KSZ TDEM Update and Warrant Exercise

RNS Number : 6206X

Kavango Resources PLC

05 May 2021

 

PRESS RELEASE

5 May 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

KSZ TDEM Update and Warrant Exercise

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an update on its Kalahari Suture Zone ("KSZ") project, receipt of £59,500 in warrant exercises and completion  of the strategic partnership with Spectral Geophysics ("Spectral") (announced 20 April 2021).

KSZ Update

Further to the announcement on 20 April 2021, Spectral has completed a third Time Domain Electromagnetic ("TDEM") survey in Target Area A ("Survey A3"). This survey was designed to corroborate the existence of the large-scale conductive anomaly previously identified. Spectral also deployed an upgraded configuration of its equipment, which has proved to be successful.

TDEM surveys can be used to identify super electromagnetic ("EM") conductors at depth, within highly complex geological environments such as the KSZ. Spectral Geophysics is a highly experienced and effective operator of TDEM technology currently being employed on the project. 

Data from Survey A3 has now been successfully processed and interpreted. The data further confirms the existence of the previously identified conductive anomaly and that it has a conductance of ~3000 Siemens. Kavango now estimates the anomaly'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)

As the results come in from Kavango's extensive TDEM surveying programme and are processed and interpreted, the Company expects to start planning a drilling programme. The exact timing and extent of such a programme remains to be determined, but it is currently considered likely that it will include drilling inclined holes of up to 450m through the conductive target at A2 that will aim to intercept the conductor at roughly 400m.

Kavango has prepared an explanatory video, which presents the geophysical model of the conductive target at A2, for shareholders to view on the Company's website. The video is accessible via the link below:

https://cdn.kavangoresources.com/VNS-KAV_TDEM_conductor_Pt2_V03.mp4

On completion of Survey A3, Spectral immediately deployed its team and equipment to Target Area B1, which Kavango's field exploration team had prepared in advance. This survey is now nearing completion and Kavango expects to receive data later this week, for processing, interpretation and review.

Spectral will then move straight onto Target Area B2, which the Company has begun preparing the site for.

Kavango anticipates the remaining TDEM surveys in this current phase of exploration will continue at this accelerated pace.

Completion of Spectral Geophysics Strategic Partnership

Following the success of the first TDEM surveys in the KSZ, Spectral and Kavango entered into a strategic partnership in April 2021, to leverage each other's expertise to identify high-priority drill targets.

As part of this deal, Kavango agreed to issue Spectral with 3,000,000 ordinary shares of £0.001 at an issue price of 3p pence per share (the "Partnership Shares"). The Partnership Shares are subject to a 12-month lock-in and will be held in custody by the Company's broker, First Equity. The Company allotted the Partnership Shares on 30 April 2021, subject only to their admission to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc ("Admission").

Exercise of Warrants

Kavango announces it has received notices to exercise warrants over 5,950,000 new ordinary shares of £0.001 each in the Company (the "Warrant Shares").

The Warrant Shares are being issued pursuant to the exercise of warrants granted and announced on 15 April 2020.  Subscription monies of £ 59,500 have been received by Kavango in respect of these exercises.

Admission and Total Voting Rights

Application has been made for Admission of the Warrant Shares and Partnership Shares.  It is expected that Admission will become effective and that dealings in the Warrant Shares and Partnership Shares will commence at 8.00am on or around 11 May 2021.

Following Admission, the total issued share capital of the Company will consist of 351,352,139 Ordinary Shares. Therefore, the total number of voting rights in the Company is 351,352,139 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company. 

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

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

Super EM Conductors: are bodies of highly conductive minerals such as 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, (originally) horizontal bodies of solidified gabbroic magma that intruded into the Earth's crust while 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   

 

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