Australian explorer Kaoko Metals has retained A$1.795 million (about N$20.7 million) of its planned first-year exploration budget for its Namibian projects after spending A$270,304 (about N$3.1 million) by the end of June, as the company prepares to launch its maiden diamond drilling campaign at the Chalkos Copper-Silver Project.
The remaining budget forms part of a planned A$2.065 million (about N$23.8 million) Year 1 exploration allocation outlined following the company’s oversubscribed A$6.5 million (about N$75 million) initial public offering and listing on the Australian Securities Exchange in May. The company said that actual expenditure to date remains consistent with the objectives and business plan set out in its prospectus.
The June quarter marked what managing director Gerard O’Donovan described as “a defining period” for Kaoko Metals, during which the company completed its ASX listing, secured a 100% interest in the Chalkos Copper-Silver Project, settled the initial earn-in for the Karibib Gold-Copper-Tungsten Project and rapidly transitioned from a newly listed company into an active explorer with two field programmes underway in Namibia.
Fieldwork undertaken during the quarter included geological mapping, structural interpretation, trenching, geochemical sampling, drone surveys, drill target definition and logistics planning across both projects, laying the groundwork for the company’s first drilling campaign.
One of the most significant decisions taken during the quarter was to change the company’s exploration sequence. Following technical work at the Donkey Hill and Otniel prospects, Kaoko elected to prioritise maiden diamond drilling at Chalkos ahead of the previously planned programme at Karibib after identifying more compelling drill targets and achieving faster-than-expected progress on site access and drill readiness.
The company said local participation has also formed an important part of the programme. Immediately after listing, a Namibian contractor was engaged to improve site access ahead of fieldwork and drilling, while Kaoko said the engagement of Namibian contractors and communities forms a core part of its operational strategy and commitment to responsible in-country development. That approach has continued with the appointment of Optimine Exploration & Drilling Namibia to undertake the maiden 2,000 to 3,000 metre diamond drilling programme at Donkey Hill and Otniel. Mobilisation is expected within one to two weeks of the contract award, with drilling to begin shortly afterwards.
The remaining N$20.7 million exploration allocation will now support the next phase of work, including mobilisation of drilling equipment and personnel, completion of drill-site preparation, commencement of diamond drilling, geological and structural logging of drill core, laboratory analysis of drill samples and continued project-scale geochemical sampling at Karibib before integrating those results with geological and historical datasets to generate additional drill targets.
Beyond quarter-end, exploration momentum continued with the discovery of new outcropping copper mineralisation at the Bootless prospect, extensions to known mineralisation at Donkey Hill and Otniel, confirmation of high-grade copper, gold and tungsten mineralisation at Karibib and the appointment of consulting geologist Callum Standing to strengthen the company’s technical capability as drilling commences.
O’Donovan said the company had moved from completing its listing to positioning itself for drilling within a matter of months.
“With drilling now imminent, a strengthened technical team and multiple exploration catalysts ahead, we see Kaoko entering an exciting phase of its potential,” he said.
Kaoko ended the June quarter with A$5.228 million (about N$60.3 million) in cash and cash equivalents, with its quarterly cash flow report estimating that available funding is sufficient to support approximately 6.7 quarters of operations at its current rate of expenditure.
