Botswana-focused explorer Kavango Resources (LSE:KAV) sat flat at 2.4p in midday trading after telling investors it has received all the permits it needs to carry out a key aerial survey of its flagship licence area.
The business, which listed in London at the end of July, has been granted permission for the airborne electromagnetic geophysical survey of its Kalahari Suture Zone (KSZ) by Botswana’s Civil Aviation Authority. The studywill begin shortly, with Kavango adding that it plans to provide ‘regular feedback to the market’ on its progress and any significantfindings.
Kavango’s KSZ project is made up of 12 prospecting licences covering around 7,000km2 of ground. Much of this is situatedon a 450km long magnetic feature where the firm is looking for nickel, copper, and platinum group element-rich deposits. The business has contracted a subsidiary of Geotech Airborne Geophysical Surveys of Canada to conduct the aerial survey and hired experienced geologist TakashayaMurova to manage the project.
Michael Foster, chief executive officer of Kavango, said:
‘The area to be surveyed displays a geological setting with distinct similarities to the extensive Norilsk nickel, copper and platinum group element deposits in Siberia and our exploration programmes, historically and going forward, have been designedwith this in mind. This VTEM survey announced today is a key step in the targeting process for what is a considerable strategic area under the 12 prospecting licences held outright by the company, most notably the 450km long structural/magnetic feature previously identified.’
The survey is likely to welcome in a news-heavy period for Kavango. It is dividedinto three stages: an initial 2,000 line kmsto establish that the system is working correctlyfollowed by two larger phases of flying and data collection. Speaking to ValueTheMarkets last week, Mike Moles, one of Kavango’s founders, said the company will focuson keeping investors up-to-date throughout the process:
‘We have the option of whether or not to carry on the programme between each stage. However, given that Geotech successfully surveyed an adjacent area with VTEM in May/June of this year, we see no reason why the programme will not be completed. We think it is essential to keep updating the market about the progress of the programme and any significant results we encounter along the way.’
As it stands, Kavango’s shares sit below the 2.5p they placed at in July, a key line in the sand for the firm. Now the survey has been given the green light by Botswana’s government, could the potential for regular updates lead to some upward movement in the business’s shares as the market begins to sit up and listen?
Author: Daniel Flynn
Disclosure: The author of this piece does not hold a position in the company covered