TIDMKAV
RNS Number : 3620M
Kavango Resources PLC
16 September 2019
PRESS RELEASE
16 September 2019
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Carbonatite orientation programme at Ditau
Kavango Resources plc (LSE: KAV), the exploration group listed
on the Standard List segment of the main market of the London Stock
Exchange and targeting the discovery of world-class mineral
deposits in Botswana, is pleased to announce an update on the
Company's Ditau Project.
Highlights
o Further analysis of assay and geochemical results from
February's core drilling, suggests the presence of "fenitization",
a type of alteration associated with carbonatites
o 10 magnetic "ring structures", which are prospective for
carbonatites, have now been identified within the Ditau
licences.
o Carbonatites often contain numerous economic minerals and are
the primary source of Rare Earth Elements (REEs).
o Kavango recently learned of 3 carbonatites that were
discovered in the 1970s by Falconbridge less than 25km from the
Ditau drill sites.
o Kavango is initiating an orientation programme over the
Falconbridge carbonatites (within the Company's existing
budget).
o Non-Disclosure Agreements (NDAs) have been signed with several
major and mid-tier mining firms concerning a possible Ditau Joint
Venture
Background
Ditau comprises two prospecting licences (PLs), which cover an
area of 1,386km(2) . Kavango originally identified a magnetic
anomaly at the first of these two licenses, which the directors
believed presented an attractive exploration target.
In February 2019 the Company drilled two holes into the
"original" Ditau magnetic anomaly (the "Ditau Camp Prospect").
Assay and whole rock geochemistry results from these two holes,
released in early August, demonstrated the presence of an extensive
zone of highly altered Karoo sediments sitting above a mafic
intrusive body. The alteration extended to over 300m in depth in
both holes, which were 1.8km apart.
The geochemistry obtained from the drill core suggested that the
alteration was due to "fenitization", a type of extensive
alteration associated with alkali magmatism and carbonatites.
Carbonatites are the major global source of Rare Earth Elements
(REEs).
The Ditau Targets
Analysis of existing airborne magnetic data identified 10 "ring
structures" aligned along a SW-NE axis in the Ditau area. Ring
structures are typical of alkali magmatism, which are often
accompanied by the intrusion of carbonatite in the form of plugs or
dykes.
Recognition of this hitherto unknown complex of alkali ring
structures (including at least one possible kimberlite) prompted
Kavango to apply for the second PL at Ditau, which was granted in
June of this year.
Carbonatites are the principal primary source of REEs including
the much sought after elements Neodymium (Nd) and Praseodymium
(Pr), which are used in the manufacture of the new generation of
electric vehicles (EVs), magnets and other high tech
applications.
The board believes that Ditau's post-Karoo age is likely to be
conformable with the Longonjo Nd/Pr carbonatite open pit deposit,
being developed in Angola by Pensana Metals. The Company will seek
to confirm this through further exploration.
The Falconbridge Carbonatites
Subsequent to the release of August's drill results from Ditau,
Kavango learned that the Canadian miner Falconbridge drilled into 3
carbonatites in the early 1970s at a location less than 25km from
Ditau and hosted by similar Karoo country rocks.
Falconbridge was looking for kimberlites in the area, which
contains a cluster of over 20 kimberlites discovered at the same
time. Kimberlites are the primary source of diamonds. Carbonatites
have similar looking magnetic and gravity signatures.
The carbonatites that Falconbridge intersected were of post
Karoo age and lie just below the Kalahari sand cover and would
therefore have been amenable to open pit mining. Any carbonatites
discovered at Ditau are likely to be of the same age and lie
relatively close to surface.
The one carbonatite sampled by Falconbridge reported high grades
of Niobium.
Next Steps
Kavango now plans to undertake an orientation exercise to assess
the geophysical and geochemical characteristics of the Falconbridge
carbonatites. This will assist in the exploration for and discovery
of carbonatites within Kavango's licences.
Using funds already set aside for the further work on the Ditau
licences, the Company will undertake surveys over some of all of
the 10 ring structures to identify carbonatite targets. Targets can
be tested by relatively shallow and cheap percussion drilling.
The objective is to demonstrate over the coming months the
existence of carbonatite within Kavango's Ditau licences
Joint Venture Discussions
In order to offset the costs of a prolonged exploration
programme, which may involve extensive resource drilling, Kavango
has signed Non-Disclosure Agreements with several major and
mid-tier companies concerning possible future joint ventures. The
orientation programme (described above) is expected to support
these discussions and the Company will provide further updates in
due course.
Michael Foster, Chief Executive Officer of Kavango Resources,
commented:
"There is mounting evidence that Ditau is at the centre of a
previously unrecognised alkali magmatic complex. The current
orientation exercise is designed to confirm the existence of
carbonatite associated with the 10 ring structures identified to
date. A number of mining companies have shown interest in this
project and we look forward to working with an industry partner to
realise fully its potential."
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.
Note to Editors:
Economic Potential of Carbonatites
Until recently carbonatites were regarded as unusual and
academically interesting geological bodies but significant interest
was only generated once the demand for REEs was established (in the
last few years). Hitherto many carbonatites were mined for their
phosphate content (fertilizer), or for economic deposits of
Niobium, Strontium, Uranium, Thorium, Magnetite, Barium and
Vermiculite. One of the world's most productive carbonatites,
Palabora, has been in production continuously since 1953 and is
South Africa's principal source of copper. About one out of nine
carbonatites world-wide have been mined commercially (Simandi &
Paradis 2018).
Both the market and production of REE's is dominated by China
who are also leading the research into the technological
application of these metals. Western countries have recently become
alarmed about the strategic advantage that China now exerts over
REE technology such that new deposits of these elements are in high
demand.
For further information please contact:
Kavango Resources plc +44 20 3651 5705
Michael Foster
mfoster@kavangoresources.com
SI Capital Limited (Joint Broker) +44 1483 413500
Nick Emerson
Turner Pope Investments (Joint Broker) +44 20 3657 0050
Andy Thacker
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