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#KAV Kavango Resources – Agreed Acquisition of 50pc of Kanye Resources

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) announces it has agreed terms with Power Metal Resources plc (AIM:POW) (“Power”) to acquire Power’s 50% of the Kanye Resources Joint Venture (“Kanye JV”) (the “Acquisition”).

The Kanye JV owns 100% working interests in:

–     10 prospecting licenses in the Kalahari Copper Belt (“KCB”), which cover 4,257km2

–     2 prospecting licences in the Ditau Camp Project that cover an area of 1,386km2

Kavango is the operator of the Kanye JV.

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

“Today’s deal is a very important step forward for Kavango. After a period of considerable support from Power Metal Resources, we are now in a position to regain complete ownership of our crucial prospecting licences in the Kalahari Copper Belt (KCB) and at Ditau. On completion of the transaction, Kavango will become one of the largest landholders for copper exploration in Botswana.

The Strategic Joint Venture has served both Kavango and Power well. It has demonstrated the success of Power’s incubation model in the exploration space, while has provided Kavango with innovative and effective financing to develop its projects more quickly. This has enabled us to drill our recent campaign at Ditau and also to bring our interests in the KCB to the point of drill readiness.

From a commercial perspective, the deal with Power significantly strengthens Kavango. We are adding a supportive strategic investor to our shareholder register, at this crucial point in the wider market cycle.

With the operational progress we have made over the last two years, the talented people we have recruited to our team, and the financing measures we have put in place, we have significantly raised Kavango’s chances of exploration success. We now have near-complete control of 16,000km2 of highly prospective ground in Botswana and an exciting future ahead of us.”

Headline Terms of the proposed Agreement (Subject to and conditional upon the publication of a new prospectus by Kavango):

–     The issue to Power Metal of 60 million new ordinary shares of Kavango at a deemed issue price of 3p per ordinary share, subject to a 12-month lock-in agreement

–     The issue to Power of 60 million warrants, divided into two separate tranches:

–     30 million warrants with the right to subscribe for new ordinary shares in Kavango at an exercise price of 4.25p for a period of 30 months

–     30 million warrants with the right to subscribe for new ordinary shares in Kavango at an exercise price of 5.5p for a period of 30 months

–     The issue to Power of 15 million variable price warrants (“VP Warrants”) with a six-month life to expiry, with a minimum exercise price of 3p and an actual exercise price at a 15% discount to the volume-weighted average share price on the date of exercise

–     Power Metal will receive a 1% Net Smelter Return (“NSR”) (“Royalty”) across all Kanye licence areas

In the event that Kavango sells all or part of Kanye for in excess of £7.5 million, Power Metal will be paid a proportion of the gross excess received by Kavango above £7.5 million.

Detailed Transaction Terms:

The Kanye JV owns 100% working interests in:

–     10 prospecting licenses in the Kalahari Copper Belt (“KCB”), which cover 4,257km2. The PL numbers are PL108/2020, PL109/2020, PL110/2020. PL111/2020, PL046/2020, PL49/2020, PL052/2020, PL053/2020, PL036/2020 and PL037/2020.

–     2 prospecting licences (PL169/2012 & PL010/2019) in the Ditau Camp Project that cover an area of 1,386km2.

Kavango is the operator of the Kanye JV.

Subject to and conditional upon the publication of a new prospectus by Kavango including provision for this Acquisition (the “Prospectus”) Kavango will acquire Power Metal’s 50% interest in the Kanye JV.

Consideration:

Shares:

The issue to Power Metal of 60 million new ordinary shares of Kavango, credited as fully paid at a deemed issue price of 3p per ordinary share (Share Value £1,800,000 at 3p) (“Consideration Shares”). The Consideration Shares will be subject to a lock-in agreement whereby they may not be sold within 12 months without Kavango’s written approval.

Warrants:

The issue to Power Metal of 60 million warrants, divided into two separate tranches (Tranche 1 and Tranche 2)(“Consideration Warrants”). The two tranches of warrants include the following terms:

–     Tranche 1 comprises 30m warrants with the right to subscribe for new ordinary shares in Kavango at an exercise price of 4.25p for a period of 30 months from execution of the agreement

–     Tranche 2 comprises 30m warrants with the right to subscribe for new ordinary shares in Kavango at an exercise price of 5.5p for a period of 30 months from execution of the agreement

The issue to Power Metal of 15 million variable price warrants (“VP Warrants”) with a six month life to expiry from execution of the agreement, with a minimum exercise price of 3p and an actual exercise price at a 15% discount to the volume-weighted average share price on the date of exercise. Should all VP Warrants be exercised within 6 months from execution of the agreement, Power Metal will receive 15 million replacement warrants, on the same exercise terms and with a 12-month life to expiry from issue date (“Super VP Warrants”).

Royalty:

Power Metal will receive a 1% Net Smelter Return (“NSR”) (“Royalty”) across all Kanye licence areas save in respect of any such licences which, at its sole discretion, Kanye Botswana allows to lapse.  Costs for the preparation of a suitable separate Royalty Agreement shall be shared by the parties.  In the event that Kavango is able to secure, within 2 years of execution of the agreement, a greater than 2% NSR or other royalty on any of the Kanye properties the total royalty above 2% would be split equally Power Metal/Kavango (e.g. a 3% NSR would see KAV/POW each receive a total 1.5% royalty), with Kavango retaining the balance.

Sale Premium:

In the event that Kavango sells all or part of Kanye for in excess of £7.5 million, Power Metal will be paid a proportion of the gross excess received by Kavango above £7.5 million (the “Sell-On Premium”). (e.g. if Kanye is sold for £50 million in month 15, POW would receive £4.25million). The Sell-On Premium is 20% for 6 months from execution of the Agreement, 15% for 7-12 months from execution of the agreement, 10% for 13-18 months from execution of the agreement and 5% for 19-24 months from execution of the Agreement, after which the Sell-On Premium will lapse.

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.

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

+46 7697 406 06

 First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

 

#KAV Kavango Resources – Kanye Resources Operational Update

 

Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) provides an operational update on its Kanye Resources (“Kanye”) Joint Venture with Power Metal Resources (AIM:POW).

Highlights

–  Ditau

–  Drill programme complete

–  4 holes successfully drilled on Targets i1, i8 and i10, totalling 1,623.60m of diamond core drilling

–  Three of twelve targets tested in the search for carbonatites and mineralised intrusives

–  High and low frequency Controlled Source Audio Magnetotelluric completed over Targets i1, i8 and i10, with the aim of providing lateral definition of the geology intersected in each hole

–  All holes geologically logged and three of the four holes sampled, the fourth is being cut. Magnetic Susceptibility, Conductivity and Specific Gravity measurements have been completed on all core

–  Samples from Hole DITDD004 currently being analysed at an internationally accredited laboratory

–  Samples from two of the remaining three holes now in transit, with the fourth being cut

–  Final drill report being prepared, with recommendations for next steps of exploration

–  Kalahari Copper Belt (“KCB”)

–  3,478 soil samples collected of current 8,000 soil sample campaign

–  Kavango has identified and located the Ngwako Pan-D’kar formational contact across several of the company KCB licences

–  The Ngwako Pan-D’kar contact is a crucial lithological control for copper/silver mineralisation in the KCB

–  Kavango’s geologists have completed an extensive mapping exercise over the majority of the Kanye KCB prospecting licences (“PLs”)

–  Kavango has deployed a seismic-based Tromino unit to map overburden and subsoil layers, using resonance frequencies

–  The Tromino assists subsurface mapping to help design appropriate soil geochemistry sampling techniques across various areas with different transported overburden thickness, and to enable “domaining” of geochemical data to assist interpretation of the same

–  Preliminary discussions with RC drill contractors for a planned programme in H2 2022

–  This will target structural features in the vicinity of and above Ngwako Pan-D’kar formation contacts.

–  Maps of its progress in the Kalahari Copper Belt

–  https://www.kavangoresources.com/media-library/news-release-media/rns8july2022

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

“We have come a long way with Ditau in a very short period of time. These are complex targets, in an area where there was almost no prior geological data. Kavango’s  application of systematic modern exploration methodologies is starting to unlock the complex geological history of this area.

We are particularly encouraged by what we’ve seen from the CSAMT technology we are using. Armed now with drill core to enhance our interpretation of the survey results, we believe this will prove to be an extremely powerful exploration tool as we pursue a more comprehensive programme across the 12 targets at Ditau.

Our new approach will enable us to map with confidence the underlying stratigraphy at Ditau. This is particularly important when exploring for buried mineralised intrusives. The more accurately we can model the Ditau targets in future, the greater the confidence we will have in drill targeting.

I would like to thank our team and our drillers, Mindea, for successfully completing the current drill programme quickly and safely. This was a challenging task, as the site is remote. Issues such as a limited water supply and drilling through deep sand cover were successfully overcome. Core recovery was again at 99%.

Once again, Kavango is proving it is up the task of effective, modern exploration in difficult terrain.

All holes have been logged and sampled, a wide range of geological units were seen, including sediments, intrusive bodies, and in hole DITDD004, zones tens of metres thick with locally abundant shearing, veining and alteration, including significant sulphide mineralisation. This is an area in which there was almost no prior geological information due to the depth of sand cover, and as a result this drilling has proved instrumental in better understanding the geology of the area.

This has included placing the individual targets within a regional stratigraphic setting as well as their relative positions in the same. The relevance of this is to understand the geological framework, from variations within the original sedimentary environment, to later deformation and structural histories, to assist the evaluation of the economic potential, and aid further exploration efforts.

Using the results of our AMT surveys we are now able to translate the intersected geology across the subsurface. We await the results of chemical assays and petrological work in order to evaluate any economic potential and plan future work for the area.

We are now preparing plans for the next stage in exploration of this challenging and exciting project.” 

And on the Kalahari Copper Belt:

“In the Kalahari Copper Belt we have built a head of steam in our exploration programme in the first half of 2022. With the changes we made to Kavango in the second half of last year and the new team members we recruited, we are now seeing the results coming in from the field.

The momentum is highly encouraging and we are quickly moving towards defining drill targets for a campaign later this year.

The exploration model in the KCB is well-established, but I am pleased to report Kavango is also innovating in the area. Our use of the Tromino was a simple idea, but so far appears to be effective, in helping us quickly estimate the depth of sand cover in our prospecting licenses this has guided our decision-making both in terms of where to take soil samples and how to interpret them.

We are particularly happy to have identified and located several key Ngwako Pan-D’kar formational contacts across our several of our license areas.  This is an important step towards validating our original exploration hypothesis that the western half of the KCB in Botswana was both prospective for copper/silver mineralisation and overlooked because the sand cover obscured much of the regional geology.

I would like to thank our teams in the field for their hard work  and we look forward to the results of further soil sampling, which will hopefully lead to clearly defined drill targets a little later in 2022.”

Ditau drilling overview

Kavango has successfully completed the current diamond drilling programme at the Ditau Camp Project (“Ditau”), in southwestern Botswana. The programme targeted three geophysical structures/targets, prospective for possible carbonatites and/or intrusive complexes that may host carbonatites. A total of four holes were drilled, for 1,623.60 m.

Samples from Hole DITDD004 are presently being analysed at an internationally accredited laboratory in South Africa. Samples from two holes are in transit to the same laboratory while core from the fourth hole is being cut.

Additional Controlled Source Audio Magneto Telluric (“CSAMT”) geophysical surveys and modelling have been carried out to further aid interpretation of the geological units intersected.

Kavango is now preparing the next steps for exploration of the twelve targets at Ditau, building on the geological knowledge gained from this programme.

–  Four diamond drillholes successfully completed, funded on a part cash, part equity basis with the drillers, Mindea Drilling and Exploration Services

–  Drillhole DITDD003 completed; final depth 300.14m.

–  Drillhole DITDD004 completed; final depth 393.29 m

–  Drillhole DITDD005 completed; final depth 343.90 m

–  Drillhole DITDD006 completed; final depth 586.27 m

–  Three (of twelve) targets have been tested so far. These are complex, buried features, over which Kavango are starting to gain a detailed geological knowledge, through the combination of drilling and cutting-edge geophysical techniques.

–  High and low frequency CSAMT surveys have been completed over each of the targets, with the aim of providing lateral definition of the geology intersected in each hole.

–  Drillholes DITDD003 and DITDD004 both targeted Target i10. DITDD005 targeted Target i1, and DITDD006 targeted Target i8.

–  DITDD003 and DITDD004 were drilled in close proximity (600 m) yet showed very different geology, with DITDD004 showing evidence of brecciation, veining, alteration and significant sulphide mineralisation.

–  DITDD005 has helped enhance the Company’s understanding of the stratigraphy of Target i1 (the largest anomaly at Ditau). Data from this hole will guide follow up CSAMT work.

–  DITDD006 was drilled to a deeper depth than the other three holes to test a possible intrusive body, as identified by the recently completed CSAMT survey over Target I8.

–  All holes have been geologically logged and sampled, with regular Magnetic Susceptibility and Conductivity readings, and Specific Gravity/Density measurements taken of all the drilled core.

–  Assays are now pending, together with petrology samples. Results from these will define any potential of the intersected geology for carbonatite and/or base/precious metal mineralisation.

Final drill report currently being prepared, with recommendations for next steps of exploration.

Ditau completed holes

A table summarising the holes completed at Ditau under the 2022 programme is provided below. Analytical results will be provided once assays are complete.

Target

Drillhole

Planned
UTM E

Planned
UTM N

Planned azimuth

Planned inclination

Final depth

i10

DITDD003

640350

7231118

000

-80

300.14 m

i10

DITDD004

640350

7230498

000

-80

393.29 m

i1

DITDD005

650000

7246516

000

-80

343.90 m

i8

DITDD006

654098

7233400

180

-80

586.27 m

Ditau targets and intersected geology

Kavango has identified, using combined and integrated Airborne Magnetics, Ground Magnetics and CSAMT surveys, 12 geophysical structures/targets at Ditau (targets i1 through i12), which the Company believes could be possible carbonatites and/or intrusive complexes that may host carbonatites. 9 of these targets are particularly well defined.

There are two target types at Ditau:

1)  Discrete kilometre-scale carbonatite pipe targets, and

2)  Larger multi-kilometre scale intrusive complex targets that may also be host to carbonatite intrusives and/or mafic associated mineralisation styles prospective for base metals

In the current drill programme, Kavango evaluated three of these targets; i10, i1, and i8. In parallel with the drilling, additional AMT work was implemented to further aid interpretation, given the high-quality sub-surface imagery achieved early in the programme, and increasing confidence in interpretation of data using this technique.

Ditau Target i10

Two drillholes, DITDD003 and DITDD004 were drilled into this target, a discrete circular anomaly of 2.2 km diameter. The two holes are 600m apart and yet show very different geology, which highlights the high level of geological variability of the area, which Kavango’s geologists consider could result from structural disturbance or major changes in sedimentary depositional environment. The intersected lithologies are described briefly below.

DITDD003

This hole passed through 83.90 m of Kalahari sands, before intersecting units including a breccia of 20.44 m from 83.90 m, and a dolomitic carbonate rock from 154.89 m. In addition, a 7.16 m intrusive, considered to be a dolerite, was intersected from 247.73 m.

DITDD004

This hole passed through 105.91 m of Kalahari sediments before intersecting dolomitic carbonates, a mafic intrusive (from 109.50  m to 227.14 m), and mudstone units interbedded with cm sandstone beds. Shearing, brecciation, veining, and haematitic alteration were observed to varying degrees within the mudstones over tens of metres thickness. Locally the hematite alteration is extremely intense with several phases of sulphide generation, in mm/cm scale veins and, most prominently, as a later phase that appears to overprint all earlier alteration. Variations in the geology between these holes are considered to be due to variations in the original sedimentary environment, or later structural deformation within a permit scale southwest-northeast structural corridor that underlies the Ditau project.

Ditau Target i1

One hole, DITDD005, was drilled into the i1 target, to investigate this possible large 7 km x 18.5 km magmatic intrusive complex, within which are circular structures indicative of potential carbonatite intrusives.

This hole passed through 31.00 m of sands before passing into units consisting of matrix and clast-supported conglomerate. The conglomerate shows metre-scale bedding with variable clast percentage and composition within these beds indicative of a high energy environment with material derived from variable sources. The clasts correspond to some of the units drilled in the other Ditau project holes, and include mudstones, some with a high magnetic content, silicified dolomites and minor mafics. The matrix is generally a medium-coarse, siliceous sand. Minor pyrite veining was seen. This unit is interpreted to be stratigraphically part of the Segwagwa Group, part of the Transvaal Supergroup.

Ditau Target i8

One hole, DITDD006, was drilled into the i8 target, to evaluate whether this could represent an intrusive dome structure as indicated by the lates AMT interpretations, that is approximately 4 km in diameter. This hole was planned to 400 m depth, and was extended to 586 m in order to ensure that the geophysical target as outlined on a newly implemented high-frequency AMT survey was thoroughly investigated.

This hole passed through 125.34 m of Kalahari sediments, before entering a series of mudstones and siltstones to 229.73 m, with an intruded dolerite from 161.77  m to 227.95 m. The remainder of the hole comprises tillite, siltstones and mudstones, interpreted to be of the Dwyka stratigraphic unit. No significant veining or alteration were seen.

Kalahari Copper Belt Overview

Kavango Resources has identified an important lithological/structural control of copper/silver mineralisation in the KCB, across several of its prospecting licenses held within the Kanye Resources Joint Venture. The Ngwako Pan-D’Kar formational contact zone is closely associated with multiple copper-silver deposits and discoveries elsewhere in the KCB.

This formational contact represents areas where the two rock formations meet, with the shallower D’Kar lithologies overlying the deeper Ngwako Pan sediments. Economic grades of mineralisation can be found along and close to these zones where concentrated through later shearing, folding, and tensional failure between the rock layers.

Kavango is pleased to announce that it has successfully mapped the Ngwako Pan-D’kar contact across a number of its own licences.

The discovery of the key control on mineralisation came as part of an extensive programme of geological mapping and soil sampling launched by the Company earlier this year. The goal of this ongoing work is to identify and rank a complete range of drill targets after previous efforts identified multiple Airborne Electromagnetic and geochemical targets over Kanye’s KCB licences.

Kavango will now work to advance discussions with RC drill contractors for its planned Kalahari Copper Belt drill programme later in 2022. This will target structural features in the vicinity of and above the Ngwako Pan-D’kar formational contacts.

Alongside this, the Company has continued extensive soil sampling and is midway through an 8,000 sample campaign, aimed at widening coverage in existing licences, as well as starting new work on licences such as the Mamuno package, located adjacent to the Botswana-Namibia border.

In addition, the Company is using a Tromino tool to estimate overburden thickness. This is being used to support interpretation of the geochemical data, in what is complex terrain.

Kalahari Copper Belt geology and geological mapping

All available historical maps and information, including relogging of local water boreholes, have been compiled and used to define priority areas based on known/inferred geology. The relogging also included Magnetic Susceptibility readings and, in selected holes, the use of a pXRF unit. Geological compilation has been augmented with extensive company geological mapping over areas defined as priority taking account of favourable stratigraphic horizons and known mineralised systems in the KCB. This has successfully identified the presence of the Ngwako Pan-D’kar formational contact on multiple licences.

Following the geological mapping, traverses across areas of known outcrop and collection of rock samples for lithogeochemical “fingerprinting” have been carried out. The results of this exercise are expected to assist in determining stratigraphy in areas of poor exposure and during drilling, in particular when dealing with drill chips.

The benefit of this detailed mapping is that inliers of Ngwako Pan Formation have been mapped within D’kar units – some of these are not shown on any existing maps and are to be confirmed through drilling. As the contact between the two formations is the primary target for KCB copper/silver mineralisation, the results of this mapping are considered very encouraging.

The combination of all these geological datasets has been used to select priority areas for the soil sampling programmes, along with other field programmes.

Kalahari Copper Belt geochemical survey

Following on from the geology compilation and interpretation work, a programme comprising approximately 8,000 samples of detailed soil geochemical sampling is underway, to augment previous work. This uses the company’s in-house Vanta XRF Analyser in geochemistry mode with three beams switched on for a total analytical time of 120 seconds per sample. Analyses are done using a desk-top docking station to ensure a consistent presentation distance between the sample and analyser window. Quality Control measures include use of reference materials, which are used to generate user factors for normalising the analytical results prior to interpretation. This work is presently being undertaken on the four Mamuno licences, as well as PL036/2020, and PL082/2018.

Selected samples will also be sent to an independent, internationally accredited laboratory in South Africa for multi-element analyses by conventional methods.

PL

Planned samples

No. samples 20/6/22

Line
spacing

Sample
spacing

PL082/2018 (LVR)

Up to 3,200

800m

50m

PL036/2020 (Kanye JV)

4,000-5,000

3,478

400 & 2000m

50m

Mamuno (Kanye JV)

Up to 1,500

800m

50m

Table 1: 2022 geochemical sampling programme status, June 2022

PL036/2020 (Kanye JV)

A total of 3,478 samples have so far been collected. At current production rates of +-150 samples/day, it is anticipated that the current phase of sampling on PL36/2020 will be completed by mid-July.

Mamuno Block: PL46, 49, 52, 53/2020 (Kanye JV)

Soil sampling is underway on these four licences. This block, located in the west, has seen little previous work. It lies on-strike with the main KCB trend.

Sampling is planned to cover the outcropping Ngwako Pan-D’kar Formation contact zone that has been mapped in detail by the company. A total of 1,319 samples at 50 m sample stations on 800 m spaced lines are planned, with some extensions across mapped Ngwako Pan Formation units to check for any structural repetition.

Kalahari Copper Belt Tromino surveys

In order to aid interpretation of geochemical data, a Tromino unit has been purchased. This seismic based unit is typically used in civil engineering applications for the characterisation of subsoils, using seismic waves. This maps subsoil resonance frequencies and has been identified by Kavango as ideal for reviewing overburden thickness such as the Kalahari Sands.

The Tromino is a small device that is being deployed along selected soil sample traverses. Given the proven attenuation of sand cover on geochemical values from both pXRF and conventional geochemical analyses, knowledge of the structure and thickness of the regolith profiles will be critical in both the design of the geochemical sampling programme as well as the domaining of the geochemical data during interpretation.

Three orientation surveys have been completed in PL036/2020. These were located across existing water boreholes with available geology logs, to enable a direct correlation of the Tromino data against known geology. Each location had varying depths of cover ranging from 6-40 m. Survey lines were 1 km long with the borehole at the centre. Sample points were 100 m apart.

The level of resolution achieved with this has exceeded Kavango’s expectations, and will now be used to aid in the interpretation of geomorphology for domaining of geochemical data, ensuring that a full understanding can be achieved of any geochemical anomalies identified.

Kalahari Copper Belt ongoing work programme (June to August 2022)

Work will continue to complete the activities currently in progress, integrating these with existing data sets and generating drill targets.

All KCB Licences

–  Relogging of remaining, relevant historical drill holes – these are predominantly chips from water boreholes -this is planned to support the next stage of geophysical interpretations.

PL036/2020

–  Completion of soil sampling over selected target zones defined from the preliminary geophysical interpretations.

–  Continued geochemical analyses, including comparison of the data generated from the pXRF against conventional laboratory analyses.

–  Completion of interpretation of previous detailed ground magnetic survey.

–  Completion of Lithogeochemical “fingerprinting” of lithologies within the main formations.

Mamuno Licences

–  Completion of soil sampling.

–  Follow-up of identified targets from this, geophysics, and geological mapping.

In parallel with the above, discussions are underway with RC drill contractors for a planned drill programme later in 2022, aimed at targeting structural features in the vicinity of and above the Ngwako Pan-D’kar Formation contacts.

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

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com

 First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Kavango Resources #KAV – KSZ drilling update

 

 

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the Company has successfully completed the first downhole electromagnetic (“DHEM”) survey on Hole KSZDD002 to a depth of 350m.

The measured DHEM response now indicates that the B1 Conductor Target (the “B1 Conductor”) has a conductance of 11,000 Siemens. This is an increase of 37.5% from the original modelled response, derived from a surface Time Domain Electromagnetic (“TDEM”) survey (announced 02 July), confirming this is a strong conductor.

To provide context, Kavango has provided a table on its website that presents an idealised resistivity and conductivity spectrum for rocks and mineralisation. The link to this table can be seen below:

https://kavangoresources.com/images/2021/07/02/idealized-resistivity-and-conductivity-spectrum-for-rocks-and-mineralization-kav-ksz.jpg

According to the updated DHEM model, the B1 Conductor has more elongate dimensions of 600m by 350m, however the position and dip of the plate remain the same. The drill hole is therefore still positioned optimally to intersect this target when drilling resumes in January.  The estimated depth to top is 420m, and the dip continues to indicate that the B1 Conductor is cross-formational. This suggests the B1 Conductor may have been emplaced by an as yet unspecified intrusive event and is unlikely to be formational.

As originally planned, Hole KSZDD002 is oriented towards the centre of the B1 Conductor. The Company estimates it will intercept the B1 Conductor between 525m and 575m.

The stratigraphy encountered so far in Hole KSZDD002 is analogous to the stratigraphy encountered in Hole KSZDD001, 1km away.

Kavango’s strategic partner, Spectral Geophysics (“Spectral”), completed the DHEM survey and the data has been separately independently analysed and verified.

Hole KSZDD002 has now been cased off to 350m with HQ casing as part of Kavango’s updated strategy to handle the drilling conditions and maintain hole stability. Equity Drilling and Mindea Exploration and Drilling Services (Pty) have paused drilling operations for the Christmas break and are scheduled to recommence early in the New Year.

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

“We now have the clearest indication yet that Hole KSZDD002 is on course to intercept a major conductor. What that conductor is remains to be seen, but I am extremely grateful for the effort our partners have put into completing the first downhole EM survey.

This drilling campaign in the Kalahari Suture Zone has been a major engineering challenge. Completing downhole EM has proven to be particularly difficult, because we have had to case the boreholes to protect their integrity.

Given the importance of the B1 Conductor in testing our geophysical exploration methods, we knew we had to do everything we could to complete this first survey.  Spectral went to great lengths to ensure we had equipment on site to perform the survey as soon as the drillers were ready.

This extra effort has paid off and we look forward to recommencing drilling early in the New Year.”

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

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com  

  First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada.  Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists.  Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralization and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.

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

 

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

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

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

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

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

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

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

III.  Spectral’s recognised technical experience and expertise

Highlights:

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

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

Ø Spectral’s Updated Mag Sus Model:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

For further information please contact:

Kavango Resources plc

Ben Turney

bturney@kavangoresources.com  

  First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Kavango Resources #KAV – Operations Update

kav

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to provide an operational update.

Highlights

Ø Recruitment of new senior commercial and exploration personnel

–  Tiyapo (Tipps) Ngwisanyi is the former and founding CEO of the Government owned Botswana Geoscience Institute. Tipps has joined the Company as Managing Director of Kavango Minerals (Pty) Ltd

–  John Lauderdale is a Chartered Geologist and seasoned exploration professional, who has run large-scale exploration programmes across Africa. John has joined Kavango as Senior Consulting Geologist

–  Jeremy S. Brett is an internationally recognised Professional Geoscientist who has worked previously in the Kalahari Suture Zone (“KSZ”). Jeremy is now working with Kavango as a Senior Consulting Geophysicist.

Ø Updated geophysical model of Target Area B

–  Target Area B covers the “Great Red Spot” magnetic anomaly, which has been subject to previous exploration

–  Historic exploration of the Great Red Spot was limited by the technology available at the time

–  The Company now believes the primary source of the Great Red Spot’s magnetic anomaly is towards its northern edge

–  This appears to be coincidental with Target B1 (announced 2 July 2021). Planned drilling to test this assessment.

–  Target B1 is a 475m by 550m conductive anomaly, with a conductance reading of 8,200 Siemens and a decay constant estimated to be in excess of 350ms.

–  Jeremy Brett and Kavango CEO Ben Turney have given a short video presentation about the updated geophysical model of Target Area B, which is available through the following link – https://youtu.be/0yQx_vLD8_Y

Ø Drilling update

–  Downhole gyroscopic survey complete. TA2DD002 successfully drilled to within 1 degree of original target

–  Drilling recommenced at TA2DD002, with target depth of 1,000m expected overnight on Wednesday 22 September 

–  On completion of operations in Target Area A, the rig will be mobilised to Target Area B

–  Kavango will then drill one geological hole into the Great Red Spot and one borehole to intersect the conductor of Target B1

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

“Our vision is to build a world-class minerals exploration firm in Botswana. These senior appointments are a significant step on our way to achieving this vision .

I am delighted to welcome Tipps, John and Jeremy on board. Each brings valuable skills, expertise and experience to Kavango. These senior appointments are the culmination of months of hard work and reflect the significant progress we have made as a business over the course of 2021.

We still have a lot to do to make our first discovery, but it feels like the pieces are falling into place.”

Recruitment of senior team members

Over recent months, Kavango has made the following appointments:

–  Tiyapo (Tipps) Ngwisanyi (Managing Director, Kavango Minerals (Pty) Ltd))

Tipps is a geoscientist, who began his career at the Botswana Department of Geological Survey. In 2010 Tipps became Director of the Geological Survey and was then appointed as founding CEO of the Botswana Geoscience Institute in 2015, a position he held until he joined Kavango at the start of August.

As Managing Director of Kavango Minerals (Pty) Ltd, the Company’s local operating subsidiary in Botswana, Tipps is responsible for in-country commercial management and liaisons with all stakeholders, from the Department of Mines to local farmers and community representatives.

–  John Lauderdale (Group Consulting Geologist)

John is a Chartered Geologist and seasoned exploration professional, who has been responsible for annual budgets of up to $80million and run teams of <350 personnel. During his career John has successfully worked on projects throughout Africa, from Morocco to South Africa.

Over the last three months John has been helping Kavango implement a comprehensive overhaul of the Company’s in-country operations. John works full time for Kavango and reports directly to the board of directors.

–  Jeremy S. Brett (Senior Consulting Geophysicist)

Jeremy is an experienced geoscientist, with a strong geophysical, geological and project management background. Over the last 27 years Jeremy has designed, supervised, quality assured and interpreted geophysical and geological exploration programmes across many base and precious metal projects around the world.

Jeremy has specific relevant experience in exploring for Nickel-Copper-PGEs mafic/ultramafic complexes, having previously worked on the Kalahari Suture Zone for Canadian firms in the late 1990s and early 2000s. Jeremy was responsible for the siting of Hole GRS1, which targeted the centre of the “Great Red Spot” and was drilled to a depth of 934m in 2002.

Jeremy published a paper on the KSZ in the Journal of African Earth Sciences in 2002, titled “Geophysical exploration of the Kalahari Suture Zone”. He has been assisting Kavango since March this year and is now conducting a review of the Company’s geophysical strategy.  

Geophysical update on Target Area B

Once current drilling operations are complete at Target Area A in the KSZ, Mindea Exploration and Drilling Services (Pty) (“Mindea”) will immediately mobilise the rig to Target Area B to commence drilling there.

Target Area B is in a distinct geological setting to Target Area A. It covers an area that is known as the “Great Red Spot”, thanks to its physical appearance on magnetic maps.  The Great Red Spot is a previously identified large-scale magnetic anomaly that has been subject to limited historic exploration.

In 2002 a Canadian junior exploration company, Opawica Exploration Inc (“Opawica”), drilled Hole GRS-1 into the centre of the Great Red Spot. GRS-1 was drilled to a depth of 934m, encountering 17m of gabbroic rocks from 917m. However, the Company believes that limitations in available geophysical technology meant that accurate profiling of the Great Red Spot was not possible at that time.

Thanks to significant advances in geophysical technology and analytical software over the last two decades, Kavango believes it has now been able to create a more accurate geophysical model of the Great Red Spot (the “New GRS Model”). The New GRS Model combines historic data with data gathered by the Company in its exploration of the KSZ.

The New GRS Model estimates that the primary source of the magnetic anomaly of the Great Red Spot is positioned much closer to its northern boundary than previously recognised. Kavango believes this magnetic anomaly could be associated with a combination of Karoo and/or Proterozoic intrusions.

According to Kavango’s analysis, Target B1 appears to be coincidental with the edge of the magnetic anomaly. The Company will seek to confirm this interpretation through drilling.

Kavango’s Consulting Geophysicist Jeremy Brett and CEO Ben Turney have given a video interview to Alan Green, CEO of Brand Communications, to provide greater context about the Company’s modelling of Target Area B.

The link to this presentation can be viewed here:

  

Drilling update Hole TA2DD02

Drilling at Hole TA2DD002 was temporarily halted on Tuesday 21 September at 950m to allow for the downhole gyroscopic survey. A gyroscopic survey is used to measure the angle of a borehole. This survey was successfully completed and confirms Hole TA2DD002 has been drilled to within 1 degree of the original objective. Given challenging drilling conditions closer to surface and the depth Hole TA2DD002 has been drilled to, the Company regards this as a notable technical success by Mindea and Equity Drilling Ltd.

Drilling has subsequently resumed and is expected to reach the final target depth of 1,000m overnight on Wednesday 22 September.

Kavango has used a TLB Loader to prepare a 20km roadway from Target Area A to Target Area B, so that the drill rig and accompanying equipment can be transported quickly and safely.

Kavango has also prepared drills pads and now plans to drill two boreholes:

–  First, the Company plans to drill a geological hole to a depth of up to 1,000m, targeting what it believes to be the shallowest point of the magnetic high of the Great Red Spot. Kavango expects to encounter Karoo and Proterozoic gabbros in this hole.

–  Second, the Company plans to drill a hole to intersect Target B1 to an estimated depth of up to 600m. Target B1 is a 475m by 550m conductive anomaly, with a conductance reading of 8,200 Siemens and a decay constant estimated to be in excess of 350ms. Kavango’s geophysical model estimates that Target B1 is positioned at the northern edge of the Great Red Spot.

The primary objective of both boreholes is to extract core samples for full sweep rock analysis.

————————————————————————————————————-

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  

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The information in this press release that relates to “geological and/or geophysical results” for the KSZ 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.

 

Kavango Resources #KAV – KSZ Update & Expansion

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to provide an update on its Kalahari Suture Zone (“KSZ”) Project.

Highlights:

Ø Update on Hole TA2DD002:

–    TA2DD002 is the second hole in the planned 6-hole programme currently being undertaken to investigate the Karoo gabbros in the Hukuntsi section of the KSZ.

–    Double shift drilling commenced on Friday 20 August

–    As of 1800 on Sunday 22 August the Hole was at 137m

–    Hole to test deeper Karoo gabbro “keel”, believed to be connected to the same gabbro encountered in Hole TA2DD001 (announced 16 August 2021), 1km to the west

–    Additional objective to test potential contact between Karoo and Proterozoic gabbros, which might represent a possible ‘feeder zone’

–    Hole to target western part of the same >1km geophysical anomaly (“Target A2”) drilled at Hole TA2DD001 (announced 20 April 2021)

–    Anticipated target depth of 400m to 450m (though preparations in place to drill up to 800m depending on contact with any gabbro encountered)

Ø Downhole electromagnetic (“EM”) survey Hole TA2DD001

–    Hole cased down to 393m from surface with steel casing, because of broken ground conditions

–    EM probe run by Spectral Geophysics Ltd (“Spectral) from 394m to 560m

–    According to analysis from Spectral, the A2 Time Domain Electromagnetic (“TDEM”) anomaly has been masked by the steel casing at 370m (i.e. the EM signal could not penetrate it)

–    Results inconclusive, but alternative options being evaluated for future hole design and possible downhole EM surveys

Ø Award of two new PLs in the KSZ covering a combined 1,258km2

–    Applied for in March 2021

–    PL081/2021 covers 987.8km2 across the eastern edge of the KSZ

–    PL080/2021 covers 270.4km2 and is contiguous with the Company’s existing PLs in the northern section of the KSZ

–    Both are 3-year licences, with the option of two 2-year renewal periods

–    £52,000 spending commitment in each PL over first 3 years

–    Kavango now holds 14 PLs in the KSZ, covering 8,751.7km2 

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

“I’m very pleased at how quickly we’ve progressed to double shift drilling at Hole TA2DD002. We are now successfully moving through the gears of this drill campaign. The speed at which Equity Drilling/Mindea safely mobilised the rig to the new site is encouraging. 

Core recovery continues to be consistent and of the highest standard.

Meanwhile, the inconclusive results of the downhole EM survey of Hole TA2DD001 emphasise some of the engineering challenges we face. Keeping a deep hole open to depth in the KSZ is tough. It’s a credit to the drillers that Spectral got the EM probe from 394m depth to 560m, but the steel casing from surface to 393m meant readings could not be taken below this depth. We now believe the primary A2 Conductor is at 370m.

While the cores we extract are by far the most important data source, it would have been helpful to see the EM response of the A2 Conductor at its base. The steel casing will be left in place for the time being, until the downhole survey (to confirm the orientation of the hole) is completed. At this point we will seek to remove the casing and possibly run another, shallower downhole EM survey. However, given what we have experienced so far with the ground closing in on itself, we have modest expectations about whether this will be possible.

Whatever the case, the results of the assays and the whole rock geochemical analyses should provide us with the most valuable evidence we need to guide future exploration.

With the award of 1,258km2 of new prospecting licences and working capital over £3million, Kavango is well-positioned to take full advantage of its strategic hold over this highly prospective region.”

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

For further information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com 

 First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)       

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The technical information contained in this announcement and the map of the A-C Corridor have been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration 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 is a beneficial shareholder of Kavango Resources plc.

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 8,751.7km2 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

EM Super 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

Norilsk Style: copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth’s crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model: a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

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.

Kavango Resources #KAV – KSZ Hukuntsi – A2 Target Depth & Drilling Expansion

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce successful completion of the first geological borehole in Target Area A (“Hole TA2DD001”) in the Hukuntsi (northern) section of the Company’s Kalahari Suture Zone (“KSZ”) Project. Hole TA2DD001 was drilled to a depth of 578m.

Following completion of Hole TA2DD001, the Company is pleased to announce it has signed an addendum to the current drill contract with Equity Drilling & Mindea Exploration and Drilling Services (Pty) (“Mindea”), which will now see the Company drill up to six geological holes in the current campaign in the KSZ (the “Campaign”).

Highlights

Ø Hole TA2DD001:

–    Drilled to a total depth of 578m

–    Drilling operations halted 10m below final contact with the Karoo gabbro

–    Primary objective fullfilled, with core samples successfully extracted throughout the entire hole

–    Visual inspection of cores confirms presence of sulphides

–    Coal seams encountered, confirming presence of potential source of sulphur for formation of magmatic sulphides

–    Core cutting expected to take 3-4 weeks to enable full sweep analysis of all core samples

–    Downhole electromagnetic (“EM”) survey to commence immediately

Ø Full sweep analysis of core samples to include:

–    Assay testing

–    Fire assay testing for gold and Platinum Group Elements (“PGEs”)

–    Whole rock geochemical analysis

–    Petrology analysis

Ø Further expansion of the Campaign:

–    Up to six boreholes now planned in the Campaign, targeting Target Areas A and C (the “A-C Corridor”) and Target Area B

–    Immediate mobilisation of rig to site of Hole TA2DD002 in Target Area A

–    On completion of Hole TA2DD002, rig to mobilise to Target Area B to drill the Company’s primary exploration target (“Target B1”, announced 2 July 2021)

Ø Final results to be announced on completion of the Campaign.

Ø Hole TA2DD002:

–    Located 1km west of Hole TA2DD001

–    Hole to test deeper Karoo gabbro “keel” (est. up to 800m), believed to be connected to the same gabbro encountered at Hole TA2DD001

–    Additional objective is to test potential contact between Karoo and Proterozoic gabbros, which might represent a possible volcanic ‘feeder’ zone

–    Hole to target the same >1km geophysical anomaly drilled at Hole TA2DD001 (announced 20 April 2021) 

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

“Our strategic objective in the KSZ in 2021 is ‘proof of concept’. If we can achieve this, the prize on offer is considerable.

The successful completion of Hole TA2DD001 will hopefully prove to be a significant step forward in that direction.

This is the deepest hole Kavango has drilled and I would like to thank Equity Drilling and Mindea for the exceptional engineering effort they have accomplished on our behalf. The quality of core samples is superb and provides us with exactly the raw materials we need to perform detailed rock analysis to test the KSZ’s potential to host magmatic sulphide ore bodies.

Although we must remain measured, we are sufficiently encouraged by what we have seen so far geologically and operationally, to expand our current drill programme in the KSZ to up to six holes.

The drill rig is mobilising 1,000m from its current location to test a deeper ‘Norilsk-style keel’ formation, on the western edge of the A2 conductive anomaly. This next hole should really take us into the guts of the KSZ and will hopefully provide us with the most valuable geological data recovered yet in this region.

Following completion of drilling operations in Target Area A, we will then move the drill rig to Target B1. This is our current primary exploration target. The conductive anomaly is approximately 475m by 550m, with a verified conductance reading of 8,200Siemens.

Once we have completed drilling Target Area B our intention is to bring the rig back to Target Area C, to test the potential of the ‘A-C Corridor’.

We now move forward with confidence to the next hole.”

Operational Update

Drilling operations at Hole TA2DD001 commenced on 21 July 2021 and finished on 15 August 2021. Mindea, the drill rig operator, drilled to a total depth of 578m. The original target depth was 500m, but contact with the Karoo gabbro lasted until 568m.

The Company chose to drill a further 10m below this formation before halting operations to allow for preparation of an immediate downhole EM survey by Spectral Geophysics (“Spectral”). Spectral expects to complete the downhole EM survey over the coming days.

Mindea successfully retrieved high quality core samples throughout Hole TA2DD001 in 3-meter runs.  These samples are currently being cut, ready for shipment for laboratory analysis. The Company intends to test all gabbroic samples collected and plans to release full results on completion of the Campaign.

Kavango is confident that all of the gabbro samples collected from Hole TA2DD001 are Karoo-age. The presence of Karoo sediments above and below the gabbro samples appears to confirm the stratigraphic relationship, with clearly defined contacts at the chilled margins.

Laboratory testing will include standard assay testing for base metals, fire assay testing for gold and PGEs, whole rock geochemical analysis and petrology analysis of thin sections.

Mindea will now mobilise the drill rig to the site for Hole TA2DD002, 1,000m from its current location.

Hole TA2DD002 targets a deeper ‘Norilsk-style keel’ Karoo gabbro, as well as the western edge of the A2 conductor (targeted by Hole TA2DD001). Kavango expects to drill up to 800m at Hole TA2DD002, with the goal of testing the potential contact between the Karoo and Proterozoic gabbros. Kavango believes this could represent a possible Karoo-age feeder zone.

The Company will make a further announcement when drilling operations commence at Hole TA2DD002.

Following completion of Hole TA2DD002, Mindea will then move the rig to Target Area B and is expected to drill two holes here. Target Area B is roughly 16km from Target Area A.

The first of geological hole in Target Area B will target the conductive anomaly of the Target B1 (announced 02 July 2021). Target B1 is 475m by 550m, with a conductance of approximately 8,200Siemens. The decay constant is estimated to be in excess of 350ms. This is currently Kavango’s primary exploration target 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 further information please contact:

Kavango Resources plc                

Ben Turney

bturney@kavangoresources.com 

 First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson             

SI Capital Limited (Joint Broker)       

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The information in this press release that relates to “geological and/or geophysical results” for the LVR 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.

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

EM Super 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

Norilsk Style: copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth’s crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model: a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

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.

Kavango Resources #KAV – KSZ Hukuntsi Proof of Concept drilling commences

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that drilling has commenced on Target A2 (“A2”) in the northern (Hukuntsi) section of the Kalahari Suture Zone (“KSZ”).

The goal of this geological borehole is to retrieve core samples from the bottom of the “Norilsk style keel” at A2. The Company’s hope is that assay and other analysis of said rock samples will result in “proof of concept” that the Karoo-age gabbros in the KSZ have the potential to host magmatic sulphide ore bodies.

The target depth at A2 is currently estimated to be 500m.

On completion of drilling operations at A2, Kavango’s drill partners (Equity Drilling Ltd and Mindea Exploration and Drilling Services (Pty) Ltd) will immediately mobilise the rig to Target C1 (“C1”), 11km away. The Company believes A2 and C1 are on the same geological corridor.

Following completion of drilling at C1, the rig will then mobilise to Target B1 (“B1”). Plans for this hole are currently being finalised and the Company will provide an update in due course.

Kavango estimates A2’s properties are:

–    The target is 1km in length and is open along strike

–    It extends between 250m to 700m below surface and is gently dipping

–    A decay constant of approximately 340msec and conductance of approximately 3000 Siemens, readings   which Kavango management considers are consistent with nickel sulphide deposits elsewhere in the world

–    Located in the right geological setting, at the bottom of a “keel” in the gabbroic intrusion, according to the Company’s Magnetic 3D-Model (announced 8 September 2020)

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

“Years of hard work and dedication have brought us to this point. We could now be on the cusp of achieving something truly great. It can be difficult to communicate in an RNS quite how much effort and creative energy goes into a project like the Kalahari Suture Zone.

The going hasn’t been easy, but everyone has stuck with it, often making great sacrifices along the way. I am immensely proud of our team. If anyone has ever deserved success in field exploration, it is the people who have given so much to Kavango.

With the drill bit now turning at A2, we should soon hopefully become the first company ever to retrieve core samples from the bottom of a Karoo-age gabbro in the region.

We have great confidence in Equity Drilling and Mindea to drill boreholes that will enable us to realise this ambition. The focussed planning that has gone into our drill campaign has been exceptional. Safety and security standards are international quality and the engineering design is robust.

Obviously this is a business where there can be no guarantees, but everything possible has been done to minimise our operational risks. The next few months promise to be incredibly exciting.”

Primary objective of the current KSZ drill campaign

Kavango’s primary objective is to become the first company ever to retrieve drill core from the bottom of the “keels” of the Karoo-age gabbros in the KSZ. The Company anticipates that drill-core from these holes will provide firm physical evidence of the KSZ’s potential to host ‘Norilsk-style’ metal sulphide deposits.

About Mindea

Mindea Exploration and Drilling Services (Pty) LTD was formed in September 2019 by Equity Drilling Limited and Maureen Mokgaotsane (Geologist), Sebanka Lobatlamang (Geologist) and Eddie Babuseng (Attorney at Law) to provide complete exploration solutions to its clients in Botswana.

Mindea is currently operated under the Botswana Citizen Economic Empowerment Policy and is owned 51% by local shareholders and 49% by Equity Drilling. Over the coming years it is expected that Botswana nationals will wholly own Mindea, with Equity Drilling continuing to provide strategic and technical support.

Mindea operates to strict international safety standards and deploys the latest equipment to its projects. Mindea is rigorous in its planning and site preparation.

Reflecting the quality of its operations, Mindea has recently been awarded a 3-year contract by Debswana to drill various national projects in Botswana. In addition to this, Mindea is a regular drill contractor for DeBeers.

About Equity Drilling

The owners of Equity Drilling are extremely experienced drill operators, with extensive experience of successfully working on technically challenging projects across Africa.

Equity Drilling established Africa’s first Drilling School in Botswana, the Africa Mining and Drilling Institute (“AMDI “)

AMDI is Botswana Qualifications Authority (BQA) certified, which offers internationally recognised certification to all students wishing to be taught exploration drilling. AMDI has an exclusive working relationship agreement in place with the Australian Drilling Industry Association (the “ADIA”) and offer the ADIA’s DICAT curriculum with a strong emphasis on safety in the workplace.

AMDI also offers funds the delivery of pre-industry courses to students from local communities, who have had no previous work experience. This course prepares students for the work place and making them eligible for placement into the industry on graduation. Mindea’s own labour resources have been drawn from these pre-industry course graduates

About Target A2

Kavango estimates Target A2’s properties are:

–    1km length, which is open along strike

–    Extends between 250m to 700m below surface and is gently dipping

–    Decay constant of approximately 340msec and conductance of approximately 3000 Siemens, readings   which Kavango management considers are consistent with nickel sulphide deposits elsewhere in the world

–    Located in the right geological setting, at the bottom of a “keel” in the gabbroic intrusion, according to the Company’s Magnetic 3D-Model (8 September 2020)

————————————————————————————————————–

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

For 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

Kavango Competent Person Statement

The information in this press release that relates to “geological and/or geophysical results” for the LVR 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.

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

EM Super 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

Norilsk Style: Means copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth’s crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model:  Means a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

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.

Kavango Resources #KAV – Expansion of drilling, KSZ ops update and Placing

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an expansion to the Company’s current drill programme in the Kalahari Suture Zone (“KSZ”), an operational update on the KSZ and a £1.94 million Placing.

Highlights

Ø Expansion to drilling programme:

–  A 550m borehole to be drilled through Target B1, following completion of operations at Targets A2 & C1 (announced 10 June 2021)

–  Target B1 is 475m by 550m, with a conductance of approximately 8,200Siemens and decay constant estimated to be in excess of 350ms

–  B1 is in a separate, distinct geological setting to the A-C corridor (announced 15 June 2021)

–  Spectral Geophysics Ltd (“Spectral”) to perform immediate down hole electromagnetic (“EM”) surveys on each borehole on completion.

Ø Time Domain Electromagnetic (“TDEM”) survey update:

–  Six Target Areas surveyed by Spectral

–  Drill targets identified in Target Areas A2, C1 and B1

–  No targets in Target Areas A1 and D

–  Ongoing data analysis of Target Area B2

–  Two further TDEM surveys planned in Target Area B, with one targeting Target B1.

Ø Strategic partnership discussions with Equity Drilling Ltd (“Equity Drilling”):

–  Equity Drilling is owned and run by highly experienced African drill operators

–  Kavango is in discussions with Equity Drilling concerning the formation of a strategic drilling partnership

–  Kavango is considering a number of options, including (but not limited to) the possible acquisition of two drill rigs and support vehicles to act as a dedicated team across the Company’s portfolio of projects

–  Any strategic partnership will be subject to due diligence and will likely be structured to involve payments in cash and shares

–  Further announcement to be made in due course.

Ø Placing:

–  35,272,727 New Ordinary Shares (the “Placing Shares”) have been placed by First Equity Limited (“First Equity”), on behalf of the Company with institutional and other investors (the “Placing”)

–  The Placing has been conducted at a price of 5.5p

–  A one-for-one warrant has been issued to all placing participants, exercisable at 8.5p per share for a period of two years (the “Warrants”)

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

–  The Company has raised gross funds of £1.94million

–  Certain of the Directors intend to subscribe for shares on the same terms as the Placing.

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

“Exploration results this year, across all our projects, have consistently surpassed our expectations. This culminated in Friday’s two announcements concerning the identification of Target B1 in the KSZ and seven drill targets at Ditau.

We are especially encouraged by the results of the TDEM surveys in the KSZ. While the conductance of targets A2, C1 and B1 appears to suggest they fall within the range of massive sulphides, we take a high degree of comfort from the “negative” results of A1 and D1. The fact that the TDEM surveys have selectively identified EM conductors gives us confidence we are using the right remote sensing technology to define specific drill targets.

While we must remain measured in our response to these upbeat developments, we must also make sure we are prepared for one or more positive drill results.

Although Kavango is already well financed, our budget was built around a specific work programme. We had planned for a certain amount of drilling in 2021, as we pursued our objective of “proof of concept” in the KSZ. However, it became clear to the board in recent weeks that our projects require much more extensive campaigns.

 As a result we have advanced our discussions with Equity Drilling about instigating much larger drill programmes, to respond to the rapid progress we are making in the field.

In anticipation of increasing our drill activity, we completed this weekend’s financing at a minimal discount and an excellent price. This reflects the strength of our position.

With our general overheads already budgeted for, Kavango will now deploy the new funds into pursuing our ambition of making one or more major mineral discoveries.”

Target B1

Designated Target B1 (“B1”), the conductive anomaly is 475m by 550m with a conductance of approximately 8,200Siemens. The decay constant is estimated to be in excess of 350ms.

Target Area B is roughly 12km from Target C1 (announced on 15 June 2021). Kavango believes Target Area B is in a separate, distinct geological setting to the A-C corridor.

The Company is in discussion with Equity Drilling & Mindea Exploration and Drilling Services (Pty) to extend the current drill contract to include drilling a 550m borehole into B1, to retrieve core from the bottom of the “Norilsk-style keel” of the intrusive body.

Spectral will undertake down-hole EM surveying on each of the drilled holes as soon as the drilling has been completed. The surveying will identify and measure conductors within a 300m radius of the probe as it is lowered down the hole.

TDEM Survey updated

Spectral has now completed eight TDEM surveys in the KSZ. This included:

–  3 TDEM surveys in Target Area A, including one follow up survey on Target A2

–  2 TDEM surveys in Target Area B, including one follow up survey on Target B1

–  2 TDEM surveys in Target Area C, including one follow up survey on Target C1

–  1 TDEM survey in Target Area D.

This resulted in the identification of 3 drill targets, designated A2, B1 and C1 (the “Drill Targets”). Kavango plans to drill these targets over the course of this summer.

No conductors were found by the TDEM surveys over areas A1 and D1.

Analysis of data gathered from area B2 is ongoing and the Company expects to release an announcement on this in the near future.

Spectral has deployed its team back to Target Area B to complete two follow up TDEM surveys.

Kavango and Spectral will begin discussions in the coming weeks about conducting more TDEM surveys elsewhere in the KSZ. This next phase of TDEM surveying is expected to commence later this year, once the Company has received results from analysis of drill cores obtained from the Drill Targets.

Discussions with Equity Drilling

Equity Drilling Limited is a company registered in Guernsey. The owners and operators of Equity Drilling are highly experienced drill operators in Africa.

Equity Drilling founded Mindea Exploration and Drilling Services (Pty) Ltd (“Mindea”), which is operated under the Botswana Citizen Economic Empowerment Policy. Mindea is the drill contractor, which Kavango has engaged to drill the Drill Targets.

Equity Drilling also established Africa’s first, internationally accredited Drilling School in Botswana, the Africa Mining and Drilling Institute (“AMDI”).

Having established a strong working relationship, Kavango and Equity Drilling are now in discussions concerning the establishment of a strategic partnership company (the “Strategic Partnership”) whose primary focus will be to complete extensive drilling operations across the Company’s portfolio of projects.

Details and terms of the Strategic Partnership are still under discussion, but Kavango will complete a period of due diligence prior to making any commitment. One proposal the Company is considering is the acquisition of two drill rigs, with support vehicles, to create a focussed drill team to complete extensive drilling across the Company’s portfolio of projects. Discussions are ongoing about this and if an agreement is reached Kavango expects to pay a combination of cash and shares.

It is anticipated that Equity Drilling will act as the exclusive operator of the Strategic Partnership, in whatever shape it eventually takes, should final terms be agreed.

Placing

The 35,272,727 New Ordinary Shares have been conditionally placed by First Equity Limited, on behalf of the Company with institutional and other investors, including high net worth and retail investors, to raise £1.94 million.

Each New Ordinary Share has, on a one-for-one basis, a warrant attached exercisable at 8.5p for a term of 24 months from the date of issue, which is subject to an acceleration clause whereby should the Company’s shares close above 17p for more than 5 trading days, the Company may at any time write to the warrant holders providing 10 working days’ notice of accelerated exercise, with 10 workings day thereafter for payment.

The Company is discussing with certain directors the possibility of their participating in a subscription, on the same terms as described above. If agreement is reached a further announcement will be made.

Broker Warrants

The Company has issued with 3,527,273 broker warrants (“Broker Warrants”), with the same terms as set out above for the Warrants issued as part of the Placing. 

Admission and Total Voting Rights

Application will be made for the Placing Shares to be admitted to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (“Admission”).  It is expected that Admission will become effective and that dealings in the Placing Shares will commence at 8.00am on or around Monday 02 August 2021.

Following Admission, the total issued share capital of the Company will consist of 400,340,775 Ordinary Shares. Therefore, the total number of voting rights in the Company is 400,340,775 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company.

———————————————————————–

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

+46 7697 406 06

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

Kavango Competent Person Statement

The information in this press release that relates to “geological and/or geophysical results” for the LVR 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.

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

EM Super 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

Norilsk Style: copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth’s crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model:   a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

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.

Kavango Resources #KAV – KSZ Hukuntsi TDEM conductor B1 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 B in the Hukuntsi (northern) section of the Company’s Kalahari Suture Zone (“KSZ”) Project.

Designated Target B1 (“B1”), the conductive anomaly is 475m by 550m with a conductance of approximately 8,200Siemens. The decay constant is estimated to be in excess of 350ms.

Target Area B is roughly 12km from Target C1 (announced on 15 June 2021). Kavango believes Target Area B is in a separate, distinct geological setting to the A-C corridor.

The Company is in discussion with Equity Drilling & Mindea Exploration and Drilling Services (Pty) to extend the current drill contract to include drilling a 550m borehole into B1, to retrieve core from the bottom of the “Norilsk-style keel” that underneath it.

The Company has also engaged its strategic partner Spectral Geophysics to conduct two more Time Domain Electromagnetic (“TDEM”) surveys in Target Area B.

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

“B1 appears to be the best conductor we have identified so far. The 8,200Siemens reading is particularly encouraging. With a rig already mobilising in Hukuntsi, we plan to drill this target as soon as the two boreholes are complete in the A-C corridor.”

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

For further information please contact:

Kavango Resources plc   

Ben Turney

bturney@kavangoresources.com   

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson 

SI Capital Limited (Joint Broker) 

+44 1483 413500

Nick Emerson

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

EM Super 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

Norilsk Style: copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth’s crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model:   a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

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.

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