BRITISH miner Kavango Resources Plc plans to ramp up ore production to 250 tonnes per day (tpd) at an average head grade of 2,5 grammes per tonne (g/t) in Zimbabwe, targeting output of 8 000 ounces per annum (ozpa) by 2028 as it positions itself to capitalise on firm gold prices.
Earlier this month, Kavango Resources Plc declared a maiden gold mineral resource estimate of 33 900 ounces at its Bill’s Luck Gold Mine, valued at US$179,26 million at current prices.
Bill’s Luck is one of four promising prospects within Kavango’s Hillside Gold Project, alongside Britain, Nightshift and Steenbok.
The Hillside Gold Project comprises 44 gold claims covering 503 hectares.
Kavango also holds two other mining ventures in Zimbabwe, the Nara Gold Project and the Leopard Project.
The expansion plans come amid surging gold prices, which have strengthened the economics of near-term production.
“Kavango (has been) in production since March 2024 (current average monthly production 1,9kg). On receipt of surface drill results, Kavango is to finalise technical economic assessment (mine plan),” the miner said in a presentation sent to shareholders.
“The goal is to grow mining output of ore to 250tpd, with an average head grade of 2,5g/t. Metallurgical testing indicates Carbon In Leach (CIL) recovery of >95%.”
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To support this target, Kavango will construct two “Proof of Concept” carbon-in-leach plants: a 50tpd test production plant, expected to be commissioned at the end of the current quarter, and a 250tpd pilot production plant scheduled for commissioning in the first half of 2027.
A CIL plant is a gold processing facility in which crushed ore is mixed with a cyanide solution to dissolve the gold, after which activated carbon is introduced to absorb the dissolved metal.
The loaded carbon is then treated to recover the gold, making CIL one of the most widely used and cost-effective extraction methods for medium-scale operations.
Over the medium to long term, Kavango’s mine plan envisages scaling production to between 500t/d and 1 000t/d, targeting multiple declines across projects in the Filabusi Greenstone Belt.
“Future capex to be supported from cash flow and mine finance (debt),” the company said.
Kavango believes Zimbabwe presents a significant opportunity, citing limited exploration over the past 25 years and the absence of modern, technology-driven exploration due to capital constraints.
“Kavango’s target area is the greater Bulawayo greenstone area with an initial focus on the Filabusi Greenstone Belt, which it regards as having the potential to host several world-class gold deposits. Kavango Mining’s focus is on exploration for near-term mining,” it said.
The miner said its objective was to mine multiple ore bodies in parallel along the Filabusi Greenstone Belt.
“Filabusi Greenstone Belt: Targeting 8 000ozpa by End 2027. Kavango’s objective is to mine multiple ore bodies in parallel Kavango’s target area. Kavango owns 100% of the Hillside Gold Project and has exercised its option to acquire 100% of the Nara Gold Project,” the miner said.
Kavango revealed that it has extensive local relationships, including with traditional leadership, rural district council, security services, village headmen, small-scale miners, Provincial Mining director, Provincial minister, and the Zimbabwe School of Mines.
