London-listed Kavango Resources has released an independent conceptual economic viability report for the iron oxide/copper/gold (IOCG) target at the Great Red Spot, within the northern section of the Kalahari Suture Zone, in Botswana.
The target exhibits similar geophysical signatures to the Olympic Dam IOCG deposit that is owned and operated by diversified miner BHP, in Australia.
Kavango commissioned the viability report, which was prepared by Executive Mining Group, to assess whether the target would be an economically viable mine, should drill testing confirm mineralisation.
The company cautions that the viability report is a conceptual study and should not be considered a definitive study; rather, it serves to support further exploration of the IOCG target, including future test drilling.
The consultancy determined that the IOCG target would be economically viable at depths up to 2 km below surface, should sufficient bulk and grades of mineralisation be discovered.
Kavango will release an exploration plan for the target in the coming weeks, which will outline the company’s approach to thoroughly testing this area.
“Until Kavango is able to drill test the IOCG target, we cannot know what the geological formations are nor whether any mineralisation is present. The viability report gives Kavango the confidence that the target is worth pursuing.
“We have tried to be conservative with the input numbers, especially the estimated forward metal prices,” says CEO Ben Turney.
He confirms that this is a project of significant potential and Kavango will continue exploring the IOCG target, with a view to vector in on specific drill targets.
The Great Red Spot is a 5 km by 8 km magnetic body on the western margin of the Kaapvaal Craton, which Kavango interprets as a promising location for magmatic intrusions and mineralising systems. It lies at the nexus of four interpreted regional geological structures.