KCB drill strategy finalised

RNS Number : 9662A

Kavango Resources PLC

28 September 2022

 

PRESS RELEASE

28^th September 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KCB drill strategy finalised

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) ("Kavango") is pleased to report finalisation of its drill strategy for four of its prospecting licences ("PLs") in the Kalahari Copper Belt ("KCB") (the "Drill Strategy").

Over the last 12 months, Kavango has focussed its field exploration in the KCB on PLs 082/2018, 036/2020, 049/2020 and 052/2020 (the "Four PLs"). The Drill Strategy is the culmination of these efforts.

HIGHLIGHTS

-  Kavango's objective in the KCB is to make one or more discoveries of economically viable copper/silver deposits across its 12 PLs in the region

-  The Drill Strategy is a flexible programme, designed to be delivered in staged phases and to a variety of depths

-  Kavango expects to conduct ongoing optimisation as drill results are known

-  Kavango has so far delineated 13 priority target areas (the "Priority Targets") across the Four PLs:

-  188 drill collar locations identified

-  Up to 37,600m of reverse circulation ("RC") and diamond drilling proposed

-  The Priority Targets are situated in underexplored areas of the KCB, which are in the vicinity of known high-grade copper/silver deposits

-  Kavango identified the Priority Targets through:

-  Geophysical surveying and data interpretation (airborne magnetics & airborne electromagnetics)

-  Geological mapping, confirming favourable regional structures

-  Intensive soil sampling, with recorded values of up to 119 parts per million ("ppm") copper (pXRF values)

-  Kavango will continue further field exploration across all 12 of its PLs in the KCB, in parallel to any drilling. The Company expects to add more target areas and drill collar locations to its inventory as this work progresses

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Kavango has provided maps showing the Priority Targets on the Company's website, via the link below:

https://www.kavangoresources.com/media-library/news-release-media/rns28september2022

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Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"I am extremely happy to provide an update on this major development in the Kavango story. With such a large, prospective land package in the Kalahari Copper Belt (KCB), it is vital that we are clear on the steps required on our road to discovery.

We have undertaken extensive geological, geochemical, and geophysical work to define our target areas precisely, with the aim of maximising our chances of success. If copper exists on our ground, I am confident that our highly experienced technical team will find it.

Through our flexible proposed drill programme, we have a total of 188 viable drill locations over 13 priority areas, each of which we believe gives us the chance of encountering copper mineralisation. In total our exploration drilling could total as much as 37,600m, which emphasises the scale of Kavango's opportunity. Our ground could host multiple deposits, which is why we have been as thorough as we have in our approach.

With such large target areas to go for, we've worked diligently to rank our specific drill targets in order of priority. Our goal is to become a major player in the KCB and I look forward to updating shareholders in due course as we commence our maiden drill campaign in the KCB."

Drilling strategy detail

Kavango has carefully designed a methodology for generating and ranking targets across its KCB licences, centred on combining multiple data sets. The Company's approach brings together the combined geological, geochemical, and geophysical experience of its four senior technical team members, who together have more than 90 years of exploration experience. This approach includes:

I)  Geological mapping

-  This allows for the recording and measuring of licence geology, providing the bedrock for interpretation of geochemical and geophysical data

II)  Soil sampling

-  After identifying anomalous areas through soil sampling, Kavango's team revisit each site to follow-up and 'ground truth', this allows Kavango to avoid false anomalies. It ensures that ongoing work focuses on the highest-priority targets - anomalies that are not just at elevated levels but also are continuous across multiple lines

III)  Regional Airborne Magnetic ("AM") surveying

-  AM data is readily available in Botswana and provides a basis for validating geological mapping. Variations in magnetic mineral content allow for the identification of strata within geological sequences that can be used both within and across adjacent licence boundaries. This technique can significantly assist with the identification of large scale deposits, which are controlled by overall regional geological trends

IV)  Licence specific Airborne ElectroMagnetic ("AEM") surveying

-  Kavango has flown AEM surveys across a number  of its licences. This data is used to identify conductive bodies that could represent metal sulphides, and to assist detailed mapping of potential lithologies and structures

V)  Target refinement

-  Kavango carries out additional work, including infill lines of soil sampling and additional geophysics, such as Controlled-source Audio-frequency Magnetotellurics ("CSAMT"), to confirm and better define its highest priority drill targets

To date, geological mapping and soil sampling, supported by the ongoing integration of AM and AEM, have taken place across licences PL082/2018, PL036/2020, as well as the "Mamuno" licences (PL049/2020 and PL052/2020). These Four PLs sit within Kavango's wider portfolio of 12 KCB licences covering 5,065km².

The Company's work has led to it defining and ranking 13 Priority Targets, which include values of up to 119ppm copper and are described in more detail in the table below. Because the Priority Targets are still being refined, it should be noted that the ranking of each may change as further data becomes available.

Kavango has currently identified a total of 188 drill collar locations over the Priority Targets for a total of up to 37,600m of test drilling. The Company's goal is to make multiple significant copper/silver discoveries across its PLs. Kavango's confidence is based on the quality of its work, which has highlighted the Priority Targets' favourable geology, structural setting, and position relative to known KCB deposits.

In this way, Kavango plans to use the results from its initial drilling to inform deeper drilling and, potentially in future, resource drilling. The Company expects to add additional targets over time to its inventory, as it continues with further field exploration across its eight other KCB licences and unexplored areas within the Four PLs.

SCOPING FOR REVERSE CIRCULATION AND DIAMOND DRILLING PROGRAMME IN THE KCB
Licence/ Prospect	Target name	No. of proposed holes / metres	Description	Supporting data
PL036/2020 (Infill soils underway, waiting analysis. Tromino surveys in progress. Regional aeromagnetic interpretation in progress.)	Acacia	30 drill collar locations / 6,000m	Wide anomaly around the central part of the fold nose of the 'Acacia fold', measuring 2km x 2km. Possible source of this anomaly could be radial axial fold fractures, tapping into the Ngwako Pan/D'kar contact along the axis of a SW plunging anticline.	Max value 56ppm Cu, 5 values above 20ppm Cu. Coincident Zn (+20ppm Zn) identified
	Morula	30 drill collar locations / 6,000m	Wide anomaly just south of the Acacia fold nose. Measuring 3km x 3km with a general NE-SW trend parallel to the regional stratigraphy.	Max value is 38ppm Cu. (previous orientation survey associated this anomaly with calcrete/drainage)
	Happy	10 drill collar locations / 2,000m	Low-tenor teardrop shaped anomaly to the south. 9km long and 1km at its widest. Located in the centre of an interpreted anticline. No exposure in the area.	Defined by +15ppm Cu values. Maximum value is 25ppm Cu. Supporting anomalous Zn values (+20ppm Zn)
	Kudu	4 drill collar locations / 800m	Newly identified NE-SW trending zone of anomalous Cu values. 18km long (non-continuous) target zone, within which are possible multiple targets including Lines 69 & 83. This trend is distinct, sub-parallel to stratigraphy and tight. Narrow focus suggests this could be a steeply dipping feature, and/or a sharp structural feature such as a fault. It is also immediately adjacent to what Kavango's geologists have mapped as a structural repetition of the key Ngwako Pan-D'kar contact.	Line 39. Defined by 8 values in excess of 30ppm Cu; max value 110ppm Cu. Line 69 Geochemical high 46ppm Cu value Line 83 Geochemical high 51ppm Cu value
PL082/2018 (Infill soils completed, analysis in progress. Tromino surveys in progress. Regional aeromagnetic interpretation in progress.)	Central Zone	45 drill collar locations / 9,000m	Follows the geological trend of a possible sub cropping anticline. This anticline forms the dome that hosts the Zeta and Plutus copper deposits identified by Discovery Metals, to the NE. The elevated copper values are postulated to represent a possible leakage zone from a redox contact underneath.	Defined by Cu >30ppm, max 119ppm, plus anomalous zinc. Extends over some 27km and is also characterised by a zone of elevated magnetic response. Peak values along trend, in particular where supported by favourable structure will form initial focus. Quartz veining observed in field. Drilling will target intersection of structure and favourable stratigraphy at depth.
	Northern Zone	15 drill collar locations / 3,000m	Robust anomaly extending over 8 km of geological strike length and 400m at its widest, no outcrop. Local drainage base level.  Anomaly is located on the edge of a magnetic high, which bears similarities to the Ourea and Quirinus copper deposits identified by Discovery Metals in 2009. These deposits are interpreted to be on the limbs of tight anticlines.	Cu: >30ppm, max 39.7ppm. Anomalous zinc. Previous work by Kavango identified a coincident elevated AEM response in this area. Target is an extensive one, with elevated metal values and high magnetic response - initial drilling could verify whether this relates to possible Karoo volcanics, or the targeted sediment hosted strata bound mineralisation.
	South conductor	12 drill collar locations / 2,400m	High conductivity area identified by Kavango. Faulted. Further field follow up planned.
	SW high	3 drill collar locations / 600m	Single point high geochemical value. Further field follow up planned.
Mamuno (PL049/2020, PL052/2020) Targeted AEM completed. Interpretation in progress.  Tromino to continue soon. Infill soils planned. Regional aeromagnetic interpretation in progress.	Main Zone (L6, L7, L10)	33 drill collar locations / 6,600m	Single large target 5km x 3.5km Trending NNE-SSW, the geochemical anomaly straddles the mapped prospective redox horizon on the limbs of a possible regional anticline. Thicker sand cover here may attenuate the geochemical signal, while the very flat terrain could cause dispersion of the anomaly by sheet wash. No obvious drainage that could have caused contamination or a false anomaly.	Wide area of anomalous values >30ppm Cu. Peak value of 73ppm Cu. KAV has recently flown an AEM survey over this anomaly; interpretation is pending.

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.

For further information please contact:

Kavango Resources plc   

Ben Turney

[e-mail]

 First Equity (Joint Broker)

[phone]

Jason Robertson   

SI Capital Limited (Joint Broker) 

[phone]

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

NOTES TO EDITORS

KAVANGO'S INTERESTS IN THE KALAHARI COPPER BELT

Kavango's exploration licences in the KCB include:

Kanye Resources

Agreement to acquire 100% working interest (Kavango currently owns 50% working interest) in 10 prospecting licences held in a Joint Venture vehicle (Kanye Resources) with Power Metal Resources (LSE:POW), which cover 4,256km². Terms of the acquisition, which is subject to the issue of a prospectus by Kavango, are provided in the announcement dated 8 July 2022.

The Mamuno Project Area consists of four of the Kanye licences (PL046/2020, PL049/2020, PL052/2020, PL053/2020).

The LVR Project

Earning in a 90% interest in prospecting licences PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd ("LVR"), which cover 809km².

THE KCB PROJECT GEOLOGICAL SETTING

Kavango's KCB Project areas include lengthy redox boundaries, close to surface, that represent excellent exploration targets.

The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.

Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges and shear zones. Fold hinges pointing upwards are known as anticlines, while the downward pointing hinges are called synclines.

Several large copper/silver ore deposits have been discovered on the KCB in association with anticlines in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and many are amenable to open pit mining operations.

Accumulations of metals can be traced along the strike of redox boundaries (sometimes for many kilometres) because they often contain iron and have a higher magnetic signature than the surrounding rock. These have recently been successfully mapped by Kavango's exploration teams.

GLOSSARY

AEM:  Airborne Electromagnetic Survey. This uses an energised loop to induce currents in underlying lithological units, which resultant magnetic field can then be measured.

CSAMT:  Abbreviated from Controlled Source Audio frequency Magneto Telluric. An AMT survey is an electromagnetic survey technique that uses naturally occurring passive energy sources, and which can electrically map geologic structures to depths of 500 metres or more.

Inversion:  Geophysical inversion refers to mathematical and statistical techniques for recovering information on subsurface physical properties, from observed geophysical data

KCB:  Kalahari Copper Belt. An area of southern Africa, running ENE-WSW from Botswana into Namibia, within which multiple economic copper-silver sedimentary rock hosted deposits have been discovered.

RC:  Reverse Circulation drilling. This is a cost-effective method of drilling that uses compressed air to drive a downhole hammer, which breaks rock into chips that are forced up an internal tube in the drill rod, minimising risk of contamination by wall-rock.

Redox boundary:  Reduction and oxidation boundary, at which the chemical oxidative state of chemical species changes, typically resulting in precipitation of metal salts. The Ngwako Pan - D'kar formational contact on the KCB is an example of this.

Tromino Survey : A shallow seismic technique, using natural vibrations, which can provide a cross-section view of  geology, particularly in shallow sediments.

 

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