KSZ drilling programme to start early October

RNS Number : 3993O

Kavango Resources PLC

02 October 2019

 

PRESS RELEASE

2 October 2019

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KSZ DRILLING PROGRAMME TO START EARLY OCTOBER

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 that it has now signed a drill contract and mobilization of the rigs is underway. Drill collar positions have been decided upon and the first hole should be started early this month.

HIGHLIGHTS:

·    An initial programme of approximately 1,000m (3 holes) on the Kalahari Suture Zone ("KSZ") has been planned to intersect conductor targets at depths of between 200m and 400m.

·    A drilling contract has been signed with an experienced Botswana drilling company that has been involved in the discovery and development of a number of deposits on the Kalahari Copper Belt.

·    The drill collar positions have been decided upon. Access roads and the drill sites are now being prepared.

·    The vertical holes will be pre-collared to approximately 150m with reverse circulation drilling. Then diamond drilling (NQ size) will obtain core from the target.

·    All 3 proposed drill holes are within easy trucking distance to water sources for drilling and to the administrative town of Hukuntsi.

·    One of the conductor anomalies selected for drilling is hosted within a 10km x 6km magnetic anomaly, which is interpreted as a high level gabbroic* intrusive (magma chamber).

·    The other two targets relate to significant linear magnetic and conductive structures.

·    A presentation with drill target selection and geological models is now on our website at:

https://www.kavangoresources.com/projects/kalahari-suture-zone

Background:

Kavango is exploring for magmatic sulphide orebodies associated with high-level gabbroic magma chambers emplaced along the 450km long KSZ. The Company currently holds 13 Prospecting Licences along the KSZ amounting to over 8,300km².

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 geology of the KSZ area is obscured by 20m to 70m of recently deposited Kalahari sand, clays and calcretes (the "Kalahari Cover"). To see beneath the Kalahari Cover, Kavango has employed Airborne Electro-Magnetic ("AEM") surveying to map out the conductivity of the various structures and rock types that are in proximity to high level gabbroic sills, which have been identified by earlier regional magnetic surveys.

Massive metal sulphide deposits tend to be very conductive (<5 ohm/m). Modern AEM techniques combined with advanced computer modelling can map out the areas of high conductivity. If the highly conductive zones are positioned within the gabbroic sills, there is a strong possibility that they will host sulphide mineralization.

Target selection and drill collar positions

Although the AEM was often able to penetrate down to over 1,000m, Kavango prioritized targets within 400m of the surface and then only if they were in close association with high level gabbroic sills.

A total of 15 targets fitted the basic criteria, which were then surveyed on the ground by CSAMT (resistivity) surveys. Soil sampling was also conducted to test for Fe, Cu and Zn.

One of the targets chosen for drilling (RIT38) is associated with a large high level gabbroic sill (10km x 6km).  Location plans and CSAMT sections are shown on our website.

In order to test different areas of the KSZ, the second (RIT8) and the third (RIT50) drill holes are now located within two different linear conductors, with associated gabbro intrusives. CSAMT sections for both targets are also on the website.

Proposed drilling programme

Kavango has now signed a contract with an established local Botswana drilling company. Mobilization is underway and drilling is planned to start shortly. The programme is likely to take several weeks to complete, depending on drilling conditions. All holes will be vertical. The initial plan is to drill approximately 1,000m of which about half will be core drilling.

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

"Following the CSAMT surveying of targets selected from the detailed modeling of the AEM data, Kavango has identified a number of drill targets, which we believe are highly attractive. These priority targets are now ready for drilling. The drilling company has been mobilized and within a short period of time we will be drilling on the KSZ. This has been an innovative and systematic mineral exploration programme in a very under-explored region of SW Botswana that we believe has excellent potential to host significant base metal deposits."

Geological models, plans of the drill targets and CSAMT X-sections are provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.

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 program specifically developed by the Company for exploration in areas covered by Kalahari and Karoo sediments and sands.

The exploration program 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 AEM survey 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:

Kavango Resources plc                                                          [phone]

Michael Foster

[e-mail]

SI Capital Limited (Joint Broker)                                                   [phone]

Nick Emerson

Turner Pope Investments (Joint Broker)                                     [phone]

Andy Thacker

Zoe Alexander ([e-mail])

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

 

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