Kavango Resources PLC (LSE:KAV, OTC:KVGOF) told investors that its Hillside gold project in Zimbabwe has moved into live processing after the installation of a 50-tonne-per-day plant, marking the transition from construction to operational commissioning.
Processing began on 1 July using stockpiled gold-bearing sands and freshly milled material from the Hillside Milling Centre. The plant averaged 69% capacity utilisation between 18 and 28 July, while tests of loaded carbon confirmed that gold was being successfully adsorbed within the carbon-in-leach circuit.
Kavango will now progressively blend run-of-mine ore into the feed as it optimises the crushing, milling, gravity concentration and CIL circuits. It has also established an on-site laboratory with bottle-roll, fire-assay and atomic absorption spectrometer capabilities to support recovery optimisation, grade control and exploration.
The proof-of-concept plant is the first phase of Hillside’s development and will inform future expansion decisions. Bill’s Luck Underground hosts a JORC-compliant resource of 33,900 ounces of gold at 2.68 grams per tonne, with commercial plant recoveries expected at between 90% and 93%.
Chairman Donald McAlister said commissioning would help the company establish stable operations and support plans to expand processing capacity. Kavango expects to update the market when it reaches first gold production and completes commissioning.
In London, Kavango shares jumped 16% in Monday morning's trade, changing hands at 0.79p
