TIDMKAV
RNS Number : 6183T
Kavango Resources PLC
15 November 2023
16 November 2023
Kavango Resources PLC
("Kavango" or "the Company")
KCB - Acquisition of six new PLs completes
Kavango Resources plc (LSE:KAV), the Southern Africa-focused
metals exploration company, is pleased to confirm completion of its
acquisition of a 90% working interest in six Prospecting Licences
("PLs") located in Botswana's Kalahari Copper Belt ("KCB") (the
"Acquisition")
The Acquisition provides the Company with an extensive single
contiguous project area in the KCB covering 7,629km(2) . Kavango is
now one of the KCB's largest individual mineral rights holders.
Kavango believes its expanded project area is underlain by
similar stratigraphy to that along strike of Sandfire Resources'
(ASX:SFR) A4 deposit and Motheo Mine. Analysis of existing
exploration data by the Company suggests this could incorporate a
regional system that contains domal structures with folded and
sheared trap sites. These are key exploration targets in the search
for large-scale copper/silver mineralisation.
Kavango plans to commence follow-up work in the KCB later this
month, and an update on this programme will follow.
Figure 1: Kavango's expanded, contiguous KCB land package
Ben Turney, Chief Executive Officer of Kavango Resources,
commented:
"These new licences grant us complete control of a contiguous,
prospective system in an underexplored section of the KCB, a proven
copper/silver region that hosts numerous mines and deposits.
I'd like to thank ENRG Elements for its support during our due
diligence process. The mapping, soil geochemistry and drilling data
it has provided has been highly valuable.
Kavango has strengthened its geological understanding of its new
licences by mapping their lithological sequences and stratigraphy.
Meanwhile, the presence of galena and sphalerite - two important
pathfinder minerals for copper mineralisation - is also
encouraging.
We will now continue to advance our understanding of the new
licences' mineral potential by investigating the potential
sub-basin we have identified and interpreting their structure with
satellite imagery.
Both of these workflows will help us to develop priority drill
targets over the coming months."
Further details
Kavango's six new PLs cover ground adjacent to its existing
Karakubis Block next to the Namibian border. This is currently the
priority focus area for the Company's KCB copper/silver exploration
programme. The new PLs are also adjacent to the Company's South
Ghanzi licence block.
In preparation for the completion of the Acquisition, Kavango
carried out a detailed review of ENRG's previous exploration work,
including mapping, soil geochemistry and drilling together with
historical exploration work.
As a result of this review, Kavango believes the lower D'Kar
Formation it mapped across PL049/2020 & PL052/2020 (two of its
Karakubis PLs) extends into PL203/2016, PL127/2017 & PL205/2016
(three of its six new PLs).
During the review, Kavango received drill samples and logs from
5,566m of historical drilling completed by Icon and Ashmead.
Kavango's geologists have begun to interpret the lithological
sequences on its new PLs by completing geological work on these
drill logs in combination with systematic magnetic susceptibility
measurements. The sequences comprise siltstones, carbonates and
sandstones.
The Company's geologists have also begun to compile a
stratigraphy for the new PLs that they believe to match existing
field mapping and conform to sequences in the lower D'Kar Formation
present across other parts of the KCB.
During its review, Kavango identified visible galena and
sphalerite hosted in quartz-carbonate veins in the drill core and
chips taken from this area. These are two important pathfinder
minerals for copper mineralisation.
Additionally, systematic pXRF analysis along the cores and drill
chips has confirmed the presence of elevated copper, lead and zinc
at correlatable intervals.
Finally, Kavango's geologists and geophysicists believe they may
have identified a gravity low likely related to a deeper sub-basin
during a review of ENRG's previously acquired Airborne
Electromagnetic ("AEM"), Gravity and Magnetic data over the Kara
Antiform. The margins of this sub-basin could provide priority
targets for trap site development and deposit formation. They can
be further prioritised when cross-referenced with ENRG's historic
magnetic, AEM, and soil geochemical datasets.
Background to the agreement
Kavango entered an agreement to acquire a 90% interest in the
six new PLs earlier this year ( announced >>> 25 September
2023 ) with Global Exploration Technologies (Pty) Limited ("GET"),
a wholly-owned subsidiary of ENRG Elements (ASX:ENRG) ("ENRG").
Under the terms of the agreement, Kavango has now paid a total
of AUD$1.5 million in cash to acquire 90% of the issued shares of
Icon Trading (Pty) Ltd ("Icon") and Ashmead Holdings (Pty) Ltd
("Ashmead"), two of GET's subsidiary companies. Kavango will pay
GET two further instalments of AUD$500,000 within 90 days and 180
days of the acquisition's completion.
The names of the six new PLs, along with their holding company,
status, and expiry date, are found below.
PL Number Company Status Expiry Date
PL127/2017 Ashmead Holdings (Pty) 2nd Renewal 30/06/2024
Ltd
----------------------- ------------ ------------
PL128/2017 Ashmead Holdings (Pty) 2nd Renewal 30/06/2024
Ltd
----------------------- ------------ ------------
PL129/2017 Ashmead Holdings (Pty) 2nd Renewal 30/06/2024
Ltd
----------------------- ------------ ------------
PL203/2016 Icon Trading (Pty) 3rd Renewal 30/09/2025
Ltd
----------------------- ------------ ------------
PL204/2016 Icon Trading (Pty) 3rd Renewal 30/09/2025
Ltd
----------------------- ------------ ------------
PL205/2016 Icon Trading (Pty) 3rd Renewal 30/09/2025
([1]) Ltd
----------------------- ------------ ------------
Figure 2: Details of the GET PLs
Planned work
Kavango is currently procuring satellite imagery to advance its
structural interpretation and mapping of alterations across the new
PLs. The Company will share more details of its upcoming work plans
in due course.
The Company is also in the final stages of awarding a contract
for the flying of an AEM survey over its KCB PLs. The goal will be
to map possible sub-basin and domal structures.
Further information in respect of Kavango 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
+46 7697 406 06
First Equity (Broker)
Jason Robertson
+44 207 374 2212
Kavango Competent Person Statement
The technical information contained in this announcement
pertaining to geology and exploration have been read and approved
by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the
Australasian Institute of Mining and Metallurgy with Chartered
Professional status. Mr Grist has sufficient experience that is
relevant to the exploration programmes and geology of the main
styles of mineralisation and deposit types under consideration to
act as a Qualified Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'.
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END
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