Kavango Resources plc reported “highly encouraging” results from underground drilling at Bill’s Luck gold mine on the Hillside project in Matabeleland, Zimbabwe.
GOLD SYSTEM
Operations are testing the strike and down-dip continuity of existing and newly discovered mineralised reefs.
Intersections in a “gold-bearing structure” include from 47.36 metres to 51.72m of 11.79 grams a tonne over 4.36m.
“This intersection is about 12m from where we are currently mining beneath 3 Level, therefore representing a near-term target for us to pursue,” said chief executive Ben Turney.
A second intersection, made at 61.30m to 65.30m of 0.49g/t over 4m, appears to be in a “parallel reef”.
Kavango said that the two intersections appeared to be 50m vertically apart.
Alongside drilling, the company is constructing a 50 ton per day carbon in pulp test plant at Bill’s Luck to increase capacity of gold production.
Commissioning is targeted for the second half of the year, with production expected to increase “within three months”.
Mr Turney added: “While the result is extremely positive, we are most encouraged by what it suggests about the wider potential at Bill’s Luck.
“The current underground drilling programmes continue to add further evidence that this gold system is much larger than we originally anticipated.
“The main strike at Bill’s Luck is open, as is the downdip continuity.
“In addition, there appears to be a number of previously unrecognised parallel reefs hosting gold mineralisation.
“Today’s result increases our confidence that we will operate the plant at full capacity from launch.”