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Kavango Resources #KAV – Director Shareholding

Following his purchase of 63,250,000 shares at 0.8p, Non Exec Director Peter Wynter-Bee now holds 5.47% of Kavango’s issued share capital or 71,468,182 shares.

Kavango Resources #KAV – Major shareholder Purebond now owns 52.46% of the Company

TR-1: Standard form for notification of major holdings – Purebond Limited of Wembley, England, now hold 685,000,000 shares (52.46%) of the Company 

 

 

% of voting rights attached to shares (total of 8.A)

% of voting rights through financial instruments (total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights held in issuer

Resulting situation on the date on which threshold was crossed or reached

52.467532

0.000000

52.467532

685000000

Position of previous notification (if applicable)

26.609291

0.000000

26.609291

(1) Purebond Limited is a 100% Subsidiary of Solai Holdings Limited.
(2) 3 Named Directors of Solai Holdings Limited of which 2 are also Directors of Purebond Limited are also Trustees of Solai Pension Scheme which has 0.076595% (1,000,000 Shares) Voting Rights in Kavango Plc.

12. Date of Completion – 1-Nov-2023 London

Kavango Resources #KAV – Result of General Meeting

Southern Africa-focussed metals exploration company Kavango Resources plc (LSE:KAV) is pleased to announce the result of the General Meeting of Kavango Resources PLC held at the offices of the Company’s Solicitors, Druces LLP, Salisbury House, London Wall, London EC2M 5PS on 25 October 2023 at 11 a.m.

Resolution 1 was passed by independent shareholders on a poll. Resolutions 2 and 3 were passed on a show of hands. Resolutions 1 and 2 were passed as ordinary resolutions and Resolution 3 was passed as a special resolution.

The number of votes cast on a poll of independent shareholders for and against Resolution 1, and the number of votes withheld were as follows:

Resolution

Votes for

%

Votes against

%

Votes withheld

Resolution 1 (Ordinary)

To approve the waiver by the Panel on Takeovers and Mergers, described in the circular accompanying the notice convening this meeting, of the obligation under Rule 9 of the City Code on Takeovers and Mergers

167,355,788

97.19%

4,835,262

2.81%

130,865

Although Resolutions 2 and 3 were passed on a show of hands, the Company received the following votes and letters or representation in support of the resolutions.

Resolution

Votes for

%

Votes against

%

Votes withheld

Resolution 2 (Ordinary)

To, conditional upon the passing of resolutions 1 and 3, authorise the allotment and issue of the Stage 2 Subscription Shares

167,334,788

97.14%

4,931,262

2.86%

55,865

Resolution 3 (Special)

To, conditional upon the passing of resolutions 1 and 2, disapply the statutory pre-emption rights on the issue of the Stage 2 Subscription Shares

167,334,788

97.11%

4,931,262

2.86%

55,865

As at 25 October 2023, there were 845,569,314 ordinary shares in issue. Shareholders are entitled to one vote per share. Votes withheld are not votes in law and so have not been included in the calculation of the proportion of votes for and against a resolution.

The full text of each resolution is available in the Notice of General Meeting, published on the Company’s website.

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

For further information please contact:

Kavango Resources plc             

Ben Turney

+46 7697 406 06

First Equity Limited (Broker)

+44 207 374 2212

Jason Robertson

Alan Green covers Altona Rare Earths #REE & Kavango Resources #KAV on this week’s Stockbox Research Talks

Alan Green covers Altona Rare Earths #REE & Kavango Resources #KAV on this week’s Stockbox Research Talks

Kavango Resources #KAV – Interim Results for the six months ended 30 June 2023

Kavango Resources plc, an exploration company targeting the discovery of world class mineral deposits in Botswana and Zimbabwe, is pleased to announce its unaudited financial results for the six months ended 30 June 2023.

SUMMARY

·   Successfully completed a placing raising gross proceeds of £1,400,000 (US$1,773,000);

·   Expenditure in Botswana on exploration of US$1,162,000;

·   Loss for the period of US$1,417,000 (June 2022 – US$883,000);

The Interim Management Report and financial results are set out in the following pages.

Contacts

Kavango Resources plc

Ben Turney

+46 7697 406 06

First Equity

Jason Robertson

+44 207 374 2212

INTERIM MANAGEMENT REPORT 30 JUNE 2023

Kavango continued to make good progress through the first half of 2023, with significant funding achieved in a challenging market, an expansion announced into Zimbabwe, and significant work programmes on all three of our Botswana projects.

Financing

Kavango successfully raised £1,400,000 by the issue of 140,000,000 New Ordinary Shares in the capital of the Company (“New Ordinary Shares”) at a price per share of 1 penny to Purebond Limited (“Purebond”).

A second stage of this financing comprises the conditional issue of 460,000,000 new ordinary shares of £0.001 each (the “Stage 2 Subscription Shares”) at the Subscription Price per share (the “Stage 2 Subscription”). Stage 2 is subject to the approval by the Financial Conduct Authority of a prospectus and the approval by independent shareholders of a waiver in accordance with Rule 9 of the Takeover Code (Whitewash) (among other conditions).

This £6.0 million equity investment demonstrates significant confidence in the Company by Purebond, in what is a challenging market for junior exploration companies. If the second stage is approved this will enable the Company to accelerate its exploration programs, in particular in Zimbabwe and at Karakubis on the Kalahari Copper Belt (KCB).

Project status – KSZ, Botswana

On the Kalahari Suture Zone (KSZ), where the Company is exploring for nickel-copper-PGE mineralisation, drillhole KSZDD003 was drilled. This completed just after the period end, and was successfully drilled to a depth of 606.00 m to test the remodelled B1 Conductor. As in hole KSZDD002, the hole passed through a sedimentary sequence and two intrusive bodies, thought to be of Karoo age. No sulphide was intersected that is considered to explain the 28,700 Siemens response. While we are disappointed that B1 has not turned out to be significant nickel or copper sulphide, we believe we have an answer on this target. It appears that thicker carbonaceous material (when compared with KSZDD002), containing coincident graphite and pyrite rich bands, with minor pyrrhotite veining, is the most probable conductive source. A downhole electromagnetic (DHEM) survey was carried out and remodelled to further investigate the B1 Conductor.  Preliminary modelling of this confirms that the hole successfully penetrated the conductor and that this has therefore been adequately tested.

Kavango acquired one additional licence on the KSZ in the period, and is presently reviewing options to develop the portfolio in future.

Project status – Ditau, Botswana

Kavango has interests in four licences at Ditau. These have been explored for rare earth elements and are presently being explored for banded iron formation vein gold style mineralisation.

Work in the period included a review of two drillholes completed by a third party. These holes were logged and assayed by Kavango. Hole X077 confirmed at least 470m of geological strike of the Banded Iron Formation host rock identified in DITDD004. Pyrite was observed, plus (at 147m) blebs of chalcopyrite were seen. Hole X08, a further 3.4km away, was weathered and contains extensive relict textures after pyrite, and iron oxides in veins, with clear signs of locally intense hydrothermal activity.

Anomalous results were received as below, and are similar to those previously seen in DITDD004.

Hole ID

From m

To m

Width m*

Cu %

Au ppm

X077

146.93

147.10

0.17

1.77

0.014

X077

154.50

155.50

1.00

2.48

0.061

X081

117.00

118.00

1.00

0.03

0.167

X081

118.00

119.00

1.00

0.06

0.134

*All widths are apparent thicknesses

A review of the mineral exploration potential of the Ditau Project, Botswana, was carried out for Kavango by Dr. Hamid Mumin, Professor and Former Chair of the Department of Geology at Brandon University, Manitoba, Canada. The review identified a possible high potential Banded Iron Formation hosted Lode Gold model at the Ditau Project. Further work remains ongoing by Dr Mumin, including Scanning Electron Microscopy on samples from DITDD004.

Kavango acquired an additional two new licences at Ditau in the period, applications for which were submitted based on the new potential identified.

Kavango and its consultants have carried out a review of the geological model of, and potential at, Ditau, and have proposed an exploration program that builds on the above data. This is being evaluated against the potential of Kavango’s other projects as part of a Stage Gated review, so that funding is directed to where Kavango considers it may best deliver exploration success.

Project status – KCB, Botswana

Kavango has interests in 12 prospecting licences, totalling over 5,000 km2 in the KCB, where it is targeting copper-silver mineralisation.

Work in the period initially focussed on PL082 in the east of the KCB, where between October 2022 and February 2023 Kavango drilled a total of 1,885.59m across seven holes using a combination of Reverse Circulation (“RC”) and diamond drilling.

Drilling was targeted by Controlled-Source Audio Magnetotelluric (“CSAMT”) survey data and soil sampling data.  The program confirmed two out of three technical objectives and has made significant progress on the third.

1)   Anticlines and synclines were correctly identified by CSAMT on PL082. This agrees with the interpretation of PL082 by expert KCB consultant Dave Catterall of Tulia Blueclay Limited. Mr Catterall has been consulting to Kavango since October 2022.

2)   Zones of structural disturbance, brecciation and alteration were clearly interpreted via CSAMT and then confirmed in drill core, in particular in KCBRD005. Kavango’s geologists observed evidence of fluid flow, with consequent alteration.

3)   The final test was to intersect the interpreted Ngwako Pan / D’Kar contact.  A massive sandstone unit was intersected from 540.10m to end of hole in KCBRD007.  Although the contact was not intercepted, the massive sandstone unit matches the resistive signature on the CSAMT inversion. 

Kavango has concluded that in PL082 the D’Kar/Ngwako Pan contact lies at a greater depth than interpreted from CSAMT data, and that the CSAMT is successfully identifying stratigraphic boundaries.

Kavango’s attention then moved to its Karakubis KCB licences further to the west, where interpretation of wider sedimentary geology in the KCB indicates that the D’Kar/Ngwako Pan contact lies closer to the surface. Kavango’s technical team have carried out an intensive review of this area, including geological mapping, additional soil sampling with pXRF analysis, and integration of Airborne Electromagnetic (“AEM”) and CSAMT survey data. Preparation is now underway for an Induced Polarisation (“IP”) survey, a method which is often used to specifically target sulphides. These methods together are aimed at delivering relatively shallow higher confidence drill targets.   

Project status – Nara, Zimbabwe

Kavango announced in June 2023 that it had signed an exclusive 2-year Option to acquire a producing gold exploration project in Matabeleland, southern Zimbabwe.

The Nara Project comprises 45 contiguous gold claims. Kavango believes the Nara Project has potential to host a bulk mineable gold deposit.

The Nara Project area has supported historic high-grade underground mining and continuous surface small-scale mining and custom milling over the last 30 years. This has generated approximately 150,000 to 250,000 tonnes of tailings, which present a separate opportunity for potential near-term revenue generation.

Under the terms of the Option, Kavango has full access to the Nara Project area to conduct field due diligence, through a comprehensive exploration program. This program is planned to include (but not be limited to) surface mapping and geochemistry, geophysics, surface drill testing, underground sampling, underground drill testing and assessing the commercial potential for processing the Tailings.

Work has now commenced, and preparations are underway for a forthcoming drill program.

Principal risks and uncertainties

The principal risks and uncertainties facing our business are monitored on an ongoing basis. The board of directors have reviewed the principal risks and uncertainties disclosed in the 2022 annual report and concluded that they remain applicable for the second half of the financial year. A detailed description of these risks and uncertainties is set out on pages 10 to 13 of the 2022 annual report.

Closing comments

I would like to thank Ben Turney, Hillary Gumbo, Brett Grist, Peter Wynter Bee, and Jeremy Brett for their input over the last six months, along with the operations team in Botswana, and our new colleagues in Zimbabwe. Ben’s work has been instrumental both in the recent financing and in the bringing on board of the new Zimbabwe assets. Peter Wynter Bee joined the Board in January, bringing to Kavango significant industry experience, which has added greatly to the Board’s capabilities. Jeremy Brett also joined the Board in January, having worked extensively with the Company on its geophysics programs, and brings in additional geophysical expertise.

I am also grateful for the continued support of our shareholders. The sector has seen continued challenging times, and Kavango has been no exception to this, with a fall in our share price in recent months. The continued support of Purebond however offers a renewed opportunity for Kavango to focus an intensive level of exploration on those projects which in our opinion are most likely to provide exploration success in the short to medium term. As a result, we have an excellent opportunity to rapidly deliver meaningful results that have the potential to add value for all shareholders.

Directors’ Responsibility Statement 

We confirm that to the best of our knowledge:

–      The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting, as endorsed for use in the United Kingdom; 

–      Give a true and fair view of the assets, liabilities, financial position and loss of the Group;

–      The Interim Management Report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and 

–      The Interim Management Report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.

The Interim Management Report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by

David Smith, Chairman

Link here for the full announcement and financial statements

Kavango Resources Plc #KAV – Option to acquire Zimbabwe gold project

Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals exploration company, is pleased to announce it has signed an exclusive 2-year option to acquire a producing gold exploration project in Matabeleland, southern Zimbabwe (the “Option”).

The Nara Project comprises 45 contiguous gold claims (the “Claims”). Kavango believes the Nara Project has potential to host a bulk mineable gold deposit.

The Nara Project area has supported historic high-grade underground mining and continuous surface small-scale mining and custom milling over the last 30 years. This has generated approximately 150,000 to 250,000 tonnes of tailings (the “Tailings”), which present a separate opportunity for potential near-term revenue generation.

Under the terms of the Option, Kavango will have full access to the Nara Project area to conduct field due diligence, through a comprehensive exploration program. This program will include (but not be limited to) surface mapping and geochemistry, geophysics, surface drill testing, underground sampling, underground drill testing and assessing the commercial potential for processing the Tailings.

Kavango will complete its exploration program before deciding whether to exercise the Option to acquire the Nara Project.

Ben Turney, Chief Executive Officer of Kavango, commented:

“After extensive due diligence over the last 12 months, including 4 visits to Matabeleland, we are delighted to announce our first gold exploration project in Zimbabwe.

The greenstone belts in Zimbabwe host prospective rocks for bulk-mineable gold deposits, according to Kavango’s internal review and analysis. Many of these belts share notable similarities with some of Australia’s most prolific gold-producing regions.

Zimbabwe has a strong tradition of mining. However, exploration and investment has been severely limited over recent decades. In 1980, Zimbabwe produced more gold than Australia but the country has yet to experience the bulk-mining boom Australia did midway through that decade.

We believe this presents a significant opportunity for Kavango and a commercial discovery.

With the strong financial backing of Purebond, Kavango is now positioned to pursue the potential we have identified in Matabeleland alongside our portfolio in Botswana.”

The Nara Project

The Nara Project includes 45 contiguous gold claims (10 hectares each in size) and covers four historic mines with total recorded historic production from underground workings of 92,000oz gold averaging 9.76g/t (from the early 1900s to the early 1960s). These historic mines also produced credits of tungsten and silver.

Given the extent of the project, its regional geological setting, the historic high-grade underground potential and the sustained small-scale mining activity, Kavango believes the Nara Project holds considerable prospective potential for a modern commercial gold operation.

Nara Project exploration plan

Kavango has prepared an exploration plan for the Nara Project, which will include (but not necessarily be limited to):

–      Surveying the Tailings

–      Assessment of the historic mine shaft and possible underground drilling and channel sampling (subject to safety)

–      Soil geochemical surveying along the strike extent

–      Scout drilling to test artisanal workings/shafts 

–      Other drilling and surveying, as budget permits

Kavango will initiate its exploration program in the coming days.

Nara Project Option Terms

Kavango has entered a 2-year exclusive binding option to buy outright 45 gold claims in Matabeleland, Zimbabwe (the “Nara Project”). The 2-year option period will allow Kavango to perform an appropriate exploration program to assess the Nara Project’s potential.

To exercise the Option, Kavango has agreed to pay the current claims holder (the “Vendor”) US$4million cash (the “Acquisition Price”).

Kavango has agreed to pay an option fee to the Vendor of up to US$220,000 over the 2-year option period, split into 4 individual payments of US$55,000 each payable at the start of each half year of the option period (the “Option Payments”).

In the event Kavango exercises the Option, any Option Payments paid to the Vendor will be deducted from the Acquisition Price.

Kavango will commit to spend US$1million on exploration at the Nara Project over the 2-year option period, with a minimum exploration spend of US$500,000 in the first year. Should Kavango not exercise the Option, Kavango will turn over all exploration data to the current operator of the stamp milling operation at the Claims (the “Current Operator”), together with recommendations (where possible) on future development.

Kavango has the right to exercise the Option at its sole discretion, subject to the Company being up to date with the Option Payments and spending commitments. Kavango has the right to cancel the Option at any point during the option period and to exercise the Option at any time during the option period.

Performance Consideration

On declaration of a code-compliant (e.g. JORC or equivalent) gold resource containing in excess of 500,000 ounces of gold (inferred category or above) at the Nara Project by Kavango, the Company will pay the Vendor or his designate/s a payment in shares to a value of up to US$1million in shares in Kavango (the “Performance Consideration Shares”).

The aggregate value of the Performance Consideration Shares will be calculated on the basis of the table below:

Resource size (number ounces contained Au in inferred or above resource category)

Performance Consideration shares to be issued to Vendor (in US$)

500,000oz

US$500,000

750,000oz

US$750,000

1,000,000oz or greater

US$1,000,000

The aggregate issue price of the Performance Consideration Shares shall be calculated based on stage gates using the following structure:

–      First issue of one quarter of the Performance Consideration Shares shall be 1.8p per share 

–      Second issue of one quarter of Performance Consideration Shares based on the closing price of shares traded in Kavango Resources Plc on the date six months after 23 December 2023;

–      Third issue of one quarter of the Performance Consideration Shares based on the closing price of shares traded in Kavango Resources Plc on the date twelve months after 23 June 2024;

–      Fourth issue of one quarter of the Performance Consideration Shares based on the closing price of shares traded in Kavango Resources Plc on the date 18 months after 23 December 2024.

 

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.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (“UK MAR”). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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

+46 7697 406 06

First Equity (Broker)

+44 207 374 2212

Jason Robertson              

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Alan Green covers Red Rock Resources #RRR & Kavango Resources #KAV on this week’s Stockbox Research Talks

Alan Green covers Red Rock Resources #RRR & Kavango Resources #KAV on this week’s Stockbox Research Talks

#KAV Kavango Resources PLC – Result of AGM

Southern Africa-focussed metals exploration company Kavango Resources plc (LSE:KAV) is pleased to announce the result of the Annual General Meeting of Kavango Resources PLC held at the offices of the Company’s Solicitors, Druces LLP, Salisbury House, London Wall, London EC2M 5PS on 8 June 2023 at 11 a.m.

All nine resolutions put to members were passed on a poll. Resolutions 1 to 6, and 8 were passed as ordinary resolutions and resolutions 7 and 9 were passed as special resolutions.

The number of votes cast for and against each of the resolutions proposed, and the number of votes withheld were as follows:

Resolution

Votes for

%

Votes against

%

Votes withheld

Resolution 1 (Ordinary)

To approve the accounts for the year ended 31 December 2022, auditors’ report and strategic report

300,626,522

90.50

31,564,114

9.50

873,263

Resolution 2 (Ordinary)

To approve the re-appointment and remuneration of PKF Littlejohn LLP as the Company’s auditor

309,691,550

93.23

22,499,086

6.77

873,263

Resolution 3 (Ordinary)

To approve the Directors’ Remuneration Report in the Company’s Annual Report

286,851,364

86.22

45,836,091

13.78

376,444

Resolution 4 (Ordinary)

To approve the re-election of Jeremy Brett as a director

309,168,705

93.08

22,996,931

6.92

898,263

Resolution 5 (Ordinary)

To approve the re-election of Peter Francis Wynter Bee as a director

299,476,521

90.19

32,564,114

9.81

1,023,263

Resolution 6 (Ordinary)

To authorise the allotment and issue of equity securities

290,792,562

88.81

36,629,949

11.19

5,641,383

Resolution 7 (Special)

To disapply the statutory pre-emption rights on the issue of equity securities

289,841,872

88.53

37,560,633

11.47

5,661,391

Resolution 8 (Ordinary)

To authorise the allotment and issue of the Stage 1 Subscription Shares

281,880,160

84.72

50,852,300

15.28

331,436

Resolution 9 (Special)

To disapply the statutory pre-emption rights on the issue of the Stage 1 Subscription Shares

276,445,216

84.43

50,977,300

15.57

5,641,383

 

As at 8 June, there were 705,569,314 ordinary shares in issue. Shareholders are entitled to one vote per share. Votes withheld are not votes in law and so have not been included in the calculation of the proportion of votes for and against a resolution.

The full text of each resolution is available in the Notice of Annual General Meeting, published on our website.

Kavango Resources #KAV – CEO Ben Turney talks to Alan Green, April 2023

Kavango Resources #KAV – CEO Ben Turney talks to Alan Green, April 2023. We discuss the latest developments at the Ditau Farms lode gold project, and Ben covers upcoming developments that investors can look forward to in the coming months.

Kavango Resources #KAV – Ditau: Large-scale Lode Gold Exploration Potential

A review of the mineral exploration potential of the Ditau Project, Botswana, has been carried out for Kavango by Dr. Hamid Mumin, Professor and Former Chair of the Department of Geology at Brandon University, Manitoba, Canada (the “Review”). The Review has identified a possible high potential Banded Iron Formation hosted Lode Gold model at the Ditau Project.

REPORT HIGHLIGHTS

·    Kavango previously recognised a 100m thick “Zone of Interest” from 293m to 393m, in diamond drillhole DITDD004 at Ditau. This included anomalous gold values (announced >>> 14 October 2022).

·    Dr. Mumin assessed drill logs, core photography, and assays from DITDD004.

·    Dr. Mumin has identified the likely presence of a large alteration system within a very thick Banded Iron Formation (“BIF”) that he considers exhibits excellent gold potential.

A picture containing text Description automatically generated

Figure 1 – Example of highly altered & structurally deformed Banded Iron Formation at 306m depth in Hole DITDD004, indicative of a possible Lode Gold System

·    Dr. Mumin concludes “this is a new and very exciting opportunity for Kavango”.

o He explains “The reason iron formations are so important in the formation of world-class lode gold deposits is that the presence of abundant iron forms a type of chemical trap for gold.”

·    The BIF intersected by DITDD004 is very thick (>100m) and open at depth.

o The intersecting structure, which is the source of fracturing, brecciation, sulphidisation, gold, silver, copper, and arsenic, appears also to be large.

o These factors combined could, in Dr. Mumin’s opinion, have led to a significant gold mineralising event.

·    Dr. Mumin adds that “due to the overall robustness of the current discovery, the chances of finding economic grades in the Ditau discovery area is considered very good.”

Brett Grist and Jeremy S. Brett, Executive Directors of Kavango, stated,

“Dr. Mumin’s report represents a significant potential breakthrough for Kavango on the Ditau project. We didn’t find carbonatites as we had intended, but we are certainly delighted with the potential for a large Banded Iron Formation hosted Lode Gold system. Such systems can be capable of hosting a multimillion-ounce gold deposit.  

Encouragingly, the BIF we encountered in Hole DITDD004 ran from 293m to end of hole at 393m. This is a very wide intersection that is open at depth. This suggests potential for a possible large-scale Lode Gold system.

We look forward to verifying this ore deposit model with Dr. Mumin on the Ditau project, via the prudently recommended detailed drill core re-logging, petrology and geochemistry.”

KEY FINDINGS OF DR. MUMIN’s REPORT

Dr. Mumin has identified the probable presence of a large alteration system within a very thick Banded Iron Formation (“BIF”), that he considers exhibits excellent gold potential. He has indicated that his interpretation is contingent on his direct examination of the drill core, so far having only been able to review drill core photos, logging and available assays. He recommends that the BIF hosted Lode Gold deposit model needs to be investigated very seriously, subject to his review of physical drill cores.

A picture containing person, outdoor Description automatically generated

Figure 2 – Strong response from magnetic pencil used over the 100m thick BIF encountered in DITDD004.

In summary, the main conclusions of Dr Mumin’s report are:

·    Examination of the drill logs, core photography, and assays from diamond drillhole DITDD004 at Ditau leads to interpretation that this hole has intersected a BIF hosted Lode Gold System. Dr. Mumin suggests that this presents a new and very exciting opportunity for Kavango.

·    The BIF is very thick (>100m) and open at depth. The hole was stopped in brecciated BIF. The intersecting structure, which is the source of fracturing, brecciation, sulphidisation, gold, silver, copper, and arsenic, appears to also be large. Both the BIF and structures extend beyond the length of the current drill hole, as the hole was stopped in disrupted BIF. These factors combined could, in Dr Mumin’s opinion, have led to a significant gold mineralising event.

Graphical user interface Description automatically generated

Figure 3 – DITDD004 stopped in disrupted BIF, which remain open at EOH beyond 390m. This opens the possibility for a significant gold mineralising event.

·    He states that “due to the overall robustness of the current discovery, the chances of finding economic grades in the Ditau discovery area are considered excellent.”

·    He comments that “the overall thickness of the BIF, the extent of structural disruption, which continues beyond the BIF, and degree of alteration plus sulphidation are all very significant. Taken into consideration along with the highly anomalous gold, silver, copper and arsenic values, these rocks are as close as is possible to definitively indicating that this is part of a Banded Iron formation (BIF) hosted Lode Gold system.”

A picture containing text, park, old, oven Description automatically generated

Figure 4 – Further example of alteration and structural deformation observed throughout the 100m “Zone of Interest” from 293m to 393m EOH.

·    The anomalous mineralisation seen at Ditau he suggests could be analogous with the Tiriganiaq, Normeg and Wesmeg deposits in Canada, thus giving an indication of scale potential.

·    Dr. Mumin comments that this is excellent news for Kavango and opens up the potential at Ditau for Kavango to other ore deposit types in the district that were not previously considered.

NEXT STEPS

·    Drill core samples and thin sections from work previously carried out at Ditau have been couriered to Dr. Mumin, in order for him to verify his proposed exploration model.

·    In addition to this, and under the direction of Dr. Mumin, around 200 additional assays are being undertaken, focussed on the gold- and silver-bearing intervals, using non-destructive neutron activation analysis (“INAA”).

·    Also, up to 24 samples are being sent from Botswana to Canada for additional petrology work, to complement those already completed by Petrolab in 2022.

·    Kavango’s COO, Brett Grist, has significant gold exploration experience gained in Australia, Mali, Ghana, and DRC, and is supervising additional drill core sampling and logging in light of the new model.

·    Kavango has applied for additional licence areas adjacent to the Ditau property, to secure ground that could also be relevant to this new ore deposit model.

Background on Hamid Mumin Ph.D., P.Eng., P.Geo., FGC:

Dr. Mumin graduated from Geo-Engineering, specialising in mineral exploration, and then completed an M.A.Sc. in Economic Geology, both at the University of Toronto. He earned his Doctorate degree and Post-Doctoral Fellowship at the University of Western Ontario, examining gold deposits along the Ashanti Gold Belt, Ghana, and conducting studies on the origin and distribution of gold in lode deposits at Carlin, Ashanti and in laboratory synthesis.

He worked as a mine, exploration and research geologist for Noranda and was the Chief Geologist and Site Manager during the exploration and feasibility stages of the Bogosu Gold mine, Ashanti Gold Belt, Ghana.

Dr. Mumin joined Brandon University in 1995 and teaches Mineral Deposits, Exploration and Mining Geology, Mineralogy, Geochemistry, Tectonics and Field Geology. He consults to industry and has managed exploration projects in the Northwest Territories, Ontario, Manitoba, British Columbia and in Peru. His principal interests remain exploration and sustainable development, and the geology, mineralogy and origin of mineral deposits. He is a Professional Engineer, Past President for Geoscientists Canada and a member of several Canadian and International Professional Societies. He is extensively published on Gold and IOCG ore deposits.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (“UK MAR”). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

First Equity (Broker)

+44 207 374 2212

Jason Robertson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Hamid Mumin Ph.D., P.Eng., P.Geo.. Dr Mumin has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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