ZIM – Extensive anomalous gold in soils Prospect 4

Kavango Resources PLC

19 August 2024

 

PRESS RELEASE

19 August 2024

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

ZIM -- Extensive anomalous gold in soils Prospect 4

Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals exploration company is pleased to announce the receipt of gold assay results for its recent soil sampling programme at Prospect 4, Hillside Project ("Prospect 4") in Matabeleland, southern Zimbabwe.

The soil sampling programme returned anomalous gold in soil values over an area of 1.5km², which is underlain by greenstones and granites offset by a regional shear with multiple quartz-vein complexes producing gold from artisanal surface workings.

Highlights

·    Kavango has received 582 assay results for soil samples collected over 1.5km², with anomalous values received across much of the gridded area.

·    The soil samples were assayed for gold using a bottle roll cyanide leach technique at Performance Laboratories in Zimbabwe in conjunction, with handheld pXRF readings for other elements carried out by the Company.

·    Anomalous gold values appear to be closely associated both with the E-W trending shears favoured by the artisanal and historical miners, and also the SSW - NNE trending structures interpreted from geophysics.

·    Gold values appear across the whole grid and are open to the W and E.

·    These assay results confirm a larger mineralised system presently being worked only locally by the artisanal miners. They also indicate the possible presence of additional potential gold bearing structures not yet tested or worked.

·    Kavango previously announced results for a scoping hole targeting a steeply dipping shear zone below artisanal workings that intersected multiple broad zones of geochemically anomalous gold values thought to relate to additional shears. (announced >>>15^th April 2024)

·    Best results* in this hole, SKDD001, included:

-     2.53 m @ 29.08 g/t gold from 97.47 m, associated with visible gold (average peak grade of 212.07 g/t over 0.34 m).

-     1.32 m @ 1.80 g/t gold from 214.46 m.

·    An Induced Polarisation ("IP") survey identified three further potential shear zones, parallel to the one being worked by artisanal miners.

·    Kavango intends to mobilise the drill rig to Prospect 4, after completing current drilling at Prospect 3.

*All quoted thicknesses are apparent down hole intersection thicknesses

Ben Turney, Chief Executive of Kavango Resources, commented:

"As more results come in from Hillside, Kavango's exploration is increasingly focussed on defining potential resources for mining.

We were already enthusiastic about the chances of near-term mining at Prospect 4, when Hole SKDD001 intersected 2.53m @ 29.08g/ t gold from 97.47m depth. Today's soil sample assays confirm the wider potential for a possible minable gold ore body around this target.

We will now follow up with an Induced Polarisation survey to see if we can identify further concealed shear zones that have not previously been uncovered by local artisanal mining. If such structures exist, which the soil assays suggest is probable, this will increase our confidence ahead of further drilling.

We look forward to bringing the drill rig back to Prospect 4 in the coming weeks."

Results and Interpretation

A soil sampling programme undertaken at Prospect 4, in the Hillside Project area, returned anomalous gold in soil values across an area of 1.5km² that is underlain by greenstones and granites offset by a regional shear with multiple quartz-vein complexes producing gold from artisanal surface workings. See Figure 1 below:

Figure 1: Prospect 4 geological mapping, with structural features, historic mine locations and artisanal surface workings together with gold in soil values.

The anomalous gold values appear to be closely associated with the E-W trending shears favoured by the artisanal miners but also with SSW - NNE trending structures interpreted from the geophysics and clearly displayed on the Digital Terrain Map ("DTM"), shown in Figure 2. Anomalous trends of gold values linked to interpreted structures appear to extend beyond the grid to both the W and E.

Figure 2: Prospect 4 DTM, with structural features, historic mine locations and artisanal surface workings together with gold in soil values.

Down-slope dispersion of the gold through the soil profile was of initial concern, however plotting of the values on the DTM and review of field data plotted in 3D suggests there is only minimal down-slope dispersion. Kavango believes that a degree of concentration within the soil profile has taken place and is exploited by the artisanal miners.

Kavango has received 582 assay results for soil samples collected over 1.5km². The soil samples were assayed using a bottle roll cyanide leach technique at Performance Laboratories (Pvt) Ltd in Zimbabwe, which used a 500g sample, leached for 24 hours with a solution containing 0.5% sodium cyanide, and an Atomic Absorption ('AA') finish. Additional analysis was also undertaken with a handheld pXRF providing multielement data.

This has been used to identify trends for known associated pathfinder elements and comparison with observed mineral associations from the artisanal workings. Tungsten has a high correlation with gold in the soil analysis and is reported as scheelite by the artisanal miners, while abundant visible pyrite, arsenopyrite and chalcopyrite all correlate well with gold in soil and are routinely observed in both hand specimens and drill core from SKDD001, Figure 3.

Figure 3: Prospect 4 geological mapping, with structural features, historic mine locations and artisanal surface workings together with arsenic and tungsten in soil values.

The gold bottle roll results indicate a potential larger more extensive mineralised system that is only being worked locally by the artisanal miners, with significant exploration potential for the discovery of further gold bearing structures not only within the grid area but also extending beyond the grid to the W and E. A large cluster of anomalous gold results occur around the old Ixl mine over mapped structures but also extending north over structures recently interpreted from the geophysics. There are some anomalous gold values west of Sprog mine supported by arsenic and tungsten anomalies similar to those returned around the Ixl mine. Production figures for Ixl and Sprog are listed below in Table 1.

Mine	Gold Kg	Gold Oz	Tonnes	Grade g/t
Ixl	154.94	4,981.4	11,900	13.0
Sprog	2.71	87.1	481	5.6

 Table 1: Production Figures from "The Geology of the Filabusi Greenstone Belt and Surrounding Granitic terrane of Zimbabwe". Geological Survey Bulletin No91.

Kavango previously announced results from a scoping hole, SKDD001, targeting a steeply dipping shear zone below artisanal workings south of the old Ixl mine, that intersected multiple broad zones of geochemically anomalous gold values thought to relate to additional shears. (announced >>>15^th April 2024)

·    Best results, measured as downhole intersection lengths, included:

-     2.53 m @ 29.08 g/t gold from 97.47 m, associated with visible gold (average peak grade of 212.07 g/t over 0.34 m).

-     1.32 m @ 1.80 g/t gold from 214.46 m.

Subsequently an Induced Polarisation ("IP") survey identified three further potential shear zones, parallel to the one being worked by artisanal miners and transected in hole SKDD001 that has associated tungsten and arsenic anomalies. See Figure 4 below.

Figure 4: Prospect 4 cross-section looking west, with gold in soil values across the profile, air photo image draped on DTM and IP Chargeability displayed below.

Next Steps

A further gradient array IP survey programme is planned, following which the data will be modelled and inverted and then integrated with the existing data. The combined interpretation is expected to identify further drill targets. Holes are then planned to be designed to expand the existing footprint of artisanal workings at depth, along strike and to test newly identified structures.

A systematic sampling exercise is planned to collect a bulk sample from one of the historic mine workings as well as representative samples from as many of the gold producing artisanal workings as possible.

In order to assess the wider prospectivity of the area and compare current artisanal gold production with historic underground mine production, the assays from the bulk sampling programme will be compared with assays from the drill programme.

Kavango intends to recommence drilling at Prospect 4, once it has completed this analysis. The Company will provide a further update in due course.

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

[phone]

First Equity (Broker)

[phone]

Jason Robertson             

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc (Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Grist is an employee of Kavango Resources plc.

 

END