Kavango Resources has signed a contract to begin gold mining at the Hillside project, with the company funding the capital and receiving 100% of the revenue generated.
Since March 1st, the share price has increased by 15%, buoyed by news that the junior metal exploration company has begun generating revenue.
Kavango has recently secured its initial contract for immediate gold production at the Hillside Project, located southeast of Bulawayo in southern Zimbabwe. This project has been profitable for three consecutive years.
Currently, Hillside’s monthly revenue stands at approximately US$30,000.
At present, Hillside produces about 500 grams of gold each month. However, Kavango aims to increase this output to 1 kilogram per month by 2024.
Kavango CEO Ben Turney commented on the significant contract at Hillside, noting that investors might have underestimated the scope of opportunities available to the mining company in Zimbabwe.
Kavango will absorb all operational and development expenses at Hillside, in return for receiving 100% of the revenue generated.
Turney stated, “Our goal is to establish ourselves as a major gold producer in this region, and this contract marks our initial step towards that objective. In addition to this, we will persist in our extensive exploration efforts at Hillside, aiming to uncover larger, bulk gold deposits.”
