Kavango Resources plc reported a “significant upgrade” of potential underground resources following shaft restoration of Prospect 1 at the Hillside gold project in Matabeleland, Zimbabwe.
DRILLING
The company completed work on the historic main shaft and west shaft, with the removal of historic waste material from the main shaft’s first two levels revealing a deeper, third level.
“Subsequent mapping and sampling have confirmed continuity of the reef structure, hosting mineralised quartz sulphide veins, to the third level at main shaft,” said Kavango.
“Recently received assay results from channel sampling appear to show grades increasing with depth from level 2 to level 3 at main shaft.
“This mapping and sampling together with the assay grades suggest a significant increase in the underground potential at Prospect 1, exceeding management’s original expectations.”
The company plans surface and underground drilling to test the extent of the reefs.
Positive results will inform further drilling to define a resource at Prospect 1 for a “larger, longer-term underground mine than previously anticipated”.
Kavango also plans to increase the processing capacity at Prospect 1 to allow flexibility for greater production.
The company aims to establish Prospect 1 as a third area of “near-term gold production”, alongside its priority prospects 3 and 4.
“Up to now, it appears a previous owner of Hillside’s efforts to protect the future mining potential at Prospect 1 hid the true potential of the historic mine and with it the opportunity for much greater gold production,” added chief executive Ben Turney.
“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.”