Power Metal Resources #POW Completes Botswana Molopo Farms Complex US$500,000 Earn-in to 40% Direct Project Interest
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce that the Company has now completed the earn-in to a 40% direct project interest in the Kalahari Key Mineral Exploration Pty Ltd Molopo Farms Complex Project.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“In a journey that began with our original agreement with Kalahari Key in May 2019, the MFC Project has moved forward dramatically.
On 8 April 2021 we announced significant nickel intersections from diamond drill programme assays and we currently await receipt and interpretation of further assay results, mineralogical testing outcomes and an array of further data from additional geophysical interpretations.
We are seeking a World Class nickel discovery and the findings so far have been extremely positive. It is therefore with some excitement that we announce completion of our US$500,000 earn-in.
Work continues at pace locally in Botswana and in the testing of samples in South Africa. In this regard I look forward to providing further updates to the market.”
Earn-in Background Information
The MFC Project is targeting prospective magmatic intrusion-hosted massive nickel sulphide and platinum-group element (“PGE”) mineralisation in Botswana.
Pursuant to an agreement announced by the Company on 13 May 2019, Power Metal had the right to earn-in to a 40% direct project interest in the MFC Project by expending US$500,000 on exploration expenditure, notably drilling of key targets at the Project.
Cash payments against this earn-in commenced in October 2020 and the Company can now confirm that it has fully satisfied the US$500,000 expenditure commitment and written confirmation of this has been received from Kalahari Key.
As a result, Power Metal has secured a 40% direct interest in the MFC Project. In addition, the Company holds 18% of the issued share capital of Kalahari Key. Taken together the combined effective economic interest of Power Metal in the MFC Project is 50.8%.
(Note: previously Power Metal held an 18.26% equity interest in Kalahari Key. This percentage has been reduced to 18% following the exercise of 333 share options held by a Kalahari Key director at a total exercise cost of US$19,880. Power Metal has continued to hold 3,542 Kalahari Key shares throughout. There are 1,225 outstanding Kalahari Key options held by Kalahari Key current/former senior management team members representing potential further dilution of a maximum 4.76% and with a total exercise cost of US$73,500).
Appropriate steps are now being taken to restructure the ownership of the MFC Project and holding company Kalahari Key to reflect the above.
Power Metal also agreed to participate in a rights issue for Kalahari Key, the settlement of which is anticipated shortly and will increase Power Metal’s interest in Kalahari Key to 5,313 shares or 21.7% of issued share capital, as fully diluted by the rights issue. This will increase the Company’s effective economic interest in the MFC Project to 53.02%.
Latest Exploration Information
Latest exploration results from the MFC Project including assays from diamond drilling displaying significant nickel intersections were published on 8 April 2021 and may be viewed through the following link:
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
ECR Minerals #ECR CEO Interview – Alan Green talks to Craig Brown
Brand Comms CEO Alan Green talks to ECR Minerals #ECR CEO Craig Brown about the company’s flagship gold exploration projects in the heart of Australia’s Victoria Goldfields.
Craig talks about the recent placing to raise a further £2m with Novum Securities at 2.2p, and elaborates on the rationale behind it, before discussing the initial drilling results at the Bailieston Historic Reserve 3 prospect, that led to a fall in the share price despite identifying gold and gold mineralisation.
We look at slides from the current company presentation, and examine the scale of the operations and historic gold grades from the other Bailieston prospects including Blue Moon, Black Cat, HR4 (Cherry Tree, Cherry Tree South) and Yellow & Red Moon.
We move to Creswick and discuss the Dimocks Main Shale geological feature, the historical (2019) grades, license applications and JV implications and the upcoming drilling campaign. Craig then updates on the Tambo Project, and the connection with ECR’s Head Geologist Dr Rodney Boucher before we discuss the Bendigo HQ operation.
Alan and Craig then summarise by looking at the current company valuation vs. assets and work underway.
Alan Green discusses equities vs. crypto, Coinsilium #COIN, Kavango Resources #KAV & Union Jack Oil #UJO on UK Investor Mag podcast
Equity market correlation with Cryptocurrencies could signal further volatility
Power Metal Resources #POW – Broker Research Note, Target Price 6.1p
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the Company’s joint broker First Equity Limited has published a Broker Research Note which may be viewed through the following link:
https://www.powermetalresources.com/brokerreports
The Note will be updated on an interim basis to capture new business developments and updates will be loaded onto the Company website under the above weblink.
For further information please visit https://www.powermetalresources.com/ or contact:
|
Power Metal Resources plc |
|
|
Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
|
Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
|
SI Capital Limited (Joint Broker) |
|
|
Nick Emerson |
+44 (0) 1483 413 500 |
|
First Equity Limited (Joint Broker) |
|
|
David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Notes to Editors:
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Dark Horse Investments | Classic Motorcycles that offer unrealised Investment Potential
In the third interview of the series, Alan Green and Paul Jayson, The Motorcycle Broker briefly touch on the lag in classic motorcycle valuations vs. classic cars, before looking at a series of Dark Horse Investments, Classic Motorcycles that offer unrealised investment potential. These include:
– Honda CB1100R
– Honda NC30 / NC35
– Yamaha TZ700 / 750
– Vintage Montesa enduro and motocross bikes
– Vintage Bultaco enduro and motocross bikes
– Vintage 1974 Husqvarna 250 – On Any Sunday
– Vintage XT500 derived Yamaha HL500
In each case Paul discusses current valuations, and where he believes those could be in the future
Mining.com – Iron ore price extends rally as market focus shifts to output reports
Iron ore prices in Asia pushed higher on Monday as strong global steel demand buoyed sentiment, and as Chinese steel mills continued to ramp up output despite the government’s scrutiny of their compliance with stricter anti-pollution rules.
“Booming steel production continues to support the iron ore market,” analysts at ANZ told Reuters.
The metal price hit a 10-year high last week, with Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) changing hands for $178.43 a tonne on Friday.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended the daytime trading session on Monday 0.8% higher at 1,060 yuan ($162.70) a tonne, rising for a third consecutive session.
“Increased scrutiny on emissions is forcing steel mills to use higher-grade iron ore, which is well compensated by strong steel margins,” ANZ analysts said.
Global steel demand will rise by 5.8% this year as economies recover from the COVID-19 pandemic, the World Steel Association said last week, though it painted a cautious outlook for 2022 as the impact of stimulus spending diminishes.
On the supply side Vale, Rio Tinto and BHP are due to report production data this week as well as give market outlooks.
Link here to view the full article
ECR Minerals #ECR – High-Grade Drilling Results at Bailieston Gold Project, Victoria Goldfields, Australia
ECR Minerals plc (LON: ECR), the gold exploration and development company, is pleased to announce high-grade drilling results from the Bailieston gold project in the Victoria Goldfields, Australia. The Bailieston project is 100% owned by ECR’s wholly owned Australian subsidiary Mercator Gold Australia (“MGA”).
Craig Brown, Chief Executive Officer of ECR Minerals plc, commented: “These are the first results generated by our new drilling rig, and to our knowledge they are also the first diamond drilling results ever obtained from the HR3 area. The extra geological insight afforded by diamond drilling will be of great use in vectoring further work, and this is an advantage which previous explorers have not had.
As is to be expected with early-stage exploration drilling, not all holes reported today have intersected significant gold mineralisation, but we are very encouraged by the fact that BH3DD001 returned two high-grade intercepts, including one of 0.5 metres at 19 g/t gold, and all holes have provided data which will feed into our evolving geological model for the area. Drilling is continuing and we look forward to reporting the next round of results.
We remain as excited as ever about the potential of the Bailieston gold project, which is located around 30 kilometres from the Fosterville gold mine owned by Kirkland Lake Gold and which includes the Blue Moon gold discovery confirmed by high-grade results from previous drilling by ECR.”
HIGHLIGHTS:
- Five diamond drillholes across the Historic Reserve #3 (HR3) area covering the Byron and Maori reef lines have been completed for a total of 1082m. Drilling at Byron shows west dipping sediments whereas drilling at Maori intersected all east (and south-east) dipping beds, indicating the possibility of anticline-related gold mineralisation between the two reefs.
- Drilling of BH3DD006 is currently in progress to test a hypothesised anticline that may exist in the vicinity of the Dan Genders-Scoulers line of workings. Historic shallow gold workings may be small reefs linking and coalescing to a much larger fault related anticline system at depth.
- Drilling to date has been on the periphery of a central mineralised system (Byron and Maori Reef lines). Drilling has been through mostly shales, however sandy bedding, which is best for brittle vein development is expected to be more likely in the central part of the HR3 goldfield.
- Drillhole BH3DD001 into the Byron Reef returned a high-grade intersection of 0.5m @ 19 g/t Au from 110.9m downhole. Furthermore, a potentially new mineralised system was intersected at 157m (1m @ 4.25 g/t Au). Rubbly quartz from this same intersection assayed 21.1 g/t Au.
- Drilling of BH3DD005 into the Maori Reef shows an increase in sandy bedding and sulphide development compared to the Byron Mine area. Final assay results for this hole are pending.
- Geochemical soil sampling has been completed over half of the HR3 goldfield. Some 720 samples have been taken with 229 samples currently being analysed for key gold pathfinder elements, and these results will assist with drill targeting.
SUMMARY OF DRILLING TO DATE
(fig. 1) – Plan showing locations of 2021 drilling, historical gold workings and reef lines.
https://www.ecrminerals.com/images/0421fig1.jpg
BYRON REEF
908m of the 1082m total drilling to date has been drilled into the Byron Reef surrounding the historic Byron Mine. Production records show the Byron Mine to have produced a total of 8698 tonnes for 4416 oz (average 15.5 g/t Au), indicating it was the biggest producer within the HR3 goldfield. On this basis and considering the relative ease of drilling access at Byron, holes BH3DD001 to BH3DD004 were drilled into this reef.
BH3DD001
This hole was designed to test the down-dip mineralisation underneath the historic Byron Mine and understand the structural context of the orebody. The target (Byron Main Reef) intersected a milky, massive-vuggy quartz reef with laminated margins, 5.3m in apparent thickness. A visible speck of gold was seen when sampling the core. Results show the laminated hanging-wall portion of this reef contains the gold with assay returning (0.5m @ 19.0 g/t Au) from 110.9m. The massive-vuggy portion of the reef did not return gold. Additionally, a newly discovered potential mineralised position occurs in thin, overturned sands containing perpendicular veins that returned (1m @ 4.25 g/t Au) from 157m. Furthermore, cave-in (rubbly quartz) resulting from a drill bit change within these veins at the same depth of 157m returned 21.1 g/t Au. Drilling continued into the footwall of the reef to end of hole at 296.6m depth. The entire hole was drilled down the western limb of a large anticline, likely to exist at an unknown distance to the east. A parallel reef system known as ‘Scoulers Reef’ may be situated on such an anticline.
BH3DD002
BH3DD002 was drilled to test the vertical down-dip extension of the Byron Main Reef intersected in BH3DD001. The reef was drilled through at 144m down hole where the vein had narrowed to 25cm in width. Assay results show no significant intercepts with gold below the detection limit (BDL). There is 40m in vertical difference between the reef intersection in BH3DD001 and BH3DD002. Drilling continued to test the hypothesis that the reef may be bedding-parallel and be dipping back under eastwards, however no additional quartz related mineralisation was intersected. No sulphides were visible and portable XRF (pXRF) readings failed to identify any significant pathfinder elements in the quartz or surrounding wall-rock. This hole ended at 242.5m depth.
(fig. 2) – Geological interpretation and best results are shown.
https://www.ecrminerals.com/images/0421fig2.jpg
BH3DD003
BH3DD003 was designed to test the hypothesised down-plunge shoot extension of the Byron Main Reef to the north of BH3DD001 and BH3DD002. In reference to the deepest known historical workings in the Byron Mine on long-section and the down-dip direction of mined stopes, the productive mineralised portion of the reef, known as a ‘shoot’ possibly plunges to the north (fig. 3). The reef was intersected at 126.3m downhole where flexures in the bedding caused a large body of quartz-sulphide development. This mineralisation continued to 147.5m. Best results were 0.8m @ 1.19 g/t Au from 135.8m depth.
https://www.ecrminerals.com/images/0421fig3.jpg
BH3DD004
BH3DD004 was drilled to test the vertical extent of the large quartz-sulphide dilation intersected in BH3DD003. The conclusion of this drillhole, as with BH3DD002, was that the width of the Byron Reef narrows and has no grade continuity at this depth.
(fig. 4) – Geological interpretation of BH3DD003 and BH3DD004 shown.
https://www.ecrminerals.com/images/0421fig4.jpg
MAORI REEF
BH3DD005
BH3DD005 was designed to test the structural context of the Maori Reef. Bedding is shown to be dipping towards the east and south-east directions. Between 76 and 151 metres the host rocks are more sand dominated and below this zone a 40cm wide laminated quartz vein was intersected. This hole was drilled to a final depth of 174.3 metres. Assays results are pending for this hole.
ANTICLINE HYPOTHESIS
BH3DD006
Drilling to date covers the western and eastern boundaries of the currently known mineralisation within the HR3 goldfield. Geological observations of drilling to date confirms the lithology of the bedding to be more sand dominant in the vicinity of the Maori Reef. Bedding dips towards the west at the Byron Mine and dips east to south-east at the Maori Reef, suggesting a main anticline hinge zone to exist between these two reef lines. It is likely the north-west striking Dan Genders Reef and Scoulers Reef systems may be linked to a potential larger anticline-system at depth. (refer to fig. 1 for reef locations). Similar anticline-related faulting is seen at the nearby old Bailieston open pit (located 2.8km to the north) and characteristic elsewhere in Central Victoria. BH3DD006 is currently being drilled across strike of the Dan Genders Reef to test this hypothesis.
(fig. 5) – Hypothesised Central Anticline Model.
https://www.ecrminerals.com/images/0421fig5.jpg
Table A Details of current drilling and significant intercepts to date (April 2021).
|
HOLE ID |
EASTING (GDA Zone 55) |
NORTHING (GDA Zone 55) |
DIP |
AZIMUTH (True North) |
TOTAL DEPTH (metres) |
SIGNIFICANT INTERCEPTS |
|
BH3DD001 |
326313 |
5931394 |
-60 |
060 |
296.6 |
0.5m @ 19.0 g/t Au from 110.9m 1m @ 4.25 g/t Au from 157m* *rubbly quartz from this zone re-assayed 21.1 g/t Au |
|
BH3DD002 |
326313 |
5931394 |
-70 |
060 |
242.5 |
No significant intercepts (below detection limit) |
|
BH3DD003 |
326313 |
5931394 |
-60 |
023 |
165.6 |
0.8m @ 1.19 g/t Au from 135.8m |
|
BH3DD004 |
326313 |
5931394 |
-67 |
023 |
203 |
No significant intercepts |
All samples were assayed by Gekko Systems Pty Ltd in Ballarat, Australia.
Review of Announcement by Qualified Persons
The Exploration Results in this report have been compiled by Adam Jones and Dr Rodney Boucher.
Adam Jones is a Member of the Australian Institute of Geoscientists (MAIG). Adam Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit 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”. He consents to the inclusion in this report of these matters based on the information in the form and context in which it appears.
This announcement has been reviewed by Dr Rodney Boucher of Linex Pty Ltd. Linex Pty Ltd provides geological services to Mercator Gold Australia Pty Ltd, including the services of Dr Boucher, who has a PhD in geology, is a Member and RPGeo of the Australian Institute of Geoscientists and is a Member of the Australasian Institute of Mining and Metallurgy. Dr Boucher is a Qualified Person as that term is defined by the AIM Note for Mining, Oil and Gas Companies.
MARKET ABUSE REGULATIONS (EU) No. 596/2014
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 (MAR) (as in force in the United Kingdom pursuant to the European Union (Withdrawal) Act 2018). Upon the publication of this announcement via Regulatory Information Service (RIS), this inside information is now considered to be in the public domain.
FOR FURTHER INFORMATION, PLEASE CONTACT:
|
ECR Minerals plc |
|
Tel: +44 (0)20 7929 1010 |
|
|
David Tang, Non-Executive Chairman |
|
|
|
|
Craig Brown, Director & CEO |
|
|
|
|
Email: |
|
|
|
|
Website: www.ecrminerals.com |
|
|
|
|
|
|
|
|
|
WH Ireland Ltd |
|
Tel: +44 (0)161 832 2174 |
|
|
Nominated Adviser |
|
|
|
|
Katy Mitchell/James Sinclair-Ford |
|
|
|
|
|
|
|
|
|
SI Capital Ltd |
|
Tel: +44 (0)1483 413500 |
|
|
Joint Broker Nick Emerson
|
|
|
|
|
Novum Securities Limited |
|
Tel: +44 (0) 20 7399 9400 |
|
|
Joint Broker |
|
|
|
|
Jon Belliss
|
|
|
|
ABOUT ECR MINERALS PLC
ECR Minerals is a mineral exploration and development company. ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd has 100% ownership of the Bailieston and Creswick gold projects in central Victoria, Australia, and two license applications lodged in eastern Victoria for the Tambo Gold project. ECR is currently drilling high priority targets on the Bailieston gold project using the Company’s own diamond drill rig, backed by a support network at the company’s central Victoria HQ at Bendigo. ECR has an experienced exploration team with significant local knowledge in the Victoria Goldfields and wider region.
Following the sale of the Avoca, Moormbool and Timor gold projects in Victoria, Australia to Fosterville South Exploration Ltd (TSX-V: FSX) and the subsequent spin-out of the Avoca and Timor projects to Leviathan Gold Ltd (TSX-V: LVX), ECR has the right to receive up to A$2 million in payments subject to future resource estimation or production at any of those projects.
ECR has earned a 25% interest in the Danglay gold project, an advanced exploration project located in a prolific gold and copper mining district in the north of the Philippines, and holds a royalty on the SLM gold project in La Rioja Province, Argentina.
Kavango Resources #KAV – Strategic Partnership with Spectral Geophysics
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the signing of a strategic partnership with Spectral Geophysics Ltd (“Spectral”) (the “Strategic Partnership”).
Spectral is one of Southern Africa’s leading firms in the use of ground-based remote sensing technologies to identify high-speed electromagnetic (“EM”) conductors at depth. Spectral has specialist knowledge and expertise in mapping subsurface geology beneath Kalahari cover. This experience is particularly important to exploration of the Company’s Kalahari Suture Zone (“KSZ”) Project in Botswana.
Highlights
v Spectral has completed two Time Domain Electromagnetic (“TDEM”) surveys in the KSZ. The second of these, at Target A2, identified:
– A large conductive anomaly, which is approximately 1km in strike with a large decay constant (~340msec) that could indicate presence of metallic sulphides
– A second possible discrete conductor to the west of A2, which requires further surveying.
v Under the terms of the Strategic Partnership:
– Spectral will share with Kavango its technical knowledge to optimise future underground remote surveys of the KSZ
– Spectral will prioritise the assignment of its advanced surveying technologies to the KSZ for a period of 24 months
– Kavango will share with Spectral results of independent assessments on any data gathered from remote surveys
– Kavango’s field exploration team will provide additional support to facilitate more rapid deployment of remote sensing technologies to target areas.
v In return for securing priority access to Spectral’s technical expertise and advanced remote surveying technologies, Kavango has agreed to issue Spectral:
– 3,000,000 ordinary shares in the Company at 3p per share (the “Partnership Shares”). The Partnership Shares will be lodged with the Company’s broker and are subject to a 12-month lock-in.
– 3,000,000 warrants in the company exercisable at 4.25p per share with the following vesting conditions
I. 1,000,000 warrants vest on completion of the next 5 TDEM surveys in the KSZ
II. 1,000,000 warrants vest on completion of a further 5 TDEM surveys in the KSZ
III. 1,000,000 warrants vest on completion of a further 5 TDEM surveys in the KSZ
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“We are delighted to announce a Strategic Partnership with Spectral Geophysics and its founder Cas Lötter.
Cas is one of Africa’s principal experts in subsurface geological surveying. Under his leadership, Spectral is now among the Continent’s leading specialists in ground-based EM surveys, having worked on projects in 18 countries for many of the world’s largest mining firms.
In addition to this, Cas has personally interpreted over 100,000 line kilometers of helicopter EM data and was directly involved in the target identification that led to the T3 and A4 Dome copper discoveries in the Kalahari Copper Belt.
With Spectral’s assistance and experience, Kavango will now be able to deploy more sophisticated methods and remote sensing technologies into the Kalahari Suture Zone. Following the success of the first two TDEM surveys we completed at Hukuntsi, this is a major step forward for Kavango and significantly bolsters our exploration capabilities.”
Cas Lötter, founder of Spectral Geosciences, commented:
“I have been intrigued by the potential of the Kalahari Suture Zone for over 30 years. However, it has only been in recent years that technology has improved to the point to allow for effective surveying at depth, beneath the Kalahari cover.
I was happy to be invited to work on the KSZ Project last year. It is a technically-complex environment to work in, but my team and I have developed sophisticated methods to enable us to step up to this challenge. The fact that our data has stood up to rigorous external validation further strengthens my belief that our partnership with Kavango could yield substantial results.
Now that we have seen the results from our first TDEM surveys, I am even more encouraged by what we have already found. We have learned a lot from the first phase of surveys and applied these lessons to the next round of surveys, which are well underway.”
About Cas Lötter & Spectral
Cas Lötter had his first experience with mapping geology below the Kalahari beds in 1985 when he located the mafic/ultramafic contact of the northern limb of the Molopo Farms Complex, using aeromagnetic, ground magnetics and gravity. Since that time, he has been involved in exploration projects for minerals and groundwater below the Kalahari stretching from the northern Cape of South Africa to eastern Namibia and further north through western Zambia into the southern DRC and into Zimbabwe in the east. He was especially active in Botswana where he has been a resident since 1993, the year he established geophysical consulting and contracting company, Spectral Geophysics. Spectral serviced several multi-nationals and a plethora of Canadian, British and Australian juniors eg. Rio Tinto, BHP-Billiton, Anglo American, Phelps Dodge, Falconbridge, First Quantum etc. in the search for diamonds, gold, copper, nickel, lead-zinc, uranium and manganese. Spectral has also been involved in projects in South Africa, Namibia, Angola, DRC, Congo, Zimbabwe, Mozambique, Swaziland, Lesotho, Kenya, Tanzania, Uganda, Ivory Coast, Senegal, Ghana, Mali, Eritrea and CAR.
Cas Lötter, in his personal capacity, has also been involved extensively in consulting assignments in India (processed and interpreted 100,000+ line km of helicopter EM data) and Iran (training of local geophysicists in electromagnetic surveying and processing). In Africa, he was directly involved in projects which led to the discovery or mapping of a resource eg. Kalgold on the Kraaipan Belt in South Africa, Lumwana and Sentinel on the Zambian Copper Belt, Golden Ridge, North Mara and Geita in Tanzania. He was also closely involved with the geophysical mapping of the T3 deposit in the Kalahari Copper Belt and commissioned, planned, supervised, processed and interpreted the helicopter electromagnetic survey which led to the discovery of the A4 dome deposit near T3.
Spectral’s main areas of expertise are advanced processing and interpretation of airborne and ground electromagnetic data as well as 3D modelling of Induced Polarisation / Resistivity data. Spectral is currently concentrating on deep electromagnetic prospecting for metallic sulphides using the gold standard in transmitter and receiver technology available from Australia. Spectral has extensive experience with the application of TDEM and SQUID sensors in electromagnetic prospecting and have applied the technology successfully in Botswana, South Africa and Namibia over a period of six years.
Terms of the Strategic Partnership
Kavango and Spectral have entered into a Strategic Partnership, whereby Spectral will share with Kavango its technical knowledge to optimise future underground remote surveys in the KSZ.
Kavango has incentivised Spectral to prioritise physical surveys of the KSZ and to deploy its most powerful remote sensing technologies. The Strategic Partnership will involve Spectral making recommendations concerning the use of specific techniques and technologies to maximise the chances of success, identifying any large-scale conductors that may exist in the KSZ.
Kavango will share with Spectral results of any data analytical work it receives from third party geophysicists, employed to provide independent assessment of survey data. Kavango expects any third party analysis will help augment and calibrate future surveys conducted by Spectral in the KSZ.
In return for Spectral’s commitment to the Strategic Partnership, Kavango will issue Spectral 3,000,000 Partnership Shares, at an issue price of 3p per share. The Partnership Shares will be held with First Equity for a 12-month lock in period
In addition, Kavango will issue Spectral with warrants to subscribe for up to 3,000,0000 new ordinary shares, exercisable at 4.25p a share with a 4-year exercise period from the date of signing the strategic partnership agreement between Kavango and Spectral (the “Partnership Warrants”). The Partnership Warrants will vest in 3 tranches, set out in the table below:
|
Spectral Partnership Warrants Vesting Tranches |
||||
|
Tranche |
Exercise Price |
Number of Warrants |
Life of Warrants
|
Vesting Condition |
|
1 |
4.25p |
1,000,000 |
4 Years
|
Warrants vest on completion of FIRST 5 ground-based remote sensing surveys in the KSZ |
|
2 |
4.25p |
1,000,000 |
4 Years
|
Warrants vest on completion of SECOND 5 ground-based remote sensing surveys in the KSZ |
|
3 |
4.25p |
1,000,000 |
4 Years
|
Warrants vest on completion of THIRD 5 ground-based remote sensing surveys in the KSZ |
———————————————————————–
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
bturney@kavangoresources.com
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
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
High Speed EM 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
Kavango Resources #KAV – KSZ Hukuntsi – TDEM conductor 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 A in the Hukuntsi (northern) section of the Company’s Kalahari Suture Zone (“KSZ”) Project.
The anomaly appears to be a large conductive body (the “Conductor”) that lies between 250 and 700m from surface and appears to sit within the lower parts of a gabbro “keel”, as predicted by the Company’s proprietary 3D-Underground Model of Hukuntsi announced on 8 September 2020. Kavango believes this is in a promising geological setting.
Highlights
v The Conductor was identified through the analysis of data from the second Time Domain Electro-Magnetic (“TDEM”) survey completed on Target Area A:
– The ground-based, fixed loop TDEM surveys have been deployed to search for super conductors within the deeper “keels” of the extensive gabbroic intrusions in the KSZ.
– The first two surveys (A1 & A2) were completed in close proximity to one another in Target Area A
– Spectral Geophysics Ltd (“Spectral”), who are conducting the surveys on behalf of the Company, concluded that the Conductor “is interpreted to be caused by a shallow dipping, discrete conductor at least 1km in strike with a large decay constant (~340msec) 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
– The Conductor is oriented on a plunging plane, with a minimum depth of 250m, and a maximum depth extension of 450m (that is to a depth of 700m below surface).
v Given the size and the nature of the EM signature, Kavango sought independent verification of the validity and accuracy of the TDEM data from three independent geophysical consultants, including a specialist plate modeller who is experienced in modelling highly conductive EM environments. These consultants confirmed:
– The TDEM surveys collected valid and accurate data readings
– The equipment used to collect the TDEM data, the procedures adopted, the processing techniques (software) and the interpretation of the final results are all valid for this type of survey.
– The plate model is accurate (plate modelling estimates the size, geometry and orientation of subsurface conductive bodies)
– The EM signature of the Conductor is notably distinct from the surrounding conductive environment
– TDEM surveys are the appropriate technology to identify conductive bodies in the KSZ.
v Using its proprietary 3D-Model of the underground geology at Hukuntsi, Kavango concludes that the Conductor is in the right geological setting for drilling (250m from surface to the projected “keel” of the gabbroic intrusion at 700m).
v Spectral is continuing TDEM surveys on Target Areas “B”,”C” and “D” at Hukuntsi.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The apparent identification of a large EM anomaly within the “keel” of a gabbroic intrusion in Target Area “A” is promising.
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, the data and the position and conductivity of the Conductor are reliable. Further work is still needed, but I am pleased with the validation we have so far received.
I’d like to thank Spectral, the independent contractors and our in-house team for the excellent work they have completed on behalf of Kavango.
This is the first time TDEM surveys have been deployed in the KSZ. We are confident this technology holds the key to unlocking the project’s significant potential. TDEM surveying will continue at an accelerated pace on the remaining principal target areas so we can prioritise targets for detailed drill site locations.”
TDEM surveys at Hukuntsi
On 30 November 2020, Kavango announced it had identified four “Norilsk-style” target areas at Hukuntsi for further exploration. These target areas cover 182.5km2 and incorporate deep “keel” formations in the Karoo-age gabbros, with long axes. The four target areas include:
– Target Area A (8km x 9km)
– Target Area B (6km x 10km)
– Target Area C (4.5km x 5km)
– Target Area D (3.5km x 8km)
In December 2020, the Company commenced orientation work on the first two surveys on Target Area A (A1 & A2). The interpretation and modelling was completed in late February, with independent data verification sought over March and into April.
The Conductor at A2
The Conductor appears to lie at a minimum depth of 250m and maximum depth extension of 450m (that is to a depth of at least 700m below ground). Spectral concluded that the Conductor “is interpreted to be caused by a shallow dipping, discrete conductor at approximately 1km in strike with a large decay constant (~340msec) that could indicate the presence of metallic sulphides”. The actual size and thickness of the causative source at depth will only be determined by drilling
The EM decay constant (TAU) within the anomalous areas is calculated at approximately 340msec. These values are similar to nickel sulphide deposits discovered elsewhere in the world.
According to the Company’s 3D-model of the underground geology at Hukuntsi, the Conductor appears to lie at the base of a Karoo gabbro intrusive “keel”, which is the right geological setting for a potential mineral deposit. The Company is encouraged by this data.
To help further de-risk the Conductor, the Company sought independent expert verification of the data gathered from the TDEM surveys. This has confirmed the integrity of the methods used by Spectral, the quality of the data collected and the conclusions Spectral reached in its final report.
Next steps
The Conductor will be re-surveyed on two or three other survey lines from a new TDEM loop position to obtain further confirmation.
Meanwhile the TDEM surveying of Target Areas “B”, “C” and “D” will continue. Spectral will undertake either one or two TDEM surveys on each of these Target Areas.
The planned surveying of all four Target Areas should be completed before the end of June. On completion, any conductors identified will be followed up with additional, offset TDEM loops at higher resolutions. Offset loops will provide important information on the geometry and properties of any targets prior to subsequent exploration drilling.
———————————————————————–
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
bturney@kavangoresources.com
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
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
High Speed EM 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
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.
Alan Green talks Echo Energy #ECHO, Emmerson #EML & Ananda Developments #ANA on the Vox Markets podcast
Alan Green discusses Echo Energy #ECHO, Emmerson #EML & Ananda Developments #ANA with Justin Waite on the Vox Markets podcast. Interview is 9 minutes in.
