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#KAV Kavango Resources PLC – KCB – Airborne geophysical survey commences
Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals exploration company, is pleased to announce the commencement of an airborne geophysical survey on its Kalahari Copper Belt (“KCB”) project in Botswana.
The Company has signed a contract with South Africa-based New Resolution Geophysics (“NRG”) for Time Domain Electromagnetic (“TDEM”), Magnetic, and Gravity surveys combined on one helicopter platform (“the NRG Survey”).
The NRG Survey will consist of 2,374-line kms at a line spacing of 500m x 5,000m across Kavango’s Block 1A and Block 1B Prospecting Licences (“PLs”)
The work expands on airborne geophysical surveying already completed by ENRG Elements (ASX:ENRG) (“ENRG”) on PL203/2016 and PL127/2017, two adjacent PLs recently acquired by Kavango (announced >>> 16 November 2023).
Figure 1: NRG’s planned survey lines across Kavango’s Block 1A and Block 1B licences and airborne survey data covering the PLs acquired from ENRG
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“Kavango is targeting the discovery of large-scale copper/silver targets in the Kalahari Copper Belt (KCB) in Botswana.
We recently acquired additional exploration licences from ENRG Elements to complete a large contiguous land package from the town of Ghanzi to the Namibian border. Our interpretation of ENRG’s existing survey data for Prospecting Licences 203/2016 and 127/2017 supports our working theory that this area is prospective for copper/silver. We believe this potential could extend to Kavango’s other licence holdings, which have designated as Blocks 1A and 1B.
As part of our “levelling up” strategy in the KCB, we are compiling a consistent data set for all the ground we control. NRG’s airborne geophysical survey will provide us with some of the final exploration data we need ahead of defining drill targets for next year’s drill campaign.
Our recent work has confirmed physical indicators of a copper mineralising system within our ground, combined with encouraging geophysical anomalies.
Our goal in reprocessing ENRG’s existing data and combining it with the data from the airborne surveys we will fly over Blocks 1A and 1B will be to increase our understanding of the region’s mineralised potential. We will also investigate the interpreted sub-basin that could be a significant control for copper/silver deposits.“
Further details
The NRG Survey will be conducted over five PLs that make up Kavango’s Block 1A (PL046/2020, PL049/2020, PL052/2020, PL053/2020) and Block 1B (PL205/2016) licence areas. The licences are located southwest of the town of Ghanzi and adjacent to PL203/2016 and PL127/2017, two of the KCB PLs Kavango recently acquired from ENRG.
NRG is expected to commence its airborne geophysics survey on 4 December 2023. The survey is expected to take two weeks to complete, with the final data processing and delivery of products anticipated for Q1 2024.
Program objectives
Kavango is currently re-processing data from airborne geophysical surveys already completed by ENRG on PL203/2016 and PL127/2017.
The Company will combine this re-processed data with data from the new NRG surveys to test its working theory that the copper/silver prospective geological and geophysical features, which it interpreted from ENRG’s existing airborne geophysics survey data, extend onto Kavango’s Block 1A and Block 1B licences. Kavango’s geologists and geophysicists believe this could be indicative of a regional copper mineralizing system.
Kavango’s geologists wish to examine whether the stratigraphy and lithology they have begun to map on the former ENRG PLs extend on to these Blocks. They believe that ENRG’s existing data conforms to sequences in the lower D’Kar Formation seen across other parts of the KCB.
The models in Figures 2 and 3 below depict the type of fold geometry and structural trap-sites Kavango believes to underlie areas of Block 1A and 1B.
Figure 2 is a modified version of the fold geometry, showing a “preserved” as opposed to “un-roofed” dome, as well as associated mineralisation present in the fold closure at Khoemacau’s North East Fold (“NEF”) deposit on the nearby Banana Zone. Figure 3 is a schematic cross-section showing both the shear-hosted mineralisation and dilational vein-hosted mineralisation present in Sandfire Resources’ (ASX:SFR) A4 deposit.
Kavango believes there may be scope for either or both models to be present and is optimistic the NRG survey will identify these for further ground geophysics and future drill targeting.
Figure 2 – Regional to deposit scale geologic controls on copper silver mineralisation in the KCB – Wes Hall et al, SEG, Special Publication, no 21, pp207-236
Figure 3 – Schematic cross-section showing high-grade intersection in drill hole MO-A4-003D, interpreted geology, and the mineralisation styles across Sandfire’s A4 deposit
The magnetic component of the NRG Survey will map the structure and lithology of Block 1A and Block 1B. It is anticipated that the EM component of the NRG Survey will highlight prospective subtle conductors within the D’Kar Formation and help identify structural trap sites linked to folds, faults, and shears within Block 1A and Block 1B.
The gravity component of the NRG Survey will seek to identify whether the sub-basin identified in ENRG’s data extends into Kavango’s Block 1A. Kavango believes the margins of this sub-basin could provide priority targets for trap site development and deposit formation.
Kavango will interpret these airborne geophysical data with the goal of identifying target areas for ground geophysical follow-up, which will then lead to drill target identification.
Further information in respect of Kavango and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Broker)
Jason Robertson
+44 207 374 2212
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to 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.
#KAV Kavango Resources Plc – Publication of Prospectus
Further to the announcement of 9 May 2023 in which Kavango announced it had conditionally raised £6,000,000 before expenses by the two stage issue of 600,000,000 new ordinary shares of £0.001 each in the capital of the Company (the “New Ordinary Shares”) at a price per share of 1.0 pence, the Company is pleased to announce that the Financial Conduct Authority has approved its prospectus dated 26 October 2023 (the “Prospectus”) issued in connection with the Stage 2 Subscription of 460,000,000 New Ordinary Shares (the “Stage 2 Subscription Shares”).
The Prospectus has been published in electronic form and will shortly be available on the Company’s website at:
https://www.kavangoresources.com/investor-relations/admission-document
A copy of the Prospectus has also been submitted to the National Storage Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Admission and Total Voting Rights
Application will be made for the Stage 2 Subscription Shares to be admitted to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (“Admission”). It is expected that Admission will become effective and that dealings in the Stage 2 Subscription Shares will commence at 8.00 am on 31 October 2023.
Following Admission, the total issued share capital of the Company will consist of 1,305,569,314 ordinary shares. Therefore, the total number of voting rights in the Company is 1,305,569,314 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on X at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney bturney@kavangoresources.com
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson
#KAV Kavango Resources PLC – KCB – Agreement to acquire six new PLs
Kavango Resources plc (LSE:KAV), the Southern Africa-focused metals exploration company, is pleased to announce that it has entered an agreement with Global Exploration Technologies (Pty) Limited (“GET”), a wholly owned subsidiary of ENRG Elements (ASX:ENRG) (“ENRG”) to acquire a 90% working interest in six Prospecting Licences (“PLs”) located in Botswana’s Kalahari Copper Belt (“KCB”) (the “Acquisition”).
The PLs cover ground adjacent to Kavango’s existing Karakubis Block next to the Namibian border, currently the priority focus in its KCB copper/silver exploration programme. The PLs are also adjacent to the Company’s South Ghanzi block in the KCB, giving Kavango a single, contiguous project area to explore.
Kavango is particularly keen to test the combined potential of PL049/2020, PL052/2020 (in the Karakubis Block) and PL203/2016 (within the area to be acquiredand satisfaction of certain other conditions). The Company believes these three PLs cover a single regional system that incorporates notable domal structures, which are key exploration targets in the search for large-scale copper/silver mineralisation.
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“The new licences join up our Karakubis and South Ghanzi blocks, providing us with a contiguous, highly prospective system to explore along strike from major discoveries such as Sandfire Resources’ (ASX:SFR) T3 deposit and Khoemacau Copper Mining’s Zone 5 deposit.
We now have uninterrupted control of the single system in this portion of the Kalahari Copper Belt (KCB). We believe today’s acquisition significantly increases our chances of making a discovery here. We will push ahead in the KCB, by reviewing exploration data for the new licence areas and the results of our recently completed IP surveys at the Karakubis project area. Our goal is to identify high-confidence drill targets to pursue in Q1 next year.
With completion of the Purebond financing imminent, we are in an extremely strong position to execute our ambitious plans.”
Figure 1: Map of Kavango’s KCB landholding
Next steps in the KCB
Recent work by Kavango has included 30km of Induced Polarisation (“IP”) survey lines over targeted areas within its Karakubis group of licences.
Kavango is, in conjunction with David Catterall, an expert on the KCB, completing a review of all available data for both Kavango’s previous and these six new licences. Kavango has also recently appointed a new Exploration Manager for Botswana, Mr Leon de Waal, who will be leading the KCB work. Kavango’s goals over the coming months are:
1. To “level up” its exploration data coverage across its entire KCB holdings and,
2. To identify potential sulphide bodies that will be ranked as targets for future drilling (announced >>> 25 July 2023).
The current “levelling-up” programme has been designed to field test a new geological interpretation. Kavango believes it has successfully identified the lower D’Kar/Ngwako Pan Formations, the contact of which is known to host the majority of copper-silver mineralisation elsewhere within the Kalahari Copperbelt, over PL036/2020, PL049/2020 & PL052/2020. The field mapping on PL036/2020 has effectively extended the area underlain by the lower D’Kar Formation and for which 5,054 samples have been collected.
Kavango believes the lower D’Kar Formation it has mapped across PL049/2020 & PL052/2020 (in the Karakubis Block) extends into PL203/2016 (which Kavango has now acquired), where pathfinder minerals galena and sphalerite have been observed in historic drill chips.
Preliminary modelling of Kavango’s recent IP survey data across an AEM target on PL049/2020 has already highlighted prospective domal structural trap sites (announced >>> 25 July 2023) for future drill targeting.
Acquisition terms
Kavango has agreed to acquire a 90% working interest in the six PLs by acquiring 90% of the issued shares of Icon Trading (Pty) Ltd (“Icon”) and Ashmead Holdings (Pty) Ltd (“Ashmead”), two subsidiary companies of GET.
Kavango shall have exclusive right to appoint directors to the board of both Icon and Ashmead.
To complete the Acquisition, Kavango will pay GET a total of AUD$2.5 million in cash in the three following instalments:
– AUD$1.5 million on the completion of the Acquisition
– AUD$500,000 90 days after the completion of the Acquisition
– AUD$500,000 180 days after the completion of the Acquisition
The names of the PLs, along with their existing owner, status, and expiry date, can be found in Figure 2 below.
|
PL Number |
Company |
Status |
Expiry Date |
|
PL127/2017 |
Ashmead Holdings (Pty) Ltd |
2nd Renewal |
30/06/2024 |
|
PL128/2017 |
Ashmead Holdings (Pty) Ltd |
2nd Renewal |
30/06/2024 |
|
PL129/2017 |
Ashmead Holdings (Pty) Ltd |
2nd Renewal |
30/06/2024 |
|
PL203/2016 |
Icon Trading (Pty) Ltd |
3rd Renewal |
30/09/2025 |
|
PL204/2016 |
Icon Trading (Pty) Ltd |
3rd Renewal |
30/09/2025 |
|
PL205/2016[1] |
Icon Trading (Pty) Ltd |
3rd Renewal |
30/09/2025 |
Figure 2: Details of the GET PLs
The agreement will complete on the receipt of necessary permissions in Botswana on or after 30 OCtober 2023 and satisfaction of certain other conditions.
Under the terms of the transaction, Kavango will assume the benefit of the outstanding intercompany loans for historic exploration onto its balance sheet. Icon and Ashmead will retain ownership of all historic exploration data gathered by them.
Financing update
Kavango continues to finalise the circular and prospectus for the forthcoming Stage 2 financing with Purebond (announced >>> 09 May 2023 for £4.6million at 1p per share). The Company expects to publish the Circular in the coming days and call the general meeting to seek approval from independent shareholders of a waiver in accordance with Rule 9 of the Takeover Code (Whitewash) in relation to this transaction.
In the event there is a delay in completing the Stage 2 financing, Purebond has indicated to Kavango’s board its readiness to lend the Company sufficient funds to complete the Acquisition.
Further information in respect of Kavango and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status. Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
#KAV Kavango Resources PLC – Corporate update & expiry of warrants
Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals exploration company, is pleased to provide the following corporate update.
Progress with new acquisition
Kavango confirms it is in late-stage discussions for a potential exclusive 2-year option to acquire a gold exploration and development project in Zimbabwe (the “Option”). The project area covers a number of contiguous gold claims over a 3.4km strike that has supported historic high-grade underground mining and more recent surface small-scale mining op(the “Project Area”).
The Project Area has never been explored using modern methods or technology. Provisional terms of the Option would allow Kavango to perform unrestricted field due diligence (exploration and drilling), ahead of deciding whether to exercise the Option.
Kavango has completed extensive preliminary due diligence ahead of negotiating the Option, including two field visits to the Project Area.
Potential £6,000,000 conditional equity investment into Kavango
In parallel to the new acquisition discussions, Kavango has been in discussions with a single investor concerning a possible £6,000,000 conditional equity investment into the Company via a non-brokered direct subscription (the “Proposed Subscription”).
Should terms be finalised and agreed, the Company expects to complete the Proposed Subscription at 1p per share. Full completion of the Proposed Subscription would be subject to (i) approval by the Financial Conduct Authority of a prospectus; (ii) approval by shareholders of a waiver in accordance with Rule 9 of the Takeover Code; and (iii) the Company having the necessary authorities to issue the subscription shares.
Expiry of April 2020 warrants
On 15 April 2020, Kavango announced a £358,000 placing and subscription (the “April 2020 Placing”). As part of the April 2020 Placing, the Company issued “A” and “B” warrants on a 3-year term. All unexercised “A” and “B” warrants have now expired.
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.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) (“UK MAR”). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
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 (Broker)
+44 207 374 2212
Jason Robertson
#KAV Kavango Resources PLC – Annual Financial Report Published
Kavango Resources plc (LSE:KAV) announces that the Annual Report and Accounts for the year ended 31 December 2022 is now available to download from the Company’s website:
http://www.kavangoresources.com/investor-relations/financial-reports
In accordance with DTR 6.3.5(1A), the unedited full text of the regulated information required to be made public under DTR 4.1 is contained within the 2022 Annual Report and Accounts which has been uploaded to the National Storage Mechanism and is available for inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Further information in respect of Kavango and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
bturney@kavangoresources.com
First Equity (Broker)
+44 207 374 2212
Jason Robertson
#KAV Kavango Resources PLC – Ditau Core Review
Kavango Resources plc (LSE:KAV) (“Kavango”), the Southern Africa focussed metals exploration company, is pleased to announce completion of relogging of drillhole DITDD004 at the Ditau Project.
CORE REVIEW RESULTS
· Relogging of Hole DITDD004 complete, following the recent recommendations from Dr. Hamid Mumin (>>> announced 06 March 2023) who has proposed a possible Banded Iron Formation (BIF) Hosted Lode Gold system at Ditau.
· Hole DITDD004 was drilled to test the i10 Target.
· Key observations from relogging of Hole DITDD004 include:
· Localised brecciation of the BIF has enhanced permeability, allowing passage of sulphide and gold bearing fluids.
· The previously reported gold assays (>>> announced 14 October 2022) are seen to coincide with the presence of fine pyrite in the BIF.
· The association of pyrite with the gold, typical in gold deposits, is useful confirmation of some of the characteristics of the Ditau mineralisation. These characteristics will then be targeted in the next stage of exploration.
· Kavango is developing a working hypothesis that some of the sediments above the BIF may be of Proterozoic age, rather than of the much younger Karoo age sediments.
· If this is the case, then mineralising fluid flow could also have taken place through these.
· Proterozoic age BIFs, such as at Ditau, can be associated with Lode Gold systems.
Brett Grist, Chief Operations Officer of Kavango, stated,
“Dr. Hamid Mumin’s report has highlighted the gold potential at Ditau and proposed a new deposit model. Relogging of the core by Kavango has identified a number of features that could be consistent with this. We look forward to logging the additional drillholes we’ve identified over the I10 Target at the end of this month and using the results to expand our exploration program.”
NEXT STEPS
· Additional core samples have been taken and will be sent to a laboratory in Canada for additional assays.
· Up to 24 samples are also being sampled for petrological work under the supervision of Dr. Mumin, aimed at further enhancing Kavango’s understanding of the mineralisation style prior to future drilling.
· Kavango is preparing a geophysical survey program at Ditau, which is likely to include Induced Polarisation (IP) surveys targeting pyrite as a proxy for gold.
· The IP survey will initially be run over already identified mineralisation, to trace the wider extension over the i10 Target area.
· Kavango has been given permission to relog two additional diamond drill holes located over the i10 Target area, which were drilled by another company.
· The Botswana Geoscience Institute (BGI) has provided approval for Kavango to take and analyse samples from these holes.
Kavango Resources plc
Ben Turney
bturney@kavangoresources.com
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status. Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Vox Market Podcast – CEO Alan Green talks about Warpaint London, Harland & Wolff & Kavango Resources
Alan Green, CEO of Brand Communications covers news from the following companies:
#W7L Warpaint London
#HARL Harland & Wolff
#KAV Kavango Resources
#KAV Kavango Resources Director/PDMR Shareholding
KAVANGO RESOURCES PLC
(“Kavango” or “the Company”)
Director Dealings
The information below, set out in accordance with the requirements of the UK Market Abuse Regulation, provides detail on the transactions.
Peter Wynter Bee and Ben Turney are both Persons Discharging Managerial Responsibilities (“PDMRs”) for the purposes of the Market Abuse Regulation (“MAR”).
| 1 | Details of PDMR/person closely associated with them (“PCA”) | |||||
| a) | Name | Wynter Bee Resources Ltd | ||||
| 2 | Reason for the notification | |||||
| a)
|
Position/status
|
Wynter Bee Resources Ltd is a PCA of Peter F Wynter Bee, non-executive director, who holds an interest in 25% of the PCA
Sarah J Wynter Bee, wife and PCA of Peter Wynter Bee, also holds an interest in 25% of Wynter Bee Resources Ltd |
||||
| b) | Initial notification /Amendment | Initial Notification | ||||
| 3
|
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
| a) | Name | Kavango Resources PLC | ||||
| b) | LEI | 2138007PZJFATXWUTS29 | ||||
| 4
|
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||
| a)
|
Description of the financial instrument, type of instrument | Ordinary shares | ||||
| Identification code | ISIN: GB00BF0VMV24 | |||||
| b) | Nature of the transaction | Acquisition of shares | ||||
| c)
|
Price(s) and volume(s) | |||||
| Price(s) GBPX | Volume(s) | |||||
| 1.6p | 2,000,000 | |||||
| d)
|
Aggregated information
-Aggregated Volume -Price |
N/A |
||||
| e) | Date of the transaction | 16 January 2023 | ||||
| f) | Place of the transaction | London Stock Exchange | ||||
| 1 | Details of PDMR/person closely associated with them (“PCA”) | |||||
| a) | Name | Ben Turney | ||||
| 2 | Reason for the notification | |||||
| a)
|
Position/status
|
CEO | ||||
| b) | Initial notification /Amendment | Initial Notification | ||||
| 3
|
Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
| a) | Name | Kavango Resources PLC | ||||
| b) | LEI | 2138007PZJFATXWUTS29 | ||||
| 4
|
Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted | |||||
| a)
|
Description of the financial instrument, type of instrument | Ordinary shares | ||||
| Identification code | ISIN: GB00BF0VMV24 | |||||
| b) | Nature of the transaction | “Bed and ISA” –
a) Sale of shares from nominee account b) Repurchase into ISA |
||||
| c)
|
Price(s) and volume(s) | |||||
| Price(s) GBPX | Volume(s) | |||||
| a) Sale 1.5p
b) Purchase 1.51p |
1,566,600
1,566,600 |
|||||
| d)
|
Aggregated information
-Aggregated Volume -Price |
N/A |
||||
| e) | Date of the transaction | 16 January 2023 | ||||
| f) | Place of the transaction | London Stock Exchange | ||||
#KAV Kavango Resources Plc – KCB – Drilling to restart at PL082
Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce that drilling is about to restart on the Company’s Kalahari Copper Belt (“KCB”) project area following a scheduled summer break.
HIGHLIGHTS
– Hole KCBRD006
o Kavango will recommence drilling on the sixth and final hole in the current drilling programme on prospecting licence (“PL”) PL082/2018 this weekend
o Upon completion, the Company expects to have drilled around 1,640m in the programme, exceeding its original guidance
– KCBRD006 is targeting a major stratigraphic structure identified by its Controlled-Source Audio MagnetoTelluric (“CSAMT”) surveying
o Kavango has interpreted the CSAMT data as indicating the presence of a D’Kar/Ngwako Pan horizon contact. This is the primary control for economic copper/silver mineralisation in the KCB
§ The Company’s analysis identifies this as a continuation of the horizon hosting Sandfire Resources’ (ASX:SFR) neighbouring Kronos copper target zone
o Physical confirmation of the contact’s presence will validate the Company’s use of CSAMT as a KCB exploration tool
Ben Turney, Chief Executive Officer of Kavango Resources, commented: “Through our innovative use of CSAMT, Kavango has identified major structures for the first time on our KCB licences. Our ongoing drill programme has subsequently confirmed these to be associated with deformation, fluid flow, and alteration. This could be a game changer in exploration for a new generation of drill targets on the KCB. Given the large size of our KCB licence package, Kavango is currently working to optimise and prioritise these. Our COO Brett Grist is presently in Botswana with our senior consultants, the results of which work are expected to refine our 2023 KCB exploration strategy.”
KCBRD006 details
Kavango began drilling KCBRD006 in December 2022 and following a scheduled break in its ongoing PL082/2018 drilling campaign is about to continue the hole to completion. The Company expects to have drilled approximately 1,640m over six holes once the hole completes, exceeding the 1,250m it originally planned (announced >>> 11 October 2022). To date, 1,211.97m have been drilled.
Kavango is using KCBRD006 to target a D’Kar/Ngwako Pan horizon contact interpreted from the inversion results of its Line 4A CSAMT survey on PL082/2018 (announced >>> 16 December 2022) , and from a survey on Line 6A.
Line 4A was extended beyond the licence boundary to the southeast and onto ground held by Sandfire Resources (ASX:SFR). This ground hosts the Kronos copper target zone (“Kronos”), which is known to lie at a D’Kar/Ngwako Pan horizon.
Kavango’s interpretation of the inversion shows that the horizon hosting Kronos extends over the licence boundary and across PL082/2018 as a syncline. With KCBRD006, the Company is testing for favourable host geology associated with resistivity highs related to this interpreted Ngwako Pan horizon.
KCBRD006 is being drilled on the northwest edge of PL082/2018, which the Company has interpreted as a limb of the syncline where it rises towards the surface. Targeting the horizon on its shallowest interpreted zone enables Kavango to physically confirm its presence in the quickest and most cost-effective way possible.
Kavango commenced KCBRD006 using the Reverse Circulation (“RC”) technique with a multi-purpose rig. This approach permits a cost-effective start to drilling the hole. Drilling is being completed using the Diamond Core technique to provide a higher quality of data for analysis.
KCBRD006 is being drilled approximately 250m to the south-southwest of the last hole in Kavango’s PL082/2018 drill programme, KCBRD005. This was the first hole to be targeted principally using CSAMT and encountered an intense zone of brecciation and shearing intermittently from 379m to the end of hole at 497.55m. Kavango drilled to the end of the brecciated zone to act as a control for future use and interpretation of CSAMT.
Figure 1: Highly sheared core from bottom of hole KCBRD005; this coincides with the deformed zone seen on the CSAMT
This brecciation coincides with a steeply south-southeast dipping structure interpreted from the CSAMT inversions as a ‘strain breccia zone’, partially validating the CSAMT method in this part of the KCB.
Alteration fluids can pass through brecciated zones and deposit metal ions. When this takes place in the vicinity of the favourable Ngwako/D’Kar Pan contact, these ions can accumulate and form deposits due to reductive conditions.
Kavango will publish full drill results at the end of the campaign, once all data has been processed.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
bturney@kavangoresources.com
First Equity (Broker)
+44 207 374 2212
Jason Robertson
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status. Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
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 to 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.
#KAV Kavango Resources Plc – Publication of Prospectus
Further to the announcement of 24 October 2022 in which Kavango announced it had conditionally raised £3,000,000 before expenses by the issue of 166,666,660 new ordinary shares of £0.001 each in the capital of the Company (the “New Ordinary Shares”) at a price per share of 1.8 pence, the Company is pleased to announce that the Financial Conduct Authority has approved its prospectus dated 18 November 2022 (the “Prospectus”) issued in connection with:
– the placing of 158,555,555 New Ordinary Shares (the “Placing Shares”);
– the subscription of 8,111,105 New Ordinary Shares (the “Subscription Shares”);
– the issue of 60,000,000 New Ordinary Shares to Power Metal Resources PLC (further to the announcement of 8 July 2022) (the “Kanye Consideration Shares”);
– the issue of 2,000,000 New Ordinary Shares to LVR GeoExplorers (Pty) Ltd (further to the announcement of 16 September 2022) (the “LVR Shares”);
– the issue of 13,478,951 New Ordinary Shares to Mindea Exploration and Drilling Services (Pty) (further to the announcement of 10 June 2021) (the “Fee Shares”); and
– admission of the enlarged share capital and up to 395,918,682 New Ordinary Shares.
The Prospectus has been published in electronic form and will shortly be available on the Company’s website at:
https://www.kavangoresources.com/investor-relations/admission-document
A copy of the Prospectus has also been submitted to the National Storage Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Warrants
In connection with the publication of the prospectus and as announced by the Company previously, the following warrants have been issued, subject to Admission:
· 166,666,660 warrants to the placees and the subscribers of the placing and subscription announced on 24 October 2022, as applicable, and 27,777,777 warrants to Arigo Capital Limited, as announced on 25 October 2022. The warrants are exercisable at 3p per share for a term of 24 months from the date of issue. These warrants are conditional upon the approval of shareholders and details of a general meeting at which such approval will be sought will be sent to shareholders in the near future.
· The issue to Power Metal Resources PLC of the following:
o 30,000,000 warrants at an exercise price of 4.25p per share for a period of 30 months from 8 July 2022;
o 30,000,000 warrants at an exercise price of 5.5p per share for a period of 30 months from 8 July 2022; and
o 15,000,000 variable price warrants (“VP Warrants”) with a six-month life to expiry, with a minimum exercise price of 3p and an actual exercise price at a 15% discount to the volume-weighted average share price on the date of exercise per share. Should all VP Warrants be exercised by 8 January 2023, Power Metal Resources PLC will receive 15,000,000 replacement warrants, on the same exercise terms and with a 12-month life to expiry from the issue date.
· 2,000,000 warrants to LVR GeoExplorers (Pty) Ltd, exercisable for two years from the date of issue and with an exercise price of 8.5p per share.
· 8,333,334 warrants to Tamesis Partners LLP, exercisable for two years from the date of issue and with an exercise price of 3p per share.
Admission and Total Voting Rights
Application will be made for the Placing Shares, the Subscription Shares, the Kanye Consideration Shares, the LVR Shares and the Fee Shares to be admitted to the Standard List segment of the Official List and to trading on the main market of the London Stock Exchange plc (“Admission”). It is expected that Admission will become effective and that dealings in the Placing Shares, the Subscription Shares, the Kanye Consideration Shares, the LVR Shares and the Fee Shares will commence at 8.00 am on 25 November 2022.
Following Admission, the total issued share capital of the Company will consist of 705,569,314 Ordinary Shares*. Therefore, the total number of voting rights in the Company is 705,569,314 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest, in the share capital of the Company.
*This figure is inclusive of the 27,777,777 shares which are being admitted on 30 November 2022, as announced on 25 October 2022.
Further information in respect of the Company and its business interests is provided on the Company’s website at www.kavangoresources.com and on Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
bturney@kavangoresources.com
+46 7697 406 06
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson