Kavango Resources plc has started its resource drilling programme, designed to increase production, at Bill’s Luck gold mine on the Hillside project in Zimbabwe.
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The 1,400m campaign comprises diamond drilling, infill diamond drilling and reverse circulation drilling, ahead of defining an inaugural mineral resource estimate suitable for three years’ mining.
Operations will focus on the main shoot at the Main shaft and test potential ore shoots at Roscor and West Shaft.
“Our work suggests the gold mineralised strike at Bill’s Luck hosts a series of west plunging ore shoots,” said chief executive officer Ben Turney.
“Roscor and West Shaft are currently being mined by local contract miners and their ore is being processed at our Hillside milling centre.
“This has provided useful exploration intelligence, ahead of drilling, and increases our confidence.”
He added that Kavango expected payback periods to be in the region of 18 months.
“Our resource drill campaign at Bill’s Luck is strategically designed to give us a clear path to three years of production.
“This has the potential to generate sufficient free cash flow to fund our operations and drill out larger reserves.
“In the case of Bill’s Luck, our team is of the firm belief that this mine has the capacity to deliver much more gold production over a significantly longer time period.
Kavango is planning a 200 tons-per-day production plant at Bill’s Luck, progressing to 250tpd gold production by the first half of 2026.
The company’s second project in Zimbabwe is the Nara underground deposit.