Kavango Resources plc has signed an exclusive six-month option to acquire two further gold exploration projects in Matabeleland, southern Zimbabwe.
HILLSIDE
The company said the Hillside and Leopard projects each had the potential to host bulk mineable gold deposits.
Hillside comprises 40 contiguous gold claims and contains a historic high-grade underground mine, reported to have produced 18,000 oz gold at a grade of 7.7 g/t over a strike length of more than 350m.
Kavango has identified potential for scheelite and gold production in multiple zones of which three have priority with near-surface, bulk mining potential.
Exploration will include mapping, surface surveying and drilling to assess geology, nature of mineralisation, grade and geophysical properties.
Hillside lies 20km north of and on the same greenstone belt as the Nara project for which the company has an exclusive two-year purchase option.
The company is currently establishing a field camp for exploration and drilling at Hillside and Nara.
LEOPARD
The second project of Leopard comprises 44 contiguous gold claims and has supported historical gold production from two underground mines.
Kavanago said that Site One was reported to have produced more than 2,000 oz from ore grading 3.5g/t gold, and more than 1Moz from ore at an average grade of more than 0.5g/t gold from the second.
The company aims to assess the underground and near-surface potential of the two mines through mapping, sampling and twinning historical holes at Site One.
TERMS
To acquire the projects, Kavango will pay US$500,000 in cash and issue 84,000,000 shares to the vendors, and repay the vendors’ outstanding $400,000 debts relating to the projects.
On Kavango’s declaration of a code-compliant gold resource in excess of 200,000 oz gold at Leopard, the company will pay the vendor in shares to a value of $1m.
“I’m very pleased to announce that we have already been able to expand our footprint in Zimbabwe after signing the Nara project last month,” added chief executive officer Ben Turney.
“The Hillside and Leopard projects both contain historically producing mines and have been underexplored with modern-day exploration techniques.
“We look forward to carrying out a thorough assessment of their commercial gold potential during our six-month option period, as we continue to build on our first-mover advantage in Zimbabwe.”