Kalahari Copperbelt Exploration Update LVR Project

RNS Number : 9216I

Kavango Resources PLC

17 December 2020

 

PRESS RELEASE

17 December 2020

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Kalahari Copperbelt Exploration Update LVR Project

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an exploration update from the Company's LVR Project in the Kalahari Copperbelt ("KCB").

The LVR Project includes two prospecting licences, PL082/2018 & PL083/2018, and cover 1,091km². These Prospecting Licences ("PLs") are held in a Joint Venture with LVR GeoExplorers (Pty) Ltd ("LVR"). Kavango is earning a 90% interest in this project.

Highlights

v LVR Project is targeting near surface sedimentary copper/silver deposits

-  PL082 borders PLs held by Sandfire Resources (ASX:SFR) ("Sandfire")

-  Geology and target formations analogous to Sandfire and Cupric Canyon's discoveries and mine developments

-  PL083 is located to the south west, in an underexplored segment of the KCB on the same geological trends

-  Mobile camps set up to base future fieldwork from

-  Immediate goal to identify regional metallic anomalies for future airborne electromagnetic ("AEM") surveying

v First soil sampling completed

-  6 lines run on targeted areas

-  Line selection was guided by the interpretation of geological structures and regional magnetics

-  365 samples taken over 36.5km, at 100m spacing and 50m spacing over 2,500m

-  Very thin Kalahari sand-cover encountered on PL082/2018, thicker cover at PL083/2018

v XRF analysis of soil samples

-  Encouraging zinc (Zn) anomalies identified, with copper kicks

§ Zn is a recognised pathfinder element for the less mobile copper ions in the soil. Elevated levels of Zn indicate shallow mineralisation

-  Selected samples sent to laboratory for assay testing. Results expected early 2021

v Follow up ground magnetic surveys and further soil sampling planned for 2021.

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

"The LVR Joint Venture is rapidly turning into a significant copper/silver exploration project for Kavango. We were extremely fortunate to secure this earn-in arrangement when we did at the start of this year.

The proximity of one of the licences to the major metal discoveries at T3 & A4 (Sandfire), and the known regional geological structures, make these licences highly prospective. Now that we have started exploration work and have already identified zinc anomalies in the local soils, we are increasingly encouraged by the potential here. We look forward to undertaking airborne geophysical surveys early in the new year."

The LVR Project

The LVR Joint Venture was announced on 17 February 2020. Kavango has the right to earn up to 90% in prospecting licences PL082/2018 & PL083/2018 by way of a staged earn-in.  In the first 12 months Kavango plans to spend BWP1.25m (circa £92,000) on each of the licences to acquire an initial 25% interest.

The first phase of field exploration at the LVR Project is designed to map out the soil geochemistry and geological structures across the areas with the most potential. This will help identify targets for follow up work.

To date, 365 soil samples have been taken across 6 lines, totalling 36.5km. Thin Kalahari sand-cover is present at PL082/2018, while thicker Kalahari cover was encountered at PL083/2018. Soil samples were sieved to 50 microns and analysed using a hand-held XRF Analyser.

Results have identified elevated zinc readings in a number of areas. Significant anomalies are coincident with magnetic lineaments considered to be caused by metal concentrations associated with "redox" boundaries*. (Zinc is a more mobile metallic element in soils and can act as a pathfinder for identifying copper deposits).

Further soil sampling will be conducted to extend the coverage and better define the anomalies.

Selected samples have been sent to a laboratory in Johannesburg for further testing.

Results are expected in early 2021 when the Company will continue its soil sampling programme. In addition, Kavango plan to conduct both ground and airborne magnetic surveys, which will contribute to the development of a 3D geological model from which drill collars will be selected.

*See geological setting note at bottom of this announcement

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   

Michael Foster

[e-mail]

First Equity (Joint Broker)

[phone]

Jason Robertson 

SI Capital Limited (Joint Broker) 

[phone]

Nick Emerson

Kavango Competent Person Statement

The information in this press release that relates to "geological and/or geophysical results" for the LVR Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking 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 consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. 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:

-  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 1,091km²

-  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 1,294km².

THE LVR PROJECT GEOLOGICAL SETTING

The LVR Project and South Ghanzi 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. Several large-scale copper/silver ore deposits have been discovered on the KCB in such hinges 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 are amenable to open pit mining operations.

Accumulations of sulphide metals can be traced along the strike of the redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.

 

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