KCB - Significant expansion of Kanye Resources

RNS Number : 1551H

Kavango Resources PLC

02 August 2021

 

PRESS RELEASE

2 August 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KCB: significant expansion of Kanye Resources

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that Kanye Resources ("Kanye") has completed the acquisition of 8 new prospecting licences ("PLs") in the Kalahari Copper Belt ("KCB") for a total consideration of US$430,000.

Kanye is a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) ("Power Metal"), which already owns the South Ghanzi Copper Exploration Project ("South Ghanzi") and the Ditau Camp Rare Earth Elements (REEs") Exploration Project ("Ditau"). Kavango is the operator of Kanye.

The acquisition of the 8 new prospecting licences represents a significant expansion of Kanye's exploration footprint in the highly prospective KCB. Kanye now controls 4,257km² of exploration ground in its search for major copper/silver deposits.

Highlights

Ø Kanye has completed two separate acquisitions to purchase 100% of the eight PLs. All the PLs have now been transferred to Kanye by the Ministry of Mines and new Prospecting Licences issued. These include:

-  Four PLs in proximity to the town of Ghanzi in the central zone of the Botswana KCB from Shongwe Resources (Pty) Ltd for US$200,000 (the "South Ghanzi Extension Licences").

-  Four PLs near the town of Mamuno on the Namibian border for US$230,000, from Vinmarsh Interprises (Pty) Ltd (the "Mamuno Licences").  

-  Kanye's now controls 4,257km² of PLs in the KCB

Ø The South Ghanzi Extension Licences

-  Cover 481km²

-  2 of the new PLs are contiguous with Kanye's existing South Ghanzi Project and the other 2 are within the same structural zone.

-  Exploration at South Ghanzi is considerably advanced, with 7 major copper/silver targets identified

-  Drill locations are currently being finalised

Ø The Mamuno Licences

-  Cover 2,482km² and are on the western boundary of the Botswana KCB

-  Feature a large anticlinal (possible dome) system, similar to that recently identified at South Ghanzi.

-  Appear to include at least 3 anticlines in this system, with intervening synclines (highly prospective formations for copper/silver exploration)

-  Include visible outcropping of Ngwako Pan and D'kar Formation contacts, with little to no Kalahari Sands

-  Are well served by the tarred Trans-Kalahari Highway (Gaborone-Windhoek-Walvis Bay)

Ø KCB Environmental Management Plan ("EMP")

-  Kavango has received final feedback from the Ministry of Mines

-  Final processing of the KCB EMP is underway

-  The proposed EMP covers both the South Ghanzi Extensions and Mamuno Licences

Ø Immediate expansion of exploration in the KCB

-  Desktop analysis of all known data sources underway to enhance exploration models

-  Kavango to deploy 4 field teams to the KCB to begin extensive soil sampling

-  Plans being finalised to increase number of teams on the ground

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

"The acquisition of the South Ghanzi Extension and Mamuno Licences immediately quadruples Kanye Resources' land holding in the burgeoning KCB..

While our ongoing drill campaign in the Kalahari Suture Zone continues to attract the most headlines, our interests in the KCB could prove to be company makers in their own right, both for Power Metal Resources and Kavango.

The exploration model in the KCB is well established, but our team on the ground has developed a number of innovative in-house methods, which we are confident give us a strong competitive advantage. Refinement of these exploration methods has helped us identify what we believes is highly prospective ground and encouraged us to move swiftly to acquire the new prospecting licences.

With the excellent progress we are making at South Ghanzi, expanding our holdings here was an obvious move. However, the inclusion of the Mamuno Licences could prove to be very exciting. Our initial analysis suggests the geological model looks to be very similar to that at South Ghanzi, but the formation sizes are much bigger. We are looking forward to deploying our teams to the area as soon as we are able to."

The South Ghanzi Extension and Mamuno Licences

Further to the announcement on 29 March 2021, Kanye has completed the acquisition of the South Ghanzi Extension and Mamuno Licences

The South Ghanzi Expansion PLs are four relatively small licences, two of which are adjacent to the Ghanzi South Project and appear to contain structures that Kanye has identified as being prospective from Airborne Electromagnetic surveys. Of the other two, one is an area previously relinquished by the former MOD Resources containing a soil-sampling anomaly and the other is an area west of PL036/2020 which, though small, has excellent prospectivity.

The Mamuno Licences are four contiguous PLs that cover a large anticlinal system (dome?) that is plunging towards the west - similar to that recently identified at South Ghanzi (PL 36/2020). However, the anticlinal structures at Mamuno appear to be significantly bigger. The dome is made up of at least three anticlines with intervening synclines. The Ngwako Pan and D'kar Formation contacts (a possible redox boundary?) is outcropping or sub-outcropping. This contact appears to extend for over 100km. Over much of the ground, the Kalahari sands are quite thin.

The area is well served by the Trans-Kalahari Highway, which links Gaborone/Johannesburg with Windhoek/Walvis Bay (international port). Mamuno is a border town (Namibia/Botswana).

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. All PLs have been transferred into a 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:

Kanye Resources

Ø 50 % working interests in 10 prospecting licenses held in a Joint Venture with Power Metal Resources (LSE:POW), which cover 4,257km 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) because 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 KCB 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.

 

END

 

 

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