KCB: South Ghanzi - Morula target update

RNS Number : 5299C

Kavango Resources PLC

21 June 2021

 

PRESS RELEASE

21 June 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KCB: South Ghanzi - Morula Target Update

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

Following the announcement on 14 May 2021, Kavango has completed and analysed samples from 16km of infill soil-sampling at Morula, which confirms that the conductor/anomaly extends along strike for at least 12km.

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.

Morula is now our highest priority exploration target at South Ghanzi.

Highlights

Ø Previously, seven kilometre-scale conductors were defined by Airborne Electromagnetic ("AEM") surveys at South Ghanzi

-  Morula & Acacia identified as the highest priority targets in the short-term

-  Drilling planned as soon as the South Ghanzi Environmental Management Plan ("EMP") is approved

Ø Infill soil sampling of Morula

-  Four sample lines, each 4km long, 1km apart, sampled every 100m (using the high sensitivity deflation zone sampling method developed by Kavango).

-  Anomalous levels of copper (35ppm to 68ppm) and zinc (59pmm to 111ppm) correlate closely with results from original seven soil-sampling lines

-  Clearly defined mineralised zone of 12km, on a south-westerly trend, parallel to two steep anticlinal structures

-  Open along strike in both directions

Ø Assessment of optimal drill locations now underway at Morula and Acacia

-  Targets appear to be close to surface.

-  Minimal Kalahari sand cover

-  Estimated intercept depths of 120m to 200m

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

"Following identification of the Acacia and Morula conductor/soil anomalies we've focussed our exploration efforts on the Morula Target over recent weeks.

These initial results are highly encouraging. They emphasise the potential and scale of this 12km long mineralised zone. Morula is rapidly developing into one of the most exciting drill targets in our entire portfolio.

We plan to start drilling here as soon as we can, after we have received approval of our EMP."

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 four 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 about 2km wide with at least 12km 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.

-     Now, four new 4km long infill soil sample lines (1km apart with 100m sample intervals) have been completed 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 12km.

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

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. 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.

 

END

 

 

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