KSZ conductors ready for drilling

RNS Number : 3676N

Kavango Resources PLC

24 September 2019

 

PRESS RELEASE

24 September 2019

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KSZ CONDUCTORS READY FOR DRILLING

Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce it has selected targets for drilling at the Company's Kalahari Suture Zone project (the "KSZ"). An initial 1,000m drill programme, using diamond core and/or reverse circulation drilling to test for sulphide mineralisation, is scheduled to commence in early October.

HIGHLIGHTS:

·     77 conductors identified through two airborne electromagnetic (AEM) surveys, covering 4,060kms on the KSZ in SW Botswana;

·     Shortlist of 15 drill targets identified, following ground follow up survey work:

o  Targets ranked by prospectivity;

·     Kavango has selected three of the most prospective targets to drill:

o  Two of the conductor anomalies selected are hosted within a 10km x 6km magnetic anomaly, which is interpreted as a high level gabbroic* intrusive (magma chamber);

o  The third target relates to a significant linear magnetic structure;

·     The Company's preparation for a 1,000m diamond core and/or reverse circulation drilling programme designed to identify sulphide mineralisation, is at an advanced stage;

·     A drilling contract with an established Botswana company is expected to be signed shortly;

·     Drilling is planned to commence in early October.

Background:

Kavango is exploring for magmatic sulphide orebodies associated with high-level gabbroic magma chambers (feeder zones) emplaced along the 450km long KSZ. The directors believe the KSZ's geological model is analogous with the Norilsk/Talnakh (Siberia) and Voisey's Bay (Canada) Cu-Ni-PGE massive sulphide deposits.

The hard rock geology of the KSZ area is obscured by 50m to 70m of recently deposited Kalahari sand, clays and calcretes (the "Kalahari Cover"). The board believes this has led to the KSZ being largely underexplored for minerals.

The Company currently holds 13 Prospecting Licences along the KSZ amounting to over 8,300km².

Airborne Electro Magnetic (AEM) surveying:

In order to look below the Kalahari Cover, Kavango uses airborne Electro Magnetic (AEM) surveying and other geophysical techniques to help identify major geological units and associated massive sulphide deposits.

At the end of 2018, a Canadian company carried out an initial 2,000 line-km survey (Phase 1) over a portion of the Company's KSZ licences. This resulted in the identification of 26 conductors and a number of potential drill targets.

In February/March of this year, the Danish company, SkyTem, carried out a second 2,060 line-km survey (Phase 2) over the northern part of the KSZ. The SkyTem system was able to obtain data down to an average depth of 400m. As a result of this a further 51 conductors were identified.

Target selection

Kavango's geophysical consultant, Aarhus Geophysics Ltd, was able to create a 3D model of the geology from the data generated by SkyTem to identify potential targets.

Kavango's exploration team has now visited the majority of these targets to carry out ground based CSAMT** (resistivity) and geochemical soil surveys***. The goal was to rank the targets for prospectivity. As a result, the Company created a short list of 15 possible drilling targets, from which three have now been selected for an initial drill programme in October.

The objective of the current drilling programme is to intersect electro-magnetic conductors, which are associated with high level gabbro intrusive bodies. The selection is based upon the strength of the conductivity and the position of the conductors relative to the gabbroic bodies.

Two of the current targets are associated with a 10km x 6km magnetic anomaly, which is considered to be a large gabbroic magma chamber. The third relates to a significant linear magnetic structure along which there are several targets.

Proposed drilling programme

Kavango expects to sign a contract with an established local Botswana drilling company before the end of September and for mobilization to occur two weeks later.

The Company plans to drill at least 1,000m of diamond core and/or reverse circulation drilling, subject to ground conditions.

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

"It has been difficult to select just three drill targets from the large number of targets generated from the AEM data and our ground follow-up. The 3 targets that have finally been chosen fit the Company's geological model best and appear to be highly compelling. They are relatively shallow and are located precisely where a magmatic sulphide deposit should be found. Preparation is now underway to get the drill rigs on site and the programme started.

We will announce to the market further details once we have signed the drilling contract, the drill collar positions have been confirmed and the start date established". 

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.

An updated presentation plus new Research Note by SI Capital, our joint broker, can be found on the website.

Note to Editors:

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 15 prospecting licences covering 9,231 km² of ground, including 13 licences over most of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Cu-Ni-PGE rich sulphide orebodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting the World Class Norilsk Ni-Cu-PGE orebodies in Siberia.

Exploration Model:

Kavango's exploration model is based upon the search for magmatic massive sulphide orebodies buried beneath up to 200m of overburden. The identification of drill targets follows a carefully constructed exploration programme specifically developed by the Company for exploration in areas covered by Kalahari and Karoo sediments and sands.

The exploration programme is initiated by identifying the location of magmatic intrusive rocks from an analysis of the regional magnetic surveys published by the Botswana Government. This is followed by an airborne electro-magnetic survey (AEM) carried out over the magnetic anomalies that have signatures indicating the presence of intrusive rocks at depth. By using the latest generation of low frequency helicopter-borne EM, conductors lying below the Kalahari/Karoo cover can be identified for further investigation. These conductors can be tested on surface by very high sensitivity soil sampling***, which can detect metal ions transported from buried, metal rich massive sulphide deposits associated with the emplacement of magmatic intrusive rocks.

Kavango uses a ground based geophysical technique known as Controlled Source Audio frequency Magneto Tellurics (CSAMT)** to identify the exact location of the conductors. The shape, orientation and depth of the conductors will determine if the conductor should be drilled. The presence of a metal in soil anomaly is also used to prioritise the conductors.

The next phase of the exploration involves the drilling of the conductor to determine the presence of sulphide mineralisation and its metal component (discovery). This is followed by the evaluation of the discovery, which will determine whether the deposit is large enough and rich enough to make an economically viable mine (feasibility).

*Gabbro is a dense mafic intrusive rock, usually formed in an oceanic crust environment, when molten mass cools and crystallises at depth, forming a coarse grained, dark coloured rock, similar in its chemical composition to basalt.

**Massive sulphide (base metal) deposits can be detected by CSAMT because they conduct electricity easily (conductors) as opposed to silicate wall rocks (resistive).

***Kavango geologists have pioneered a high resolution soil sampling technique to detect ultra-fine metal particles which have been transported in solution from considerable depths of burial to the surface by capillary action and transpiration. Evaporation leaves the metal ions as accumulations within a surface "duricrust" which is then sampled and analysed. Zinc, which is the most mobile of the base metal elements (i.e. goes into solution easily) acts as a pathfinder to mineralization at depth.

For further information please contact:

For further information please contact:

Kavango Resources plc                                                          [phone]

Michael Foster

[e-mail]

SI Capital Limited (Joint Broker)                                                   [phone]

Nick Emerson

Turner Pope Investments (Joint Broker)                                     [phone]

Andy Thacker

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

 

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