Kavango Resources PLC (LSE:KAV, OTC:KVGOF) has commenced drilling at the B1 Conductor target on the company’s Kalahari Suture Zone project.
The B1 Conductor is a cross-formational, strongly conductive geophysical anomaly that has a conductance reading of 8,200 Siemens.
According to the company's model, the B1 Conductor is 475 metres by 550 metres in size.
Kavango believes the position, size, shape, orientation and conductance of the B1 Conductor suggest this target may have the potential to be large-scale, Karoo-age nickel-copper-platinum group element mineralisation.
Kavango expects to drill the current hole to a depth of 650 metres.
It has already paid the cash element of the drilling costs, with the balance to be paid in stock.
The company's working capital position is £2.1mln.
"This is the most important exploration hole ever drilled in the Kalahari Suture Zone,” said Ben Turney, chief executive of Kavango Resources.