17th Mar 2025 12:02
(Alliance News) - Kavango Resources PLC shares surged on Monday as it reported a "significant upgrade" to the underground mining potential of a gold prospect in Zimbabwe.
The London-based, Botswana and Zimbabwe-focused precious metals exploration company said it intersected a reef containing quartz and sulphide-bearing veins in a previously inaccessible level of the main shaft at prospect 1 in the Hillside Project in Matabeleland, Zimbabwe.
Shares in Kavango Resources were up 23% to 0.77 pence in London at midday.
Kavango said mapping and sampling on the reef, alongside the discovery of further mineralisation, indicates "previously unknown potential for both lateral and vertical continuity".
The company said it plans to test the extent of the reefs with both surface and underground drilling.
Kavango intends to establish prospect 1 as a third area of near-term gold production at Hillside, alongside prospects 3 and 4.
It said the results will inform further drilling to define a "larger, longer-term underground mine than previously anticipated".
Kavango said it is also proposing to increase processing capacity at prospect 1 to provide flexibility for greater production in future.
Chief Executive Ben Turney said: "We are extremely pleased with the latest results from prospect 1. The new reefs identified add to the growing number of opportunities for near-term, significant gold production at Hillside.
"We look forward to bringing the drill rig back to prospect 1 as soon as we can. The new reefs are open on strike, with grades appearing to increase with depth. After establishing the reefs' extent, we hope to move into defining a resource we can bring into production as quickly as possible."
By Michael Hennessey, Alliance News reporter
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