Kavango Resources delivered a year of operational progress in 2025, expanding its Zimbabwe workforce and advancing the Hillside gold project, where a 50-tonne-per-day processing plant is currently under construction. The forecast also accounts for capital expenditure completion at Hillside, the transfer and release of escrow funds at the Nara project, and planned expenditure in Botswana.
The Hillside Project, comprising 43 claims over 476 hectares in Matabeleland’s Filabusi Archean Greenstone Belt, remains Kavango’s flagship asset. The plant will feature a two-stage crushing and milling circuit, cyanidation, gold recovery, and tailings disposal, with commissioning expected in Q2 2026. Bill’s Luck Mine will serve as the primary ore source for the 50t/d plant. Scoping work is underway to scale output to 250t/d, targeting 8,000 ounces per annum.
At Nightshift, 800 metres west of Bill’s Luck, a resource estimate published in October 2025 outlined 19,000oz of gold at 0.86g/t, including 11,000oz Indicated at 0.78g/t and 9,000oz Inferred at 0.98g/t. The shallow deposit shows potential for an open-pit operation in the near term and underground mining longer term, with further drilling planned along strike.
At Steenbok, 3,232 metres of diamond drilling across seven holes in Q1 2025 brought total drilling to 3,479 metres. The work identified 69 significant gold intersections above 0.7g/t, including 41 intersections above 1g/t. Kavango is considering a mechanised high-grade underground operation, while artisanal mining is currently paused pending a tribute agreement.
The Lonely Project, north of Hillside and adjacent to a historic mine that produced over 1 million ounces, is progressing through early-stage exploration following drone magnetics, soil geochemistry, and geological mapping. The company’s option on Leopard North expired unexercised in June 2025.
The Nara Project, 22km south of Hillside, covers 45 claims and includes five historical mines that produced over 93,000oz of gold, with the N1 mine alone yielding 72,468oz at 10g/t before closing in the 1980s. Kavango announced a maiden tailings resource in March 2024 of 77.7kt Measured at 0.54g/t for 1,347oz, 221.9kt Indicated at 0.65g/t for 4,637oz, and 299.6kt Inferred at 0.66g/t for 258oz. Completion of the acquisition is ongoing, with both parties committed to finalising legal formalities.
Gold production in 2025 came from three sources: milling ore from the Bill’s Luck Mine, processing artisanal ore, and leaching sands from toll treatment. The company recovered 1,020g of gold from Bill’s Luck ore, 8,704g from leach of sands, and 13,708g from artisanal ore processing. Mining at Bill’s Luck uses underhand stoping with airlegs to minimise dilution, with ore and waste manually hoisted to a central shaft.
Kavango enters 2026 positioned to transition from exploration to commercial gold production in Zimbabwe while advancing its copper-silver strategy in Botswana.
The exploration and development group ended the year with an opening cash balance of US$10.8 million as at 1 March 2026. Directors said the balance, combined with an undrawn Comarton funding facility, provides enough capital to cover minimum exploration expenditure under licence conditions and overhead costs for at least 12 months from the date of the financial statements’ approval on 28 April 2026. The detailed cash flow forecast extends through to July 2027.
No dividend was proposed for the 2025 financial year, in line with the previous year.
Kavango’s 2025 CSR programme included commissioning a solar-powered borehole for a local community, donating building materials for livestock troughs, providing groceries and Christmas gifts to a children’s home, donating trees to the Forestry Commission, and fencing a local school. The company also sponsors final-year students at the Zimbabwe School of Mines and offers internships.
In Zimbabwe, the company’s headcount nearly doubled during the year, rising from 90 employees at the start of 2025 to 181 by year-end, with 195,640 manhours worked and no lost time injuries recorded. Post year-end, an artisanal miner working in an unlicensed shaft within the Hillside licence area was taken to hospital following an incident and later died. Kavango said it continues to enforce strict safety policies across the group. In Botswana, staffing was reduced from 30 at the beginning of the year, including 25 temporary workers, to 5 by year-end, with 44,107 manhours worked and no lost time injuries.
The board saw several changes during the year. David Smith stepped down on 30 June 2025, while Matthew Benjamin Turney departed on 22 October 2025. Gautam Dalal joined the board on 1 July 2025. The current directors are Hillary Gumbo, Peter Wynter Bee, Donald McAlister, Alexandra Gorman, and Gautam Dalal, with Peter Wynter Bee serving as Chairman and Interim CEO.
On the environmental front, Kavango noted its commitment to reducing greenhouse gas emissions from its airborne geophysics and drilling activities. Initiatives include the installation of solar power and battery storage at its Zimbabwe office and exploration camp. The company remains exempt from Streamlined Energy and Carbon Reporting requirements as its annual energy consumption is below 40,000 kWh.
Kavango Resources sees Zimbabwe as a prime destination for gold exploration, citing its attractive geology, supportive infrastructure, and favorable regulatory framework. The country’s underexplored terrain offers a unique opportunity for large-scale metal discoveries, making it an exciting frontier for investment.
With a skilled workforce and growing institutional interest, Zimbabwe is poised to attract companies leveraging modern technology and long-term investment strategies. Kavango Resources, being an early mover, is well-positioned to capitalize on this opportunity and contribute to the country’s mining growth.
