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#KAV Kavango Resources – Option to acquire up to 51.15% of Molopo Farms

KAV

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce it has entered an exclusive, three month option (the “Option”) to acquire 85.23% of Kalahari Key Mineral Exploration Proprietary Limited (“KKME”) in a proposed all share-transaction (the “Proposed Acquisition”). Kavango can exercise the option at its sole discretion.

KKME is a privately owned company, which currently owns 100% of prospecting licences PL310/2016, PL311/2016 and PL202/2018 in Botswana, collectively known as the “Molopo Farms Project” (“MFP”). KKME holds no other interests and is debt free. Power Metal Resources plc (LSE:POW – “Power Metal”) has an effective 40% project in the MFP, which it will convert into equity on a pro-rated basis in KKME should the Proposed Acquisition complete.

Following the Proposed Acquisition, Kavango would hold an interest of between 50.74% and 51.15% in KKME, Evrima Plc (“Evrima” – a currenty shareholder in KKME) would hold between 9.26% and 8.86% of KKME and Power Metal would own the remaining 40%. Power Metal and Evrima intend to retain their shares in KKME and will continue as project partners. Kavango would be the operator.

Rather than pay an option fee, Kavango will complete a work programme on the MFP (the “Work Programme”). This will enable the Company to complete technical due diligence, including fieldwork, prior to deciding whether to exercise the Option. As part of the Work Programme, Kavango will perform a review of all geological and geophysical data gathered from previous exploration of the MFP.

 

Highlights

Ø About the Molopo Farms Project:

–  KKME owns 60% of the MFP, which is a Nickel/Copper/Platinum Group Elements (“PGEs”)exploration project in sourthern Botswana

–  The MFP covers 1,723km2

–  Exploration targets lie under Kalahari Cover

–  Primary exploration strategy led by advanced geophysics

–  Spectral Geophysics (“Spectral”) historically engaged to complete surface surveys

–  KKME drilled 3 boreholes in October 2020 (“Targets 1, 2 & 3”), each of which encountered ultramafic rocks

–  Nickel sulphides were identified in Borehole K1-6 (“Target 2”)

–  Power Metal to continue as project partner, with a 40% stake in the MFP

 

Ø The Work Programme will commence immediately, to include:

I.  Spectral to perform a single “moving loop” survey over Target 1

II.  Kavango to perform soil geochemical analysis over Target 2

III.  Kavango to cut cores and send select samples from Target 3 for assay testing

IV.  Kavango to create a unified regional 3D model of MFP using all available borehole data

V.  Kavango to send thin sections of core samples, taken from Targets 1, 2 & 3, for university analysis

VI.  Kavango to contract Bell Geophysics to perform gravity data analysis over the northern part of the MFP

 

Ø Acquisition Terms, should the Company exercise the Option:

–  Value of the Proposed Transaction estimated to be between £1.17m & £1.875m (payable in stock), depending on the performance of Kavango’s share price

–  The Company anticipates closing the Proposed Transaction through the issue of 21,307,500 shares, pro-rated, to certain KKME shareholders (the “Vending Shareholders”) at an issue price of 5.5p (the “Acquisition Shares”), valuing KKME at £1.375m

–  Half the Acquisition Shares will be locked in for 6 months & the other half locked in for 12 months

–  Kavango to issue 1-for-1 two-year warrants to the Vending Shareholders on the same terms as the 05 July placing (the “Acquisition Warrants”). The Acquisition Warrants are transferrable between the Vending Shareholders.

 

Ø Kavango CEO Ben Turney will host a live shareholder webinar via Twitter Spaces through the Company’s Twitter account at 1900GMT on Monday 29 November to discuss the Proposed Acquisition and how it fits with Kavango’s strategy (visit https://twitter.com/KavangoRes or use the handle @KavangoRes for more information)

 

Ben Turney, CEO of Kavango Resources, commented:

“Our vision is to build a world-class minerals exploration firm in Botswana. Our business model is based on making multiple, large-scale metal discoveries, which we can sell to major international mining firms.

Over the course of this year we’ve recruited senior technical staff, deployed the latest technologies into the field, invested heavily in our local operations and significantly increased exploration activity. The Kavango team has now put in place a strong foundation, upon which we can confidently grow the company.

The next important element in our strategy is to have a pipeline of high-quality projects we can acquire or earn into. In this respect, Molopo Farms could be a perfect fit. The fact that our close strategic partners, Power Metal Resources and Spectral Geophysics, are already heavily involved is potentially a big advantage. We look forward to working with Evrima too.

The terms of the deal are also appealing. An all-share transaction makes sound commercial sense, enabling us to preserve cash resources to use in the field. The structure of the Work Programme Option, means we can immediately start moving the project forward, while also performing detailed due diligence,

I look forward to reporting on our progress. 

 

About the Molopo Farms Project

KKME is a privately owned company, which owns 100 per cent of prospecting licences PL310/2016, PL311/2016 and PL202/2018 in Botswana, collectively known as the “Molopo Farms Project” (“MFP”). The MFP is highly prospective for Nickel/Copper/PGE deposits and covers 1,723km2 . All exploration targets lie under Kalahari Cover. The primary exploration strategy is the use of advanced geophysical surveys, data interpretation and modelling to identify drill targets.

 

Power Metal Resources (LSE:POW) owns 40 per cent of the MFP earned by financing part of the exploration work.

Evrima Plc currently owns 15.43% of KKME, which will dilute to an interest of between 9.26% and 8.86% on completion of the Acquisition.

KKME has engaged Spectral Geophysics to conduct geophysical surveys over the MFP. Spectral has specialist knowledge and expertise in mapping subsurface geology beneath Kalahari cover.  Kavango separately entered into a strategic partnership with Spectral on 20 April 2021, for the Company’s Kalahari Suture Zone (“KSZ”) Project. The exploration challenges in the KSZ and MFP are notably similar.

In October 2020 KKME completed an initial drill campaign, which targeted three separate geological structures, with one borehole in each (Targets 1, 2 & 3).

Drilling at Target 1 appears to have closely missed the main conductive anomaly, but Kavango’s team is encouraged by geophysical survey data. Spectral Geophysics will complete a “moving loop” survey over Target 1, with the aim of producing a more defined model of the conductive target.

Core retrieved from Target 2 (“Hole K1-6”) contains visible nickel sulphides. A soil-sampling programme over Target 2 has been designed to test the surface extent of any possible underlying mineralisation, with a view to preparing future follow-up drilling.

The latest assay results from Hole K1-6 can be viewed in the announcement made by Power Metal on 24 September 2021 below;

https://www.investegate.co.uk/power-metal–pow-/rns/botswana-molopo-farms-complex—further-assays/202109241515069521M/ .

Cores from Target 3 will be cut and sent for laboratory testing at the University of Witswatersrand.

 

The Work Programme Option

In return for being granted the Option, Kavango proposes to complete the following work programme (the “Work Programme”)

I.  Spectral to perform a single “moving loop” survey over Target 1, to be paid for by Kavango

II.  Kavango to perform soil geochemical analysis over Target 2. KKME to provide details of an outline soil-sampling programme, to be signed off by Kavango’s Exploration Manager. Kavango to provide a maximum of 2 teams for a maximum of 1 calendar month to perform the soil sampling programme. 

III.  Kavango to arrange for the remaining core from Target 3 to be cut and sent for analysis. KKME to provide confirmation of the quote received for lab analysis 

IV.  Kavango to input the regional borehole data from Targets 1, 2 & 3 into a unified 3D model. KKME has indicated this data is in Microsoft Excel. KKME to provide Kavango with said data.

V.  Kavango to send thin sections of core samples taken from the 3 bore holes drilled at Targets 1, 2 & 3 for university analysis

VI.  Kavango to fund a contract agreed with Bell Geophysics for a reinterpretation and inclusion of gravity data for the northern part of the licence block

In the event that Kavango does not exercise the Option, Kavango may elect to turn over to KKME all data gathered from the Work Programme, which will then become the property of KKME.

 

Proposed Acquisition Terms

The Option has a 3-month term, valid commencing 25 November 2021, which gives Kavango the exclusive right (at its sole discretion) to acquire between 50.74% and 51.15% of the fully diluted share capital in KKME from the Vending Shareholders, in exchange for:

–  21,307,500 million shares in Kavango, issued at a price of 5.5p per share and credited as fully paid, with half the shares subject to a 6-month lock-in and half the shares subject to a 12-month lock-in (the “Acquisition Shares”)

–  If at the time of exercising the Option, the Kavango share price has traded below 5p on a 10-day Volume Weighted Average Price (“VWAP”) (the “Lower Price”), then Kavango will issue £1,170,000 worth of shares at the Lower Price to the Vending Shareholders.

–  If at the time of exercising the Option, the Kavango share price has traded above 8.8p on a 10-day Volume Weighted Average Price (“VWAP”) (the “Upper Price”), then Kavango will issue £1,875,000 worth of shares at the Upper Price to the Vending Shareholders.

–  1-for-1 two-year warrants exercisable at 8.5p per share, which are subject to an acceleration clause, whereby if the Company’s shares close above 17p for 5 trading days, the Company may write to warrant holders at any time providing 10 working days’ notice of accelerated exercise, with 10 working days thereafter for payment (the “Acquisition Warrants”)

–  Kavango will issue the Acquisition Shares and Acquisition Warrants directly to the Vending Shareholders, prorated in their respective allocations

–  The Acquisition Warrants will be transferable between KKME shareholders, with the written permission of Kavango

–  No cash fee is payable in connection with the Option

 

Upon Option exercise:

Kavango will, if necessary, issue a prospectus as soon as is practicable and (if Kavango considers the same to be necessary or desirable) call a general meeting to seek shareholder approval for the Proposed Transaction, should Kavango exercise the Option.

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   

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

#KAV Kavango Resources – KCB: MoU to accelerate 90% ownership of the LVR JV

 

KAV

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the Company has signed a Memorandum of Understanding (“MoU”)to accelerate its 90 per cent (“90pc”) ownership of the LVR Joint Venture (the “LVR JV”) in the Kalahari Copper Belt (the “KCB”).

The LVR JV incorporates prospecting licences PL082/2018 & PL 083/2018, which cover 1,091km2 of prospective ground the KCB (the “Project”). Under the original terms of the LVR JV, the Company had been earning into 90pc ownership of the Project, through a pre-agreed spending programme.

However, results from field exploration have increased the Company’s confidence in the Project. Consequently, Kavango made a proposal to LVR GeoExplorers (Pty) Ltd (“LVR”) to accelerate its 90pc ownership.

Kavango and LVR have now signed the MoU to the effect that in return for Kavango taking an immediate 90pc stake in the LVR JV, the Company will issue to LVR 2,000,000 Ordinary Shares (at an issue price of 5.5p per share) and 2,000,000 warrants, exercisable at 8.5p per share for a period of two years (the “Warrants”)

The Warrants are subject to an acceleration clause, whereby if the Company’s shares close above 17p for 5 trading days, the Company may write to warrant holders at any time providing 10 working days’ notice of accelerated exercise, with 10 working days thereafter for payment

Kavango CEO Ben Turney will host a live shareholder webinar via Twitter Spaces through the Company’s Twitter account at 1900GMT on Monday 29 November to discuss the 90pc ownership acceleration in the LVR JV and how it fits with Kavango’s strategy (visit https://twitter.com/KavangoRes or use the handle @KavangoRes for more information)

 

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“The LVR JV is perhaps our “forgotten” project. However, this does not reflect the exploration potential of the two prospecting licences held within it. PL082 is particularly encouraging, with what appears to be a conductor target, analogous with the Banana Zone deposit on the other side of Ghanzi Ridge.

To simplify the JV arrangement and accelerate our direct 90% direct interest in the joint venture, we made an offer to LVR GeoExplorers, which I am very happy to report they accepted. Since Kavango was already going to carry significant exploration expenditure under the original terms of the earn-in, doing this deal at this stage makes sense.

We now need to finalise the terms described in the memorandum of understanding to conclude the deal. In the meantime, field work will continue across both prospecting licences and we expect to release further updates in the near future. “

 

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  

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

Kavango Resources KSZ #KAV – distinctly magnetised 30km target identified

 

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the Company has identified 30km strike length of distinct magnetic Proterozoic gabbro (the “30km Strike Length”) within Target Area A of the Kalahari Suture Zone (“KSZ”) Project, in the vicinity of Hole TA2DD002.

The 30km Strike Length is now a high-priority exploration target for the detection of possible large-scale nickel/copper/platinum group element (Ni/Cu/PGE) mineralisation.

Spectral Geophysics (“Spectral”), the Company’s strategic partner, has produced an updated 3D magnetic susceptibility model (the “Updated Mag Sus Model”) of the Proterozoic gabbro in Target Area A. This maps the 30km Strike Length.

According to the Updated Mag Sus Model, zones of the 30km Strike Length can be intercepted as shallow as 500m. Given that the Updated Mag Sus Model has been constrained using stratigraphic data from Hole TA2DD002, the Company is confident in this depth prediction.

Kavango’s confidence in the Updated Mag Sus Model is based on:

I.  Physical evidence seen in Proterozoic drill core from Hole TA2DD002 ( announced 14 September )

II.  Initial results from the downhole electromagnetic (“DHEM”) survey of Hole TA2DD002 ( announced 29 October )

III.  Spectral’s recognised technical experience and expertise

Highlights:

Ø Spectral inverted and reinterpreted ground magnetic survey data to create the Updated Mag Sus Model in the vicinity of Hole TA2DD002

–  Spectral   has prepared a report for the Company, which describes the analytical methods it used to produce the Updated Mag Sus Model. Kavango will publish this report on its website.

Ø Spectral’s Updated Mag Sus Model:

–  Accurately predicts the intersection of TA2DD002 with the Proterozoic gabbro at 650m

–  Confirms that Proterozoic rocks are one set of causative bodies for the magnetic anomalies, identified from both aeromagnetic and ground surveys

–  Confirms that the extent of the Proterozoic rocks can be mapped using both aeromagnetic and ground magnetic surveying

–  Shows that Hole TA2DD002 appears to have clipped the western edge of the more magnetic Proterozoic rocks, which are hosted within the main body of Proterozoic. The main body of the more magnetic Proterozoic rocks appears to extend approximately 350m to the east

–  Indicates the Proterozoic rocks could be intercepted at <500m depth to the NNW of TA2DD002

–  Suggests the Proterozoic rocks are possibly shallower to the south on the same geological trend  

Ø As with the Great Red Spot ( announced 22 November ), Kavango increasingly believes the 30km Strike has potential to host stacked Karoo-age and Proterozoic-age Ni/Cu/PGE mineralisation

–  Based on visual inspection of core samples taken from TA2DD002 and KSZD001, the Company’s preliminary view is the Proterozoic rocks in these two areas experienced differing intrusive and/or metamorphosing events ( announced 16 November )

–  Kavango will test this theory with detailed petrographic work and various assay techniques, performed by internationally accredited laboratories in South Africa.

Ø Kavango expects to use the Updated Mag Sus model to guide future exploration in the KSZ, specifically to position future Time Domain Electromagnetic (“TDEM”) surveys

Ø The Company will publish images from the Updated Mag Sus Model on its website ( www.kavangoresources.com ) and its Twitter feed ( @KavangoRes )

Ø Kavango will host a shareholder webinar in early December to present its future exploration strategy for the KSZ. Key members of Kavango’s technical team will participate in this event. Details will be published shortly.

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“Today’s news shows how the various threads of this year’s complex exploration efforts in the Kalahari Suture Zone are starting to tie together. We’ve used the latest remote sensing technology to identify distinct targets, have nearly completed a ground-breaking drill campaign and recovered physical evidence in core samples to support our upgraded geophysical modelling.

It very much feels like we are closing in on a scalable exploration strategy to crack the 5-decade challenge posed by the KSZ.

Spectral Geophysics’ updated magnetic susceptibility model of Target Area A illustrates the enormous prospective potential of our licence areas in this region.

The 30km-long magnetised body, within the Proterozoic gabbro, is just one possible host environment for large-scale nickel/copper/platinum group element mineralisation. Above that sits the Karoo, which still remains a core focus of ours.

The fact that we have at least four other sizeable target zones within 25km distance of of the 30km Strike Length (including the Great Red Spot) highlights how big this project is. The possibility of stacked plays overlying each other, simply adds to the overall promise.

Now that we are increasingly confident in our ability to explore our ground successfully, we look forward to running accelerated field programmes next year. We will present more detail about our updated strategy in our hosted webinar, early next month.”

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

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

#KAV Kavango Resources – Drilling commencement & upgraded target motivation

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce commencement of drilling of the Company’s B1 Conductor Target (the “B1 Conductor”, announced 02 July) with Hole KSZDD002.

The B1 Conductor is a cross-formational, strongly conductive geophysical anomaly that has a conductance reading of 8,200 Siemens. Part of Kavango’s exploration model in the Kalahari Suture Zone (“KSZ”) is based on identifying sub-surface conductors with conductance readings greater than 1,000 Siemens. According to the Company’s model, the B1 Conductor is 475m by 550m in size, exhibits a decay constant in excess of 350ms and dips at a 60-degree angle.

 

Conclusion – Kavango believes the position, size, shape, orientation and conductance of the B1 Conductor suggest this target may have the potential to be a large-scale, Karoo-age nickel/copper/platinum group element (Ni/Cu/PGE) mineralisation.

 

Objective – Hole KSZDD002 has been designed to intersect the B1 Conductor, to give us the best possible information from a single hole regarding the presence or otherwise of metal sulphides (or whatever else could be the source of such a highly conductive zone).

 

Drill Motivation – The B1 Conductor was identified through two surface Time Domain Electromagnetic (“TDEM”) surveys, performed by the Company’s strategic partner Spectral Geophysics (“Spectral”) in Q2 this year.

The Company believes the B1 Conductor was emplaced within a Karoo gabbro, which sits above the “Great Red Spot” magnetic anomaly, at a depth of 550m from surface. Lithological logging of the core from Hole KSZDD001 (announced 16 November) shows a thick 70m Karoo gabbroic sill is at a similar depth to the B1 Conductor. KSZDD001 was drilled 1km away from the collar location of KSZDD002.

If Kavango is correct about the nature of the possible relationship between the B1 Conductor and the local Karoo gabbro intrusive, this would suggest the B1 Conductor may have been emplaced during the Karoo (c.180 million years ago), by a magmatic event that intruded the existing flat lying Karoo sediments.

Preliminary structural interpretations, combining the geology intersected in KSZDD001 with updated inversion models of the “Great Red Spot” magnetic anomaly, indicate that Karoo aged intrusives may have intruded upwards along structures that controlled the emplacement of the underlying Proterozoic gabbros (c.1.1 billion years ago).  One of these structures could be the host lithology of the B1 Conductor.

Kavango’s updated inversion model of the Company’s aeromagnetic data indicates that the 60-degree dip of the B1 Conductor is aligned directly towards one of flanks of the magnetic high of the underlying Great Red Spot.

The Company is currently exploring the possibility that the Great Red Spot area has potential to host two separate, distinct mineralised systems; one younger Karoo-age system (prospective for Ni/Cu/PGEs), and another older Proterozoic-age system (mineralisation model in the process of being confirmed). Kavango anticipates that drill core from Hole KSZDD002 should help it test its theory of the potential for a stacked exploration play in this area.

Kavango expects to drill Hole KSZDD002 to a depth of 650m.

 

Risk Assessment – Kavango has already paid the cash element of the drilling costs for Hole KSZDD002, with the balance to be paid in stock. The Company’s working capital position is £2.1million. The Company is confident the outcome of Hole KSZDD002 will have no bearing on its planned other work programmes in 2022 in the KSZ, the Kalahari Copper Belt or Ditau.

To date Kavango has only performed nine surface TDEM surveys across the northern “Hukuntsi” section of the KSZ. From results gathered so far, the Company is convinced this geophysical technique is the right technology to identify future conductive Ni/Cu/PGE drill targets, should they exist within drilling range.

Kavango’s geophysical team is in the process of drawing up a phased campaign of follow up TDEM and downhole electromagnetic (“DHEM”) surveys over the Great Red Spot and Target Area A. If successful, the Company will then roll this campaign out to other target areas in the KSZ. The objective will be to identify conductor targets at representative depths of potential Karoo-age gabbros (searching primarily for possible Ni/Cu/PGE deposits) and conductor targets set within Proterozoic-age gabbros (searching both for possible Ni/Cu/PGE deposits & an alternative as yet unspecified mineralised deposit model that fits the increasing range of geological and geophysical data Kavango has obtained).

Kavango’s geophysical team is in the process of drawing up a phased campaign of follow up TDEM and downhole electromagnetic (“DHEM”) surveys over the Great Red Spot and Target Area A. If successful, the Company will then roll this campaign out to other target areas in the KSZ. The objective will be to search for conductive targets that primarily fit a Ni/Cu/PGE deposit model, at the depths of both Karoo-age gabbros and the deeper Proterozoic-age gabbros.

Further, Kavango has obtained geological and geophysical evidence for an alternative, and as yet unspecified, mineralised deposit model in the Proterozoic.

Hole KSZDD002 is the fourth borehole of the current KSZ drilling campaign. Despite its status as an extremely high priority target, Kavango left drilling of the B1 Conductor until last, to enable the Company to learn as much about the local ground conditions and stratigraphy as possible. Kavango is aware of the challenges posed by drilling in this area and has, in collaboration with Equity Drilling & Mindea Exploration and Drilling Services (Pty), made a number of changes to the engineering design of Hole KSZDD002.

As with other boreholes in this year’s KSZ drill campaign, the priority of Hole KSZDD002 is to reach target depth and recover as much drill core as possible for future analysis. However, given what is known about the structural composition of commercial Ni/Cu/PGE ore bodies (i.e. they can be relatively discrete and exist in clusters), Kavango is mindful of the importance of being able to conduct DHEM on this hole. The Company has taken steps to maximise its chances of being able to complete DHEM on Hole KSZDD002, but is aware the precise geology of the rock formations the drill will encounter is unknown at this stage. This geology has the potential to limit the ability to carry out full a DHEM survey.

 

Latest Update – Drilling commenced on Friday 19 November, in 12-hour double shifts. By the end of the night shift on Monday 22 November Hole KSZDD002 was 60.79m

Online Presentation and Shareholder Q&A

Kavango Chief Executive Ben Turney and Consulting Geophysicist Jeremy Brett will present the Company’s latest interpretations of the B1 Conductor at the Proactive One2One Forum on 25 November at 1800GMT. To participate in this event please visit the following link:

https://event.webinarjam.com/register/1344/lxxzghmzw

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“This is the most important exploration hole ever drilled in the Kalahari Suture Zone.

It is up to the drillers and our team on the ground to deliver another successful hole. They’ve all done fantastic work for us already this year and I hope their efforts are richly rewarded.

On a personal note, I am particularly encouraged by the B1 Conductor crosscutting the flat-lying Karoo formation sediments. The fact our modelling suggests it dips towards the Great Red Spot’s probable intrusive centre could prove to be significant. If our theory is correct, vast amounts of Karoo-age magmas could have exploited the same pathways to surface as the Proterozoic magmas c.920million years before. Such conditions could well have led to the creation of Ni/Cu/PGE sulphide ore bodies.

The only way to test this theory is to drill the B1 Conductor. With its 8,200 Siemens modelled conductance reading and probable position within Karoo-age gabbro, it could be  Ni/Cu/PGE mineralisation.

However, as optimistic as we feel, it is premature to get too excited. Although we believe the B1 Conductor holds considerable potential, which we may be able to identify through Hole KSZDD002, we have not gambled Kavango’s future on its outcome.

We’ve already paid the cash element for drilling upfront and have £2.1million in working capital. This will see us comfortably through our next phases of exploration across our project portfolio, including drilling targets in Ditau and the Kalahari Copper Belt. With over 15,000km2 of highly prospective ground to cover and the series of strong hires we’ve made over recent months, Kavango is well positioned to make multiple metal discoveries.

In terms of this drill, all I can do now is wish everyone the best of luck. I hope it works out for all of us.”

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

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

Kavango Resources #KAV – Metal sulphides encountered in Hole KSZDD001

 

KAV

Metal sulphides encountered in Hole KSZDD001

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce completion of Hole KSZDD001 in the Company’s Kalahari Suture Zone (“KSZ”) Project. Copper sulphide mineralisation and locally abundant fine grained, interstitial magnetite were encountered from first contact with the Proterozoic gabbro, at 951m to the end of hole at 1,000m (“EOH”). This was consistent with the Company’s geophysical modelling of the Proterozoic gabbros, which are believed to be the source of the “Great Red Spot” magnetic anomaly (the “GRS”).

Hole KSZDD001 is the deepest borehole ever drilled into the GRS and is the first to recover physical evidence of sulphide mineralisation in this system.

Kavango has confirmed the presence of fine-grained, interstitial disseminated chalcopyrite (copper sulphide) and abundant magnetite through sections of the 49m of recovered Proterozoic core. This includes occasional 1cm elongated blebs of chalcopyrite (copper sulphide) with minor nickel.

The magnetic susceptibility readings for the intersected Proterozoic rocks are in the range of 140 to 280 milli SI units, with an average of 230 milli SI.  In the absence of any observations of pyrrhotite, these magnetic susceptibility values are well above the typical values for gabbros, which are typically in the range of 10 to 80 milli SI.

Preliminary field analysis and visual inspection of core samples taken from Hole KSZDD001 suggest the Proterozoic gabbros in the GRS in Target Area B exhibit differences to those encountered in Hole TA2DD002 in Target Area A (announced 14 September 2021), notably around alteration events. The Company’s preliminary view of this observation is that Target Areas A and B have experienced differing intrusive and/or metamorphosing events, these including potential mineralising phases within separate, but likely linked systems.

Kavango will test these theories and the provenance of the chalcopyrite through petrographic and geochemical analysis of core samples taken from both holes. This detailed petrographic work will be coupled with various assay techniques with all samples sent to internationally accredited laboratories in South Africa.

Drilling conditions in Hole KSZDD001 were challenging, with poor and fractured ground conditions encountered in several sections. As such, Kavango has elected not to attempt a downhole electromagnetic (“DHEM”) survey of Hole KSZDD001, as the risk of losing the DHEM probe in the uncased sections of the hole were considered too high.

Kavango congratulates Mindea Exploration and Drilling Services (Pty) (“Mindea”) & Equity Drilling on successfully drilling Hole KSZDD001 in difficult ground conditions to target depth and recovering all cores. A number of historic exploration holes, including GRS-1 drilled in 2002, were abandoned due to technical difficulties.

Lessons learned from the drilling of Hole KSZDD001 will be applied to KSZDD002, which will target the 8,200 Siemens conductor (announced 02 July 2021). The rig has mobilised to the drill collar location and drilling operations are expected to begin by the middle of this week.

Kavango will publish photos of core recovered from the Proterozoic in Hole KSZDD001 on its website (www.kavangoresources.com) and Twitter feed (through the handle @KavangoRes).

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“Once again we’ve broken new ground in the 50-year effort to unlock the Kalahari Suture Zone’s potential to host nickel/copper ore bodies.

We are the first company to confirm the presence of interstitial chalcopyrite (copper sulphide) in the Great Red Spot and the first successfully to drill to 1,000m in this area. For this we have to thank Mindea/Equity Drilling for stepping up to the complex engineering challenge.

We now await the results of petrology and geochemical analyses of our core samples to confirm the chalcopyrite’s origin and to tell us more about the extent to which the Great Red Spot is a favourable environment for massive sulphides.

We are particularly interested in the strength of the magnetic readings from where we made contact with the Proterozoic. They were 3 to 23 times higher than what one would expect in common gabbros. The magnetic pencil our field geologist used stuck to the core. We expect to complete follow-up analyses of various geophysical survey data we have available to us, to model what might be the deeper source of the underlying vast anomaly.

The decision to drill the deep geological hole into the Great Red Spot, before drilling the 8,200 Siemens B1 Conductor, has been fully vindicated. A downhole electromagnetic survey of Hole KSZDD001 would have been optimal, but we now have a much clearer idea of what is in front of us for Hole KSZDD002.

At this point, we believe we have done everything we can to maximise our chances of operational success in the next drill. What we encounter will then be up to the geology.”

#KAV Kavango Resources – Appointment of COO and Option award

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that it has appointed Mr Brett Grist as Chief Operating Officer designate. Mr Grist brings valuable operational and technical skills to the Company’s executive team. Mr Grist will join Kavango on 7 February 2022, and will join the board of Kavango as an executive director.

Mr Grist is a geologist from the Royal School of Mines, London, with over 22 years of exploration and mining experience in base metals and gold across Africa, Europe, the Middle East, and Australia. He is also a Chartered Professional member of the Australasian Institute of Mining and Metallurgy.

Over the course of his career, Mr Grist has worked in geological and management roles as CEO, Director, and Exploration Manager, taking projects from early exploration through resource definition and into development. In Africa he worked for Reunion Mining PLC and CASA Mining Ltd, covering projects in Mali, Ghana, DRC, and Mozambique. In DRC, as CEO of CASA, he led a large exploration program covering airborne geophysics, soil sampling, and extensive diamond drilling, which successfully delivered a maiden resource for the Misisi gold deposit. Most recently he has worked in the UK, where he has led definition of a substantial high-grade metal resource for Strategic Minerals PLC’s Redmoor tin-tungsten-copper project. Brett also presently co-chairs the Critical Minerals Association’s UK mining working group.

 

David Smith, Chairman of Kavango Resources, commented:

” We are very happy to welcome Brett, an experienced exploration executive, to Kavango. His extensive background in advancing exploration programs and delivering projects adds important technical skills to Kavango’s senior management.

We have made a great deal of progress building a much more robust foundation for the Company over 2021. Brett’s appointment will significantly strengthen Kavango, as we grow the business more ambitiously in 2022. I am really looking forward to welcoming him to the team and working with him from February . “

Brett Grist states:

“I am very pleased to be able to join David, Ben Turney and the rest of the Kavango team at such an exciting time for the company. Botswana is a highly attractive mining investment destination, and the combination of Kavango’s team and an exciting exploration holding of significant scale, focussed on metals that are in increasing demand, means that the company is well placed to deliver exploration success. I look forward to helping the company to deliver this even more effectively.”

 

Option Award

The Company has agreed to award Mr Grist two grants of employee Share Options (the “Options”).

The first award of Options will be subject to a vesting period of one year, with half the Options vesting after twelve months and the remainder vesting after eighteen months, provided Mr Grist remains employed within the Kavango group. The Options are exercisable at a price of 5 pence per Ordinary Share for a period of seven years. The Options carry a vesting condition whereby the Options only become exercisable once the Company’s reported closing mid-market price per Ordinary Share closes above 7.5p on five separate trading days.

The second award of Options will be subject to a vesting period of one year, with half the Options vesting after twelve months and the remainder vesting after eighteen months, provided Mr Grist remains employed within the Kavango group. The Options are exercisable at a price of 7.5 pence per Ordinary Share for a period of seven years. The Options carry a vesting condition whereby the Options only become exercisable once the Company’s reported closing mid-market price per Ordinary Share closes above 15p on five separate trading days.

The award of the Options to Mr Grist aligns his incentive package with those of existing executive directors.

The Options will be granted on these terms on the day Mr Grist’s employment begins, or, if later, when there is sufficient headroom within the Company’s limit for executive options of ten per cent of the issued share capital.

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.comand on Twitter at #KAV.

 

For further 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

#KAV Kavango Resources Plc – KSZ TA2DD002 Downhole EM Conductor Identified

kav

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to report the Company has successfully completed an initial downhole electromagnetic (“DHEM”) survey on Hole TA2DD002 to a depth of 780m. The DHEM survey has identified the upper edge of a conductive anomaly in the Proterozoic gabbro (the “Conductive Anomaly”).

The Company and external consultants have completed preliminary analysis of data gathered from the DHEM survey and also reinterpreted existing data from previous airborne surveys conducted by Kavango.  The original modelling from this airborne data guided the decision to continue drilling Hole TA2DD002 into the Proterozoic.

Hole TA2DD002 was the second hole of the current drill campaign in the Company’s Kalahari Suture Zone (“KSZ”) Project.

Highlights

  •  DHEM survey of TA2DD002
  1.  TA2DD002 completed to a depth of 1,001m, within 1 degree of original target
  2.   350m of continuous altered Proterozoic-age core recovered from 651m to 1,001m, the single largest amount ever retrieved from the KSZ
  3.  Initial DHEM completed in early October to a depth of 780m (using the available winch)
  4.  Spectral Geophysics (“Spectral”) has secured a 1,500m winch to complete a follow up DHEM survey to the bottom of TA2DD002
  •  Preliminary analysis of DHEM survey suggests:
  1.  Late-time data from 760m to 780m indicates the Conductive Anomaly  exists within 300m of the DHEM survey’s completion
  2.   The Conductive Anomaly appears to reside within the Proterozoic gabbro
  3. Kavango will provide images of the DHEM interpretation on its website
  4.  Reinterpretation of Kavango’s aeromagnetic model (the “Aeromagnetic Model”)
  5.   The Aeromagnetic Model was completed in 2020, using data from the Company’s regional airborne surveys flown in 2018 and 2019
  6.  The Aeromagnetic Model accurately predicted the intersection of TA2DD002 with the Proterozoic gabbro at 650m
  7.   Reinterpretation of the the Aeromagnetic Model confirms that:

 

I.  Proterozoic rocks are the source of the main magnetic anomaly identified from aeromagnetic surveys

II.  The extent of Proterozoic can be mapped using aeromagnetic surveying

 

Next steps:

–  Spectral to conduct DHEM survey to the end of TA2DD002

–  DHEM survey to be conducted on KSZDD001, once Target Depth has been reached (drilling operations are ongoing here)

–  Thorough analysis of all DHEM data, to include consultation with independent experts

–  Updating of the Company’s magenetic susceptibility model, to take into account latest drilling results, with a particular focus on confirming potentially shallower Proterozoic depths

–  A full update will be provided, on completion of the updated geophysical modelling of the northern (Hukuntsi) section KSZ

–  Kavango to host a shareholder webinar to present full results with supporting images and maps (details to be confirmed)

 

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“Hard work, intelligent application of geophysics, skilled drilling and a bit of luck have brought us to this point.

While the Proterozoic is now our primary exploration focus in Target Area A, it is important to note that the Karoo remains our main focus in Target Area B (where we are currently drilling Hole KSZDD001).

There is still much for us to do, but we have definitive exploration leads, backed by physical core data from the ongoing drill campaign . This data should help constrain future modeling and will hopefully significantly improve results   to guide our evolving exploration strategy in the KSZ.

Now that Spectral Geophysics has secured a winch that is long enough to carry the probe to the bottom of TA2DD002, we eagerly await the outcome of the 1,000m downhole electromagnetic survey. We will report more on this, once we have completed thorough analysis of any data we gather. “

Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.comand on Twitter at #KAV.

For further 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

#KAV Kavango Resources Plc- KCB: EMP Awarded & Operational Update

 

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the Company has been awarded an Environmental Management Plan that covers all of its Prospecting Licences (“PLs”) in the Kalahari Copper Belt (the “KCB”). These interests include PLs held within the Kanye Resources Joint Venture (“JV”) and the LVR JV.

Highlights

Ø Environmental Management Plan awarded

–  EMP covers all the Company’s Prospecting Licences (“PLs”) in the KCB

–  EMP valid for 2 years

Ø Final phase of field exploration underway, towards initial target selection

–  Re-logging of data from historic drill holes

–  Ground magnetic survey underway on the southern limb of the Acacia target, in the South Ghanzi Project (part of Kanye Resources)

–  Work underway to optimise future soil-sampling programmes, to account for changing ground conditions across the Company’s PLs

–  Initial drill strategy being finalised

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“We would like to thank the Department of Environmental Affairs for the award of our Environmental Management Plan in the Kalahari Copper Belt. This is an important next step for the Company.

As operator of 12 prospecting licences, which cover over 6,300km2 of prospective ground for possible major copper/silver deposits, Kavango is now permitted to conduct drilling operations here for the next two years.

Our primary focus is currently on the promising Acacia target in the South Ghanzi Project. Work is ongoing on Acacia to optimise target definition, to maximise our chances of success.

This is a critical period for Kavango and we eagerly anticipate the next phase of exploration. “

 

Kavango’s interests in the KCB Kavango’s PLs in the KCB include:

The Kanye Resources JV

Ø 50 % working interests in 10 prospecting licenses held in a Joint Venture with Power Metal Resources (LSE:POW), which cover 4,257km 2 . Kavango is operator.

The LVR JV

Ø Earning in a 90% interest in prospecting licenses PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd (“LVR”), which cover 1,091km 2 . Kavango currently owns 25% of the LCR JV. Kavango is operator.

 

KCB Operational Update

Kavango has commenced a ground magnetic survey of the southern limb of the Acacia target (the “Ground Survey”), in the South Ghanzi Project (part of Kanye Resources). This survey will help tighten the Company’s interpretation of the electromagnetic (“EM”) data it acquired from the airborne surveys flown in the spring.

The Ground Survey will be conducted over a 14km by 4.5km block and will cover 676.5 line kilometers, including 634.5km of traverse lines and 42km of tie lines. Line spacing will be 100m and readings will be taken continuously.

In parallel to this, Kavango has also commenced a detailed sampling exercise to confirm the geochemical anomalies the Company has identified across its PLs in the KCB.

Acacia (in PL036/2020, as part of the Kanye Resources JV) is now the Company’s highest priority target for possible drilling in the KCB. Kavango anticipates the ground magnetic survey and further soil sampling will enable the Company to confirm initial drill collar locations.

The Company expects to commence “fence” lines of shallow drill holes. This will likely involve a combination of reverse circulation and diamond drilling. This drilling will act as a geological orientation exercise and should act as a precursor to a much more comprehensive, subsequent drill campaign. The “fence” drilling will also enable the Company to assess structural trends and any associated geochemical and/or EM anomalies.

In parallel to this, Kavango has also started work on re-logging regional historic drill hole data. At this stage, the Company is keen to deepen its understanding of the local stratigraphy, lithology and geology in its main areas of interest.

 

Further updates will be provided in due course.

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   

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

Kavango Resources #KAV – Ditau & block listing update

kav

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 the Company’s Ditau Project (“Ditau”), searching for Rare Earth Elements (“REEs”) and base metals.

Ditau is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.

Highlights

Ø Further to the exploration programme announced on 02 July 2021, Kavango has increased the exploration scope of Ditau to include base metals as well as REEs

Ø Accelerated drilling on I10 Target

–  Previous exploration by the Company has identified a 2.5km by 2.8km target area at I10 with high AMT resistivity, coincidental with a gravity high

–  Spectral Geophysics to conduct a Time Domain Electromagnetic (“TDEM”) survey over I10 imminently

–  Drilling of I10 planned in Q4, together with a downhole electromagnetic survey (“EM”)

–  Environmental Management Plan in place

Ø Following consultantation with the FCA the block listing (announced 15 October 2021) has been reduced to 144,888,469 to account for all warrants and options issued by the Company in 2020 and which were described in the Prospectus (published 20 November 2020)

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“We’ve been extremely happy with the work Spectral Geophysics has done on our behalf in the Kalahari Suture Zone. The TDEM technology holds a great deal of promise to unlock the region’s prospective potential. The more we can test its use with drilling, the better.

Given the progress we are making in the KSZ, we have now decided to deploy Spectral’s TDEM equipment to Ditau. We are keen to complete a first TDEM survey at I10 to see if we can identify a conductive body.

Based on the ground AMT, gravity and magnetic surveys we have completed over I10 this was already a priority drill target. Our hope is that the TDEM survey will provide us with additional valuable data, ahead of drilling here later this quarter.”

Block listing update

Further to the announcement of 15 October 2021, and following consultantation with the FCA, the block listing has been reduced to 144,888,469 to account for all warrants and options issued by the Company in 2020 and which were described in the Prospectus (published 20 November 2020)

The FCA and LSE have approved the block listing in respect of 144,888,469 Ordinary Shares.

The POW/KAV Joint Venture

The Ditau Project is held by Kanye Resources Pty Ltd a Botswana joint venture company in which Power Metal and Kavango each company hold a 50% interest. Exploration costs are equally shared. Kavango is the operator.

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

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

Kavango Resources #KAV – Issue of Shares, Total Voting Rights, PDMR Dealing

kav

PRESS RELEASE 

21 October 2021

KAVANGO RESOURCES PLC

(“Kavango” or “the Company”) 

Issue of Shares, Total Voting Rights, PDMR Dealing 

Issue of Shares and PDMR Dealing

On 11 August 2021 Kavango announced its agreement with Michael Moles, a non-executive director, to settle his directors’ fees (net of statutory deductions) in shares. Accordingly, Kavango announces it is now issuing 111,803 new ordinary shares of 0.001 each in the Company to Michael Moles (“Director Shares”).

This issue of shares relates to the period 1 July 2021 to 30 September 2021. The number of shares due has been calculated at an issue price equal to the average of the closing mid-price of the Company’s shares over that quarter. During that period the average closing mid-price of the Company’s shares was 5.27 pence per share.

Admission and Total Voting Rights

Application will be made for the Director Shares to be admitted to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (“Admission”). It is expected that Admission will become effective and dealings in the Director Shares will commence at 8.00am on or around 28 October 2021.

Following Admission, the total issued share capital of the Company will consist of 406,470,762 Ordinary Shares. The Company does not hold any shares in treasury. Therefore, the total number of voting rights in the Company is  406,470,762 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. 

An updated Total Voting Rights announcement will be made by the Company following admission, in accordance with the requirements of DTR 5.6.

PDMR Dealing – Issue of Director Shares  

 1

 

Details of the person discharging managerial responsibilities / person closely associated

 

a)

 

Name

 

Charles Michael Moles

2

 

Reason for the notification

 

a)

 

Position/status

 

Non-Executive Director

b)

 

Initial notification /Amendment

 

Initial Notification

3

 

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor

 

a)

 

Name

 

Kavango Resources plc

b)

 

LEI  

 

2138007PZJFATXWUTS29

4

 

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted  

 

a)

 

Description of the financial instrument, type of instrument

Ordinary shares of 0.001 each

 

Identification code

  ISIN:  GB00BF0VMV24

b)

 

Nature of the transaction

 

Issue of ordinary shares of 0.001 each

c)

 

Price(s) and volume(s)

Price(s)

Volume(s)

£0.0527

111,803

d)

 

Aggregated information

– Aggregated volume

  N/A

– Price

e)

 

Date of the transaction

 

2021-10-20

f)

 

Place of the transaction

 

Outside a Trading Venue

 

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   

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

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