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Kavango Resources - Botswana Joint Venture - Early Payment

RNS Number : 7893K
Kavango Resources PLC
06 January 2021
 

PRESS RELEASE

 

6 January 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

 

Botswana Joint Venture - Early Payment

 

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that Power Metal Resources (LSE:POW) ("Power Metals") has elected to pay in full its initial $150,000 cash contribution towards exploration into the Strategic Joint Venture (the "SJV") immediately. This is one year ahead of schedule.

The purpose of this payment is to accelerate progress across the SJV's prospecting licences in both the South Ghanzi Project on the Kalahari Copper Belt and the Ditau Project.

 

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

"This early payment by Power Metals reflects the rapid progress we are making at South Ghanzi and Ditau.

Initial results from both projects have been encouraging and we will now bring forward plans for more extensive and intensive exploration. If results continue to impress, this will put us on a quicker path to exploratory drilling later this year."

 

Early payment by Power Metals into the SJV

On 21 September the Company and Power Metals announced the establishment of the SJV.

The SJV is co-owned by both companies and holds:

-    Two prospecting licences in the Kalahari Copper Belt covering 1,294km2 and targeting the discovery of large-scale copper/silver deposits (the South Ghanzi Project)

and

-    Two prospecting licences covering 1,386km2 at Ditau, exploring 10 "ring structures" targetting potential rare earth elements ("REE) discoveries, hosted in carbonatites

Under the terms of the SJV, Power Metals committed to paying for the first $75,000 of exploration expenditure incurred in each of Years 1 & 2 (totalling $150,000).

Thanks to the rapid progress that the SJV has made at both South Ghanzi and Ditau in late 2020, Power Metals has elected to pay its second $75,000 a year early. Power Metals has now paid $150,000 towards the SJV's exploration budget. These funds will be used to accelerate field exploration at both projects.

All future exploration expenditure will be incurred on a pro-rated basis between Kavango and Power Metals.

 

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

mfoster@kavangoresources.com

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)                                                                           

+44 1483 413500

Nick Emerson

 

Kavango Competent Person Statement

The information in this press release that relates to "geological and/or geophysical results" for the South Ghanzi 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:

The South Ghanzi Project

-    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

-    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

THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING

The South Ghanzi Project and LVR 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. The upward rock slopes of these fold hinges are known as synclines, while the downward rock slopes are called anticlines.

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.

THE DITAU PROJECT

The Ditau Project comprises two prospecting licences ("PLs") (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 "ring structures" (including at least one possible kimberlite).

The "ring structures" are potential carbonatites.

Carbonatites are the principal source of rare earth elements (REEs) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications.

One of the ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to "fenitization", a type of extensive alteration associated with alkali magmatism and carbonatites. 

Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.

Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.

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