TIDMKAV
RNS Number : 7893K
Kavango Resources PLC
06 January 2021
PRESS RELEASE
6 January 2021
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Botswana Joint Venture - Early Payment
Kavango Resources plc (LSE:KAV), the exploration company
targeting the discovery of world-class mineral deposits in
Botswana, is pleased to announce that Power Metal Resources
(LSE:POW) ("Power Metals") has elected to pay in full its initial
$150,000 cash contribution towards exploration into the Strategic
Joint Venture (the "SJV") immediately. This is one year ahead of
schedule.
The purpose of this payment is to accelerate progress across the
SJV's prospecting licences in both the South Ghanzi Project on the
Kalahari Copper Belt and the Ditau Project.
Michael Foster, Chief Executive Officer of Kavango Resources,
commented:
"This early payment by Power Metals reflects the rapid progress
we are making at South Ghanzi and Ditau.
Initial results from both projects have been encouraging and we
will now bring forward plans for more extensive and intensive
exploration. If results continue to impress, this will put us on a
quicker path to exploratory drilling later this year."
Early payment by Power Metals into the SJV
On 21 September the Company and Power Metals announced the
establishment of the SJV.
The SJV is co-owned by both companies and holds:
- Two prospecting licences in the Kalahari Copper Belt covering
1,294km(2) and targeting the discovery of large-scale copper/silver
deposits (the South Ghanzi Project)
and
- Two prospecting licences covering 1,386km(2) at Ditau,
exploring 10 "ring structures" targetting potential rare earth
elements ("REE) discoveries, hosted in carbonatites
Under the terms of the SJV, Power Metals committed to paying for
the first $75,000 of exploration expenditure incurred in each of
Years 1 & 2 (totalling $150,000).
Thanks to the rapid progress that the SJV has made at both South
Ghanzi and Ditau in late 2020, Power Metals has elected to pay its
second $75,000 a year early. Power Metals has now paid $150,000
towards the SJV's exploration budget. These funds will be used to
accelerate field exploration at both projects.
All future exploration expenditure will be incurred on a
pro-rated basis between Kavango and Power Metals.
Further information in respect of the Company and its business
interests is provided on the Company's website at
www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Michael Foster
mfoster@kavangoresources.com
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
Kavango Competent Person Statement
The information in this press release that relates to
"geological and/or geophysical results" for the South Ghanzi
Project is based on information compiled or reviewed by Mr Mike
Moles BSc (Geology) & BSocSci (African Studies), a competent
person who is a Member of the Australian Institute of Mining &
Metallurgy. Mr Moles has sufficient experience that is relevant to
the style of mineralisation and type of deposits under
consideration and to the activity, which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Moles consents to the inclusion in
this release of the exploration results for the Project in the form
and context in which it appears. Mr Moles is a beneficial
shareholder of Kavango Resources plc.
NOTES TO EDITORS
KAVANGO'S INTERESTS IN THE KALAHARI COPPER BELT
Kavango's exploration licenses in the KCB include:
The South Ghanzi Project
- 50% working interests in prospecting licenses PL036/2020 and
PL037/2020, to be held in a Joint Venture with Power Metal
Resources (LSE:POW) (announced 21 September), which cover
1,294km(2)
The LVR Project
- Earning in a 90% interest in prospecting licenses PL082/2018
& PL 083/2018, held in a Joint Venture with LVR GeoExplorers
(Pty) Ltd ("LVR"), which cover 1,091km(2)
THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING
The South Ghanzi Project and LVR Project areas include lengthy
redox boundaries, close to surface, that represent excellent
exploration targets.
The redox boundaries were formed several hundred million years
ago in active sedimentary basins flooded by shallow seas. Organic
matter accumulating on the sea floor created anoxic conditions,
which formed a chemical barrier to metal ions rising upwards
through the sediments as the basin subsided. The change in
chemistry caused the precipitation of metal species (carbonates,
sulphides etc.) including copper and silver on or just below the
redox boundary.
Subsequent tectonic activity folded the sedimentary layers,
which was often accompanied by the concentration of metals into the
fold hinges. The upward rock slopes of these fold hinges are known
as synclines, while the downward rock slopes are called
anticlines.
Several large-scale copper/silver ore deposits have been
discovered on the KCB in such hinges in areas now held under
licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a
privately owned mining development company). These deposits are
relatively close to surface and are amenable to open pit mining
operations.
Accumulations of sulphide metals can be traced along the strike
of the redox boundaries (sometimes for many kilometres), since they
often have a higher magnetic signature than the surrounding
rock.
THE DITAU PROJECT
The Ditau Project comprises two prospecting licences ("PLs")
(PL169/2012 & PL010/2019) that cover an area of 1,386km(2) .
Geophysical and geochemical analyses by Kavango in the two PLs have
identified 10 "ring structures" (including at least one possible
kimberlite).
The "ring structures" are potential carbonatites.
Carbonatites are the principal source of rare earth elements
(REEs) including the much sought-after elements Neodymium (Nd) and
Praseodymium (Pr), which are used in the manufacture of the new
generation of electric vehicles (EVs), magnets and other high-tech
applications.
One of the ring structures is a 7km x 5km magnetic and gravity
anomaly with significant zinc-in-soils values. Assay and whole rock
geochemistry results from two drill holes drilled on this ring
structure in 2019 by Kavango demonstrated the presence of an
extensive zone of altered Karoo sediments sitting above a mafic
intrusive body. The alteration extended to over 300m in depth in
both holes, which were 1.8km apart. The geochemistry obtained from
the drill core suggested that the alteration was due to
"fenitization", a type of extensive alteration associated with
alkali magmatism and carbonatites.
Fenite alteration is particularly associated with carbonatite
intrusions, where it occurs as an aureole or halos around the
carbonatite intrusive. It can indicate the presence of mineralised
intrusions in a similar way that alteration patterns are used in
other ore systems, such as porphyry copper deposits.
Kavango suspects that the post-Karoo fenitized rocks intersected
at Ditau may be comparable to the Longonjo carbonatite in Angola
being developed as a neodymium and praseodymium open pit mine by
Pensana Metals Limited.
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