fundamentals. However, as demand continues to strengthen, the global gold industry faces an increasingly strained discovery pipeline. According to S&P Global, the number of large-scale new gold discoveries has declined significantly over the past two decades despite record exploration expenditure. Existing operations are also encountering declining ore grades, increasing technical complexity, and rising operating costs, making it more difficult to replace depleted reserves through discoveries alone. Similarly, the time it takes to bring a new gold project from initial discovery through permitting, financing, construction, and commercial production is increasing according to S&P Global, heightening both capital requirements and project timelines. Whilst recycling provides an important secondary source of supply, this increased by only 2.8% in 2025 according to Metals Focus. Primary mine production remains essential to meeting future demand, placing greater strategic value on companies capable of bringing new supply into production. Against this backdrop, LSE and VFEX- listed Kavango Resources offers a timely example of how a supportive gold market can help an emerging producer move from small-scale mining towards modern, scalable operations. The company’s Zimbabwean strategy is centred on Hillside, where existing output, defined resources and new processing capacity are beginning to come together. Within Zimbabwe’s highly prospective Filabusi Greenstone Belt, Kavango’s production. Kavango has taken a phased approach to development, starting first with the development and upgrade of mining at the existing Bill’s Luck underground to support processing capacity growth. At Hillside, optionality exists in the form of three additional prospects – Nightshift, Steenbok and Britain – all hosted within the same gold- bearing deformation zone, with potential for both open-pit and underground mining. During August 2026, the company announced the successful installation and commencement of commissioning at its 50 tonne-per-day gold processing plant, after processing commenced in July. wholly owned Hillside project is advancing towards commercial
50 tpd proof-of-concept proccessing plant at Hillside.
Diamond drill core from Hillside.
the Middle East where gold maintains deep cultural and economic significance. Despite jewellery consumption falling by 18% in 2025 due to record-high gold prices, total spending value rose to a record $172 billion according to the World Gold Council, showing sustained demand. Similarly, technological applications including electronics, medical devices, and aerospace provide a further source of industrial demand, strengthening the metal’s long-term
inflation have encouraged investors to increase their holdings in safe-haven assets. Whilst equities and other higher risk assets remain sensitive to interest rate changes and economic growth forecasts, gold continues to provide portfolio diversification. Beyond investment demand, the physical gold market remains well supported. Jewellery consumption continues to highlight significant global demand, particularly across Asia and
OCTOBER 2026 | www.modernminingmagazine.co.za MODERN MINING 13
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