Kalahari Copper Belt - Joint Venture signed

RNS Number : 1312D

Kavango Resources PLC

17 February 2020

 

PRESS RELEASE

 17 February 2020

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Kalahari Copper Belt - Joint Venture signed

Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard Listing Segment of the main market of the London Stock Exchange and targeting the discovery of mineral deposits in Botswana, is pleased to announce that, following the announcement of a signing of a Memorandum of Understanding on 2 September 2019 between the company's 100% owned Botswana subsidiary Kavango Minerals Pty Ltd and the Botswana registered company LVR GeoExplorers (Pty) Ltd ("LVR"), the Company has now signed a Joint Venture Agreement ("JVA") in respect to two Prospecting Licences (PLs) situated in the Botswana section of the Kalahari Copper Belt ("KCB").

PL 082/2018 lies 30km north of MOD Resources' T3 mine development and is completely surrounded by MOD/Metal Tiger/Sandfire PLs including their T5, T6, T9, T10, T14 and T15 targets. The PL lies astride the main Ghanzi - Maun tarred highway. PL 083/2018 is close to the Namibian border south of the Trans-Kalahari Highway and adjacent to a block of PL's held by Kopore Metals Limited.

The JVA provides for a staged Earn-In, which will give Kavango the right to earn up to a 90% interest in both or either of the PLs. The principal terms of the JVA are:

·    In the first 12 months following the signing of the JVA, Kavango will be obliged to spend BWP1.25m (circa £92,000) on each of the licences to acquire a 25% interest.

·    Kavango's interest in either of the PLs can be extended by further expenditure in 3 stages to earn a maximum of 90%.

·    Kavango will be the managers of the exploration and development but will have the option to withdraw at any time following a two month notice period.

·    Exploration of these licences will commence shortly.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

"The signing of the JVA with LVR represents an excellent opportunity for Kavango to acquire an interest in some highly prospective ground in the KCB area, which is now regarded as one of the world's most promising under-explored copper provinces. Our exploration programme will start shortly. We believe that the JVA with LVR represents excellent value for shareholders, who now have the prospect of acquiring an interest of up to 90% in these PLs. We will continue to consider other opportunities in this exciting copper province in the coming months."

Further information in respect of the Company and its business interests is provided on the Company's website at  www.kavangoresources.com and on Twitter at #KAV.

Notes for Editors:

Sedimentary copper deposits are attractive to mineral exploration companies because they can form orebodies that compete with porphyry deposits on tonnage but are generally of higher grade. Examples include the Polish Lubin deposit with 2.6Bt @ 2% Cu and the Congolese Kamoa-Kakula deposit with 2.6Bt @ 2.6% Cu. They can also contain 'pockets' of several hundred million tonnes at over 4% Cu. A compilation of all sediment-hosted copper deposits globally shows that 19 of the 28 known giant deposits, defined as >2Mt of contained copper, occur within Southern Africa. The most recent deposit to join the giant category is Cupric Canyon's Zone 5 discovery in the Kalahari Copper Belt in Botswana, along strike of MOD's T3 deposit. It establishes the Ghanzi-Chobe basin as only the seventh basin globally to host a giant sediment-hosted copper deposit. To date, the Ghanzi-Chobe belt holds ~7Mt contained Cu in several deposits, with resource grades ranging from 0.9%-2.2% Cu at an average 1.4% Cu grade, well above the average (<1% Cu) feed grade of copper mines globally. Of the well-endowed belts globally, the Kalahari Copper Belt is the only one with an accelerating discovery rate. Of note, the belt shows potential for both open-pit and underground mineable resource styles.

For further information please contact:

Kavango Resources plc                                                                                     [phone]

Michael Foster

[e-mail]

SI Capital Limited (Joint Broker)                                                                            [phone]

Nick Emerson

Turner Pope Investments (TPI) Limited (Joint Broker)                                         [phone]

Andy Thacker / Zoe Alexander

****************************ENDS**************************************

 

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