Kavango Resources has announced the first resource estimate for the two main tailings dumps at the Nara gold project in Zimbabwe.
The estimate shows an indicated mineral resource of 293,000 tonnes with an average gold content of 0.62 g/t, amounting to 5,860 ounces of gold.
Furthermore, a calculated resource of 11,900 tonnes with a gold grade of 0.66 grammes per tonne, amounting to 253 ounces of gold, was discovered.
Kavango said that the resource estimate underscores the possibility of the tailings dumps becoming a substantial source of gold production for the company, generating early, non-dilutive free cash flow.
"This maiden resource estimate for gold for the Nara tailings dumps is the first mineral resource estimate (MRE) Kavango has delivered. It's a milestone moment for our company and reflects the speed at which we are growing in Zimbabwe,” said company chief executive Ben Turney.
“Given that this is a tailings dump, all material has already been mined and there are no further mining costs. The resource estimate and high resource category achieved underline the commercial potential at Nara.”
Up to 96% of the mineral resource is classified under the indicated category.
It indicates a strong resource quality at this initial phase of the project and shows trust in the material's consistency.
Kavango is currently exploring ways to profit from the gold found in the Nara tailings dumps.
It has an exclusive two-year option to purchase Nara, which includes four historic mines that produced over 90,000 oz in the early 1900s.
These mines also yielded significant amounts of tungsten and silver.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
