TIDMKAV
RNS Number : 0958T
Kavango Resources PLC
22 November 2021
PRESS RELEASE
22 November 2021
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Drilling commencement & upgraded target motivation
Kavango Resources plc (LSE:KAV), the exploration company
targeting the discovery of world-class mineral deposits in
Botswana, is pleased to announce commencement of drilling of the
Company's B1 Conductor Target (the "B1 Conductor", announced 02
July) with Hole KSZDD002.
The B1 Conductor is a cross-formational, strongly conductive
geophysical anomaly that has a conductance reading of 8,200
Siemens. Part of Kavango's exploration model in the Kalahari Suture
Zone ("KSZ") is based on identifying sub-surface conductors with
conductance readings greater than 1,000 Siemens. According to the
Company's model, the B1 Conductor is 475m by 550m in size, exhibits
a decay constant in excess of 350ms and dips at a 60-degree
angle.
Conclusion - Kavango believes the position, size, shape,
orientation and conductance of the B1 Conductor suggest this target
may have the potential to be a large-scale, Karoo-age
nickel/copper/platinum group element (Ni/Cu/PGE)
mineralisation.
Objective - Hole KSZDD002 has been designed to intersect the B1
Conductor, to give us the best possible information from a single
hole regarding the presence or otherwise of metal sulphides (or
whatever else could be the source of such a highly conductive
zone).
Drill Motivation - The B1 Conductor was identified through two
surface Time Domain Electromagnetic ("TDEM") surveys, performed by
the Company's strategic partner Spectral Geophysics ("Spectral") in
Q2 this year.
The Company believes the B1 Conductor was emplaced within a
Karoo gabbro, which sits above the "Great Red Spot" magnetic
anomaly, at a depth of 550m from surface. Lithological logging of
the core from Hole KSZDD001 (announced 16 November) shows a thick
70m Karoo gabbroic sill is at a similar depth to the B1 Conductor.
KSZDD001 was drilled 1km away from the collar location of
KSZDD002.
If Kavango is correct about the nature of the possible
relationship between the B1 Conductor and the local Karoo gabbro
intrusive, this would suggest the B1 Conductor may have been
emplaced during the Karoo (c.180 million years ago), by a magmatic
event that intruded the existing flat lying Karoo sediments.
Preliminary structural interpretations, combining the geology
intersected in KSZDD001 with updated inversion models of the "Great
Red Spot" magnetic anomaly, indicate that Karoo aged intrusives may
have intruded upwards along structures that controlled the
emplacement of the underlying Proterozoic gabbros (c.1.1 billion
years ago). One of these structures could be the host lithology of
the B1 Conductor.
Kavango's updated inversion model of the Company's aeromagnetic
data indicates that the 60-degree dip of the B1 Conductor is
aligned directly towards one of flanks of the magnetic high of the
underlying Great Red Spot.
The Company is currently exploring the possibility that the
Great Red Spot area has potential to host two separate, distinct
mineralised systems; one younger Karoo-age system (prospective for
Ni/Cu/PGEs), and another older Proterozoic-age system
(mineralisation model in the process of being confirmed). Kavango
anticipates that drill core from Hole KSZDD002 should help it test
its theory of the potential for a stacked exploration play in this
area.
Kavango expects to drill Hole KSZDD002 to a depth of 650m.
Risk Assessment - Kavango has already paid the cash element of
the drilling costs for Hole KSZDD002, with the balance to be paid
in stock. The Company's working capital position is GBP2.1million.
The Company is confident the outcome of Hole KSZDD002 will have no
bearing on its planned other work programmes in 2022 in the KSZ,
the Kalahari Copper Belt or Ditau.
To date Kavango has only performed nine surface TDEM surveys
across the northern "Hukuntsi" section of the KSZ. From results
gathered so far, the Company is convinced this geophysical
technique is the right technology to identify future conductive
Ni/Cu/PGE drill targets, should they exist within drilling
range.
Kavango's geophysical team is in the process of drawing up a
phased campaign of follow up TDEM and downhole electromagnetic
("DHEM") surveys over the Great Red Spot and Target Area A. If
successful, the Company will then roll this campaign out to other
target areas in the KSZ. The objective will be to identify
conductor targets at representative depths of potential Karoo-age
gabbros (searching primarily for possible Ni/Cu/PGE deposits) and
conductor targets set within Proterozoic-age gabbros (searching
both for possible Ni/Cu/PGE deposits & an alternative as yet
unspecified mineralised deposit model that fits the increasing
range of geological and geophysical data Kavango has obtained).
Kavango's geophysical team is in the process of drawing up a
phased campaign of follow up TDEM and downhole electromagnetic
("DHEM") surveys over the Great Red Spot and Target Area A. If
successful, the Company will then roll this campaign out to other
target areas in the KSZ. The objective will be to search for
conductive targets that primarily fit a Ni/Cu/PGE deposit model, at
the depths of both Karoo-age gabbros and the deeper Proterozoic-age
gabbros.
Further, Kavango has obtained geological and geophysical
evidence for an alternative, and as yet unspecified, mineralised
deposit model in the Proterozoic.
Hole KSZDD002 is the fourth borehole of the current KSZ drilling
campaign. Despite its status as an extremely high priority target,
Kavango left drilling of the B1 Conductor until last, to enable the
Company to learn as much about the local ground conditions and
stratigraphy as possible. Kavango is aware of the challenges posed
by drilling in this area and has, in collaboration with Equity
Drilling & Mindea Exploration and Drilling Services (Pty), made
a number of changes to the engineering design of Hole KSZDD002.
As with other boreholes in this year's KSZ drill campaign, the
priority of Hole KSZDD002 is to reach target depth and recover as
much drill core as possible for future analysis. However, given
what is known about the structural composition of commercial
Ni/Cu/PGE ore bodies (i.e. they can be relatively discrete and
exist in clusters), Kavango is mindful of the importance of being
able to conduct DHEM on this hole. The Company has taken steps to
maximise its chances of being able to complete DHEM on Hole
KSZDD002, but is aware the precise geology of the rock formations
the drill will encounter is unknown at this stage. This geology has
the potential to limit the ability to carry out full a DHEM
survey.
Latest Update - Drilling commenced on Friday 19 November, in
12-hour double shifts. By the end of the night shift on Monday 22
November Hole KSZDD002 was 60.79m
Online Presentation and Shareholder Q&A
Kavango Chief Executive Ben Turney and Consulting Geophysicist
Jeremy Brett will present the Company's latest interpretations of
the B1 Conductor at the Proactive One2One Forum on 25 November at
1800GMT. To participate in this event please visit the following
link:
https://event.webinarjam.com/register/1344/lxxzghmzw
Ben Turney, Chief Executive Officer of Kavango Resources,
commented:
"This is the most important exploration hole ever drilled in the
Kalahari Suture Zone.
It is up to the drillers and our team on the ground to deliver
another successful hole. They've all done fantastic work for us
already this year and I hope their efforts are richly rewarded.
On a personal note, I am particularly encouraged by the B1
Conductor crosscutting the flat-lying Karoo formation sediments.
The fact our modelling suggests it dips towards the Great Red
Spot's probable intrusive centre could prove to be significant. If
our theory is correct, vast amounts of Karoo-age magmas could have
exploited the same pathways to surface as the Proterozoic magmas
c.920million years before. Such conditions could well have led to
the creation of Ni/Cu/PGE sulphide ore bodies.
The only way to test this theory is to drill the B1 Conductor.
With its 8,200 Siemens modelled conductance reading and probable
position within Karoo-age gabbro, it could be Ni/Cu/PGE
mineralisation.
However, as optimistic as we feel, it is premature to get too
excited. Although we believe the B1 Conductor holds considerable
potential, which we may be able to identify through Hole KSZDD002,
we have not gambled Kavango's future on its outcome.
We've already paid the cash element for drilling upfront and
have GBP2.1million in working capital. This will see us comfortably
through our next phases of exploration across our project
portfolio, including drilling targets in Ditau and the Kalahari
Copper Belt. With over 15,000km(2) of highly prospective ground to
cover and the series of strong hires we've made over recent months,
Kavango is well positioned to make multiple metal discoveries.
In terms of this drill, all I can do now is wish everyone the
best of luck. I hope it works out for all of us."
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 16 prospecting licences covering 8,831.1km(2)
of ground, including 14 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
Chalcopyrite: A copper rich sulphide mineral (CuFeS(2) ), widely
occurring in magmatic sulphide ore bodies.
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.
Pegmatitic: Pegmatites are very coarse grained igneous rocks
having grain sizes in excess of 3cm, Pegmatites are thought to form
as a result of very slow crystallisation and may contain exotic
minerals from a volatile-rich melt.
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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