It awarded a contract to Mindea Exploration and Drilling Services (Pty) to drill a minimum of two 500 metre “proof of concept” holes no later June 30.
The exploration company anticipates that drill-core from these holes will provide firm physical evidence of the KSZ’s potential to host ‘Norilsk-style’ metal sulphide deposits. The area covered by the KSZ licences displays geology similar to that in world-class magmatic sulphide deposits, such as Norilsk in Siberia and Voisey’s Bay in Canada, Kavango said.
“The Kalahari Suture Zone was first identified 45 years ago,” said Kavango chief executive Michael Foster. “The technical challenges of pursuing exploration under 70m of Kalahari sands and sediments proved too much for previous companies that attempted to unlock this region’s significant potential.
“Through the deployment of modern remote sensing technologies, sophisticated data analysis and persistent hard work, Kavango now aims to become the first company to retrieve drill core samples from the bottom of the “keels” of the Karoo-age gabbros here,” he said.
“We believe core samples from the bottom of the gabbroic “keels” could provide us with the definitive proof we have been looking for that the KSZ could host one or more major deposits of nickel, copper and platinum group metals.”
Mindea’s payment will be half cash and half in Kavango stock at an issue price of 4.53p per share.
“The fact that Mindea has agreed to receive over half of its fees in equity suggests considerable faith in the potential of the KSZ to host metal sulphide ore bodies and a great endorsement of Kavango’s exploration approach. For a minimal cash outlay, we can make significant advances with the KSZ project, while keeping a budget in reserve for a more extensive drill campaign later this year,” Foster concluded.