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Power Metal Resources #POW – Quarterly Business Update
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio announces the quarterly business update for shareholders.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“First Class Metals, into which we sold our Schreiber-Hemlo interests is nearing its planned listing; we recently conditionally disposed of our stake in the Botswana Kanye JV to our partner Kavango Resources; and we have Golden Metal Resources (Nevada, USA focused) nearing completion of its IPO preparations, with First Development Resources’ planned listing process (Australia focused) well underway. We expect more crystallisation events to occur from our still extensive portfolio.
Crystallisation of value into strategic investments bolsters our balance sheet considerably and offers the potential for considerable capital gains, alongside providing a major pool of available working capital to the Company. However, what enthuses us even more is the future direction of the Company and the exploration potential offered from within our retained portfolio.
We would reinforce our commitment to growing a uranium focus in the Company, with the energy metal slated for a continuing resurgence as the world continues in its journey towards significantly increased reliance on nuclear power generation. Going forward, we will also focus our energy and resources on the more rapid advancement of certain retained exploration projects, including notably our two remaining Botswana interests in the Molopo Farms Complex and Tati Greenstone Belt projects.”
GUIDANCE FOR READERS
The tables below include the latest position of each project and our operational plans over the course of the next three months.
Projects are grouped into the following categories to provide additional clarity to investors on the project status and near term plans:
– Priority exploration projects
– Project disposals or IPO processes underway
– Projects with next steps to be determined pending receipt of further information
Below the project tables, additional information is provided covering new opportunities, business management, finance and compliance.
Readers are also encouraged to review Power Metal’s corporate website and presentation which are regularly updated and are available through the following links:
Website: www.powermetalresources.com
Corporate Presentation: https://www.powermetalresources.com/presentation/
PRIORITY EXPLORATION PROJECTS
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Project |
Latest Position & Forward Plans |
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Athabasca Uranium Saskatchewan, Canada (Uranium) POW 100% |
Power Metal currently holds 7 properties with 3 newly acquired properties to be transferred to it, as announced 26 July 2022 and which together cover 721km2surrounding the Athabasca Basin.
Detailed data compilation has been completed and external datarooms opened for third parties in respect of 7 properties. We have completed hyperspectral data analysis over 4 properties with the findings leading to the planned launch of ground exploration at those properties shortly.
In addition to exploration of retained uranium projects, the Company is working on corporate options in relation to certain of its Athabasca uranium interests.
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Authier North Quebec, Canada (Lithium) POW earn-in to 100% |
The Company continues to monitor progress being made by Sayona Mining (ASX: SYA) who control the neighbouring Authier Lithium Project.
On 12 July 2022 Power Metal announced the decision to proceed into year 2 of the earn-in to a 100% interest in Authier North.
Ground exploration plans are being finalised with work expected to commence this quarter.
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Molopo Farms Complex Project Botswana (Nickel – Copper – Platinum Group Element) POW: Effective Economic Interest is currently 52.6% increasing to 87.71% subject to completion of the KKME shares acquisition & restructuring announced 18.5.22.
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Power Metal secured a conditional agreement to acquire an additional 58.7% of shares in project partner Kalahari Key Mineral Exploration Pty Limited (“KKME”) as announced on 18 July 2022: https://www.londonstockexchange.com/news-article/POW/kalahari-key-botswana-acquisition/15458701 This acquisition, conditional on regulatory approval, will see Power Metal holding 87.71% of KKME which will hold 100% of the Molopo Farms Complex Project (“Molopo Farms”). The next step is diamond drilling to follow up on the discovery of nickel sulphides in the first drill campaign and seeking an economic and large-scale discovery. Planning is underway now for this next drill programme which, subject to completion of the agreement to acquire an additional 58.7% of shares in KKME, we expect to commence in the autumn. Simultaneously, we have prepared and opened a Molopo Farms dataroom providing all project information for interested third parties to review. All such engagements will be under non-disclosure arrangements at this time. |
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Tati Project Botswana (Gold – Nickel) POW: 100% |
The Company announced the results from a maiden drill programme at the Tati Project on 4 April 2022 and this may be viewed through the following link:
Drilling confirmed 3 metres of 5.17g/t gold from 9 metres downhole, representing shallow gold mineralisation. Analysis led to additional gold prospective ground being covered by a new prospecting licence (“PL”) application, which was granted in April 2022 as announced to the market:
Recently the Company’s technical team visited the new PL to conduct site inspections and mapping, confirming extensive historical gold workings at the Cherished Hope gold mine as well as large fines dumps which may be capable of near-term revenue generation through toll processing of gold:
As a result of the findings from the site visit undertaken, we have expedited plans including further volumentric analysis and gold sampling of fines dumps and a reverse circulation (“RC”) drill programme is expected to commence in September/October of this year.
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PROJECT DISPOSALS OR IPO PROCESSES UNDERWAY
Note: other project packages within the Power Metal portfolio are also in earlier stages of spin-out preparations in addition to those listed below.
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Project |
Latest Position |
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Kanye Resources Conditional Disposal to Kavango Resources |
On 8 July 2022 Power Metal announced the conditional disposal of its Kanye Resources interest to its joint-venture partner Kavango Resources plc (LON:KAV)(“Kavango”). The disposal is subject to the publication of a prospectus by Kavango including provision for the transaction. Full terms and disposal consideration payable to Power Metal may be viewed in the announcement linked below: |
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First Class Metals PLC (FCM) Schreiber-Hemlo, Ontario, Canada (Gold – Base Metals) POW c.36%
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Power Metal currently has an interest of 36.3% in FCM following the FCM pre-IPO financing which raised £486,000 in 2021. FCM is seeking a listing on the London capital markets which is expected to occur shortly. First Class Metals has 100% ownership of 7 claim blocks covering over 180km² in the Hemlo – Schreiber greenstone belt of Ontario, Canada. The North Hemlo flagship property covers over 90km2 and sits just north of Barrick Gold Corp’s Hemlo gold mine. The North Hemlo property has abundant showings of gold/copper/zinc/nickel. In the east of the North Hemlo property sits the Pickle Lake joint venture with Palladium One (TSX:PDM) which is the subject of a current drill programme focussing on nickel/copper targets. |
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Golden Metal Resources PLC (GMR) Nevada, USA Gold – Base Metals POW 83.13%
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Power Metal provided a Golden Metal Resources (“Golden Metal”) company update on 19 July 2022 which may be viewed below: https://www.londonstockexchange.com/news-article/POW/golden-metal-resources-company-update/15547371 Following the pre-IPO financing which raised £750,000 in late 2021 preparation for the planned listing of Golden Metal is near to completion and this will lead into the IPO financing, and subject to regulatory approvals, a planned listing on the London capital markets expected to occur this quarter. Golden Metal is active from an exploration perspective with an induced polarisation (“IP”) survey underway over the Pilot Mountain project and a high-resolution soil geochemical survey active across the Garfield project. |
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First Development Resources Ltd (FDR) Western Australia (Gold – Copper – Rare Earth Elements – Uranium – Lithium) POW: 62.12%
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FDR has undertaken multiple exploration and corporate work streams in recent months. A detailed company update will be released to the market shortly providing an update which will cover: – Final preparations for the Wallal project diamond drill programme – Exploration findings from the Braeside West, Ripon Hills and Selta projects – Update with regard to the planned listing process now fully underway following the completion of a £1.125m pre-IPO financing as announced in June 2022.
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New Ballarat Gold Corporation PLC (NBCG) Victoria, Australia (Gold) POW: 49.9% 50.1% JV Partner Red Rock Resources PLC LON:RRR)
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Through its Australian operating subsidiary, Red Rock Australasia Pty Ltd, NBGC has a substantial licence footprint within the Victoria Goldfields, Australia. This comprises 14 granted exploration licences covering 1,832km2 and 5 licence applications covering 493km2. A planned listing of NBGC has taken longer than anticipated but remains the focus of the company with a potential planned listing in the London or Australian capital markets later this year. Much work has been undertaken recently to advance the licences held in NBGC including continuing exploration work by our in-country operational team. Also through the advancement of licence applications into granted status, which has now been achieved for 79% of the application footprint. Recent licence grants include EL007330 located northeast of Ballarat and this newly granted licence covers the Ajax gold mine which historically produced 312,789oz gold at an average grade of 14.8g/t Au in the 1920s (“Ajax”). Further information in our announcement of 24 May 2022: The addition of the Ajax gold mine above was further supplemented by a transaction to acquire EL5535 which covers the historical Berringa gold mine just west of Ballaratwhich has historical production of 293,250 ounces of gold from 1898-1952, at an average grade of 8.3g/t (“Berringa”). Further information in our announcement of 6 July 2022: The mined sections of the Ajax and Berringa trends are thought by RRAL to be among the top half dozen historic underground gold mines of Victoria and contain significant exploration targets. Both mine areas are within 30km of existing and not fully utilised treatment plants. Work is currently being undertaken to better understand historical mining activities, residual gold resource potential and drill targets at both Ajax and Berringa, with a view to diamond drilling later this year. This work is being undertaken alongside various work streams in respect of the planned listing. |
PROJECTS WITH NEXT STEPS TO BE DETERMINED
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Project |
Latest Position & Key Forward Events |
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Alamo Gold Project Arizona, USA (Gold) POW: Earn-in to 75% |
Various technical reports have now been received and reviewed following work undertaken at the Alamo gold project in Arizona.
The findings are inconclusive to date and require additional work to be undertaken to further the technical understanding of the project’s potential.
We are working with our partners in Arizona to review the technical work required and the costs attaching. We are also looking at the earn-in which may need to be restructured given the findings thus far.
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Gawler Project South Australia (Gold, Copper) POW: 100% |
The Gawler Project comprises two licence applications (submitted October 2021 and covering 1,994km2) details of which may be viewed through the following link: https://www.londonstockexchange.com/news-article/POW/new-australia-copper-gold-opportunity/15189456
Recently Power Metal Resources Australia Pty Limited, Power Metal’s wholly owned operating company, was advised that the Department of Energy and Mining (“DEM”) proposed granting of one licence application ELA2021/00163 (999km2) for a period of 6 years. The initial expenditure commitment for the licence is AUD$100,000 in total over 2 years, and Power Metal has paid AUD$23,055.10 in respect of first year rent and administration fees to the DEM. The Company now awaits final regulatory sign-off and release of granted licence documentation.
Internal technical review by the Power Metal team has been undertaken and an initial exploration programme is being finalised in preparation for the launch of ground exploration following receipt of the granted licence documentation.
Power Metal awaits progress with regard to the granting of ELA2021/00162 (995km2) and will similarly launch planned ground exploration subject to the granting of the licence.
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Haneti Project Tanzania (Polymetallic) POW: 35% (65% JV Partner Katoro Gold plc LON:KAT) |
Drill results were announced for the Haneti Project in May 2022. Drilling identified the targeted nickel, but not in economically significant intersections. The technical results from the programme are expected to lead to further target development at Haneti for ongoing exploration.
In addition data from the programme is now being made available to third parties previously interested in the Haneti project, to augment information previously supplied up to Q1 2020.
Power Metal is keen to progress the Haneti project through further targeted exploration and/or corporate activity.
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Silver Peak Project British Columbia, Canada (Silver) POW: 30% |
Liaison with our Canadian partner to finalise commercial initiatives for the project continue. An important next step is a planned site visit which is scheduled for early August 2022, which is expected to assist expediting matters. |
NEW OPPORTUNITIES
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Project |
Latest Position |
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Power Metal Resources plc |
The near-term focus will remain on the exploration of existing interests and the crystallisation of value through the potential listing of spin-out vehicles and project value generative disposals. The primary acquisition focus for the foreseeable future is uranium projects, however the Company does not rule out other acquisitions of exceptional opportunities. |
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Power Capital Investments Limited Global Resource Project Incubator (Multi-Commodity) POW: 100%
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Power Capital Investments (“Power Capital”) continues to work on a number of initiatives targeting individual or smaller corporate owned opportunities. This is occurring against a backdrop of intensive activity across the Power Metal business and will for now remain a modest source of activity as we seek to advance our major business interests. |
MANAGEMENT – FINANCIAL – COMPLIANCE
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Project |
Latest Position |
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Board
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The Board currently comprises: Scott Richardson Brown – Interim Non-executive Chairman Paul Johnson – Chief Executive Officer Ed Shaw – Non-executive Director Power Metal has been engaging with a number of potential board candidates for Power Metal and associated companies. We have successfully secured full boards for Golden Metal and First Development Resources in advance of their planned listings. For Power Metal we are undertaking due diligence on new candidates and hope to be in a position to announce new appointments in the near term. |
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Management and Team
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Power Metal has built a strong operational team which along with the board now comprises ten team members based out of our UK office. We work extensively overseas and have developed equally strong operational partnerships in countries around the world, forming an efficient and cost effective hub-and-spoke operational model. Power Metal is actively seeking to bring new team members in to support the growth in business and we continue to invite talented individuals from all backgrounds who feel they can contribute to our work to reach out and contact us through the following link: |
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Financial Position
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Working Capital Working capital comprises cash and listed investments (“Working Capital”). As at 26/07/22 Working Capital amounted to £1.88m. This is available for payment of corporate costs and exploration expenditure across business operations. Pre-IPO Vehicles Power Metal has holdings in three current vehicles undertaking a planned IPO which, valued at the historical pre-IPO valuation level, amount to a total value of £6.92m as per the table below:
In addition, Power Metal is seeking with JV partners (Red Rock Resources PLC) to undertake a listing of NBGC, the pre-IPO valuation of which is not confirmed at the current time. The listing of further project packages may be undertaken which will be incorporated into the above list in due course. Project Investments & Intercompany Loans As at 30/06/2022 Power Metal’s remaining assets comprising project investments and intercompany loans, amounting to £5.08m. Future Financing Sources The Company has multiple sources of additional financing, not all of which may be necessary or occur in the foreseeable future: – As an AIM listed vehicle traditional equity financing can be undertaken to raise additional sums where considered necessary.
– Through the exercise of financing and transactional warrants or the exercise of director, team member or adviser options. A full breakdown of all warrants and options outstanding is available on the Company’s website through the following link:
https://www.powermetalresources.com/warrants-options-outstanding/
– In addition to the above, the Company will benefit from the planned listings of the pre-IPO vehicles as outlined above which will, if successful and in line with expected valuations on listing, add considerably to overall Power Metal asset value.
– It is anticipated that further value generative events may occur including additional spin-outs into new listed vehicles and outright disposal of certain business interests. |
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Audit and Compliance
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Power Metal with the support of One Advisory, completed its interim results for the half year ended 31 March 2022, which in line with best practice were reviewed for comment by the Company’s auditors PKF. The interim results were published on 27 June 2022. The Company’s year end is 30 September 2022 and it is expected that the audited financial accounts for the full year will be published in February 2023. Power Metal is now well advanced with preparation of a new environmental, social and governance (“ESG”) initiative which will include: – Appointment of an ESG Officer for Power Metal and all associated companies. – Design, implementation of new and wide ranging ESG policies across the Company and embedded at local project or investment level for all Company activities. Training of all staff members to develop Company-wide core ESG understanding, with in-depth training where required to maintain optimal ESG capability at all levels. A separate ESG dedicated announcement will be published by the Company in due course. |
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
NOTES TO EDITORS
Power Metal Resources plc – Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Exploration Work Overview
Power Metal has internal exploration programmes completed or underway, with results awaited, as outlined in the table below.
Exploration work programmes may also be underway within planned IPO vehicles where Power Metal has a material interest the findings from which will be released on their respective websites, with simultaneous updates through Power Metal regulatory announcements where required:
www.firstdevelopmentresources.com
Power Metal also holds a material investment in Kavango Resources plc with exploration updates available through their regulatory announcements and on their website:
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Project |
Location |
Current POW % |
Work Completed or Underway |
Results Awaited |
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Athabasca Uranium |
Canada |
100% |
Hyperspectral data analysis conducted across all 7 properties. Updating to 7 data rooms for third party review. |
Finalise review of data from 3 properties. Prepare for summer exploration programme across 4 properties. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Property Evaluation Report completed. |
Update covering exploration plans for target areas identified during the Evaluation. |
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Molopo Farms |
Botswana |
53%# |
Comprehensive data review complete and establishment of data room for third party review. |
Finalise next exploration steps and action plan. |
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Tati Project |
Botswana |
100% |
Site visit with mapping of gold workings and mine dumps. |
Exploration planning underway including further mapping, sampling and launch of an RC drill programme. |
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Victoria Goldfields |
Australia |
49.9% |
Diamond drill programme completed. Review of Ajax & Berringa mine remaining resource potential.
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Final drill programme results analysis and resource potential analysis from former high-grade producing mines in granted licences. |
# subject to completion of acquisition announced 18.5.22 interest will increase to 87.71%
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.
#POW Power Metal Resources – Ditau Project – Exploration Programme Expansion
Power Metal Resources plc (LON:POW), the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces an update from the Ditau Camp Project (“Ditau” or the “Project”) located in southwest Botswana which is prospective for carbonatite hosted rare-earth element (“REE”) and base-metal mineralisation. Ditau is held within a 50/50 Joint Venture (“Kanye Resources”) with London-listed Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator.
Following completion of drillhole DITDD003, which was drilled into the i10 target, Power Metal in conjunction with Kavango have decided to expand the ongoing exploration programme. Initial observations in respect of DITDD03 were announced on 29 April 2022 and can be viewed at the follow link:
The expanded exploration programme will include 16.1 line-km of Audio-Magnetotelluric (“AMT”) geophysics surveys over various target areas.
DITDD003 is the first of six planned exploration drillholes to be completed at the Ditau Project as part of the ongoing drilling campaign. Based on results achieved thus far, Kanye Resources has confidence in the utility of its new AMT inversion modelling introduced this year and believes the expanded geophysical surveys will enable it to further optimise the location of planned drill collar locations.
Kanye Resources also announces the commencement of drilling of drillhole DITDD004 which is also targeting the i10 Target geophysical anomaly.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“It’s great to see the exploration programme at Ditau moving forward at pace with the second drill hole now underway. The Ditau Project represents a significant exploration opportunity, with a district-scale land holding believed to be prospective for rare-earth element mineralisation. This exploration comes at a critical time when this commodity group is in great demand, particularly from stable mining jurisdictions.
The work undertaken thus far, and the building knowledge we are collating, is highly valuable and I look forward to providing further updates to the market as additional developments occur.”
Operational Summary
– Commencement of DITDD004, the second hole to target the i10 Target
– The i10 Target is a discrete circular geophysical anomaly which is roughly 2.2km in diameter.
– Kanye modelled the i10 Target using inversions of Aeromagnetic (“AEM”) combined with its interpretation of limited existing AMT data.
– Kalahari sediment thickness was determined to be 105m based on the first hole drilled (DITDD003) which is consistent with the estimated thickness based on the AMT modelling completed.
– An additional 16.1 line-km of AMT geophysical surveying is now planned with coverage over multiple drill target areas including:
– 1 line-km over the i10 Target;
– 5.5 line-km over the i8 Target; and
– 9.6 line-km over the i1 Target.
The plan is to collect high-frequency AMT profiles over near-surface potential carbonatite targets with the ultimate goal of better resolving the location of breccia zones and intrusive sills/dykes intersected in drillhole DITDD003. AMT surveys can aid geophysicists and geologists in mapping subsurface geological structures and layers; further identifying potential areas for mineralisation which allows for the refinement of drill targeting.
To date 12 targets from geophysics have been identified at the Ditau Project (i1 through i12) which Kanye believes could be carbonatites and/or intrusive complexes that may host carbonatites pipes. Carbonatites account for the primary source of mined rare-earth elements; and REEs are vital component materials in many high-tech industries.
As part of the ongoing exploration programme, Kanye is planning to drill test three geophysical targets (i10, i1 and i8).
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
Kavango Resources #KAV – Ditau i10 target motivation & drilling commencement
Kavango Resources plc (LSE:KAV) has commenced drilling the “i10” target (“Target i10”) at the Ditau Camp Project (“Ditau”), in southwestern Botswana. Target i10 is a discrete circular anomaly that is 2.2km in diameter and under an estimated 120m of sand cover. Kavango’s primary objective is to retrieve rock core to establish whether Target i10 is a carbonatite intrusive. Carbonatite complexes are the world’s primary source of rare earth elements (“REEs”) and other strategic/industrial commodities. REEs are strategically vital commodities in high-tech industries.
Ditau is held in a 50/50 Joint Venture (“Kanye Resources”) with Power Metal Resources plc (LSE:POW).
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“The drill motivation for Target i10 is a comprehensive piece of work. Kavango’s team has worked hard over the last two years refining the exploration methodology leading to the design of the current Ditau drill campaign. Using the latest remote sensing technologies, we have created sophisticated targeting models to guide our exploration.
We will now become the first explorers to test this area’s potential for carbonatites, which are the world’s primary source of rare earth elements (“REEs”). REEs are strategically critical minerals, crucial to all high-tech industries.
Given the fact that carbonatites and kimberlites often occur in clusters, controlled by regional geological structural trends, the Ditau property location could be significant. We know that Ditau is in a known kimberlite “corridor”, so the backdrop to drilling is favourable.
It is now down to the “truth detector” to tell us what is down there.”
Highlights
– Drill motivation
– Target i10 is a discrete circular anomaly, 2.2km in diameter
– Shallow depth, with Kalahari sediment and sand cover estimated at 120m, target zone directly underneath
– Kavango modelled Target i10 using inversions of Aeromagnetic data (“AEM”), combined with the interpretation of Audio-Magnetotelluric (“AMT”) data
– The targets have been independently verified to conform to an idealised model for carbonatite intrusives, based on their aeromagnetic signatures.
– Idealised Ore Deposit Model
– Target i10 is a “carbonatite pipe” type intrusive target
– Apparent concentric “ring-like” lithological zonation and structure, which could relate to mineralized horizons
– Target lies near the margin of the Kaapvaal Craton, a tectonic context common to mined carbonatites globally
– Comparison made with Kangankunde carbonatite in Malawi
– Drill operations
– First of two planned boreholes into Target i10 commenced 15 April, targeting the core of the magnetic high
– Camp secured & road access and drill pads completed
– Water borehole successfully drilled & solar powered water pump installed
– First hole is designated DITDD003
– DITDD003 Target End-of-Hole (“EOH”) depth 400m
– As of morning shift on 19 April (0600) DITDD003 has been drilled to 85.27m depth
– Drilling to be conducted by Mindea Exploration & Drilling Services (Pty) (“Mindea”)
– Plan to drill up to six 400m diamond core boreholes in current Ditau drill campaign, across 3 targets
Background to targeting
Kavango has identified 12 geophysical structures/targets at Ditau (targets i1 through i12), which the Company believes could be possible carbonatites and/or intrusive complexes that may host carbonatites. 9 of these targets are particularly well defined.
There are two target types at Ditau:
1) Discrete kilometre-scale carbonatite pipe targets, and
2) Larger multi-kilometre scale intrusive complex targets that may also be host to carbonatite intrusives and/or mafic associated mineralisation styles prospective for base metals
The 12 Ditau geophysical targets are not known to have been tested for either REEs or base metal mineralisation. Kavango identified these targets, which range in size from 1km to 20km in diameter, using modern geophysical interpretative techniques. Kavango has used combined and integrated Airborne Magnetics, Ground Magnetics and Audio-Magnetotelluric (“AMT”) surveys in the exploration of the area and for drill targeting.
Target i10
Kavango believes Target i10 could represent a discrete, kilometre-scale carbonatite pipe. This target is interpreted as a simple single phase carbonatite phase/pipe with a possible outer ring indicated by a weak magnetic low.
The geophysical anomaly is estimated to be 2.2km in diameter, with apparent concentric “ring-like” lithological zonation and structure. Kavango has surveyed Target i10 using Ground Magnetic and AMT technologies following from an initial modelling and interpretation of the regional Aeromagnetic data.
Kavango has provided a 3D inversion of the Target i10 Aeromagnetic data with an AMT section overlay on its website:
https://www.kavangoresources.com/media-library/news-release-media/rns19april2022
Based on analysis of the AMT section over Target i10, the sand cover is estimated to be roughly 120m deep. The magnetic inversion confirms that the primary target zone lies just underneath this cover.
To confirm the Company’s geophysical interpretation of Target i10, Kavango currently plans to drill two geological boreholes into i10 to confirm the presence of a carbonatite. The first hole will target the core of the magnetic high, while the second hole is designed to test the edge of the negative magnetic response.
Target i10 Idealised Ore Deposit Model
In its analysis of Target i10, Kavango has used the REE bearing Kangankunde carbonatite pipe (“Kangankunde”) in Malawi as a carbonatite model.
Kangankunde is one of the largest carbonatites in the Chilwa Alkaline Province (“Chilwa”) of Southern Malawi. Chilwa is a roughly 300km-diameter area, which comprises of Late Jurassic-Early Cretaceous alkaline rocks and clusters of carbonatites. Kangankunde is one of many carbonatites in Chilwa and is roughly 1.5km in diameter.
Kangankunde forms a low hill, 200m above the surrounding plain, with lower slopes composed of fenitised and locally fractured (brecciated) rocks with the upper slopes predominantly forming carbonatite.
Although Target i10 is buried under roughly 120m of Kalahari cover, its geophysical signatures are comparable to Kangankunde. Kavango’s interpretation of combined Aeromagnetic and AMT data of Target i10 indicates this geophysical anomaly could represent a simple, single phase carbonatite pipe, with a possible ring indicated by a weak magnetic low.
For comparison, Kavango has provided a geological map of Kangankunde on its website:
https://www.kavangoresources.com/media-library/news-release-media/rns19april2022
Carbonatites can exhibit significant lithological and structural variation, both between and within individual pipes. As such, to maximise the chances of success in exploring for carbonatite hosted REE deposits, it is common practice to drill multiple boreholes along fences into single targets. The geological map of Kangankunde illustrates the geological complexity and therefore the necessity for drilling multiple drillholes into carbonatite targets to elucidate the geology and locate potential indicators of mineralisation.
Drilling at Ditau
The drill camp is constructed and secure. All supporting equipment and personnel have been located to site.
Kavango has successfully drilled a 180m water borehole, which the Company believes should yield enough water to support drilling operations. A solar powered pump has been installed.
Road access between the drill camp, drill collar locations and water sources are also complete.
Drilling operations commenced on Friday 15 April. In total, Kavango expects to drill up to 6 diamond core holes in the current campaign (totalling 2,400m). Each hole has an anticipated target EOH depth of 400m, and the Company aims to test 3 of the 12 geophysical targets at Ditau.
The Company and its contractors have designed the current Ditau drill campaign to be flexible and guided by results. The plan is to test both possible carbonatite pipes and possibly related large-scale intrusive complexes (which may also be host to discrete carbonatite bodies).
Kavango will release a comprehensive report on the outcome of current planned 6-hole drill campaign once all data has been processed and verified.
Depending on the success of the current drill campaign, Kavango has identified a further 17 drill collar locations for future test-drilling across all 12 geophysical targets/structures.
Ditau regional geological setting
Carbonatites often occur in “swarms” or clusters, oriented along favourable and clearly defined deep continental scale geological, structural trends. The 12 Ditau geophysical structures occur along a southwest-northeast regional corridor, along the south-eastern edge of the trend that hosts the Mabuasehube and Kokong kimberlite groups. Desktop analysis of regional data by Kavango’s geologists suggests this trend is parallel to other corridors that host other kimberlite groups in Botswana and northwest Angola. In the latter these trends are known to host both kimberlite and carbonatite intrusives, meaning that the presence of one is a strong indicator for the other.
In addition to the known presence of kimberlites within the “Ditau trend” (in numerous published reports and maps), and supporting the possible presence of carbonatites, are an as yet small cluster of carbonatite intrusives (KW2, definite, and KS12 & KS36 possible bodies) in the vicinity of the project (the “Falconbridge Carbonatites”). The Falconbridge Carbonatites were drilled by Falconbridge Exploration Botswana (Pty) Ltd in the late 1970’s-early 1980’s, to the immediate north of and 30km along strike to the northeast of the Ditau project.
The POW/KAV Joint Venture at Ditau
Ditau is held in a 50/50 Joint Venture (“Kanye Resources”) with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator. Mindea Exploration and Drilling Services (Pty) (“Mindea”) will conduct the drilling.
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 Competent Person Statement
The technical information contained in this announcement pertaining to geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada. Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists. Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralisation and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.
NOTES TO EDITORS
THE DITAU CAMP PROJECT
The Ditau Camp Project comprises two Prospecting Licences (“PLs”) (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 12 “geophysical structures” of which 9 have clear indications of being “ring structures”.
The “ring structures” have the potential to host carbonatite and other intrusive rocks.
Carbonatites are the principal source of rare earth elements (“REEs”) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications. Other elements/minerals associated with carbonatites include Niobium, Phosphates, Monazite, Strontium, Magnetite and Copper.
Mafic intrusives have potential to host base and precious metals, as seen in the Molopo Farms Project, Selebi Phikwe and Tati Nickel deposits in Botswana.
Power Metal Resources #POW – Diamond Drilling Commences at the i10 Target – Seeking Rare-Earth Element Carbonatite Intrusives
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolioannounces that diamond drilling has now commenced at the i10 Target (“i10” or the “Target”) located within the Ditau Camp Project (“Ditau”), southwestern Botswana.
The i10 Target is marked by a discrete, circular, geophysical anomaly that is 2.2km in diameter and under an estimated 120m of sand cover. Kanye’s primary objective is to retrieve diamond core to establish whether the Target’s geophysical anomaly is caused by a carbonatite intrusive. Carbonatites are the world’s primary source of rare-earth elements (“REEs”) and other strategic/industrial metals including copper.
The Ditau Camp Project is held by Botswana based Kanye Resources Pty Limited (“Kanye”), which is a 50/50 joint-venture partnership with Kavango Resources plc (LSE:KAV) (“Kavango”) – who are the operators.
Highlights
– Drill motivation
– The i10 Target is highlighted by a discrete circular magnetic anomaly, measuring 2.2km in diameter
– The Target is interpreted to lie at a shallow depth, below an estimated 120m of Kalahari sand cover – based on Audio-Magnetotelluric (“AMT”) data obtained over i10.
– Kanye has successfully completed aeromagnetic and AMT inversions over the Target.
– The Target has been independently verified to conform to an idealised model for carbonatite intrusives, based on its aeromagnetic signature.
– Idealised Ore Deposit Model
– I10 is a carbonatite pipe intrusive target
– Based on the magnetic signature, the Target has concentric “ring-like” lithological zonation, which could relate to rare-earth element mineralised horizons
– Target lies near the margin of the Kaapvaal Craton, a tectonic context common to other carbonatites globally
– Drill operations
– Camp secured, road access and drill pads completed
– Water borehole successfully drilled and solar powered water pump installed
– First of two planned drillholes at i10, hole DITDD003, commenced drilling on 15 April 2022, which is targeting the core of the magnetic high and has a target depth of 400m
– Drilling is being conducted by Mindea Exploration & Drilling Services (Pty) (“Mindea”)
– The plan is to drill up to six ~400m deep diamond drillholes at Ditau, including 2 drillholes at three separate magnetic anomlies, including i10.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“I have talked previously about the confidence we hold in the geological prospectivity across our projects in Botswana. That confidence means within an 18 month period, with Molopo, Tati and now Ditau, we have launched three drill programmes.
The Molopo drill programme successfully confirmed the presence of nickel, Tati confirmed the presence of gold and now we seek confirmation of rare earth elements at Ditau.
To say we are excited about the prospects for our interests in Botswana is an understatement. Let’s see what this drill programme delivers.”
Background Targeting
The Ditau Camp Project is centred around 12 unique geophysical anomalies (targets i1 through i12), which Kanye believes could be caused by possible carbonatites and/or intrusive complexes that may host rare-earth element mineralisation.
Targets i1 – i12 are seperated into two main target types:
1) Discrete kilometre-scale carbonatite pipe targets, and
2) Larger, multi-kilometre scale intrusive complex targets that may also be host to carbonatites and/or mafic intrusive bodies prospective for base-metal mineralisation.
The 12 Ditau geophysical targets are not known to have been drill tested for either REEs or base-metal mineralisation historically. Kanye originally identified these targets, which range in size from 1km to 20km in diameter, using interpretation of airborne magnetic data. To date, Kanye has used combined airborne- and ground-magnetic, and AMT surveys in the exploration at Ditau.
Target i10
Kanye believes the i10 Target anomaly could be caused by a discrete, 2.2km wide carbonatite pipe. The Target is interpreted as a simple, single phase carbonatite pipe with a possible outer ring indicated by a weak magnetic low ringing the main magnetic high feature.
A 3D inversion of the aeromagnetic data with an AMT section overlay of the I10 Target can be found at Kavango’s website at the link below:
https://www.kavangoresources.com/media-library/news-release-media/rns19april2022
Based on analysis of the AMT data over i10, the Kalahari sand cover is estimated to be roughly 120m thick. The magnetic inversion results confirm that the primary target zone lies just underneath this sand cover.
To confirm the current geophysical interpretation of the i10 Target, Kanye is currently planning to drill two diamond drillholes into i10. The first drillhole, which is currently underway, will target the core of the magnetic high, while the second hole is designed to test the edge of the geophysical anomaly.
Target i10 Idealised Ore Deposit Model
In the analysis of geophysical data over i10, Kavango has used the rare-earth element bearing Kangankunde carbonatite pipe (“Kangankunde”) located in Malawi as a model.
Kangankunde is one of the largest carbonatites within the Chilwa Alkaline Province (“Chilwa”) at ~1.5km in diameter. Chilwa is a roughly 300km in diameter, and is comprised of Late Jurassic-Early Cretaceous alkaline rocks with clusters of carbonatite pipes – including Kangankunde.
At the surface, Kangankunde forms a low hill, which rises approximately 200m above the surrounding plains, with lower slopes composed of fenitised and locally fractured (brecciated) rocks with the upper slopes predominantly of carbonatite intrusive rocks.
Although the i10 target is buried under roughly 120m of Kalahari sand cover, Kanye’s geological team believe that the geophysical signatures are comparable to that of Kangankunde. The highlight the various similarities, a geological map of Kangankunde can be found on Kavango’s website at the link below:
https://www.kavangoresources.com/media-library/news-release-media/rns19april2022
Carbonatites can exhibit significant lithological and structural variation, both between and within individual pipes. As such, to maximise the chances of exploration success in exploring for carbonatite hosted REE deposits, it is common practice to drill multiple boreholes along a fence pattern into a single target. The geological map of Kangankunde illustrates its concentric geological complexity and therefore the necessity for drilling multiple drillholes within i10 to elucidate the geology and locate potential indicators of REE or base-metal mineralisation.
Ongoing Drilling Operations
The drill camp has been constructed. All supporting equipment and key personnel are currently located on site.
Kanye has successfully drilled a 180m deep water borehole, which should yield enough water to support ongoing drilling operations. A solar powered pump has been installed and is currently operational.
Road access between the drill camp, drill collar locations and water sources is also complete.
Drilling operations successfully commenced on Friday 15 April 2022. In total, Kanye expects to drill up to 6 diamond drillholes as part of the current campaign (totalling ~2,400m). Each hole has an anticipated target depth of 400m, and Kanye aims to test 3 of the 12 geophysical targets as part of the ongoing drilling campaign.
Kanye and its contractors have designed the current Ditau drill campaign to be flexible and guided by ongoing visual results. Kanye will release field and laboratory results on the current planned 6-hole drill campaign once all data has been received, processed and verified.
Contingent on results from the ongoing drilling campaign, Kanye has identified a further 17 drill collar locations for future drill testing across all 12 geophysical targets/structures at Ditau.
Regional Geological Setting
Carbonatite intrusives often occur in swarms or clusters, oriented along favourable and clearly defined deep continental scale geological and structural trends. The 12 geophysical structures at Ditau occur within a southwest-northeast oriented corridor, part of the same corridor that host the Mabuasehube and Kokong kimberlites. Desktop analysis of regional geological and geophysical data by Kanye’s geologists suggest that this trend is sub-parallel to other corridors that host other kimberlite groups in Botswana and northwest Angola. In the latter, these trends are known to host both kimberlite and carbonatite intrusives, meaning that the presence of one is a strong indicator for the other.
In addition to the known presence of kimberlites within the geological corridor where Ditau is located, and further enhancing the prospectivity for Carbonitites on the Project, there is a small known cluster of carbonatite intrusives including KW2, Definite, KS12 and KS36 (the “Falconbridge Carbonatites”) which are located near to the Project. The Falconbridge Carbonatites were drilled by Falconbridge Exploration Botswana (Pty) Ltd in the late 1970s and early 1980s, to the immediate north of and 30km along strike to the northeast of the Ditau Project.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, MIMMM, MAusIMM, FGS), who is a qualified geologist and acts as the Competent Person under the AIM Rules – Note for Mining and Oil & Gas Companies. Mr O’Reilly is a Principal consultant working for Mining Analyst Consulting Ltd which has been retained by Power Metal Resources PLC to provide technical support.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
For further information please visit https://www.powermetalresources.com/ or contact:
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Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
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SP Angel Corporate Finance (Nomad and Joint Broker) |
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Ewan Leggat/Charlie Bouverat |
+44 (0) 20 3470 0470 |
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SI Capital Limited (Joint Broker) |
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Nick Emerson |
+44 (0) 1483 413 500 |
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First Equity Limited (Joint Broker) |
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David Cockbill/Jason Robertson |
+44 (0) 20 7330 1883 |
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NOTES TO EDITORS
Power Metal Resources plc – Background
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration company which finances and manages global resource projects and is seeking large scale metal discoveries.
The Company has a principal focus on opportunities offering district scale potential across a global portfolio including precious, base and strategic metal exploration in North America, Africa and Australia.
Project interests range from early-stage greenfield exploration to later-stage prospects currently subject to drill programmes.
Power Metal will develop projects internally or through strategic joint ventures until a project becomes ready for disposal through outright sale or separate listing on a recognised stock exchange thereby crystallising the value generated from our internal exploration and development work.
Value generated through disposals will be deployed internally to drive the Company’s growth or may be returned to shareholders through share buy backs, dividends or in-specie distributions of assets.
Power Metal Exploration Programmes Underway/Results Awaited
Power Metal has exploration programmes completed or underway, with results awaited, as outlined below:
|
Project |
Location |
POW % |
Work Completed or Underway |
Results Awaited |
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Alamo Gold Project |
USA |
Earn-in to 75% |
Excavation of multiple test pits and mapping & sampling. |
Field and assay results from on-site work programme. |
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Athabasca Uranium |
Canada |
100% |
Data compilation across uranium properties |
Interpretation results from all Properties complete. Next steps upcoming. |
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Authier North Lithium |
Canada |
Earn-in to 100% |
Soil & rock sampling completed |
Technical Review of exploration results & define next exploration steps. |
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Ditau Project |
Botswana |
50% |
Drill programme focused on key targets notably drilling of potential carbonatites and targeting rare-earth elements. |
Field updates and receipt & review of laboratory assay results. |
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Kalahari Copper Belt |
Botswana |
50% |
Exploration programme underway across the South Ghanzi Project and further exploration at the more recently acquired South Ghanzi Extension and Mamuno licence areas |
Field programme findings and defined drill targets for near term drilling. |
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Molopo Farms |
Botswana |
53% |
Review of recent exploration findings. |
Determine next exploration steps and action plan. |
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Haneti Project |
Tanzania |
35% |
Diamond drill programme completed |
Receipt & review of laboratory assay results. |
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Victoria Goldfields |
Australia |
49.9% |
Diamond drill programme underway
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Field updates and receipt & review of laboratory assay results. |
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Paterson Projects |
Australia |
83.33% |
Wallal passive seismic and 2D seismic processing work programme completed. Review of historical data and target generation for Ripon Hills & Braeside West projects.
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Findings from multiple work programmes including final approvals and preparations for planned deep diamond drilling. |
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Selta Project |
Australia |
83.33% |
Field reconnaissance work now underway, including mapping and sampling. |
Field updates. |
Kavango Resources #KAV – KCB: significant expansion of Kanye Resources
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce that Kanye Resources (“Kanye”) has completed the acquisition of 8 new prospecting licences (“PLs”) in the Kalahari Copper Belt (“KCB”) for a total consideration of US$430,000.
Kanye is a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”), which already owns the South Ghanzi Copper Exploration Project (“South Ghanzi”) and the Ditau Camp Rare Earth Elements (REEs”) Exploration Project (“Ditau”). Kavango is the operator of Kanye.
The acquisition of the 8 new prospecting licences represents a significant expansion of Kanye’s exploration footprint in the highly prospective KCB. Kanye now controls 4,257km2 of exploration ground in its search for major copper/silver deposits.
Highlights
Ø Kanye has completed two separate acquisitions to purchase 100% of the eight PLs. All the PLs have now been transferred to Kanye by the Ministry of Mines and new Prospecting Licences issued. These include:
– Four PLs in proximity to the town of Ghanzi in the central zone of the Botswana KCB from Shongwe Resources (Pty) Ltd for US$200,000 (the “South Ghanzi Extension Licences”).
– Four PLs near the town of Mamuno on the Namibian border for US$230,000, from Vinmarsh Interprises (Pty) Ltd (the “Mamuno Licences”).
– Kanye’s now controls 4,257km2 of PLs in the KCB
Ø The South Ghanzi Extension Licences
– Cover 481km2
– 2 of the new PLs are contiguous with Kanye’s existing South Ghanzi Project and the other 2 are within the same structural zone.
– Exploration at South Ghanzi is considerably advanced, with 7 major copper/silver targets identified
– Drill locations are currently being finalised
Ø The Mamuno Licences
– Cover 2,482km2 and are on the western boundary of the Botswana KCB
– Feature a large anticlinal (possible dome) system, similar to that recently identified at South Ghanzi.
– Appear to include at least 3 anticlines in this system, with intervening synclines (highly prospective formations for copper/silver exploration)
– Include visible outcropping of Ngwako Pan and D’kar Formation contacts, with little to no Kalahari Sands
– Are well served by the tarred Trans-Kalahari Highway (Gaborone-Windhoek-Walvis Bay)
Ø KCB Environmental Management Plan (“EMP”)
– Kavango has received final feedback from the Ministry of Mines
– Final processing of the KCB EMP is underway
– The proposed EMP covers both the South Ghanzi Extensions and Mamuno Licences
Ø Immediate expansion of exploration in the KCB
– Desktop analysis of all known data sources underway to enhance exploration models
– Kavango to deploy 4 field teams to the KCB to begin extensive soil sampling
– Plans being finalised to increase number of teams on the ground
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“The acquisition of the South Ghanzi Extension and Mamuno Licences immediately quadruples Kanye Resources’ land holding in the burgeoning KCB..
While our ongoing drill campaign in the Kalahari Suture Zone continues to attract the most headlines, our interests in the KCB could prove to be company makers in their own right, both for Power Metal Resources and Kavango.
The exploration model in the KCB is well established, but our team on the ground has developed a number of innovative in-house methods, which we are confident give us a strong competitive advantage. Refinement of these exploration methods has helped us identify what we believes is highly prospective ground and encouraged us to move swiftly to acquire the new prospecting licences.
With the excellent progress we are making at South Ghanzi, expanding our holdings here was an obvious move. However, the inclusion of the Mamuno Licences could prove to be very exciting. Our initial analysis suggests the geological model looks to be very similar to that at South Ghanzi, but the formation sizes are much bigger. We are looking forward to deploying our teams to the area as soon as we are able to.”
The South Ghanzi Extension and Mamuno Licences
Further to the announcement on 29 March 2021, Kanye has completed the acquisition of the South Ghanzi Extension and Mamuno Licences
The South Ghanzi Expansion PLs are four relatively small licences, two of which are adjacent to the Ghanzi South Project and appear to contain structures that Kanye has identified as being prospective from Airborne Electromagnetic surveys. Of the other two, one is an area previously relinquished by the former MOD Resources containing a soil-sampling anomaly and the other is an area west of PL036/2020 which, though small, has excellent prospectivity.
The Mamuno Licences are four contiguous PLs that cover a large anticlinal system (dome?) that is plunging towards the west – similar to that recently identified at South Ghanzi (PL 36/2020). However, the anticlinal structures at Mamuno appear to be significantly bigger. The dome is made up of at least three anticlines with intervening synclines. The Ngwako Pan and D’kar Formation contacts (a possible redox boundary?) is outcropping or sub-outcropping. This contact appears to extend for over 100km. Over much of the ground, the Kalahari sands are quite thin.
The area is well served by the Trans-Kalahari Highway, which links Gaborone/Johannesburg with Windhoek/Walvis Bay (international port). Mamuno is a border town (Namibia/Botswana).
The POW/KAV Joint Venture
The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. All PLs have been transferred into a Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
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 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 has 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.
NOTES TO EDITORS
KAVANGO’S INTERESTS IN THE KALAHARI COPPER BELT
Kavango’s exploration licenses in the KCB include:
Kanye Resources
Ø 50 % working interests in 10 prospecting licenses held in a Joint Venture with Power Metal Resources (LSE:POW), which cover 4,257km 2 .
The LVR Project
Ø Earning in a 90% interest in prospecting licenses PL082/2018 & PL 083/2018, held in a Joint Venture with LVR GeoExplorers (Pty) Ltd (“LVR”), which cover 1,091km 2 .
THE SOUTH GHANZI PROJECT GEOLOGICAL SETTING
The South Ghanzi Project and LVR Project areas include lengthy redox boundaries, close to surface, that represent excellent exploration targets.
The redox boundaries were formed several hundred million years ago in active sedimentary basins flooded by shallow seas. Organic matter accumulating on the sea floor created anoxic conditions, which formed a chemical barrier to metal ions rising upwards through the sediments as the basin subsided. The change in chemistry caused the precipitation of metal species (carbonates, sulphides etc.) including copper and silver on or just below the redox boundary.
Subsequent tectonic activity folded the sedimentary layers, which was often accompanied by the concentration of metals into the fold hinges and shear zones. Fold hinges pointing upwards are known as anticlines, while the downward pointing hinges are called anticlines.
Several large copper/silver ore deposits have been discovered on the KCB in association with anticlines in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and many are amenable to open pit mining operations.
Accumulations of metals can be traced along the strike of geochemical reduction-oxidation (“redox”) boundaries (sometimes for many kilometres) because they often contain iron and have a higher magnetic signature than the surrounding rock.
SOUTH GHANZI EXPLORATION STRATEGY
The South Ghanzi PLs lie within the Central Structural Corridor of the KCB immediately south of the town of Ghanzi.
Sedimentary horizons hosting copper/silver mineralisation in the KCB are known to be conductive. AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.
Kavango’s strategy in the KCB is to identify conductive targets and then to complete follow up investigation, using other proven exploration methods including geological mapping and testing of soil geochemistry through extensive sampling. The correlation of positive zinc and copper soil geochemistry readings to positive AEM results is a highly encouraging exploration vector.
Given Kavango’s understanding of the regional lithology and stratigraphy of the KCB, the Company is optimistic about the progress it has made in South Ghanzi over recent months.
Specifically, the identification of a number of smaller anticlines associated with conductors suggests there are seven large, promising drill targets at South Ghanzi.