Kavango Resources PLC (LON:KAV) identified an electro-magnetic anomaly in Target Area A in the Hukuntsi section of the company's Kalahari Suture Zone project in Botswana.
The anomaly appears to be a large conductive body that lies between 250 and 700 metres from surface and appears to sit within the lower parts of a gabbro "keel", as predicted by the company's three dimensional underground model.
Spectral Geophysics Ltd, which is conducting the surveys on behalf of Kavango, described “a shallow dipping, discrete conductor at least one kilometre in strike with a large decay constant that could indicate the presence of metallic sulphides."
The actual size of the causative source of the conductor and its thickness will only be determined by drilling.
Given the size and the nature of the electromagnetic signature, Kavango sought independent verification of the validity and accuracy of the data from three independent geophysical consultants, including a specialist plate modeller who is experienced in modelling highly conductive electromagnetic environments.
This confirmed the validity of the data.
“The apparent identification of a large EM anomaly within the "keel" of a gabbroic intrusion in Target Area "A" is promising,” said Kavango’s chief executive Michael Foster.
“While we were hopeful of what the first TDEM surveys of the KSZ might uncover, we are encouraged to have identified a conductive body of this size, in this geological setting so early in the programme. As a prudent step, we have sought expert independent verification of the TDEM data and techniques employed. Initial analysis confirms that the work carried out by Spectral was thorough.”
Separately, Kavango announced it signed a strategic partnership with Spectral,
Under the terms of the partnership Spectral will share with Kavango its technical knowledge to optimise future underground remote surveys of the KSZ, and will prioritise the assignment of its advanced surveying technologies to the KSZ for a period of 24 months.
For its part, Kavango will share with Spectral results of independent assessments on any data gathered from remote surveys, and Kavango's field exploration team will provide additional support to facilitate more rapid deployment of remote sensing technologies to target areas.
In return for securing priority access to Spectral's technical expertise and advanced remote surveying technologies, Kavango has agreed to issue Spectral 3mln shares at 3p per share, along with 3mln warrants at 4.25p.