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Kavango Resources (KAV)

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Monday 02 September, 2019

Kavango Resources

Kalahari Copper Belt - MOU signed

RNS Number : 7987K
Kavango Resources PLC
02 September 2019
 

PRESS RELEASE

 

 2 September 2019

 

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

 

Kalahari Copper Belt - MOU signed

 

Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world class mineral deposits in Botswana, announces the signing of a Memorandum of Understanding with the Botswana company, LVR GeoExplorers (Pty) Ltd to farm into two Prospecting Licences in the Botswana section of the Kalahari Copper Belt.

 

HIGHLIGHTS:

·    Earlier this year, Kavango Minerals (Pty) Ltd was approached by the Botswana registered company, LVR GeoExplorers (Pty) Ltd ("LVR") with a view to assisting them with the exploration of two Prospecting Licences ("PLs") in the highly prospective sedimentary copper province known as the Kalahari Copper Belt ("KCB").

·    Following subsequent negotiations, Kavango has now signed an MOU with LVR that provides for a staged Farm-In, which will give Kavango the right to earn up to a 90% interest in both or either of the licences.

·    In the first 12 months following the signing of the Farm-In Agreement, Kavango will be obliged to spend BWP1.25m (circa £92,000) on each of the licences to acquire a 25% interest which has already been allocated within the current budget.

·    A 90% interest in either licence can be earned by taking a project through to bankable feasibility.

·    Kavango will be managers of the exploration and development but will be allowed to withdraw at any time following a two month notice period.

·    PL 082/2018 lies 30km north of MOD's T3 mine development and completely surrounded by MOD/Metal Tiger exploration licences including their T5, T6, T9, T10, T14 and T15 targets. The PL lies astride the main Ghanzi - Maun Highway.

·    PL 083/2018 is close to the Namibian border south of the Trans-Kalahari Highway and adjacent to the block of licences held by Kapore Metals Limited.

·    Exploration of these licences will commence within four weeks of the signing of the Farm-In Agreement.

 

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

"The signing of an MOU with LVR GeoExplorers represents an excellent opportunity for Kavango to acquire an interest in some highly prospective ground in the KCB area, which is now regarded as one of the world's most promising under-explored copper provinces. We believe that the proposed Joint Venture with LVR represents excellent value for shareholders, who now have the prospect of acquiring an interest of up to 90% in these licences. We will continue to consider other opportunities in this exciting copper province, while our main focus remains the KSZ Project".

 

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.

 

Notes for Editors:

 

Sedimentary copper deposits are attractive to mineral exploration companies because they can form orebodies that compete with porphyry deposits on tonnage but are of much higher grade. Examples include the Polish Lubin deposit with 2.6Bt @ 2% Cu and the Congolese Kamoa-Kakula deposit with 2.6Bt @ 2.6% Cu. They can also contain 'pockets' of several hundred million tonnes at over 4% Cu. A compilation of all sediment-hosted copper deposits globally shows that 19 of the 28 known giant deposits, defined as >2Mt of contained copper, occur within the Katanga basin. The most recent deposit to join the giant category is Cupric Canyon's Zone 5 discovery in the Kalahari Copper Belt in Botswana, along strike of MOD's T3 deposit. It establishes the Ghanzi-Chobe basin as only the seventh basin globally to host a giant sediment-hosted copper deposit. To date, the Ghanzi-Chobe belt holds ~7Mt contained Cu in several deposits, with resource grades ranging from 0.9%-2.2% Cu at an average 1.4% Cu grade, well above the average (<1% Cu) feed grade of copper mines globally. Of the well-endowed belts globally, the Kalahari Copper Belt is the only one with an accelerating discovery rate. Of note, the belt shows potential for both open-pit and underground mineable resource styles.

 

For further information please contact:

 

Kavango Resources plc                                                                                     +44 20 3651 5705

Michael Foster

[email protected]

 

SI Capital Limited (Joint Broker)                                                                            +44 1483 413500

Nick Emerson

 

Turner Pope Investments (Joint Broker)                                                               +44 20 3657 0050

Andy Thacker

 

                  

                                           

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