KSZ Hukuntsi - TDEM conductor C1 identified

RNS Number : 8653B

Kavango Resources PLC

15 June 2021

 

 PRESS RELEASE

15 June 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KSZ Hukuntsi - TDEM conductor C1 identified

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the identification of an electro-magnetic (EM) anomaly in Target Area C in the Hukuntsi (northern) section of the Company's Kalahari Suture Zone ("KSZ") Project.

Designated Target C1 ("C1"), the conductive anomaly is located 11km from Target A2 ("A2"), which was first announced on 20 April 2020.

C1 and A2 appear to lie within the same geological corridor. The Company now plans to drill a minimum of one hole in A2 and a minimum of one hole in C1. Drilling is to commence at the end of June.

Both A2 and C1 lie in 'Norilsk-style' gabbro keels. The primary objective of both holes is to recover drill core from the bottom of the keels for further analysis to test the system's potential to host major metal sulphide deposits.

Highlights

Ø Target C1

-  11km NE of Target A2

-  Kavango believes A2 and C1 lie in the same geological corridor of Karoo-age gabbro, which is open in both directions

-  The conductor is 1,200m by 1,600m and sits at the bottom of a keel as defined by the Company's 3D Geological Model

-  530m depth from surface to centre of the conductor

-  The decay constant is ~360msec

-  Conductance of 2,500 Siemens

Ø Drill plan:

-  Drill operator is Mindea Exploration and Drilling Services (Pty) ("Mindea")

-  Mindea to set up camp between Targets A2 & C1

-  Drilling at A2 to commence in June

-  Drilling to commence at C1 in July

-  Kavango to pay <half the total drill cost to Mindea in cash (c.£70,000), with remaining fees payable in shares

-  Potential to increase scope of drilling, once rig is on site and pending further data analysis

-  Extensive assaying and downhole geophysics planned on all boreholes

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

"The 'Norilsk Model' for metal sulphide systems suggests deposits originally formed in clusters. In this context, it is encouraging that C1 is located relatively close to A2. We believe both targets lie potentially within the same geological corridor of Karoo gabbro.

If drilling validates our interpretation of the data, this could prove to be a significant development in our attempts to unlock the Kalahari Suture Zone.

The fact that C1 shares a number of highly similar characteristics with A2 is very encouraging. Like A2, C1 is in an ideal geological setting (at the bottom of a "keel"), is nearly 2km² in size, has a conductance of 2,500 Siemens and a decay constant of ~360msec.

We look forward to retrieving core from both targets in the coming months."

Background

Over the last three years, Kavango has conducted extensive geophysical surveys over Karoo-age gabbros at Hukuntsi using airborne and ground-based based technology. In 2019 Kavango completed a successful orientation drill programme, data from which helped augment the Company's extensive 3D Magnetic Model of the region's subsurface geology (announced 8 September 2020).

On 30 November 2020 Kavango released results from its analysis of the 3D Magnetic Model, which revealed close similarities between the gabbroic rock formations in the KSZ and those at the Norilsk mining centre, in northern Russia.

In December that year, the Company initiated the first ground-based Time Domain Electromagnetic (TDEM) survey of the KSZ. This was the first time this powerful remote sensing technology had been used on the KSZ. Kavango subsequently secured a strategic partnership with the TDEM operator, Spectral Geophysics Ltd, to accelerate and broaden the TDEM programme.

On 20 April 2021 and 5 May 2021, Kavango released details of the results from the second TDEM survey, which defined Target A2.

On 10 June 2021, Kavango announced plans to drill two holes in the KSZ. The drill contractor is Mindea Exploration and Drilling Services (Pty), who has agreed to receive >half its fees in equity from Kavango.

Links to the relevant announcements are provided below:

Ø 8 September 2020 - https://www.investegate.co.uk/kavango-resources--kav-/rns/3d-model-confirms-ksz-norilsk-rock-formations/202009080700072794Y/

Ø 30 November 2020 - https://www.investegate.co.uk/kavango-resources--kav-/rns/4-norilsk-style-target-areas-selected-in-the-ksz/202011300700068179G/

Ø 20 April 2021 - https://www.investegate.co.uk/kavango-resources--kav-/rns/ksz-hukuntsi---tdem-conductor-identified/202104200700039575V/ & https://www.investegate.co.uk/kavango-resources--kav-/rns/strategic-partnership-with-spectral-geophysics/202104200705019579V/

Ø 5 May 2021 - https://www.investegate.co.uk/kavango-resources--kav-/rns/ksz-tdem-update-and-warrant-exercise/202105051000016206X/

Ø 10 June 2021 - https://www.investegate.co.uk/kavango-resources--kav-/rns/ksz-hukuntsi---drilling-to-commence-in-june/202106100700094047B/

About Target A2

Kavango estimates Target A2's properties are:

-  1km length, which is open along strike

-  Extends between 250m to 700m below surface and is gently dipping

-  Decay constant of approximately 340msec and conductance of approximately 3000 Siemens, readings which Kavango management considers are consistent with nickel sulphide deposits elsewhere in the world

-  Located in the right geological setting, at the bottom of a "keel" in the gabbroic intrusion, according to the Company's Magnetic 3D-Model (8 September 2020)

About Target C1

Kavango estimates Target C1's properties are:

-  1,200m by 1,600m in size

-  530m depth to centre of the conductor

-  Decay constant of approximately 360msec and conductance of approximately 2,500 Siemens

-  Located in the right geological setting, at the bottom of a "keel" in the gabbroic intrusion, 11km away from A2 (potentially in the same geological corridor of Karoo-gabbro)

-----------------------------------------------------------------------

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 additional information please contact:

Kavango Resources plc   

Ben Turney

[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.

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 14 prospecting licences covering 7,573.1km² of ground, including 12 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Copper-Nickel-PGM rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari Sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey's Bay (Canada).

The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia's nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango's licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.

KSZ DEFINITIONS

EM Super Conductors: are bodies of highly conductive minerals such as graphite, magnetite and metal sulphides, which conduct electricity very rapidly provided the mineral grains are in contact with each other.

Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth's crust. Gabbroic rocks (or "gabbros") are formed as the molten magma crystallizes and cools.

Gabbroic sills: Relatively thin, planar, horizontal bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.

Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.

Massive sulphide: When a deposit consists almost entirely of sulphides it is termed "massive". When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed "disseminated".

Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit -

https://twitter.com/KavangoRes/status/1316004057895645186?s=20  

Norilsk-style: The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting the world class magmatic sulphide deposits in the Norilsk region in Siberia. The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia's nickel reserves, 55% of its copper and virtually all of its PGMs.

Sulphide mineralisation: If there is sufficient sulphur in the molten magma, it will tend to combine with metals (Cu, Zn, Ni, Co, Pb, PGEs etc.) to form metal sulphide complexes, which may coalesce to form massive sulphide deposits. If the melt is sulphide poor, the metals will be taken up into the silicate minerals that form as the magma cools and will not usually form economic deposits.

 

END

 

 

UPDFIMMTMTMBTAB