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Alan Green discusses equities vs. crypto, Coinsilium #COIN, Kavango Resources #KAV & Union Jack Oil #UJO on UK Investor Mag podcast

Equity market correlation with Cryptocurrencies could signal further volatility

@Alan__Green joins the Podcast to discuss the ESL debacle before pay particular attention to Kavango Resources #KAV Coinsilium #COIN and Union Jack Oil #UJO

Kavango Resources #KAV – Strategic Partnership with Spectral Geophysics

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the signing of a strategic partnership with Spectral Geophysics Ltd (“Spectral”) (the “Strategic Partnership”).

Spectral is one of Southern Africa’s leading firms in the use of ground-based remote sensing technologies to identify high-speed electromagnetic (“EM”) conductors at depth. Spectral has specialist knowledge and expertise in mapping subsurface geology beneath Kalahari cover. This experience is particularly important to exploration of the Company’s Kalahari Suture Zone (“KSZ”) Project in Botswana.

Highlights

v Spectral has completed two Time Domain Electromagnetic (“TDEM”) surveys in the KSZ. The second of these, at Target A2, identified:

–  A large conductive anomaly, which is approximately 1km in strike with a large decay constant (~340msec) that could indicate presence of metallic sulphides

–  A second possible discrete conductor to the west of A2, which requires further surveying.

v Under the terms of the Strategic Partnership:

–  Spectral will share with Kavango its technical knowledge to optimise future underground remote surveys of the KSZ

–  Spectral will prioritise the assignment of its advanced surveying technologies to the KSZ for a period of 24 months

–  Kavango will share with Spectral results of independent assessments on any data gathered from remote surveys

–  Kavango’s field exploration team will provide additional support to facilitate more rapid deployment of remote sensing technologies to target areas.

v In return for securing priority access to Spectral’s technical expertise and advanced remote surveying technologies, Kavango has agreed to issue Spectral:

–  3,000,000 ordinary shares in the Company at 3p per share (the “Partnership Shares”). The Partnership Shares will be lodged with the Company’s broker and are subject to a 12-month lock-in.

–  3,000,000 warrants in the company exercisable at 4.25p per share with the following vesting conditions

I.  1,000,000 warrants vest on completion of the next 5 TDEM surveys in the KSZ

II.  1,000,000 warrants vest on completion of a further 5 TDEM surveys in the KSZ

III.  1,000,000 warrants vest on completion of a further 5 TDEM surveys in the KSZ

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

“We are delighted to announce a Strategic Partnership with Spectral Geophysics and its founder Cas Lötter.

Cas is one of Africa’s principal experts in subsurface geological surveying. Under his leadership, Spectral is now among the Continent’s leading specialists in ground-based EM surveys, having worked on projects in 18 countries for many of the world’s largest mining firms.

In addition to this, Cas has personally interpreted over 100,000 line kilometers of helicopter EM data and was directly involved in the target identification that led to the T3 and A4 Dome copper discoveries in the Kalahari Copper Belt.

With Spectral’s assistance and experience, Kavango will now be able to deploy more sophisticated methods and remote sensing technologies into the Kalahari Suture Zone. Following the success of the first two TDEM surveys we completed at Hukuntsi, this is a major step forward for Kavango and significantly bolsters our exploration capabilities.”

Cas Lötter, founder of Spectral Geosciences, commented:

“I have been intrigued by the potential of the Kalahari Suture Zone for over 30 years. However, it has only been in recent years that technology has improved to the point to allow for effective surveying at depth, beneath the Kalahari cover.

I was happy to be invited to work on the KSZ Project last year. It is a technically-complex environment to work in, but my team and I have developed sophisticated methods to enable us to step up to this challenge. The fact that our data has stood up to rigorous external validation further strengthens my belief that our partnership with Kavango could yield substantial results.

Now that we have seen the results from our first TDEM surveys, I am even more encouraged by what we have already found. We have learned a lot from the first phase of surveys and applied these lessons to the next round of surveys, which are well underway.”

About Cas Lötter & Spectral

Cas Lötter had his first experience with mapping geology below the Kalahari beds in 1985 when he located the mafic/ultramafic contact of the northern limb of the Molopo Farms Complex, using aeromagnetic, ground magnetics and gravity. Since that time, he has been involved in exploration projects for minerals and groundwater below the Kalahari stretching from the northern Cape of South Africa to eastern Namibia and further north through western Zambia into the southern DRC and into Zimbabwe in the east. He was especially active in Botswana where he has been a resident since 1993, the year he established geophysical consulting and contracting company, Spectral Geophysics. Spectral serviced several multi-nationals and a plethora of Canadian, British and Australian juniors eg. Rio Tinto, BHP-Billiton, Anglo American, Phelps Dodge, Falconbridge, First Quantum etc. in the search for diamonds, gold, copper, nickel, lead-zinc, uranium and manganese. Spectral has also been involved in projects in South Africa, Namibia, Angola, DRC, Congo, Zimbabwe, Mozambique, Swaziland, Lesotho, Kenya, Tanzania, Uganda, Ivory Coast, Senegal, Ghana, Mali, Eritrea and CAR.

Cas Lötter, in his personal capacity, has also been involved extensively in consulting assignments in India (processed and interpreted 100,000+ line km of helicopter EM data)  and Iran (training of local geophysicists in electromagnetic surveying and processing). In Africa, he was directly involved in projects which led to the discovery or mapping of a resource eg. Kalgold on the Kraaipan Belt in South Africa, Lumwana and Sentinel on the Zambian Copper Belt, Golden Ridge, North Mara and Geita in Tanzania. He was also closely involved with the geophysical mapping of the T3 deposit in the Kalahari Copper Belt and commissioned, planned, supervised, processed and interpreted the helicopter electromagnetic survey which led to the discovery of the A4 dome deposit near T3.

Spectral’s main areas of expertise are advanced processing and interpretation of airborne and ground electromagnetic data as well as 3D modelling of Induced Polarisation / Resistivity data. Spectral is currently concentrating on deep electromagnetic prospecting for metallic sulphides using the gold standard in transmitter and receiver technology available from Australia. Spectral has extensive experience with the application of TDEM and SQUID sensors in electromagnetic prospecting and have applied the technology successfully in Botswana, South Africa and Namibia over a period of six years.

Terms of the Strategic Partnership

Kavango and Spectral have entered into a Strategic Partnership, whereby Spectral will share with Kavango its technical knowledge to optimise future underground remote surveys in the KSZ.

Kavango has incentivised Spectral to prioritise physical surveys of the KSZ and to deploy its most powerful remote sensing technologies. The Strategic Partnership will involve Spectral making recommendations concerning the use of specific techniques and technologies to maximise the chances of success, identifying any large-scale conductors that may exist in the KSZ.

Kavango will share with Spectral results of any data analytical work it receives from third party geophysicists, employed to provide independent assessment of survey data. Kavango expects any third party analysis will help augment and calibrate future surveys conducted by Spectral in the KSZ.

In return for Spectral’s commitment to the Strategic Partnership, Kavango will issue Spectral 3,000,000 Partnership Shares, at an issue price of 3p per share. The Partnership Shares will be held with First Equity for a 12-month lock in period

In addition, Kavango will issue Spectral with warrants to subscribe for up to 3,000,0000 new ordinary shares, exercisable at 4.25p a share with a 4-year exercise period from the date of signing the strategic partnership agreement between Kavango and Spectral (the “Partnership Warrants”). The Partnership Warrants will vest in 3 tranches, set out in the table below:

Spectral Partnership Warrants Vesting Tranches

Tranche

Exercise Price

Number of Warrants

Life of Warrants

Vesting Condition

1

4.25p

1,000,000

4 Years

Warrants vest on completion of FIRST 5 ground-based remote sensing surveys in the KSZ

2

4.25p

1,000,000

4 Years

Warrants vest on completion of SECOND 5 ground-based remote sensing surveys in the KSZ

3

4.25p

1,000,000

4 Years

Warrants vest on completion of THIRD 5 ground-based remote sensing surveys in the KSZ

———————————————————————–

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

For additional information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com 

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

 

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango’s 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 14 prospecting licences covering 7,573.1km2 of ground, including 12 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Copper-Nickel-PGM rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari Sediments, has not previously been explored using modern techniques.

The area covered by Kavango’s KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey’s Bay (Canada). 

The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango’s licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.

KSZ DEFINITIONS

High Speed EM Conductors: are bodies of highly conductive minerals such as graphite, magnetite and metal sulphides, which conduct electricity very rapidly provided the mineral grains are in contact with each other.

Gabbro/gabbroic:   A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth’s crust. Gabbroic rocks (or “gabbros”) are formed as the molten magma crystallizes and cools.

Gabbroic sills:   Relatively thin, planar, horizontal bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.

Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.

Massive sulphide: When a deposit consists almost entirely of sulphides it is termed “massive”. When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed “disseminated”.

Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit –

https://twitter.com/KavangoRes/status/1316004057895645186?s=20  

Kavango Resources #KAV – KSZ Hukuntsi – TDEM conductor identified

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the identification of an electro-magnetic (EM) anomaly in Target Area A in the Hukuntsi (northern) section of the Company’s Kalahari Suture Zone (“KSZ”) Project.

The anomaly appears to be a large conductive body (the “Conductor”) that lies between 250 and 700m from surface and appears to sit within the lower parts of a gabbro “keel”, as predicted by the Company’s proprietary 3D-Underground Model of Hukuntsi announced on 8 September 2020. Kavango believes this is in a promising geological setting.

Highlights

v The Conductor was identified through the analysis of data from the second Time Domain Electro-Magnetic (“TDEM”) survey completed on Target Area A:

–    The ground-based, fixed loop TDEM surveys have been deployed to search for super conductors within the deeper “keels” of the extensive gabbroic intrusions in the KSZ.

–    The first two surveys (A1 & A2) were completed in close proximity to one another in Target Area A

–    Spectral Geophysics Ltd (“Spectral”), who are conducting the surveys on behalf of the Company, concluded that the Conductor “is interpreted to be caused by a shallow dipping, discrete conductor at least 1km in strike with a large decay constant (~340msec) that could indicate the presence of metallic sulphides”

–    The actual size of the causative source of the Conductor and its thickness will only be determined by drilling

–    The Conductor is oriented on a plunging plane, with a minimum depth of 250m, and a maximum depth extension of 450m (that is to a depth of 700m below surface).

v Given the size and the nature of the EM signature, Kavango sought independent verification of the validity and accuracy of the TDEM data from three independent geophysical consultants, including a specialist plate modeller who is experienced in modelling highly conductive EM environments. These consultants confirmed:

–    The TDEM surveys collected valid and accurate data readings

–    The equipment used to collect the TDEM data, the procedures adopted, the processing techniques (software) and the interpretation of the final results are all valid for this type of survey.

–    The plate model is accurate (plate modelling estimates the size, geometry and orientation of subsurface conductive bodies)

–    The EM signature of the Conductor is notably distinct from the surrounding conductive environment

–    TDEM surveys are the appropriate technology to identify conductive bodies in the KSZ.

v Using its proprietary 3D-Model of the underground geology at Hukuntsi, Kavango concludes that the Conductor is in the right geological setting for drilling (250m from surface to the projected “keel” of the gabbroic intrusion at 700m).

v Spectral is continuing TDEM surveys on Target Areas “B”,”C” and “D” at Hukuntsi.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

“The apparent identification of a large EM anomaly within the “keel” of a gabbroic intrusion in Target Area “A” is promising.

While we were hopeful of what the first TDEM surveys of the KSZ might uncover, we are encouraged to have identified a conductive body of this size, in this geological setting so early in the programme.

As a prudent step, we have sought expert independent verification of the TDEM data and techniques employed.

Initial analysis confirms that the work carried out by Spectral was thorough, the data and the position and conductivity of the Conductor are reliable. Further work is still needed, but I am pleased with the validation we have so far received. 

I’d like to thank Spectral, the independent contractors and our in-house team for the excellent work they have completed on behalf of Kavango.  

This is the first time TDEM surveys have been deployed in the KSZ. We are confident this technology holds the key to unlocking the project’s significant potential. TDEM surveying will continue at an accelerated pace on the remaining principal target areas so we can prioritise targets for detailed drill site locations.”

TDEM surveys at Hukuntsi

On 30 November 2020, Kavango announced it had identified four “Norilsk-style” target areas at Hukuntsi for further exploration. These target areas cover 182.5km2 and incorporate deep “keel” formations in the Karoo-age gabbros, with long axes. The four target areas include:

–    Target Area A (8km x 9km)

–    Target Area B (6km x 10km)

–    Target Area C (4.5km x 5km)

–    Target Area D (3.5km x 8km)

In December 2020, the Company commenced orientation work on the first two surveys on Target Area A (A1 & A2). The interpretation and modelling was completed in late February, with independent data verification sought over March and into April.

The Conductor at A2

The Conductor appears to lie at a minimum depth of 250m and maximum depth extension of 450m (that is to a depth of at least 700m below ground). Spectral concluded that the Conductor “is interpreted to be caused by a shallow dipping, discrete conductor at approximately 1km in strike with a large decay constant (~340msec) that could indicate the presence of metallic sulphides”.  The actual size and thickness of the causative source at depth will only be determined by drilling

The EM decay constant (TAU) within the anomalous areas is calculated at approximately 340msec. These values are similar to nickel sulphide deposits discovered elsewhere in the world.

According to the Company’s 3D-model of the underground geology at Hukuntsi, the Conductor appears to lie at the base of a Karoo gabbro intrusive “keel”, which is the right geological setting for a potential mineral deposit. The Company is encouraged by this data.

To help further de-risk the Conductor, the Company sought independent expert verification of the data gathered from the TDEM surveys. This has confirmed the integrity of the methods used by Spectral, the quality of the data collected and the conclusions Spectral reached in its final report.

Next steps

The Conductor will be re-surveyed on two or three other survey lines from a new TDEM loop position to obtain further confirmation.

Meanwhile the TDEM surveying of Target Areas “B”, “C” and “D” will continue. Spectral will undertake either one or two TDEM surveys on each of these Target Areas.

The planned surveying of all four Target Areas should be completed before the end of June.   On completion, any conductors identified will be followed up with additional, offset TDEM loops at higher resolutions.  Offset loops will provide important information on the geometry and properties of any targets prior to subsequent exploration drilling.

———————————————————————–

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

For additional information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

 

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)                                                                          

+44 1483 413500

Nick Emerson

 

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango’s 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 14 prospecting licences covering 7,573.1km2 of ground, including 12 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Copper-Nickel-PGM rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari sediments, has not previously been explored using modern techniques.

The area covered by Kavango’s KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey’s Bay (Canada). 

The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango’s licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.

KSZ DEFINITIONS

High Speed EM Conductors: are bodies of highly conductive minerals such as graphite, magnetite and metal sulphides, which conduct electricity very rapidly provided the mineral grains are in contact with each other.

Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth’s crust. Gabbroic rocks (or “gabbros”) are formed as the molten magma crystallizes and cools.

Gabbroic sills: Relatively thin, planar, horizontal bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.

Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.

Massive sulphide: When a deposit consists almost entirely of sulphides it is termed “massive”. When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed “disseminated”.

Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit –

https://twitter.com/KavangoRes/status/1316004057895645186?s=20 

Sulphide mineralisation: If there is sufficient sulphur in the molten magma, it will tend to combine with metals (Cu, Zn, Ni, Co, Pb, PGEs etc.) to form metal sulphide complexes, which may coalesce to form massive sulphide deposits. If the melt is sulphide poor, the metals will be taken up into the silicate minerals that form as the magma cools and will not usually form economic deposits.

Alan Green talks to Power Metal Resources #POW CEO Paul Johnson – Building a Mid-Tier Business

Power Metal Resources #POW CEO Paul Johnson and Alan Green discuss the strategic aims of POW before looking at progress across key projects during Q1 and upcoming development milestones for Q2.

Paul updates on the Red Rock #RRR Australasia RRAL JV in Victoria, plus Paterson Province options in Australia, the Botswana KCB and Ditau joint ventures with Kavango Resources #KAV and the drilling results from the Molopo Farms project. The Haneti Nickel JV with Katoro Gold #KAT in Tanzania is covered, before we move to Canada and discuss the new Hemlo Gold belt projects and progress at Silver Peak. Paul covers the three separate project spinoffs and potential IPOs (RRAL, Kanye and Silver Peak), and explains how this will help POW to build working capital and ultimately lead to shareholder distributions.

Paul discusses the strong funding position enjoyed by Power Metal, and explains how being a major shareholder in the company is his key motivation.

Power Metal Resources #POW CEO Paul Johnson provides a quickfire three question update

Power Metal Resources #POW CEO Paul Johnson provides a quickfire three question update about the company ahead of the main interview released later today

Alan Green talks Kavango Resources #KAV, Caerus Mineral Resources #CMRS & Argo Blockchain #ARB on Vox Markets podcast

Alan Green talks Kavango Resources #KAV, Caerus Mineral Resources #CMRS & Argo Blockchain #ARB on Vox Markets podcast. Interview is 13 minutes in.

Alan Green talks UK equity re ratings, plus Ananda Developments #ANA, Mosman Oil & Gas #MSMN & Kavango Resources #KAV on UK Investor Magazine podcast

Recent data from the The Investment Association revealed UK retail investors took a further £1 billion out of UK Equity Funds in February. This means retail investors have removed a total of £18 billion from UK Equity Fund since 2016 and the decision to leave the EU.

We question whether Retail investor are simply driven more by sentiment around the UK or misunderstand the composition of UK markets given the significant level of revenue earned outside of the UK by FTSE 100 companies.

Whilst investors took cash out of UK Funds they added to Global Funds meaning UK Retail investors may be under exposed to rerating in UK Equity as its lags other major indices that have enjoyed recent rallies.

All the plus Ananda Developments #ANA, Mosman Oil & Gas #MSMN & Kavango Resources #KAV with Jonathan Roy on the UK Investor Magazine podcast

Power Metal Resources #POW – Kalahari Copper Belt Update – Conditional Agreements Signed to Significantly Increase Kalahari Copper Belt Licence Footprint

 

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a business update in respect of the Company’s Strategic Joint Venture (“SJV”) with Kavango Resources plc (“Kavango”)(LON:KAV).

Background:

The SJV covers precious, base and stategic metal opportunities in Botswana.  Power Metal and Kavango each have a 50% interest in the SJV.

The plan is for the SJV to secure a listing in London, and to this effect a local Botswana operating company has been established called Kanye Resources (Pty) Limited (“Kanye Botswana”).  Kanye Botswana is wholly owned by Kanye Resources plc (“Kanye plc”), a UK public company which will be the planned listing vehicle.

Power Metal and Kavango will each have a 50% shareholding in Kanye plc following completion of the restructuring exercise.  Both companies will have representative directors on the board of Kanye plc and will contribute to the funding of Kanye plc and Kanye Botswana, during the listing process.

Formal transfer documents have been lodged with the relevant authorities in Botswana to transfer the four SJV licenses currently held in the name of Kavango Minerals (Pty) Ltd into Kanye Botswana.  The four licences are as follows:

  • South Ghanzi Project (Kalahari Copper Belt or “KCB”) covering 1,294 km2  in two prospecting licences and targeting copper/silver discoveries;
  • Ditau Project covering 1,386 km2  in two prospecting licences and targeting rare earth element discoveries.

With its strategic footprint of exploration interests in Botswana, Kanye plc will seek to acquire additional exploration opportunities in the build up to listing, further enhancing its position.

Highlights:

  • Power Metal is pleased to announce the signing of two conditional agreements that allow Kanye Botswana to acquire a 100% interest in eight prospecting licences (PLs) in the highly prospective Kalahari Copper Belt (“KCB”).
  • Headline terms of the two agreements include:
    • Four PLs in proximity to Ghanzi in the central zone of the Botswana KCB currently held by Shongwe Resources (Pty) Ltd and which can be acquired outright for a cash consideration of US$200,000.
    • A further four PLs on the western end of the Botswana KCB, near the town of Mamuno adjacent to the Namibian border.  Currently held by Vinmarsh Interprises (Pty) Ltd  these can be acquired outright for a cash consideration of US$230,000.
  • Both transactions are subject to due diligence and the approval of the Botswana authorities.
  • The cash consideration totalling US$430,000 (c. £312,000) will be lodged in a nominated escrow account and released following completion of due diligence and licence transfer.  Power Metal will fund 50% of the above cash consideration or US$215,000 (c. £156,000), from its existing USD cash reserves.
  • After transfer of all ten KCB PLs, Kanye Botswana will control 4,255 km2 of prospective exploration ground in the KCB, targeting the discovery of commercial copper/silver deposits.

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:

“The conditional acquisitions announced today, subject to due diligence and approvals in Botswana, would significantly increase the footprint of Kanye Botswana in the Kalahari Copper Belt.  The additional ground complements that already held and we believe will add material value to the investment proposition, in advance of the planned listing in London.

The collaboration with Kavango has so far seen material exploration success and now has delivered an opportunity, through the conditional acquisitions announced today, for the SJV to become an even more significant participant in the rapidly advancing Kalahari Copper Belt exploration story.”

FURTHER INFORMATION

Strategic Joint Venture – Group Structure and Interests

The SJV 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 currently being transferred into the name of Kanye Resources Botswana (Pty) Ltd from Kavango Minerals (Pty) Ltd.

Kanye Resources Botswana (Pty) Ltd, incorporated in Botswana, is a 100% subsidiary of UK registered Kanye Resources plc and is the SJV initiative between Kavango (50%) and Power Metal (50%).  It is planned to list Kanye Resources plc on the London Stock Exchange later in the year.

Earlier in March 2021 SkyTEM Africa (PTY) Ltd completed over 1,300 line-km of airborne electromagnetic geophysical survey on the Ghanzi South PLs on behalf of Kanye. The contractor’s final report will be available in early 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 western end of the Botswana KCB near the border with Namibia in the vicinity of the town of Mamuno, for a cash consideration equivalent to US$230,000.

Kavango and Power Metal will each contribute 50% to the acquisition cost.

THE SOUTH GHANZI PROJECT

The SJV South Ghanzi Project includes two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km2.

The South Ghanzi Project, located on the highly prospective Kalahri Copper Belt (“KCB”) in northern Botswana, includes lengthy geological reduction-oxidation (“redox”) boundaries and geological fold structures that represent high priority 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 and other structural trap-sites.

Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources Ltd (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.

Accumulations of sulphide metals can be traced along the strike of 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 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 “ring structures” (including at least one possible kimberlite).

The “ring structures” are 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.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

Kavango Resources #KAV – Licence acquisitions on the KCB in Botswana

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”).

Highlights

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

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   

Michael Foster

mfoster@kavangoresources.com

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

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.

Power Metal Resources #POW – Kalahari Copper Belt – Encouraging Preliminary AEM Survey Results

Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide an exploration update for shareholders to confirm encouraging initial results from the airborne electromagnetic (“AEM”) surveys recently flown over the South Ghanzi Project (the “Project” or “South Ghanzi”) in the Kalahari Copper Belt, Botswana (“KCB”).

The South Ghanzi Project is part of a Strategic Joint Venture (“SJV”) with Kavango Resources plc (“Kavango”)(LON:KAV) covering precious, base and strategic metal opportunities in Botswana.  Power Metal and Kavango each have a 50% interest in the SJV.

Highlights:

  • Over 1,200 km of AEM surveys flown by SkyTEM Surveys ApS (“SkyTEM”), a leading airborne geophysical survey company, over South Ghanzi Project.
  • Preliminary data plots conform to Kavango’s developing exploration models across the South Ghanzi Project.
  • Initial results correlate encouragingly to results from Kavango’s other exploration efforts, including:
    • Close correlation to Kavango’s interpretation of regional geological structures.
    • Confirmation of areas of interest identified by previous soil sampling and ground magnetic surveys.
  • Data processing underway, with the results expected later in the spring, and with a goal of identifying  targets for test drilling in H2/2021.
  • Initial results from AEM surveys has been used to augment next steps of field exploration across the JV’s KCB licence area.

Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:

“The pathway to major metal discoveries requires a disciplined and targeted step-by-step approach, something which is being applied to the South Ghanzi exploration model.

What stands out however, for me, is the speed at which we have been able to implement the AEM surveys and to gather initial results, which are demonstrating that the South Ghanzi Project is shaping up very nicely.

So, with our SJV partners, we are pushing ahead with the next stage of work, which is focused on delineating drill targets ASAP, the objective of which will be a large-scale copper/silver metal discovery, or discoveries.”

Initial AEM survey results

Heavy rains and low cloud cover across southern Africa slightly delayed the AEM survey, but SkyTEM completed all AEM survey work by the first week in March.

Kavango’s in-house geophysics team has plotted the preliminary electromagnetic data on maps of the Company’s licences. These maps have been overlaid on regional geological survey maps and proprietary maps, which also plots results from soil sampling and ground magnetic surveys.

The preliminary AEM anomalies are associated with a number of plunging fold hinges that represent potential drill targets. Follow-up work will require the development of geological models to determine the stratigraphic location of these anomalies and potential drill collar locations and orientations. The AEM anomalies are supported by zinc soil geochemistry anomalies and malachite staining (often formed by the near-surface weathering of copper bearing primary sulphide minerals) in PL 036/2020.

The AEM survey data will now undergo further processing and finalisation, ahead of a detailed interpretation and drill hole target planning. Further details will be provided once this work has been completed.

THE SOUTH GHANZI PROJECT

The SJV South Ghanzi Project includes two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km2.

The South Ghanzi Project, located on the highly prospective Kalahri Copper Belt (“KCB”) in northern Botswana, includes lengthy geological reduction-oxidation (“redox”) boundaries and geological fold structures that represent high priority 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 and other structural trap-sites.

Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources Ltd (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.

Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.

COMPETENT PERSON STATEMENT

The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.

For further information please visit https://www.powermetalresources.com/ or contact:

Power Metal Resources plc

Paul Johnson (Chief Executive Officer)

+44 (0) 7766 465 617

SP Angel Corporate Finance (Nomad and Joint Broker)

Ewan Leggat/Charlie Bouverat

+44 (0) 20 3470 0470

SI Capital Limited (Joint Broker)

Nick Emerson                                                                                                           

+44 (0) 1483 413 500

First Equity Limited (Joint Broker)

David Cockbill/Jason Robertson

+44 (0) 20 7330 1883

Notes to Editors:

Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.

The Company has a global portfolio of project interests including precious metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.

The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.

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