Phase 2 AEM survey: data processing results

RNS Number : 1464B

Kavango Resources PLC

05 June 2019

 

PRESS RELEASE

 5 June 2019

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

PHASE 2 AEM SURVEY: DATA PROCESSING RESULTS

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 processing of the data from Phase 2 of the airborne electromagnetic (AEM) survey carried out by SkyTEM over the northern section of the Company's prospecting licences that cover much of the Kalahari Suture Zone (KSZ) structure in southwest Botswana has now been completed.

HIGHLIGHTS:

·    The results of the data processing and modelling have shown that SkyTEM's new low frequency AEM system has been able to penetrate to an average depth just under 400m, below the conductive cover of Kalahari sand and Karoo sediments.

·    The processing was carried out by the Danish based Aarhus Geophysics Ltd using state of the art 3D modelling software. The geological modelling allows Kavango's technical team to identify lithological units, structures, zones of conductivity and potential ore bodies on a line by line basis.

·    Each of the lines flown (500m apart) can be viewed as a vertical section with depth penetration down to nearly 700m in some cases. It also provides for horizontal "slicing" at any depth. This enables Kavango's geologists to move from line to line, at any depth, to view the conductive targets and their associated host lithologies.

·    The model identifies a number of conductors closely associated with gabbroic*** intrusives and faults.

·    The added depth penetration of the new SkyTEM 12.5Hz system combined with the advanced data processing undertaken by Aarhus Geophysics has produced results greatly superior to those from the Phase 1 AEM survey.

·    One of the advantages of the new processing techniques is its ability to discriminate between false (artefact) conductors created by the software and "real" conductors that are generated by the geology.

·    To date 45 conductive anomalies have been identified from the Phase 2 survey. Of these, 24 conductors are detected on single flight lines. The remaining conductors are traceable over several lines. The longest conductor is 4.5km long.

·    The most compelling conductors will now be surveyed by ground based resistivity techniques (CSAMT**) together with detailed soil geochemistry. The immediate objective is to identify the best 3 or 4 targets for drilling, to be carried out as soon as ground follow up is completed.

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

"The combination of SkyTEM's new high resolution 12.5Hz EM surveying system together with the advanced data processing provided by Aarhus Geophysics represents a major breakthrough in Kavango's exploration for massive sulphide orebodies lying below Kalahari and Karoo cover in the northern part of the KSZ. The ability of our geologists to view the rocks using 3D models provides them with exploration tools that will allow for the identification of mineralized zones which have remained completely hidden until now.

The data processing has identified numerous conductors of interest, the longest of which is 4.5km long. The most compelling conductors will now be surveyed by ground based resistivity techniques together with detailed soil geochemistry. The immediate objective is to identify the best 3 or 4 targets for drilling, to be carried out as soon as ground follow up is completed."

Images from the data derived from the Phase 2 survey and processed by Aarhus Geophysics can be viewed on the Company's website (see below).

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:
Michael Foster	[phone]
[e-mail]  Company's website at www.kavangoresources.com            Twitter at #KAV
City & Westminster Corporate Finance LLP	[phone]
Nicola Baldwin

SI Capital Limited (Broker)                                                                                   [phone]

Nick Emerson

Notes for 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 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 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 surveying, 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).

*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.

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

^***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.

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