Kavango's Significant Progress in 2024: Funding Secured to Advance Gold Projects in Zimbabwe Towards First Production in 2025

About Kavango Resources

Kavango Resources(LSE:KAV) is a metals exploration company focused in advancing its dual-focused portfolio: gold in Zimbabwe and copper-silver in Botswana's Kalahari Copper Belt (KCB). Kavango offers a unique combination of near-term gold production potential in Zimbabwe and district-scale copper exploration upside in Botswana.

The company recently raised £6.5 million to aggressively advance its assets and transition into a producer in 2025. The company's focus on gold and copper exploration, combined with its strong financial backing and experienced management team, positions Kavango Resources for success in the near and long term.

In 2024, Kavango took notable steps to strengthen its corporate foundation:

• Capital Raising: The company secured £6.5 million to fast-track development and ensure financial resilience for its ambitious growth plans.
• Strategic Shareholding: Purebond Limited increased its stake to 57.99%, investing £12 million since November 2022.
• Expanded Leadership Team: Kavango added geologists and mining experts with specialized knowledge of Southern Africa to lead operations and exploration efforts in Zimbabwe and Botswana.

Operational Milestones

Zimbabwe: Gold Mining Advancements

Kavango prioritized its Zimbabwean gold projects, focusing on production and resource development:

• Hillside Gold Project:
  • Transitioned to profitable mining operations with 1kg/month gold production.
  • Plans initiated for a 100 t/d modular gravity recovery plant to triple production by mid-2025.
  • Highlight results include 7.2m @ 9.95 g/t gold at Prospect 3 and 2.53m @ 29.08 g/t gold at Prospect 4.
• Leopard and Nara Projects:
  • Conducted exploration and assessments for bulk and underground mining potential.
  • Nara Gold Project is undergoing due diligence with historical tailings of over 6,000 ounces of gold.

Botswana: Copper Exploration

Kavango advanced its Kalahari Copper Belt projects:

• Kavango completed a 5,000m diamond drilling campaign, confirming the presence of copper mineralization at key targets.
• Initial drill holes confirmed extensive hydrothermal alteration and the presence of copper mineralization, 15 high-priority targets were identified with prospective zones for large-scale copper-silver mineralization.
• Major mining companies including Rio Tinto, First Quantum, and BHP are moving into the KCB.

Financial Performance

Kavango's financial strategy has supported its rapid development while mitigating risk:

• Kavango raised £6.5 million to fund mine development and exploration activities.
• Operating gold production generated revenue from Q1 2024, offsetting exploration costs.
• Warrants issued with expiry dates extending to 2025 provide additional funding flexibility.
• Maintained a lean market cap of £20.4 million with potential for valuation growth tied to operational success.

Outlook for 2025

Kavango is well-positioned to scale its operations and unlock value in 2025:

• Gold Production Expansion: Hillside’s plant commissioning aims to enhance revenue generation, with additional contributions expected from Leopard and Nara projects.
• Copper Exploration Progress: Increased drilling and data interpretation at the Kalahari Suture Zone could attract partnerships with major mining companies.
• Resource Targeting: Aiming to define a 10-million-ounce gold resource in Zimbabwe’s greenstone belts.

Kavango Resources demonstrated resilience and strategic foresight in 2024, advancing its dual-focused portfolio. With gold production ramping up in Zimbabwe and promising copper potential in Botswana, 2025 could mark a transformational year for the company. Investors seeking exposure to undervalued exploration and production opportunities should closely follow Kavango's progress.

With a strengthened financial position, an expanded portfolio of prospective gold and copper-silver projects, and near-term production growth plans, Kavango is well positioned heading into 2025. However, as an early-stage exploration company, risks remain.