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 two agreements that would allow a 50/50 Joint Venture between Kavango and Power Metal Resources plc (LSE:POW) (“Power Metal”) to acquire a 100% interest in eight prospecting licences (PLs) in the highly prospective Kalahari Copper Belt (“KCB”).
Ø The Joint Venture is incorporated in the Botswana registered, Kanye Resources (Pty) Ltd (“Kanye”), the 100% subsidiary of UK incorporated Kanye Resources Plc in which Kavango and Power Metal each hold a 50% interest.
Ø Kanye has signed two separate agreements to purchase 100% of the eight PLs. This includes:
– Four PLs in proximity to Ghanzi in the central zone of the Botswana KCB from Shongwe Resources (Pty) Ltd for US$200,000.
– A further four PLs near the town of Mamuno on the Namibian border for US$230,000, which has been signed with Vinmarsh Interprises (Pty) Ltd.
Ø Both transactions are subject to due diligence and the approval of the Botswana authorities.
Ø Kanye’s two existing PL’s that lie immediately south of the town of Ghanzi are currently held in the name of Kavango Minerals (Pty) Ltd and are in the process of being transferred to Kanye.
Ø After transfer of all ten PLs, Kanye will control 4,255km2 of exploration ground in the KCB, targeting the discovery of commercial copper/silver deposits.
Ø Results from the South Ghanzi AEM surveys are expected in April.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The acquisition (subject to approvals in Botswana) of eight new prospecting licences is a major step forward in the development of Kanye Resources Plc as a significant player in the exploration for copper in the highly prospective KCB. Kavango’s experienced “in country” exploration capacity combines well with the financial expertise and assets of Power Metal. We are happy with the progress we are making on this project and look forward to providing more updates over the coming weeks.”
Kanye Resources (Pty) Ltd, incorporated in Botswana, is a 100% subsidiary of UK registered Kanye Resources Plc and is the Joint Venture initiative between Kavango (50%) and Power Metal (50%). It is planned to list Kanye Resources Plc on the LSE later in the year.
Kanye currently has a 100% interest in the two Ghanzi South PLs on the KCB (1,294km2) and the two “Ditau” PLs south of the town of Kang in central Botswana (1,386km2), which is prospective for minerals associated with carbonatite including rare earth elements. All four PLs are being transferred from Kavango Minerals (Pty) Ltd into the name of Kanye.
Earlier in March SkyTEM completed over 1,300km of airborne EM surveying on the Ghanzi South PLs on behalf of Kanye. The contractor’s final report will be available in April.
Shongwe Resources (Pty) Ltd
Subject to due diligence and approval of the Botswana authorities, the directors of Shongwe Resources have agreed to transfer four licences (480km2) situated south and west of Kanye’s Ghanzi South PLs for a cash consideration equivalent to US$200,000.
Kavango and Power Metal will each contribute 50% to the acquisition cost.
VinMarsh Interprises (Pty) Ltd
Subject to due diligence and approval of the Botswana authorities, the directors of VinMarsh Interprises (Pty) Ltd have agreed to transfer four licences (2,481km2) situated on the border with Namibia in the vicinity of the border town of Mamuno for a cash consideration equivalent to US$230,000.
Kavango and Power Metal will each contribute 50% to the acquisition cost.
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
The information in this press release that relates to “geological and/or geophysical results” for the South Ghanzi Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits 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’. Mr Moles consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. Mr Moles is a beneficial shareholder of Kavango Resources plc.
NOTES TO EDITORS
KAVANGO’S INTERESTS IN THE KALAHARI COPPER BELT
Kavango’s exploration licenses in the KCB include:
The South Ghanzi Project
– 50% working interests in prospecting licenses PL036/2020 and PL037/2020 (totalling 1,294km2), held in Joint Venture with Power Metal. (announced 21 September).
The LVR Project
– 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
THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING
The South Ghanzi Project and LVR Project areas include lengthy redox boundaries, close to surface, that represent excellent exploration targets.
The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.
Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges. The upward rock slopes of these fold hinges are known as synclines, while the downward rock slopes are called anticlines.
Several large-scale copper/silver ore deposits have been discovered on the KCB in such hinges in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining company). These deposits are relatively close to surface and are amenable to open pit mining operations.
Accumulations of sulphide metals can be traced along the strike of the redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.
THE DITAU PROJECT
The Ditau Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019) that cover an area of 1,386km 2 . Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 “ring structures” (including at least one possible kimberlite).
The “ring structures” represent potential carbonatites.
Carbonatites are the principal source of rare earth elements (REEs) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications.
One of the ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites.
Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.
Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.