Almot Maqolo, Staff Writer 
LONDON Stock Exchange-listed Kavango Resources PLC (Kavango) is set to strengthen its position in the metals exploration sector by acquiring a 45 percent stake in its drilling partner, Equity Drilling Investment, for US$22 500.
This acquisition aims to create a comprehensive supply chain solution for Kavango’s exploration activities in Zimbabwe.
Through its local subsidiary, Kavango Zimbabwe, which was formed in July 2023, the company is targeting several historic high-grade gold mines in the Matabeleland region for economic bulk mining.
Kavango’s investment in the drilling company will be repaid through gross profits from drilling operations.
“We have spotted a commercial opportunity to build a supply chain to service metals exploration companies in the country. There has been little modern exploration in Zimbabwe. As such, local service provision is limited,” the company said in an update.
As part of the agreement, Kavango will provide US$480 000 in loans to Equity Drilling to purchase two drill rigs.
This strategic move aligns with the company’s broader goals of advancing its mining activities and supporting the modernisation of Zimbabwe’s gold exploration sector.
“By providing Equity Drilling with loans to purchase two drill rigs, we take key steps towards achieving two of our core goals: accelerating our own mining and revenue-generating activities in Zimbabwe and modernising Zimbabwe’s gold exploration or mining sectors as the country pursues its 2030 Vision of transforming into an upper-middle-income economy,” the company explained.
Equity Drilling Zimbabwe is part of a pan-African drilling group, and Kavango’s plans to expand don’t stop with drilling.
The company intends to commission a 100 tonnes per day (t/d) gold processing plant in Zimbabwe, with rock sample testing already underway.
Gold production at the plant is expected to begin in the second quarter of 2025.
At Hillside Resource Drilling, Kavango is focusing on its highest-priority targets, with plans to establish a gold resource of at least 10 000 ounces in the top 100 meters and an additional 5 000 ounces in the next 50 meters.
The company also aims to double production at Hillside to three kilograms per month by the end of 2024 through process optimisation and shaft rehabilitation. newsdesk@fingaz.co.zw
