Aim-listed Kavango Resources has announced a significant upgrade to the underground mining potential of Prospect 1 at the Hillside project in Matabeleland, Zimbabwe.

Kavango intersected a reef hosting quartz- and sulphide-bearing veins, in a previously inaccessible level of the historic Main shaft at Prospect 1 during shaft restoration.

Recent mapping and sampling of the reef on existing development levels, together with the discovery of further mineralisation while rehabilitating the old Main shaft and West shaft, indicates previously unknown potential for both lateral and vertical continuity.

Kavango plans to test the extent of these reefs through a combination of surface and underground drilling.

The company’s objective is to establish Prospect 1 as a third area of near-term gold production at Hillside, alongside Prospects 3 and 4.

Kavango completed restoration work on both the historic Main shaft and West shaft at Hillside Prospect 1 in December to allow for the resumption of gold mining.

The removal of historic waste material from the first two levels of the Main shaft revealed a deeper, third level.

Subsequent mapping and sampling have confirmed continuity of the reef structure, hosting mineralised quartz-sulphide veins, to the third level at Main shaft.

Recently received assay results from channel sampling appear to show grades increasing with depth from Level 2 to Level 3 at Main shaft.

This mapping and sampling together with the assay grades suggest a significant increase in the underground potential at Prospect 1, exceeding management’s original expectations, Kavango says.

It now plans to test the extent of the reefs through a combination of surface and underground drilling.

If warranted, these results will inform subsequent drilling to define a resource at Prospect 1 for a larger, longer-term underground mine than previously anticipated.

In parallel, Kavango is proposing to increase the processing capacity at Prospect 1 to provide flexibility for greater production.

“We are extremely pleased with the latest results from Prospect 1. The new reefs identified add to the growing number of opportunities for near-term, significant gold production at Hillside. With gold now trading at record highs over $3 000, the timing of work to define resources at Prospect 3 and Prospect 4 is ideal,” highlights CE Ben Turney.

“Up to now, it appears a previous owner of Hillside’s efforts to protect the future mining potential at Prospect 1 hid the true potential of the historic mine and with it the opportunity for much greater gold production,” he avers.

“We look forward to bringing the drill rig back to Prospect 1 as soon as we can. The new reefs are open on strike, with grades appearing to increase with depth. After establishing the reefs' extent, we hope to move into defining a resource we can bring into production as quickly as possible,” Turney informs.