Kavango begins construction of gold plant

Published: 11 hours ago

British miner Kavango Resources Plc has commenced construction of a 50-tonne-per-day (tpd) Carbon in Pulp (CIP) gold processing plant at its Bill's Luck Gold Mine in Zimbabwe, marking a key step toward on-site gold production. The development positions Kavango to advance its Hillside Gold Project from exploration to production at its most productive mine. In July, the company reported intercepting a high-grade gold deposit of 11.79 grams per tonne during drilling at Bill's Luck.

To improve operational clarity, Kavango has reverted to using the historic names of the first four gold prospects at its Hillside Project - Bill's Luck, Britain, Nightshift, and Steenbok - replacing the previous internal references of Prospect 1 through 4. The company confirmed that construction of the CIP plant at Bill's Luck has begun, while a resource drilling campaign consisting of 4,000 metres of diamond drilling and 4,500 metres of reverse circulation drilling is now underway.

During the first half of 2025, Kavango completed multiple phases of surface exploration and resource drilling across its projects. This included extensive diamond core and reverse circulation drilling at Bill's Luck, as well as underground drilling and exploration at Nightshift and Steenbok, significantly advancing the company's understanding of its mineral resources. Kavango also progressed its Nara Project on the Filabusi greenstone belt with second-phase drilling to confirm its potential for a large-scale gold mineralised system. The company is set to acquire 45 claims for US$4 million, with completion expected by December 9, 2025.

In capital markets developments, Kavango completed a secondary listing of 333,364,773 ordinary shares on the London Stock Exchange and the Victoria Falls Stock Exchange (VFEX). Shares were issued to a consortium of pension funds, Purebond Limited, and other Zimbabwean residents. A subsequent subscription and placing of 227,751,720 new shares at £0.01 per share raised £2.27 million (US$3.09 million), with Purebond Limited and Chairman Peter Wynter Bee taking a significant portion of the shares. Purebond remains Kavango's major shareholder.

Meanwhile, at its Karakubis Copper Project in Botswana, Kavango announced a collaboration with First Quantum Minerals to conduct geophysical surveys over a deep drill hole, testing the accuracy of their technologies for modelling the D'Kar/Ngwako Pan contact.

The construction of the CIP plant at Bill's Luck represents a major milestone for Kavango, bringing the company closer to gold production and strengthening its presence on Zimbabwe's Filabusi greenstone belt.
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