Kavango Resources PLC (LSE:KAV, OTC:KVGOF) said it has identified two further targets at the Kalahari Suture Zone (KSZ) project in Botswana, with one indicating a possible nickel copper sulphide body.
The findings were based on visual inspection of drill core from a second recently completed hole (KSZDD002) as well as results from an electromagnetic survey at KSZ, where Kavango is exploring for copper-nickel-PGM rich sulphide ore bodies.
"When we originally modelled the B1 Conductor from surface, we worked on the assumption there was a single conductive body,” said chief executive Ben Turney.
“Now, thanks to the successful completion of drill hole KSZDD002 and the downhole electromagnetic survey, the modelling is telling us that there are two strongly conductive geophysical targets in close proximity to the borehole.
Kavango's exploration model in the KSZ is based on identifying drill targets, which exhibit conductance readings between 1,000 Siemens and 10,000 Siemens, or greater.
The latest electromagnetic survey gave a conductance reading of 16,000 Siemens, 150 metres from the borehole, showing a significant increase in conductivity from previous models.
“This upgrades the priority of this target as a possible nickel copper sulphide body,” said Turney.
“It is imperative we now intercept this target with the drill to identify what is there. The discovery of a second distinct conductor, so close to the main target, opens up some intriguing possibilities.”
The second distinct conductor had a conductance reading of 2,500 Siemens.
The company said it will explore the possibility of further conductor targets in the vicinity of KSZDD002.
The KSZ project hosts a mineralised structure similar to the giant and hugely rich Norilsk structure in Russia. Norilsk is famous for nickel, platinum, palladium and copper.