Kavango Resources (LSE: KAV) has commenced commissioning of its Hillside gold project in Zimbabwe following the installation of a 50-tonne-per-day processing plant, signalling the company's transition from the construction phase to active processing operations.

Since July 1, feed material has been run through the plant's crushing, milling, gravity concentration, and carbon-in-leach (CIL) circuit. All feed has been sourced entirely from the company's Hillside operations, comprising both stockpiled and freshly mined gold-bearing sands. Between July 18 and July 28, the facility achieved an average capacity utilisation rate of 69%, and testing confirmed that gold is being successfully adsorbed within the CIL circuit.

"Our immediate priority is to commission the plant safely and methodically, optimising plant performance and establishing stable processing operations," said chairman Donald McAlister. "The knowledge gained during this phase will support our plans to expand processing capacity and accelerate production growth across the Hillside gold project."

The company also announced that it has established an on-site laboratory at the Hillside project. The laboratory is equipped with bottle roll testing, fire assay, and atomic absorption spectrometer capabilities, which will support ongoing plant optimisation as well as mining and exploration activities.

The current 50-tonne-per-day facility serves as a proof-of-concept plant, designed to validate Kavango's processing flowsheet ahead of a planned larger-scale commercial expansion. The approach is common among junior miners seeking to demonstrate metallurgical viability and generate operational data before committing to the higher capital expenditure of a full-scale facility.

Resource estimates and recovery expectations

The Hillside project's Bill's Luck Underground deposit hosts a JORC-compliant mineral resource estimate of 33,900 ounces of gold, grading 2.68 grams per tonne. JORC (Joint Ore Reserves Committee) is the Australasian reporting standard widely used in the mining industry to classify mineral resource estimates according to confidence levels. Metallurgical testwork conducted to date indicates expected operating recoveries in the range of 90% to 93% under commercial production conditions.

Zimbabwe ranks among Africa's notable gold-producing countries, and the Hillside project's progress comes as mining continues to be a focal sector for the country's mineral output. Kavango stated that it expects to provide further updates as commissioning advances, including milestones such as the achievement of first gold production and the completion of the commissioning phase.