nara project is part of Kavango’s portfolio of gold and copper projects in Zimbabwe, which also includes the Hillside project near Bulawayo. The Hillside project contains a historic high-grade underground mine that produced 18,000 ounces of gold at a grade of 7.7 grams per tonne. Kavango has identified multiple zones with the potential for scheelite and gold production at Hillside and has prepared an exploration plan for the prospects.
Kavango’s CEO, Michael Foster, said that the company was delighted with the results of the due diligence program at Nara and was confident that the project could deliver significant value for its shareholders. He also said that Kavango was committed to exploring and developing its assets in Zimbabwe, a country with a rich mining heritage and a favorable investment climate.
Zimbabwe is one of the most mineral-rich countries in Africa, with an estimated 60 different minerals and 40 proven reserves. The country has the world’s second-largest platinum reserves and the fifth-largest gold reserves. The mining sector contributes about 8% of the country’s GDP and employs over 45,000 people.
Kavango’s announcement comes at a time when the global demand for gold is rising, driven by the economic uncertainty and inflationary pressures caused by the COVID-19 pandemic. Gold prices have increased by more than 20% since the start of 2023, reaching a record high of $2,075 per ounce in August 2023. Analysts expect the gold market to remain strong in 2024, as investors seek safe-haven assets and hedge against currency devaluation.
Kavango’s projects in Zimbabwe offer an opportunity to tap into the lucrative gold market and benefit from the country’s mineral wealth. The company aims to become a leading explorer and developer of gold and copper projects in the region, while adhering to the highest standards of environmental and social responsibility.
Source: Mining Weekly
