Kavango Resources Share Discussion Threads

[pitot_heat] 03/8/2022 07:40

Another rns full of words but not much substance. Still patiently waiting but becoming increasingly pessimistic.

[palace pete] 01/8/2022 11:03

https://www.geologyforinvestors.com/miac-the-next-big-thing-in-mineral-deposits/Well with a read.

[kenwrong] 31/7/2022 10:24

A good watch with Bret Grist and Ben Turney, Kanye independently valued at £8m

[panda chops] 24/7/2022 19:07

going to need some money soon (1.2M in the coffers at the moment)

how is Kavango going to get funds to continue drilling KSZ and start a new campaign at the KCB ?

[algernon2] 24/7/2022 11:58

Soon my boy soon! By the end of the year.

[danmart2] 22/7/2022 16:30

So when do we get to see why KAV where so keen to buy out Power Metals percentage?

[skiboy10] 22/7/2022 15:14

KeithOz

Posts: 912

Price: 1.925

No Opinion
RE: GRS IOCG conceptual reportToday 07:42

tk95 - One of the biggest attractions of Kavango is that they target their expenditure extremely cost-effectively, and make a habit of double-checking results with external expertise. This makes them a highly credible exploration outfit, unlike many others I can think of. It is eminently sensible to get an external independent opinion of the potential economic feasibility of a huge project of this nature. If the opinion came back negative, in that it would be very difficult to generate a return on a project this deep, then you would not waste money drilling there, but move on to another project with better returns.


KeithOz

Posts: 912

Price: 1.90

No Opinion
RE: GRS IOCG conceptual reportToday 11:01

Bozi: The most important thing is to maximise returns for KAV and shareholders. Before KAV partners up with someone for large scale exploration, it is sensible to prove that there is something worth further investigation - that way you are ensured a better deal.
So stage 1 is to put 6 - 12 holes into the upper level B area targets & the lower IOCG. For this, you do a limited deal with your drilling & geophysics partners - all or part of their costs in exchange for shares. You then know if this is likely to be a viable project.
Stage 2 is a move to sell the whole project to a major, hopefully retaining a meaningful stub equity.

For gaining service partner buy-in for Stage 1, this study is adequate. For Stage 2, proof of mineralisation (drill core) is necessary. Without that, you would be lucky to get just a few £M. Giving away half or more in the sort of intermediate deal you suggest would not be a great idea. Take a look at what Bluejay (LSE:JAY) have done - they basically sold out 51% their huge Disko Greenland NiCuPGE project in exchange for Kobold doing just $15M of target definition & drilling. Had they put in a few $M themselves to prove up the targets they had previously identified, they could have got at least 10x that from a major. Bluejay are frequently criticised for having a poorly performing Board, and despite their interesting projects I would not invest in that company for that simple reason. I reckon that KAV are too smart to fall into the trap of taking cash too soon.

[cashandcard] 22/7/2022 14:25

Useful report. More important to out value via the drillbit. They need to update on forward plans for the KSZ and for the KCB.Cash

[kdickson] 22/7/2022 10:58

Comment from First Equity..

"...we continue to rate Kavango Resources as a BUY"

Kavango Resources (KAV.L) this morning announced the findings of an independently compiled Conceptual Economic Viability Report for the Iron Oxide Copper-Gold (IOCG) target at the Great Red Spot within Target Area B on its Kalahari Suture Zone (KSZ) project.

The detailed report confirmed at a conceptual level the potential viability of mining an Olympic Dam lookalike IOCG deposit at depths of more than 1km below surface, estimating a pre-tax NPV10 over a 30-year mining life of between US$3 billion and US$8.05 billion using three different economic scenarios.

The modelling factored in various key parameter estimates, such as a long-term gold price of $1,600 per ounce, silver $18 per ounce and copper at $3.5 per lb, a government royalty of 3%, estimated mining grades and mill feed grades using BHP’s Olympic Dam mine as a benchmark.

The announcement underlined that IOCG systems can host very large and valuable copper, gold and uranium ores. Such deposits can be highly profitable mining operations given their large size and straight forward metallurgy. Kavango recognise that their target at KSZ lies deeper than the Olympic Dam orebody which is mined to depths of 900 metres, as it is under 300 metres of cover rock. Nevertheless, the report highlights that Kavango’s orebody and potential IOCG target could be economic on a conceptual basis down to 2,000 metres.

FEQ Comment

Today’s announcement clearly underlines the high impact nature of the IOCG target being pursued at the Great Red Spot on Kavango’s KSZ and large potential prize awaiting if it can provide further evidence of the geophysical indicators and go onto then discover and prove up an economic orebody.

If such exploration progress can be achieved and a world class IOCG deposit established, we believe the market will likely value the company on around 20% to 50% of its estimated NPV on a risked basis, which would imply a market cap for Kavango of £500m to £1.25bn using the lower financial model summary of $3bn in today’s conceptual viability report. Remember, today’s market cap for Kavango in comparison sits at just £8m.

In the last few years, we have witnessed many other exploration companies such as GGP and EUA achieve similar £500m plus market caps from sub £10m market cap starting points on the back of finding world class deposits or/and the market understanding the economic potential of their pursuits. There is a good chance that KAV’s market cap could follow a similar trajectory if further progress is made on its potential IOCG deposit.

For the reasons explained above, we continue to rate Kavango Resources as a ‘BUY’ and recommend investors position themselves in the stock ahead of what we hope could be further progress being made on the Group’s KSZ project, along with its other projects on the KCB and Ditau.

[soulsauce] 22/7/2022 08:07

Lotts/Spangle exactly.

[spangle93] 22/7/2022 07:48

Cart - horse

[lottsgold] 22/7/2022 07:10

Just drill the bloody thing, what's the point in this report?

[riley9] 14/7/2022 15:06

They need to pop those big pink pimples !

[kenwrong] 14/7/2022 14:08

This is just up the net. Ben Turney and Bret Grist covering acquisition of Kanye and $8m valuation and the other projects hxxps://youtu.be/hrvLsHYaLKY

[soulsauce] 14/7/2022 12:10

No that is my take too Spangle.

Until we find something of note it's just words.

[spangle93] 14/7/2022 11:58

jone- my impression is that the Kanye IPO idea is history now that POW is disappearing, but I might be mistaken

[jp2011] 14/7/2022 11:50

Value is whatever someone is prepared to pay for something. POWs return on investment looks pretty good.

[jone06] 14/7/2022 11:13

Kanye independently valued at $8m. So about 1.5p per share. Good to know but only balance sheet value and not yet ready to IPO in my view, positive assays in the next few months could change all that.

[skiboy10] 11/7/2022 14:14

𝗟𝗢𝗡 #𝗞𝗔𝗩 🎙️ #𝗥𝗡𝗦
Kavango Resources KSZ 'Norilsk Style' Targets #KAV

#StockBox welcomed @Ben_Turney, CEO of @KavangoRes

▫️KSZ North: Cluster of EM conductors identified
▫️Conforms to 'Norilsk Model' that Kavango has applied to the KSZ

[skiboy10] 11/7/2022 14:13

Kavango Resources' ranks three electromagnetic conductors priority targets for future drilling

Kavango Resources' Ben Turney joins Proactive to talk about the significance of its cluster of three electromagnetic conductors which have been identified within Target Area B, at the Kalahari Suture Zone project in Botswana.

Turney compares what the company has found with Norilsk in Russia, where the famous Talnakh and Kharaelakh massive sulphide nickel-copper-platinum group element orebodies were discovered.

hxxps://youtu.be/61Ht9jKSJSU