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 KSZDD002 (the “Borehole”) to target depth of 650m and a successful Downhole Time Domain Electromagnetic (“DHEM”) survey to 640m.
Based on visual inspection of the drill core, direct Magnetic Susceptibility and Conductivity measurements taken along the core, and the DHEM survey data, there are four critical developments:
I. Independent third-party analysis indicates the Borehole has passed through a gap between two distinct conductors, as is evident by the obvious crossover in the DHEM data.
II. A Karoo intrusive was intersected at the target depth. This rock type is correct for Kavango’s Karoo intrusive hosted nickel/copper (“Ni/Cu”) exploration model.
III. There is at least one very strong conductor detected 150m off the Borehole with a Tau (time constant) in the range of 450msec to 560msec and a high conductance of 16,000 Siemens. This is a significant increase in conductivity from previous models, and upgrades the target ranking for possible Ni/Cu sulphides.
IV. A second conductor, with modelled conductance of 2,500 Siemens, has also been detected. This conductor is more vertically inclined and appears to conform to an idealised model for net textured sulphides in a possible Karoo feeder dike.
The Company is now initiating a number of actions for future exploration in the northern section of the Kalahari Suture Zone (“KSZ”), including (but not limited to):
· Evaluation and remodelling of all available surface TDEM and DHEM data
· Follow up Surface TDEM and further DHEM over the original area of the B1 conductor to model the size, shape and orientation of the two conductors
· Drilling up to two further holes targeting the two conductors identified by the DHEM survey, based on refined geophysical models
· A more extensive TDEM campaign over Target Area A (the “30km Strike”) & the rest of Target Area B (the “Great Red Spot”).
This work is expected to last into Q2 and Kavango will provide further updates in due course.
In the meantime, the Company will provide an update on drill plans for the Ditau project in the coming days.
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“When we originally modelled the B1 Conductor from surface, we worked on the assumption there was a single conductive body.
Now, thanks to the successful completion of KSZDD002 and the downhole electromagnetic survey, the modelling is telling us that there are two strongly conductive geophysical targets in close proximity to the borehole. These two targets appear to be associated with Karoo-age intrusives.
The DHEM results have been independently analysed and provide us with an important vector for immediate continued exploration of the Great Red Spot.
The increased conductance reading of the main off-hole conductor to 16,000 Siemens is particularly encouraging because we have pushed further into the range for massive sulphides. This upgrades the priority of this target as a possible nickel copper sulphide body.
It is imperative we now intercept this target with the drill to identify what is there. The discovery of a second distinct conductor, so close to the main target, opens up some intriguing possibilities. While the 2,500 Siemens conductance reading is lower, it does still fit a possible net textured metal sulphide model. The near vertical orientation of this anomaly suggests it is cross-formational and is considered to be related to some form of feeder zone or fault.
Kavango will now actively explore the possibility that there might be other conductor targets in the vicinity of KSZDD002. To date, the Company has only performed two surface TDEM surveys over this section of the Great Red Spot, so there is obvious potential to widen our coverage. TDEM technology is an established tool used globally in nickel/copper sulphide exploration and discovery.
Meanwhile, the complex geometry of the two conductor targets identified in the DHEM survey means that further data gathering and modelling is required before new boreholes can be designed.
So as not to delay our operational momentum, we expect to mobilise the rig to the Ditau project in the coming days, with a view to returning to the KSZ once drilling at Ditau is complete. This will give our geophysicists time to complete new TDEM and DHEM surveys over the Great Red Spot, with the objective of confirming drill collar locations.
With a current working capital position of £1.7million, we move forward with confidence.”
Kavango’s evolving understanding of the B1 Conductor/s
The original B1 Conductor was modelled as a single geophysical anomaly that the Company believed was a prospective target for possible massive sulphide nickel or copper mineralisation. Kavango first identified this target through the completion of two surface Time Domain Electromagnetic (“Surface TDEM”) surveys in early summer 2020. These surveys returned an 8,000 Siemens reading for the B1 Conductor and a decay constant in excess of 350msec (announced 02 July 2021), which was in the range for massive sulphides. The projected target intercept depth was 525m to 575m.
Borehole KSZDD002 was designed to intercept the centre of the single plate model developed for the B1 Conductor.
Drilling commenced on KSZDD002 on 19 November 2021, with an expected target intercept depth of between 525m and 575m for the B1 Conductor. Drilling was paused over Christmas, at 350m, with an initial DHEM survey completed.
Following completion of the first DHEM survey on KSZDD002, the conductance reading of the originally-modelled B1 Conductor increased to 11,000 Siemens (announced 17 December 2021) which was further into the range for massive sulphides.
Kavango’s exploration model in the Kalahari Suture Zone (“KSZ”) is based on identifying drill targets, which exhibit conductance readings between 1,000 Siemens and 10,000 Siemens, or greater. An illustrative table can be found below on the Company’s website:
Drilling recommenced on KSZDD002 on 17 January 2022.
Despite highly challenging conditions (with 10 days lost to a severe blockage at 470m depth, which was eventually resolved), the hole was successfully drilled to a depth of 650m. A coarse-grained dolerite/gabbro was intercepted from 514.94m to 590.58m. Very coarse grained, thin, highly magnetic zones/patches were observed in the unit.
Visual inspection of the drill core and readings taken with a Magnetic Susceptibility and Conductivity meter (a KT-10 S/C unit), provide no indication that the B1 Conductor has been intercepted. Core from the Borehole will be cut, sampled and analysed at an internationally accredited laboratory in South Africa.
Following completion of the Borehole, a DHEM survey was immediately carried out. Modelling of the data indicates the presence of two conductors:
1) A very conductive, off-hole target, with a conductivity of 16,000 Siemens, and magnetic data indicating the presence of a magnetic source in close proximity. The relationship between the conductive and magnetic body could fit an idealised model for pyrrhotite bearing nickel/copper massive sulphides. The 16,000 Siemens conductance is even further into the range for massive sulphides.
2) A second conductor with a modelled conductance of 2500 Siemens, which conforms to an idealised model for net textured sulphides.
Given the presence of two prospective conductive targets in such close proximity to the original modelled B1 Conductor, Kavango plans to widen its local exploration campaign to search for other possible conductor targets in the neighbouring vicinity.
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
First Equity (Joint Broker)
+44 207 374 2212
SI Capital Limited (Joint Broker)
+44 1483 413500