KCB - S.Ghanzi - 18km long open target at Morula

RNS Number : 6879F

Kavango Resources PLC

19 July 2021

 

PRESS RELEASE

19 July 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KCB: South Ghanzi - 18km long open target at Morula

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce further encouraging soil sampling results from PL 036/2020 ("South Ghanzi Project") in the Kalahari Copper Belt ("KCB").

150km of soil sampling lines have now been completed over the Acacia and Morula targets on the South Ghanzi Project. Morula is now estimated to be at least 18km long (up from 12km previously announced) and between 800m and 2.4km in width. The anomaly remains open along strike in both directions.

In addition to this, a third sub-parallel geochemical anomaly has been identified immediately to the south of Morula. This target (designated name "Happy") appears to be at least 5km long and 700m wide.

Promising, in-soil copper readings have been recorded on all three targets (Acacia, Morula and Happy).

The South Ghanzi Project is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) ("Power Metal"). Kavango is the operator.

Highlights

Ø Extension of infill soil sampling

-  Additional infill soil sampling lines extended from 5.5km to 11km

-  Longer lines led to the identification of the Happy Target.

-  Total of 150km of soil sampling lines now complete over Acacia, Morula and Happy

-  2,105 soil samples taken

-  1,199 samples returned copper in soil readings >30ppm

-  1,050 samples returned zinc in soil readings >29ppm (zinc is a "pathfinder" element for sedimentary hosted Copper-Silver deposits)

Ø 11 additional sample lines over Morula have confirmed:

-  The target is at least 18km in length

-  Width varies from 800m to 2.4km

-  Open along strike in both directions

-  63 highly anomalous copper readings >45ppm, with 5 results >62ppm

-  Zinc in soils correlates closely with copper readings, including 95 highly anomalous zinc readings of >71ppm Zinc including 9 results >91ppm

-  The clearly defined mineralised system appears to follow a large regional fault/shear zone

Ø New copper/zinc in soils anomaly identified as the Happy Target:

-  5km long and 700m wide

-  Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm, and 28 samples assaying between 71ppm to 86ppm zinc.

Ø Next steps

-  Induced Polarization (IP) and Audio-frequency   Magnetotellurics (AMT) surveys planned to define drill targets

-  Further soil sampling on Acacia, Morula, Happy and other targets in the South Ghanzi Project

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

"Morula is big. The maps we will publish on our website of the soil sampling result paint a compelling visual picture, but we remain grounded at this stage.

As exciting as the development of Morula is, we will only ever be able to prove if there is an economic resource there by drilling. We expect the Environmental Management Plan to be awarded in the very near future. At that point we can finalise plans for mobilising a rig to the South Ghanzi Project.

I would like to thank our team in the Kalahari Copper Belt for their dedication, their creativity and their ambition. The decision to double the length of the soil sampling lines appears to have paid off, with the identification of the Happy Target.

With the additional funds we recently raised, Kavango can now plan confidently for much more extensive exploration in the field, including accelerated drilling as soon as we are able."

Background to Targets Morula and Acacia

Ø The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020

-  Situated within a fold "nose", which is plunging southwest

-  Lies just above the D'Kar - Ngwako Pan contact zone.

-  Made up of at least 4 individual pods, which emit strong EM readings.

-  Soil geochemistry directly over the anomaly demonstrates highly elevated levels of copper (>42ppm) and zinc (>75ppm).

-  Considered to be the highest priority drill target until the Morula Target was identified.

-  Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB

Ø The Morula Target is estimated to be between 800m and 2.4km wide with at least 18km of strike on a south-westerly trend along the central backbone of PL 036.

-  Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined AEM linear conductor.

-  Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the "Acacia" fold.

-  It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.

-  Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.

-  This was followed by four 4km long infill soil sample lines (1km apart with 100m sample intervals) to close the gap

-  All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 18km.

-  AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.

Ø The Happy Target is estimated to be between 700m and 2.4km wide with 5km of strike sub-parallel to Morula.

-  Discovered by extending soil sampling lines south of the Morula Target

-  Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm, and 28 samples assaying between 71ppm to 86ppm zinc.

The POW/KAV Joint Venture

The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.

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 has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moles is a beneficial shareholder of Kavango Resources plc.

NOTES TO EDITORS

 KAVANGO'S INTERESTS IN THE KALAHARI COPPER BELT

Kavango's exploration licenses in the KCB include:

The South Ghanzi Project

Ø 50 % working interests in prospecting licenses PL036/2020 and PL037/2020, to be held in a Joint Venture with Power Metal Resources (LSE:POW) (announced 21 September), which cover 1,294km ² .

The LVR Project

Ø Earning in a 90% interest in prospecting licenses PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd ("LVR"), which cover 1,091km ² .

THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING

The South Ghanzi Project and LVR 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 anticlines.

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 geochemical reduction-oxidation ("redox") boundaries (sometimes for many kilometres), since they often contain iron and have a higher magnetic signature than the surrounding rock.

SOUTH GHANZI EXPLORATION STRATEGY

The South Ghanzi PLs lie within the Central Structural Corridor of the Kalahari Copper Belt immediately south of the town of Ghanzi.

Sedimentary horizons hosting copper/silver mineralisation in the KCB are known to be conductive. AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.

Kavango's strategy in the KCB is to identify conductive targets and then to complete follow up investigation, using other proven exploration methods including geological mapping and testing of soil geochemistry through extensive sampling. The correlation of positive zinc and copper soil geochemistry readings to positive AEM results is a highly encouraging exploration vector.

Given Kavango's understanding of the regional lithology and stratigraphy of the KCB, the Company is optimistic about the progress it has made in South Ghanzi over recent months.

Specifically, the identification of a number of smaller anticlines associated with conductors suggests there are seven large, promising drill targets at South Ghanzi.

 

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