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Kavango Resources #KAV – Interim Results for the six months ended 30 June 2023
Kavango Resources plc, an exploration company targeting the discovery of world class mineral deposits in Botswana and Zimbabwe, is pleased to announce its unaudited financial results for the six months ended 30 June 2023.
SUMMARY
· Successfully completed a placing raising gross proceeds of £1,400,000 (US$1,773,000);
· Expenditure in Botswana on exploration of US$1,162,000;
· Loss for the period of US$1,417,000 (June 2022 – US$883,000);
The Interim Management Report and financial results are set out in the following pages.
Contacts
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Kavango Resources plc |
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Ben Turney |
+46 7697 406 06 |
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First Equity |
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Jason Robertson |
+44 207 374 2212 |
INTERIM MANAGEMENT REPORT 30 JUNE 2023
Kavango continued to make good progress through the first half of 2023, with significant funding achieved in a challenging market, an expansion announced into Zimbabwe, and significant work programmes on all three of our Botswana projects.
Financing
Kavango successfully raised £1,400,000 by the issue of 140,000,000 New Ordinary Shares in the capital of the Company (“New Ordinary Shares”) at a price per share of 1 penny to Purebond Limited (“Purebond”).
A second stage of this financing comprises the conditional issue of 460,000,000 new ordinary shares of £0.001 each (the “Stage 2 Subscription Shares”) at the Subscription Price per share (the “Stage 2 Subscription”). Stage 2 is subject to the approval by the Financial Conduct Authority of a prospectus and the approval by independent shareholders of a waiver in accordance with Rule 9 of the Takeover Code (Whitewash) (among other conditions).
This £6.0 million equity investment demonstrates significant confidence in the Company by Purebond, in what is a challenging market for junior exploration companies. If the second stage is approved this will enable the Company to accelerate its exploration programs, in particular in Zimbabwe and at Karakubis on the Kalahari Copper Belt (KCB).
Project status – KSZ, Botswana
On the Kalahari Suture Zone (KSZ), where the Company is exploring for nickel-copper-PGE mineralisation, drillhole KSZDD003 was drilled. This completed just after the period end, and was successfully drilled to a depth of 606.00 m to test the remodelled B1 Conductor. As in hole KSZDD002, the hole passed through a sedimentary sequence and two intrusive bodies, thought to be of Karoo age. No sulphide was intersected that is considered to explain the 28,700 Siemens response. While we are disappointed that B1 has not turned out to be significant nickel or copper sulphide, we believe we have an answer on this target. It appears that thicker carbonaceous material (when compared with KSZDD002), containing coincident graphite and pyrite rich bands, with minor pyrrhotite veining, is the most probable conductive source. A downhole electromagnetic (DHEM) survey was carried out and remodelled to further investigate the B1 Conductor. Preliminary modelling of this confirms that the hole successfully penetrated the conductor and that this has therefore been adequately tested.
Kavango acquired one additional licence on the KSZ in the period, and is presently reviewing options to develop the portfolio in future.
Project status – Ditau, Botswana
Kavango has interests in four licences at Ditau. These have been explored for rare earth elements and are presently being explored for banded iron formation vein gold style mineralisation.
Work in the period included a review of two drillholes completed by a third party. These holes were logged and assayed by Kavango. Hole X077 confirmed at least 470m of geological strike of the Banded Iron Formation host rock identified in DITDD004. Pyrite was observed, plus (at 147m) blebs of chalcopyrite were seen. Hole X08, a further 3.4km away, was weathered and contains extensive relict textures after pyrite, and iron oxides in veins, with clear signs of locally intense hydrothermal activity.
Anomalous results were received as below, and are similar to those previously seen in DITDD004.
|
Hole ID |
From m |
To m |
Width m* |
Cu % |
Au ppm |
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X077 |
146.93 |
147.10 |
0.17 |
1.77 |
0.014 |
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X077 |
154.50 |
155.50 |
1.00 |
2.48 |
0.061 |
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X081 |
117.00 |
118.00 |
1.00 |
0.03 |
0.167 |
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X081 |
118.00 |
119.00 |
1.00 |
0.06 |
0.134 |
*All widths are apparent thicknesses
A review of the mineral exploration potential of the Ditau Project, Botswana, was carried out for Kavango by Dr. Hamid Mumin, Professor and Former Chair of the Department of Geology at Brandon University, Manitoba, Canada. The review identified a possible high potential Banded Iron Formation hosted Lode Gold model at the Ditau Project. Further work remains ongoing by Dr Mumin, including Scanning Electron Microscopy on samples from DITDD004.
Kavango acquired an additional two new licences at Ditau in the period, applications for which were submitted based on the new potential identified.
Kavango and its consultants have carried out a review of the geological model of, and potential at, Ditau, and have proposed an exploration program that builds on the above data. This is being evaluated against the potential of Kavango’s other projects as part of a Stage Gated review, so that funding is directed to where Kavango considers it may best deliver exploration success.
Project status – KCB, Botswana
Kavango has interests in 12 prospecting licences, totalling over 5,000 km2 in the KCB, where it is targeting copper-silver mineralisation.
Work in the period initially focussed on PL082 in the east of the KCB, where between October 2022 and February 2023 Kavango drilled a total of 1,885.59m across seven holes using a combination of Reverse Circulation (“RC”) and diamond drilling.
Drilling was targeted by Controlled-Source Audio Magnetotelluric (“CSAMT”) survey data and soil sampling data. The program confirmed two out of three technical objectives and has made significant progress on the third.
1) Anticlines and synclines were correctly identified by CSAMT on PL082. This agrees with the interpretation of PL082 by expert KCB consultant Dave Catterall of Tulia Blueclay Limited. Mr Catterall has been consulting to Kavango since October 2022.
2) Zones of structural disturbance, brecciation and alteration were clearly interpreted via CSAMT and then confirmed in drill core, in particular in KCBRD005. Kavango’s geologists observed evidence of fluid flow, with consequent alteration.
3) The final test was to intersect the interpreted Ngwako Pan / D’Kar contact. A massive sandstone unit was intersected from 540.10m to end of hole in KCBRD007. Although the contact was not intercepted, the massive sandstone unit matches the resistive signature on the CSAMT inversion.
Kavango has concluded that in PL082 the D’Kar/Ngwako Pan contact lies at a greater depth than interpreted from CSAMT data, and that the CSAMT is successfully identifying stratigraphic boundaries.
Kavango’s attention then moved to its Karakubis KCB licences further to the west, where interpretation of wider sedimentary geology in the KCB indicates that the D’Kar/Ngwako Pan contact lies closer to the surface. Kavango’s technical team have carried out an intensive review of this area, including geological mapping, additional soil sampling with pXRF analysis, and integration of Airborne Electromagnetic (“AEM”) and CSAMT survey data. Preparation is now underway for an Induced Polarisation (“IP”) survey, a method which is often used to specifically target sulphides. These methods together are aimed at delivering relatively shallow higher confidence drill targets.
Project status – Nara, Zimbabwe
Kavango announced in June 2023 that it had signed an exclusive 2-year Option to acquire a producing gold exploration project in Matabeleland, southern Zimbabwe.
The Nara Project comprises 45 contiguous gold claims. Kavango believes the Nara Project has potential to host a bulk mineable gold deposit.
The Nara Project area has supported historic high-grade underground mining and continuous surface small-scale mining and custom milling over the last 30 years. This has generated approximately 150,000 to 250,000 tonnes of tailings, which present a separate opportunity for potential near-term revenue generation.
Under the terms of the Option, Kavango has full access to the Nara Project area to conduct field due diligence, through a comprehensive exploration program. This program is planned to include (but not be limited to) surface mapping and geochemistry, geophysics, surface drill testing, underground sampling, underground drill testing and assessing the commercial potential for processing the Tailings.
Work has now commenced, and preparations are underway for a forthcoming drill program.
Principal risks and uncertainties
The principal risks and uncertainties facing our business are monitored on an ongoing basis. The board of directors have reviewed the principal risks and uncertainties disclosed in the 2022 annual report and concluded that they remain applicable for the second half of the financial year. A detailed description of these risks and uncertainties is set out on pages 10 to 13 of the 2022 annual report.
Closing comments
I would like to thank Ben Turney, Hillary Gumbo, Brett Grist, Peter Wynter Bee, and Jeremy Brett for their input over the last six months, along with the operations team in Botswana, and our new colleagues in Zimbabwe. Ben’s work has been instrumental both in the recent financing and in the bringing on board of the new Zimbabwe assets. Peter Wynter Bee joined the Board in January, bringing to Kavango significant industry experience, which has added greatly to the Board’s capabilities. Jeremy Brett also joined the Board in January, having worked extensively with the Company on its geophysics programs, and brings in additional geophysical expertise.
I am also grateful for the continued support of our shareholders. The sector has seen continued challenging times, and Kavango has been no exception to this, with a fall in our share price in recent months. The continued support of Purebond however offers a renewed opportunity for Kavango to focus an intensive level of exploration on those projects which in our opinion are most likely to provide exploration success in the short to medium term. As a result, we have an excellent opportunity to rapidly deliver meaningful results that have the potential to add value for all shareholders.
Directors’ Responsibility Statement
We confirm that to the best of our knowledge:
– The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting, as endorsed for use in the United Kingdom;
– Give a true and fair view of the assets, liabilities, financial position and loss of the Group;
– The Interim Management Report includes a fair review of the information required by DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the set of interim financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
– The Interim Management Report includes a fair review of the information required by DTR 4.2.8R of the Disclosure and Transparency Rules, being the information required on related party transactions.
The Interim Management Report was approved by the Board of Directors and the above responsibility statement was signed on its behalf by
David Smith, Chairman
Link here for the full announcement and financial statements
Kavango Resources #KAV – Ben Turney & Brett Grist talk to Alan Green, September 2022
Alan Green talks to Kavango Resources #KAV CEO Ben Turney and COO Brett Grist. Ben and Brett outline the developments and drilling plan at the company’s KCB licenses. Brett talks through the latest company presentation slides, and then Ben covers the latest developments at the KSZ and upcoming news flow.
Kavango takes major step towards JV partnership at key KSZ project – Will Schafer
NB: This article is written by Brand Comms contributor Will Schafer
Please note the Brand UK Ltd Disclosure Policy here
Kavango Resources (LSE:KAV) took a major step towards opening the door for joint venture partners at its flagship Kalahari Suture Zone (“KSZ”) project today.
In an update, the explorer released a comprehensive “Proof of Concept” report authored by industry veteran Richard Hornsey that concludes its drilling programme for the Botswana-based asset.
The company was not only able to provide geochemical proof of mineralising processes for magmatic nickel, copper, and platinum group elements (“PGEs”), but it was also able to identify previously unrecognised PGE potential at the south of its project.
The KSZ is a 450km-long anomaly in Botswana where Kavango is searching for nickel, copper, and PGE-rich orebodies across a land package spanning nearly 9,000km2. Signs of the project’s prospectivity are by no means new, with work previously outlining a number of highly prospective targets.
However, in today’s report, which follows a drilling campaign that concluded earlier this year, Kavango has been able to introduce new deposits that will allow it to vector towards the right host rocks and upgrade future targeting.
Not just that, but it has also been able to confirm it is using the appropriate geophysical technologies and data analysis techniques to isolate potential mineral-bearing targets in a scalable programme.
The company will now make Hornsey’s reports, of which there are three, available to potential joint venture partners and other parties interested in the KSZ project. A detailed executive summary can be viewed here.
As highlighted by CEO Ben Turney earlier today, the company Kavango has now completed “the most comprehensive and successful exploration programme ever” at the KSZ.
Indeed, the KSZ was first investigated by explorers back in the 1980s. However, the depth of sand, or “Kalahari cover”, overlying the project was so extreme it precluded further work. Using modern-day exploration techniques, Kavango is now mapping out and drilling the trend to an unprecedented degree.
“When Kavango first set out on this project it was purely conceptual in nature. Today, we have assembled a significant data set that validates the discovery potential,” said Turney.
“We are the first company to demonstrate that mineralising processes have occurred throughout the KSZ, based upon evidence of nickel, copper and PGE depletion and enrichment. This suggests there is a high likelihood that potentially economic magmatic mineralisation may exist, both within the Karoo and the Proterozoic Tshane Complex. The main questions to answer now are where and at what depth.”
Included in today’s report were recommendations for improvements to Kavango’s exploration programme. Using these, the company will now launch into two parallel streams of work.
One of these will focus on deploying CSAMT and TDEM surveys in the field to learn more about the “B conductors” it is preparing to drill. Meanwhile, the other will involve Kavango stepping up its efforts to search for JV partners, with today’s report representing a substantial piece of work that contextualises the KSZ based on the company exploration efforts to date.
As Turney states, this should enable the company to undertake “much more informed discussions with interested parties.”
Today’s report refers specifically to the “Norilsk-style” mineralisation Kavango is proving at the KSZ. Norilsk is located 2,800km northeast of Moscow and accounts for 90% of Russia’s nickel reserves, 55% of its copper and virtually all of its PGMs, and the company’s licences display a geological setting with some similarities to the project.
But it’s worth remembering that, beyond this Norilsk potential, the KSZ also offers a second mineralisation target type.
Indeed, Kavango’s drill holes over the KSZ’s Great Red Spot anomaly at the project appear to support a late 1990’s theory that the area could host a form of Iron Oxide-Copper-Gold, or “IOCG”, style mineralisation.
IOCG systems can host highly valuable copper, gold and uranium ores. The large size and relatively simple metallurgy can produce extremely profitable mines. Specifically, the Great Red Spot exhibits similar geophysical signatures to the world-renowned Olympic Dam IOCG ore deposit in Australia.
Kavango is currently investigating the KSZ’s IOCG potential by way of further AMT surveying and reporting ahead of drill testing.
#KAV Kavango Resources – KSZ – Proof of Concept Drill Campaign Final Report
Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) has successfully concluded its “Proof of Concept” exploration programme in the Kalahari Suture Zone (“KSZ”). This is the most comprehensive exploration programme ever undertaken in the KSZ and the results will guide the Company’s future commercial strategy.
Kavango is pleased to announce that the Proof of Concept exploration programme has:
§ Provided geochemical proof of magmatic Ni-Cu-PGE mineralising processes (depletion and enrichment) throughout the KSZ, for both the Karoo and Proterozoic (Tshane Complex) intrusions
§ Identified previously unrecognised PGE potential in the KSZ South
§ Introduced new ore deposit models (Norilsk, Insiswa, Eagle, Tamarack, and Uitkomst), which will allow Kavango to vector towards the right host rocks and upgrade future targeting
§ Confirmed Kavango is using appropriate geophysical technologies and data analysis techniques to isolate potential mineral bearing targets in a scalable programme
Richard Hornsey, a leading authority on nickel sulphide and platinum group element (PGE) exploration, has completed a comprehensive review of all available exploration data on the KSZ on behalf of Kavango.
Mr Hornsey has provided the Company with three detailed reports on the exploration undertaken, drill core review, intrusion lithogeochemistry, and implications for prospectivity of the KSZ, with suggestions for optimising future exploration strategy (the “Reports”). The Reports will be made available to potential Joint Venture partners and other interested parties, subject to non-disclosure agreement (“NDA”).
Highlights
In summary, the Reports detail:
§ Geochemical proof of magmatic mineralising processes (metal depletion and enrichment) throughout the entire KSZ:
§ Potential for Nickel-Copper-(Platinum Group Element) (“Ni-Cu-(PGE)”) massive sulphide associated with the Karoo Large Igneous Province (“LIP”) in the KSZ North
§ Potential for low sulphide Platinum Group Element-(Nickel-Copper) & Ni-Cu-(PGE) massive sulphide associated with the regionally extensive Proterozoic (Tshane Complex) encompassing KSZ North and KSZ South
§ Confirmation that Kavango is using appropriate geophysical exploration technologies to discover economic metal deposits should they exist within discovery range; including Controlled Source Audio Magnetotellurics (“CSAMT”) and Surface Large Loop Time Domain Electromagnetics (“TDEM”)
§ The new data has enabled assessment of potential variations of intrusion style and geochemical processes associated with the KSZ Project. Ongoing data collection will further focus model definition
§ Recommendations for improvements to Kavango’s exploration programme
Mr Hornsey has provided a detailed executive summary of his review (the “Executive Summary”), which the Company will make available on its website via the following link:
https://kavangoresources.com/media-library/technical-reports
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“Kavango has now completed the most comprehensive and successful exploration programme ever conducted on the Kalahari Suture Zone (KSZ).
When Kavango first set out on this project it was purely conceptual in nature. Today, we have assembled a significant data set that validates the discovery potential.
This is a regionally extensive project, but thanks to Richard Hornsey’s detailed work we will be able to focus our programme. Specifically, we now have several exploration vectors to enable us sharpen future targeting.
We are the first company to demonstrate that mineralising processes have occurred throughout the KSZ, based upon evidence of nickel, copper and PGE depletion and enrichment. This suggests there is a high likelihood that potentially economic magmatic mineralisation may exist, both within the Karoo and the Proterozoic Tshane Complex. The main questions to answer now are where and at what depth?
Encouragingly, Richard’s work confirms we are using the right remote sensing technologies (CSAMT & TDEM) to identify potentially mineralised targets. If mineralised nickel, copper and/or PGE deposits exist within range of detection and economic exploitation, we are utilising techniques that would identify them. Our objective will then be to rank any targets in order of priority and to drill them.
Meanwhile, the previously unrecognised PGE potential of the Tshane Complex is an intriguing development, especially considering regional variations in PGE endowment. This is an area Kavango will focus on in the coming months.
Our strategy in the KSZ will now involve two parallel streams of work. In the field, we will continue deploying CSAMT and TDEM surveys, while preparing to drill the B Conductors. At the corporate level, we will step up our efforts in search of potential JV partners. The technical review is a substantial piece of work that contextualises the project based upon our exploration results and enables Kavango to undertake much more informed discussions with interested parties.”
Review of the Proof of Concept Exploration Programme
The 2021/22 exploration programme objectives (the “Proof of Concept Drill Campaign”) were to drill selected targets to provide proof of concept results in providing “hard” data to enable other work to be undertaken (geology logging, lithogeochemistry); assess the accuracy and efficacy of the geophysical strategy; and to demonstrate operational effectiveness.
This work has been substantively completed, with the primary objectives achieved.
This review of the Proof of Concept Drill Campaign has included:
§ Initial review of the project data, provided by Kavango, including petrography reports, drillhole data for 13 exploration boreholes in the region, including 7 drilled by the Company (2019 and 2021/22), and limited GIS information
§ A site visit to the Hukuntsi core shed over a two-day period to examine drill core from Kavango holes KSZDD001 and TR2DD002 that intersected both the Karoo sills and Tshane Complex
§ Report 1 “Kalahari Suture Zone Review” (56 pages) on the exploration setting and technical analogues, petrography, drill core review and initial observations
§ Report 2 “Lithogeochemistry Review of the Karoo and Tshane Complex” (173 pages) based upon the routine and detailed lithogeochemistry sampling dataset using ioGAS software and a dedicated proprietary template for igneous intrusion analysis
§ Report 3 “Kalahari Suture Zone Drill Sections and Spatial Dataset Interpretation” (74 pages) outlining review of the data using Micromine software to examine and describe the spatial variation and assess whether prospectivity trends are present
§ The Reports are commercial in confidence, and will be made available to potential Joint Venture partners and other interested parties, subject to NDA.
Report Highlights & Key Actions
§ Technical confirmation of major large-scale targets:
o Potential for Nickel-Copper-(Platinum Group Element) (“Ni-Cu-(PGE)”) massive sulphide associated with the Karoo Large Igneous Province (“LIP”) in the KSZ North
o Potential for low sulphide Platinum Group Element-(Nickel-Copper) & Ni-Cu-(PGE) massive sulphide associated with the regionally extensive Proterozoic (Tshane Complex) encompassing KSZ North and KSZ South
§ Lithogeochemical indications of mineralising processes (metal depletion and enrichment) throughout the entire KSZ (both Karoo and Tshane Complex)
o Future Nickel-Copper (and possible PGE) (Ni-Cu-(PGE)) exploration focus to target more primitive, non-magnetic intrusions in the Karoo and the shallower Tshane Complex in KSZ South
o Future PGE (and possible Nickel-Copper) (PGE-(Ni-Cu)) exploration focus to target Tshane Complex in KSZ South
§ All Karoo sills appear to have been emplaced under similar conditions indicating metal depletion due to sulphur saturation has occurred, therefore ore-tenor mineralisation could exist within the system . Notable shared features of the sills include:
o Internal complexity indicates repeated periods of activation and sufficient hiatus periods that allowed the magma to lithify
o All Karoo sills are remarkably coarse-grained, suggesting emplacement closer to a source region
o All Karoo sills in KSZ North have experienced sulphur saturation and metal stripping, indicating the probability that metal-enriched intrusions exist
§ Evidence that chalcophile (e.g. Nickel-Copper-PGE) metal depletion exists in the Karoo. The Company has identified strong conductors that require drilling:
o Kavango’s strategy of using CSAMT to identify areas within the Karoo stratigraphy that relate to larger, more primitive, non-magnetic intrusions, and TDEM to identify conductive targets is valid
o Confirmation that drilling to date has not intersected any TDEM conductors
o Kavango has identified three very strong conductors in KSZ North, at the Great Red Spot, that are interpreted to be associated with Karoo intrusions (>>> see announcement 11 July 2022 )
§ Based on analogous Ni-sulphide mineralised intrusions (Insiswa, Norils’k, Eagle, Tamarack, Uitkomst) it is considered that mineralisation in the Karoo may be sourced from both large and relatively thin localised intrusions:
o Kavango will consider this during anomaly targeting and discrimination
o It is highly likely there will be more than one control on mineralisation location or style in the Karoo Large Igneous Province (“LIP”)
§ It is highly likely that intermediate and ultramafic rocks exist in the Tshane Complex that may host magmatic sulphide mineralisation:
o The Tshane intrusion layering dips either to the east or west indicating that target stratigraphy may subcrop beneath the Karoo at explorable depth
o Kavango can optimise exploration of the Tshane Complex in KSZ South, where the overlying stratigraphy is significantly thinner
§ A new regional 3D Magnetic Model to map stratigraphy and structure will help target potential mineralisation
o Combined use of CSAMT and TDEM surveys for 3D mapping and direct detection is optimal exploration solution to identify potential Ni-Cu-(PGE) targets
§ Previously unrecognised PGE potential across the entire Proterozoic (Tshane Complex) system:
§ Tshane 1 (encountered in the Great Red Spot) is strongly PGE depleted, suggesting mineralisation has occurred deeper in this system
§ Tshane 2 (encountered along the 30km strike) contains low to moderate PGE, suggesting mineralisation has occurred deeper in this system
§ Tshane 3 (across KSZ South) has elevated PGE content, suggesting mineralisation could be at a higher level in the intrusion could be closer to surface
§ Tshane 1 is geochemically distinct, while Tshane 2 and Tshane 3 exhibit more similar chemistry
§ PGE exploration presents different geophysical targets, therefore- Kavango will undertake a review of exploration strategy to focus on this mineralisation style
KSZ Background
The Kalahari Suture Zone (KSZ) is located at the western margin of the Kaapvaal Craton. This is a geologically favourable geodynamic location for mafic-ultramafic mineralisation as deep-seated structures are repeatedly activated and may enable ascent of fertile mantle derived magma to surface. The exploration targets are for massive Ni-Cu-PGE sulphide associated with the Karoo Large Igneous Province (LIP), and/or for low-sulphide PGE or massive Ni-Cu-PGE sulphide associated with the regionally extensive Proterozoic ( Tshane Complex) that extends over a length of 650km parallel to the craton margin.
A detailed conceptual, geological, and geochemical review of the Kalahari Suture Zone (KSZ) project has been undertaken for Kavango Resources plc (“Kavango” or “the Company”). This included a two-day core review at Hukuntsi, followed by data compilation into a standardised ioGAS template designed for mafic-ultramafic intrusions. Three detailed reports have been provided, on the drill core, lithogeochemistry, and spatial interpretation. The reports are commercially sensitive and are not for public distribution. They may be shared with parties under non-disclosure agreement with Kavango.
Report Technical Summary
The 2021/22 exploration programme objectives (the “Proof of Concept Drill Campaign”) were to drill selected targets to provide proof of concept results in providing “hard” data to enable other work to be undertaken (geology logging, lithogeochemistry); assess the accuracy and efficacy of the geophysical strategy; and to demonstrate operational effectiveness. This work has been substantively completed, with the main objectives achieved. The Executive Summary focusses on the geology and lithogeochemistry, providing an interpretation of the results and recommendations for ongoing exploration.
– The Kalahari Suture Zone (KSZ) is located at the western margin of the Kaapvaal Craton. This is a geologically favourable geodynamic location for mafic-ultramafic mineralisation as deep-seated structures are repeatedly activated and may enable ascent of fertile mantle derived magma to surface. The exploration targets are for massive Ni-Cu-PGE sulphide associated with the Karoo Large Igneous Province (LIP), and/or for low-sulphide PGE or massive Ni-Cu-PGE sulphide associated with the regionally extensive Tshane Complex that extends over a length of 650km parallel to the craton margin.
– The 2021/22 exploration programme objectives were to drill selected targets to provide proof of concept results in providing “hard” data to enable other work to be undertaken (geology logging, lithogeochemistry); assess the accuracy and efficacy of the geophysical strategy; and to demonstrate operational effectiveness. This work has been substantively completed, with the main objectives achieved. Report 1 focusses on the geology and lithogeochemistry, providing an interpretation of the results and recommendations for ongoing exploration.
– The Karoo sills are highly fractionated gabbros with internal variability and chilled margins indicative of repeated periods of emplacement. Lithogeochemistry indicates the Karoo sills are high Fe tholeiitic basalt with low – intermediate TiO2 possibly derived from E-MORB mantle. The most primitive intrusions are Karoo 4 (10.69% MgO), Karoo 5 (9.21% MgO), and KSZ Karoo 1 (8.54% MgO).
– Cu/Pd, Cu/Zr (PM) & Pd/Yb (PM) indicate that all sampled Karoo sills were emplaced under similar conditions. All sills have magma that has experienced sulphur saturation and metal stripping. This is proof of process. The Karoo sills are remarkably homogeneous in these ratios, indicating that metal accumulation occurred prior to emplacement of these metal-depleted sills.
– The Karoo Exploration Target is conduit-hosted Ni-Cu-PGE sulphide associated with Continental Flood Basalt volcanism. Process analogues include Norils’k-Talnakh (Siberian Traps, Russia), Eagle and Tamarack (Mid Continental Rift, USA), and Insiswa (Karoo, South Africa). These mineralised intrusions show variations of geology, morphology, and metal content. They are all associated with the most primitive intrusions within their respective terranes.
– It is necessary to identify the most magnesian Karoo intrusions, or more primitive intrusive centres that have accommodated greater magma flux. Lithogeochemistry can achieve this. Karoo intrusions may also be present within the Proterozoic stratigraphy, particularly the layered Transvaal Supergroup, these may include the deeper-seated, more primitive components of the LIP.
– Proterozoic age intrusion(s), collectively referred to as the Tshane Complex , form a 650 x 50km regional magnetic anomaly parallel to the Kaapvaal Craton margin. The Tshane Complex core indicates the intrusions are lithologically similar but have different textural relationships. The coarse grain sizes, layering, and variability are indicative of large plutonic complexes.
– The Tshane intrusions are fractionated, magnetite-bearing gabbros with approximately double the base metal and five times the precious metal endowment of the Karoo sills. The intrusions are high Mg and high Fe tholeiitic basalts with variable Ti content, from low Ti through intermediate then splitting into two high Ti trends. The REE plots also split the intrusions into two distinct groups, one with more alkaline character, derived from intermediate mantle depth at the komatiite-picrite boundary, the second a komatiite derived from shallower mantle. The REE indicate an E-MORB character, split into two groups. This indicates a more complex process of magma generation and limited mixing and that Tshane 1 may be a different intrusion to Tshane 2 and 3 , which are more similar in their chemistry.
– The Tshane Intrusions have variable PGE endowment, Tshane 1 is strongly PGE depleted, whereas Tshane 2 has low to moderate PGE and Tshane 3 has elevated PGE content. The intrusion was variably sulphur saturated and depleted, indicating proof of process, and that sulphur exerted a control on metal distribution.
– The Tshane Complex could be a large intrusion, or more likely a group of intrusions derived from complex mantle melting that has produced fertile magma with variable REE signatures. The intrusion could host either or both of low sulphide PGE-(Ni-Cu) and Ni-Cu-(PGE)-sulphide mineralisation.
– It is recommended that east-west cross sections should be drilled to provide a cross section through the Tshane Complex to enable mapping of chalcophile distribution, enrichment, and depletion.
– Physical property plots of magnetic susceptibility and conductivity indicate the intrusions are magnetically susceptible, with Tshane having significantly greater intensity than the Karoo sills. The conductivity plots show most host rocks are non-conductive apart from very thin zones within carbonaceous stratigraphy immediately adjacent to the upper and lower contacts of the Karoo sills. This indicates that the intrusions have contact metamorphosed carbon to form graphite. This is unlikely to impact upon exploration strategy.
– Exploration Strategy : KSZ is an early-stage project, exploring for one of the more technically challenging styles of mineralisation. The total coverage by younger stratigraphy adds a layer of complexity that precludes the use of first-pass regional techniques such as stream or soil geochemistry. Geophysics is therefore the only exploration option.
– Magnetics is an important tool for regional mapping of structure and geology and may be used to identify less fractionated parts of the intrusions that may have potential to be targets for Ni-Cu-PGE sulphide mineralisation.
– Kavango’s targeting strategy for Karoo exploration is to use a combination of Controlled Source Audio Magnetotelluric Surface (“CSAMT”) and Time Domain Electromagnetic (“TDEM”) geophysical surveys to map subsurface geology and structure and identify discrete conductive anomalies that may relate to Ni-Cu-PGE sulphide. Kavango employs an internally developed ranking system to prioritise potential drill targets.
– For Tshane , geophysical methodology will also vary dependent upon the style of mineralisation being targeted. Massive Ni-Cu-(PGE) will present a dense, conductive, magnetic target, best resolved using electromagnetic methods ( CSAMT , TDEM ). Reef-style PGE-Cu-Ni mineralisation may be more difficult to detect geophysically, but other deep mapping techniques ( CSAMT ) could be used to map and define target intervals once the stratigraphy is understood.
Report Conclusions
The Karoo Sill project was conceptual at inception. Kavango has compiled sufficient data to enable geochemical analysis that indicates sulphur saturation has occurred. This may have accumulated potentially economic Ni-Cu-PGE sulphide mineralisation within some parts of the system.
The KSZ is a valid geodynamic setting for ascent of mantle-derived magma and there are geochemical indicators of chalcophile element depletion (process). Although it has yet to be proven that intermediate to ultramafic intrusions are present, this will be further investigated by drilling the recently identified conductors (B1, B3 & B4).
The Karoo targeting strategy incorporates that the most prospective parts of the system are likely to be non-magnetic; whereas the most magnetic sills are likely to be fractionated and therefore have lower discovery potential. Therefore, CSAMT followed up by TDEM may be able to resolve areas within the Karoo stratigraphy that are related to larger, more primitive, non-magnetic intrusions.
Contact metamorphism of carbonaceous stratigraphy has been observed in drill core to upgrade carbon to moderately conductive graphite. Although the observed conductivities are too low to explain modelled TDEM conductors, target discrimination should consider potential for non-sulphide conductors.
The Tshane Complex is a very large, complex intrusion or set of intrusions that share some lithogeochemical parameters, but are lithogeochemically variable, derived from complex mantle melting. Some drillholes indicate sulphur saturation and removal of base metals and the PGE, indicating that these metals have been concentrated elsewhere in the system. Individual sub-intrusions may have experienced different evolution and therefore more direct data (drill intersections) are required to unravel the puzzle. The intrusions may be very thick, but core angles indicate they are moderately dipping, therefore stepping to east or west may enable drilling different stratigraphic sections and vector towards the base of the intrusion. Future drilling should provide oriented drill core.
It is concluded for the Tshane Complex that there is potential for both low-sulphide PGE-(Ni-Cu) reef and Ni-Cu-(PGE) mineralisation associated with basal ultramafic rocks. These contrasting styles of mineralisation present different geophysical targets, (IP and TDEM). It is necessary to map stratigraphy using CSAMT and regional drilling. This programme would be optimised in the south of the project, where the overlying stratigraphy is significantly thinner. This should consist of east-west sections to provide information on the full stratigraphy and lithogeochemistry of the Tshane Complex, which would define ongoing strategy.
The discovery potential of this project has been advanced by the 2021/22 programme, but it is important to revisit the exploration model(s) and implement the technical recommendations made in this report. The Karoo project is considered more challenging because no potential host intrusion has yet been identified, although evidence of chalcophile metal depletion exists and strong conductors have been identified that require drilling. The Tshane Complex has all the indications of being another large, geochemically complex Proterozoic intrusion into the Kaapvaal craton that has chalcophile element accumulation and depletion. Tshane is considered to have the lowest technical risk but is likely to require deeper drilling, dependent upon the intrusion orientation, and whether the deeper northern section or shallower south section is targeted.
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
+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 Resources #KAV July Exclusive – Alan Green discusses the Kanye Resources acquisition & independent valuation with CEO Ben Turney & CFO Brett Grist
In this exclusive Kavango Resources #KAV interview, Alan Green discusses the Kanye Resources acquisition & independent valuation with CEO Ben Turney & CFO Brett Grist. We discuss the independent valuation at $8m announced earlier today, and Brett then presents some of the opportunities across some of the Kanye assets in the Kalahari Copper Belt (KCB), followed by the LVR licenses also in the KCB. Ben then outlines the latest developments at the flagship Kalahari Suture Zone (KSZ), and the recent discovery of a cluster of three EM Conductors in close proximity to one another. Ben then wraps up with a series of upcoming milestones for investors to watch out for.
Kavango Resources #KAV – May 2022 Interview with CEO Ben Turney & COO Brett Grist
Kavango Resources #KAV – May 2022 Interview with CEO Ben Turney & COO Brett Grist. Alan Green talks to Ben and Brett about the latest developments at the Ditau Farms REE project and the latest drilling results, before turning to developments at the group’s vast Kalahari Suture Zone project (KSZ) and the recent petrology reports from the drill core samples. We then discuss the Kalahari Copper Belt licenses and likely developments for 2022 before summarising with some key value inflection points that investors can expect in the coming months.
Kavango Resources #KAV – Operations Update
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
+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
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
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
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.