Shares of Kavango Resources experienced a sharp decline after the company announced that drilling at the B1 conductor drill target in Botswana’s Kalahari suture zone did not yield any nickel or copper sulphide. As a result, the current drill campaign has come to an end.
At 1413 GMT, shares were down 0.30 pence, or 32%, at 0.63 pence.
Although this particular drill hole posed technical difficulties, Kavango Resources remains optimistic. The company plans to conduct a downhole electromagnetic survey to further investigate the B1 conductor. It appears that a thicker carbonaceous material, containing coincident graphite and pyrite rich bands, with minor pyrrhotite veining, is the most likely conductive source. A conductor refers to minerals and ores through which electricity can pass, such as copper or aluminum.
In light of the results, Kavango Resources will allocate its working capital to focus on the Kalahari copper belt and explore a new opportunity in Zimbabwe’s gold mining sector. The company plans to intensify drilling efforts in these areas during the second half of the year, as it believes there is a much higher probability of success.