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Kavango Resources #KAV – KCB – CSAMT Kronos calibration & drill expansion
Botswana focussed metals exploration company Kavango Resources plc (LSE:KAV) (“Kavango”) is pleased to announce the Company has interpreted inversion results from the Controlled-Source Audio Magnetotelluric (“CSAMT”) Line 4A survey (“Line 4A”), which extended over Sandfire Resources’ (ASX:SFR) Kronos copper target zone (“Kronos”).
Kavango successfully identified the D’Kar/Ngwako Pan contact at Kronos from surface using CSAMT.
By using a known copper occurrence in the vicinity of PL082/2018, Kavango has developed an important control in its calibration of its CSAMT technology in the KCB. Subsequent interpretation of the Line 4A CSAMT data has encouraged the Company’s technical team to expand the current drill programme beyond the1,250m originally planned.
Further updates on progress and upgraded targeting will be made in the New Year.
Highlights
· Line 4A CSAMT results overview
§ Kronos occurrence identified clearly as sedimentary beds that dip shallowly to the northwest across the PL082/2018 licence border
§ Key D’Kar/Ngwako Pan formational contact pinpointed <200m from surface at Kronos
§ The key D’Kar/Ngwako Pan contact can be traced onto Kavango’s licence, where is follows a syncline and dips back towards surface near the northwest edge of the licence.
§ Kavango is confident similar results can be replicated across the KCB
§ Results reviewed by an independent third party with regional KCB geology experience
§ Results shared with Sandfire Resources and positively received
· Drilling programme update
§ Drill programme to be extended, final meterage to be confirmed
§ Drill programme to continue to Christmas break and recommence in New Year
§ Cores and rock chip samples currently being logged and interpreted to assess potential vectors indicating the proximity of a potential mineralising system
§ Kavango to use newly acquired CSAMT and Airborne Electromagnetic (“AEM”) data to refine next phase of drill targets
Jeremy S. Brett, Senior Geophysical Consultant to Kavango Resources, commented:
” The Line 4A CSAMT results represent a technical breakthrough for Kavango. The successful imaging of the D’Kar/Ngwako Pan contact at the Kronos occurrence should allow us to develop CSAMT as a powerful exploration tool in our exploration for copper/silver mineralisation in the Kalahari Copper Belt.
CSAMT appears to identify the contact between the low resistivity D’Kar formation rocks and the substantially more resistive Ngwako Pan formation. When combined with AEM, which is routinely deployed in the KCB, there appears to be tremendous potential that these are very complementary electromagnetic systems. We now believe that AEM conductors within the D’Kar can be distinguished from the highly desired conductors at the Ngwako Pan contact. Our goal is to test this theory with drilling.
If proved to be successful, Kavango’s CSAMT method could save a lot of drilling metres and allow for the evaluation of the fold structures within the KCB in section, thereby determining the depth to the critical Ngwako Pan contact
Based on the technical success of the combined CSAMT and AEM results so far on PL082 and our ongoing interpretation of what we have already seen in drilling, Kavango has decided to extend the current drill programme into the New Year to continue to refine the application of this new method. This new tool will continue to develop. ”
Line 4A CSAMT detailed results
Line 4A was extended beyond the boundary of PL082/2018 to the southeast and onto Sandfire ground that hosts the Kronos occurrence, with the permission of Sandfire Resources (ASX:SFR). As Kronos is known from historical drilling to lie at the D’Kar/Ngwako contact zone, Kavango’s objective was to use the target zone as a known geology calibration point for the CSAMT to confirm the D’Kar / Ngwako Pan contact signature on PL082/2018.
Data from Line 4A highlighted a very distinct, shallowly to moderately dipping geological folded zone within PL082/2018 known as a “syncline”, defined as folded sediments dipping southeast and northwest towards a central axis. Steeply dipping brittle faults cross this syncline structure.
Kavango has now received inversions for CSAMT data acquired over a total of 4 lines on PL082/2018, each showing this same syncline fold structure.
Kronos is defined clearly on Line 4A as sedimentary beds that dip shallowly to the northeast across the Kavango licence boundary, continue across PL082 as deep as 650m, then dip back up towards the surface on the Northwest limb of the identified syncline.
Kavango interpreted the inversion as a signature for the presence of the crucial D’Kar/Ngwako Pan formational contact from the Kronos target zone to the northwest edge of PL082/2018. This formational contact is the primary control for economic copper/silver deposits across the KCB. Kavango is currently considering a new drill hole to target this specific horizon, as it could represent a significant strain breccia zone that may have acted as a conduit for fluid alteration.
Figure 1: Line 4 CSAMT inversion, viewed northeast, showing interpreted continuation of shallowly northwest dipping sedimentary beds, hosting Sandfire’s Kronos occurrence, that propagate onto Kavango’s PL082 licence in the KCB. There is clear resolution of a syncline with significant cross faults that could act as fluid conduits. The sediments dip back towards surface on the northwest ends of the syncline, on Kavango’s licence.
The inversions from Line 4A have greatly exceeded Kavango’s expectations. They provide verification of CSAMT surveys as an exploration tool in the KCB, showing that critical D’Kar -Ngwako Pan contact should be resolvable on the Company’s licences.
Another key observation from Line 4A was of prominent brittle structures crossing the folded sediments of the synform on PL082, originating from several kilometres in depth and propagating to the near surface. These have been interpreted as probable conduits for hydrothermal fluids and alternation that could potentially lead to mineralisation at the Ngwako Pan contact.
Next steps
The northwest edge of the syncline on PL082/2018, as elucidated by Line 4A, has been initially tested with Hole KCBRD005, which was originally sited on the basis of surface geochemical soil anomalies.
The CSAMT results from Line 4A suggest that the Company is targeting a priority structure, in line with the Company’s existing drill strategy for PL082/2018 (announced >>> 20 October 2022). A probable folded and brecciated zone was encountered in Hole KCBRD005, at the c.350m depth indicated by the interpretation of the Line 6A CSAMT inversion. Kavango has therefore engaged a KCB experienced local geological contractor to re-log and analyse cores and rock chip samples taken from the first phase of drilling.
Kavango’s aim with the relogging is to confirm the presence of physical and geochemical exploration vectors that could indicate the proximity of a potential mineralising system to the recent drilling. The Company believes this work will assist it in deciding its next drill target location.
The Company’s KCB drill programme will pause shortly for the Christmas holiday and continue in the New Year on a new exploration hole.
Should core relogging confirm the Company’s current understanding of what it has encountered in Hole KCBRD005, it is likely the next exploration hole will be targeted on the basis of (i) proving that the inverted CSAMT data is effective in identifying the D’Kar/Ngwako Pan contact on the northwest limb of the syncline, (ii) verifying interpreted fault structures, and (iii) determining if these targets are altered and mineralized.
Kavango’s technical team will continue to work on processing and interpreting previously and newly acquired CSAMT and AEM data across its portfolio of KCB prospecting licences to assist with improved target resolution.
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
+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 mineralization 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
KAVANGO’S INTERESTS IN THE KALAHARI COPPER BELT
Kavango’s exploration licences in the KCB include:
Kanye Resources
100% working interest (in 10 prospecting licences, which cover 4,256km2.
The LVR Project / Shongwe Resources
A 90% interest in prospecting licences PL082/2018 & PL 083/2018, held in a Joint Venture, Shongwe Resources, with LVR GeoExplorers (Pty) Ltd (“LVR”), which cover 809km2.
THE KCB PROJECT GEOLOGICAL SETTING
Kavango’s KCB 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 synclines.
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 redox boundaries (sometimes for many kilometres) because they often contain iron and have a higher magnetic signature than the surrounding rock. These have recently been successfully mapped by Kavango’s exploration teams.
Power Metal Resources #POW – Botswana Kalahari Copper Belt – Exploration Commences
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the commencement of exploration at the Kalahari Copper Belt Joint Venture (“KCB JV”) with Kavango Resources plc (LON:KAV)( “Kavango”).
HIGHLIGHTS
· The KCB JV includes two prospecting licenses prospective for copper and covering 1,294.2km2, situated in the Kalahari Copper Belt in central west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries. Power Metal has a 50% interest in the KCB JV.
· Exploration now underway in the KCB JV will initially focus on soil sampling and geophysics to identify dome structures that are known to host potential copper deposits.
· Geology of the area is well known and the JV will work quickly towards test drilling of shallow targets, once it has been able to develop a geological model.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“Power Metal is seeing a number of its projects launch exploration programmes and it is particularly positive to see the expeditious launch of exploration at the KCB JV in Botswana which is targeting a large scale copper-silver discovery.
The KCB JV is following an efficient, disciplined and methodical approach designed to build a geological model that can be tested through drilling at the earliest opportunity.
I look forward to providing further updates on this exploration programme.”
FURTHER INFORMATION:
Prospecting licences on the KCB
The KCB JV Project is located within an area of newly discovered sediment-hosted copper deposits, such as Cupric Canyon’s Zone 5 deposit and MOD’s T3 deposit, both of which are now being developed as mining operations. The KCB extends 1,000km by 250km from NE Botswana to central Namibia.
The KCB JV covers 1,294km2 over two prospecting licences, PL036/2020 and PL037/2020. These lie in a highly prospective area immediately south of the district capital of Ghanzi and are along strike to the west of Sandfire Resource’s T3 and A4 Dome copper-silver discoveries.
The position of the KCB JV prospecting licences can be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/p/226/kalahari-copper-belt-project
The KCB soil-sampling programme
Exploration across the Company’s interests in the KCB will initially focus on soil sampling and ground based geophysics, using Controlled-source audio-frequency magnetotellurics (“CSAMT”) to identify dome structures that are known to host potential copper deposits.
For the initial orientation programme, soil samples are being taken at 100m intervals on lines 4km apart. The first sample lines are intended to map out the soil geochemistry across undeformed sequences of the late Proterozoic Ghanzi Formation sediments.
Samples are being collected and sieved in the field and transported back to Kavango’s base camp to be tested for metal elements with a portable Niton X-ray Fluorescence Analyser (“XRF”).
Sieved samples reserved for check analysis (or duplicates) and for comparison will be sent for laboratory assay analysis to an accredited laboratory in South Africa.
Initial results are expected in Q4 2020
Geophysical surveying
Kavango’s geophysical team have identified a number of deformation zones within the KCB licences, which will be followed up once the orientation sampling has been completed.
Ground magnetic surveying will be conducted at 25m intervals over the deformation zones to supplement the regional data. This will be supplemented by CSAMT surveying over structural/geochemical anomalies.
If results warrant, an Airborne Electromagnetic (“AEM”) survey will be considered.
Project Drilling
Geology of the area is well known and the JV partners will work quickly towards test drilling of shallow targets, once it has been able to develop a geological model.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, 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.
REGULATORY STATEMENT
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
CONTACT INFORMATION
For further information please visit https://www.powermetalresources.com/ or contact:
| Power Metal Resources plc | |
| Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
| SP Angel Corporate Finance (Nomad and Joint Broker) | |
| Ewan Leggat/Charlie Bouverat | +44 (0) 20 3470 0470 |
| SI Capital Limited (Joint Broker) | |
| Nick Emerson | +44 (0) 1483 413 500 |
| First Equity Limited (Joint Broker) | |
| David Cockbill/Jason Robertson | +44 (0) 20 7330 1883 |
NOTES TO EDITORS
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.
Power Metal Resources #POW Establishes A New Strategic Joint Venture In Botswana
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to announce the acquisition of a 50% interest in a 2,680 km2 portfolio of base and strategic metal project interests in Botswana (the “Acquisition”) to be held in a new strategic joint venture holding company further details of which are provided below.
BACKGROUND
On 15 April 2020 Power Metal and Kavango Resources plc (LON:KAV)(“Kavango”) announced a conditional acquisition agreement in respect of the Ditau Camp project in Botswana, held 100% by Kavango.
In recent months the companies have been involved in discussions, the outcome of which is a new strategic joint venture (“JV”) agreement to create a new joint exploration company, with the objective of floating the company as a Botswana-focused vehicle on a major stock exchange in 2021.
HIGHLIGHTS
– Power Metal to acquire a 50% interest in four Botswana prospecting licenses currently 100% owned by Kavango and forming a new JV between the companies.
– Two prospecting licenses prospective for copper and covering 1,294.2km2 are situated in the Kalahari Copper Belt in central west Botswana located directly to the southwest of Sandfire Resources’ T3 and A4 Dome copper-silver discoveries;
– Two further licenses comprise the Ditau Camp project covering 1,386km2 and prospective for rare earths in south west Botswana;
– Consideration for the acquisition payable to Kavango comprises £75,000 in cash, 6 million new ordinary shares of 0.1 pence each in the Company (“new Ordinary Shares”) at a price of 1.25p each and 5 million Power Metal warrants at 2.0p with a two year life to expiry and in the event of early exercise of 2.0p warrants, replacement warrants at 5.0p;
– In addition, Power Metal commits to sole funding of US$150,000 over a two year period for exploration expenditure across the Ditau Camp and Kalahari Copper Belt projects to ensure expeditious and proactive project exploration with any further expenditure above US$150,000 being funded jointly by Power Metal & Kavango;
– The four project licenses are to be held in a new Botswana private holding company, with an appropriate holding company structure to enable the possibility of the new vehicle to seek a listing on a Canadian or UK stock exchange in 2021.
Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:
“The new acquisition announced today is a significant development for Power Metal, adding further strategic metal projects into the business portfolio and in the secure, stable and supportive operating jurisdiction of Botswana. The acquisition also complements Power Metal’s interest in the Molopo Farms Complex project, which is seeking a large-scale nickel-platinum group metal discovery in Botswana, and where a maiden drill programme is planned.
We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration which we intend to undertake with our JV partners. Moreover, the addition of two key Kalahari Copper Belt licences brings the Company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries. Again, ground exploration is key, and we intend to be proactive.
It is a pleasure to be working with the Kavango team who have considerable operational experience and a commitment to finding a new large-scale metal discovery in Botswana. This commercially focussed outlook is what we share at Power Metal. We have found the two teams have complementary skills and intend to blend our resources in the search for a metal discovery.”
FURTHER INFORMATION:
Transaction Terms
Power Metal is to acquire a 50% interest in the two licenses comprising the Ditau Camp project (PL169/2012 and PL010/2019) and two licenses in the Kalahari Copper Belt (PL036/2020 and PL037/2020).
Consideration for the acquisition comprises payment to Kavango as follows:
– An immediate payment £75,000 in cash;
– The issue to Kavango of 6,000,000 Power Metal new Ordinary Shares at a price of 1.25p each, for value of £75,000 (the “Acquisition Shares”);
– The issue to Kavango of 5,000,000 warrants to subscribe for Power Metal new Ordinary Shares at a price of 2.0p each with a two year life to expiry from admission to trading on AIM of the Acquisition Shares (the “Acquisition Warrants”).
Should the Power Metal Volume Weighted Average Share Price (“VWAP”) meet or exceed a price of 7.5p for five consecutive trading days Kavango will then have 14 calendar days to exercise the Acquisition Warrants and make payment to Power Metal or the Acquisition Warrants will be cancelled.
Should Kavango exercise the Acquisition Warrants within 12 months of issue, they will receive replacement warrants to subscribe for Power Metal new Ordinary Shares at a price of 5.0p each with a two year life to expiry from admission of the Acquisition Shares (the “Super Warrants”).
Should the Power Metal VWAP meet or exceed a price of 10.0p for five consecutive trading days Kavango will then have 14 calendar days to exercise the Super Warrants and make payment to Power Metal or the Super Warrants will be cancelled.
Power Metal will pay the first US$75,000 toward Ditau Camp and KCB exploration spend within 12 months of today’s date and a further US$75,000 in the subsequent 12 months (the “Initial Spend”). Power Metal may at its sole discretion accelerate the Initial Spend into the first 12 months.
Kavango and Power Metal must pay their share of additional spend after the Initial Spend on Ditau Camp or the KCB licenses or will dilute their percentage interest in line with standard industry provisions.
Kavango and Power Metal will be joint operators.
The Ditau Camp and KCB projects will be transferred into a new private Botswana company which will be held 100% by a UK or overseas public company which will seek a listing on a Canadian or UK stock exchange targeting a listing in 2021.
Power Metal will provide a fund of up to £10,000 to cover the costs of the above corporate structuring which will be undertaken in line with local regulations for the licenses and the holding companies and which will seek regulatory approvals where relevant.
Kalahari Copper Belt Project (“KCB”)
The KCB stretches 1,000 km from northern Botswana to central Namibia and is prospective for copper-silver deposits. The KCB is relatively underexplored and is a key emerging trend globally, located in stable and pro-mining jurisdictions.
In recent years the KCB has attracted substantial exploration interest. This has resulted in significant copper-silver discoveries including:
Cupric Canyon’s Zone 5 deposit (“Zone 5”), which hosts a mineral resource of 91.7 million tonnes (“Mt”) grading at 2.1% copper and 14 grams a tonne (“g/t”) of silver.
MOD Resources’ and Metal Tiger’s (LON:MTR) commercial discovery at T3, which was subsequently acquired by Sandfire Resources (ASX:SFR) (“Sandfire”) in October 2019.
The T3 Project currently hosts a mineral resource of 60.2Mt grading at 1.0% copper and 14.0g/t silver and an Ore Reserve of 342,700 tonnes of contained copper and 14.6 million ounces (“Moz”) of silver.
Sandfire’s A4 Dome satellite discovery, which is located directly to the west of T3 and is subject to an ongoing resource drilling campaign.
Prior to applying for any Prospecting Licenses (“PLs”), Kavango undertakes extensive desktop and due diligence studies. In addition, Kavango analyses publicly available exploration data to enhance its geological and geophysical understanding of the area.
Kavango was granted two PLs, in April 2020 and which lie in a highly prospective area immediately south of the District capital of Ghanzi. The PLs covering a total of 1,294.2 km2 are as follows:
– PL 036/2020 – (590.20km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500) – currently 100% owned by Kavango
– PL 037/2020 – (704.00km2) for initially 3yrs to 31 March 2023 — Yr1 exploration expenditure BWP 548,000 (about £37,500) – currently 100% owned by Kavango
The JV plan to commence field work on the two KCB licenses shortly and will likely comprise both regional and detailed soil geochemistry. Planned work also includes a ground magnetic survey to refine the positions of the prospective geological contacts, below Kalahari sand cover, with the option of follow-on electromagnetic survey work to identify potential conductors associated with those contacts. Controlled-source audio-frequency magnetotellurics (“CSAMT”) surveying will be carried out over soil anomalies to define the stratigraphy, structures and mineralisation.
Drilling is planned by the JV partners when suitable targets have been identified.
Ditau Camp Project
Ditau comprises of two prospecting licenses (PL169/2012 and PL010/2019), which cover an area of 1,386km2. Surface prospecting work by Kavango has involved geochemical soil sampling and magnetic and gravity geophysical surveys. Analysis of results from this work, and pre-existing airborne magnetic geophysics data, has enabled the identification of 10 separate magnetic “ring structures” within the Ditau license area.
One of these ring structures is a 7km by 5km magnetic and gravity anomaly (the “Ditau Prospect”). In Q1 2019 Kavango conducted an initial 1,000m diamond drill programme at the Ditau Prospect across two holes, 1.8km apart.
Drill core assay and whole rock geochemistry results from the two holes were released in August 2019 and whilst they did not identify economic mineralization, the results confirmed the presence of highly altered Karoo sediments, sitting above a mafic intrusive body. The alteration observed in the drill cores stretched to >300m depth.
These results were considered encouraging because the age of the Karoo rocks (c.120million years), the high level of their alteration and the fact this alteration stretched to >300m depth; valuable geological pointers, when exploring for potentially economic mineral deposits.
Further, the geochemistry obtained from the drill core of the two Ditau Prospect holes suggested the metasomatic alteration encountered was due to a process known as fenite alteration or “fenitization”. Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive, and it has significant potential to be used as an exploration tool to find mineralised intrusions in a similar way alteration patterns are used in other ore systems, such as porphyry copper deposits.
Carbonatites and alkaline-silicate rocks are the most important sources of Rare Earth Elements and niobium. REEs include much sought after elements, such as Neodymium and Praseodymium, which are used in the manufacture of the new generation of electric vehicles (EVs) and other high-tech applications.
By way of comparison, Kavango consider the post-Karoo age of the fenitized rocks intersected by drilling at the Ditau Prospect, is comparable to the post-Karoo at the Longonjo carbonatite which is being developed as a neodymium and praseodymium open pit mine, by Pensana Metals Limited in Angola.
Subsequent to the release of the August 2019 drill results from Ditau, Kavango learned that Canadian miner Falconbridge Limited (“Falconbridge”) drilled into 3 carbonatites (the “Falconbridge Carbonatites”) in the early 1970s at a location less than 50km from Ditau and hosted by similar Karoo country rocks.
Falconbridge was looking for kimberlites in this area, which lies within a cluster of over 20 kimberlites discovered at the same time. Kimberlites, otherwise known as “diamond pipes”, are the most important source of diamonds mined today. However, carbonatites have similar looking magnetic and gravity anomalies to these diamond-bearing formations.
The carbonatites that Falconbridge intersected were just below the Kalahari sand cover and therefore would have been amenable to open pit mining. This implies they are post-Karoo age and therefore potentially comparable to the Ditau ring structures.
Although the Falconbridge Carbonatites are located outside of the Kavango held ground the company is reviewing the Falconbridge results and designing an orientation study to assist in the characterisation and exploration vectoring for the Ditau ring-structures. As part of this orientation study the Falconbridge Carbonatites will be surveyed using ground magnetic and gravity geophysics and soil geochemistry.
The JV partners will provide further updates, concerning future work plans at Ditau Camp project in due course.
NEXT STEPS
Commencement of exploration at both the Ditau Camp and KCB projects.
COMPETENT PERSON STATEMENT
The technical information contained in this disclosure has been read and approved by Mr Nick O’Reilly (MSc, DIC, 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.
ADMISSION AND TOTAL VOTING RIGHTS
Application will be made for the 6,000,000 Acquisition Shares to be admitted to trading on AIM which is expected to occur on or around 28 September 2020 (“Admission”). Following Admission of the Acquisition Shares, POW’s ordinary issued share capital will comprise 816,066,542 ordinary shares of 0.1 pence each.
This number will represent the total voting rights in the Company, and following Admission, may be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules. The new shares will rank pari passu in all respects with the ordinary shares of the Company currently traded on AIM.
REGULATORY STATEMENT
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014 and is disclosed in accordance with the Company’s obligations under Article 17 of those Regulations.
CONTACT INFORMATION
For further information please visit https://www.powermetalresources.com/ or contact:
| Power Metal Resources plc | |
| Paul Johnson (Chief Executive Officer) | +44 (0) 7766 465 617 |
| SP Angel Corporate Finance (Nomad and Joint Broker) | |
| Ewan Leggat/Charlie Bouverat | +44 (0) 20 3470 0470 |
| SI Capital Limited (Joint Broker) | |
| Nick Emerson | +44 (0) 1483 413 500 |
| First Equity Limited (Joint Broker) | |
| David Cockbill/Jason Robertson | +44 (0) 20 7330 1883 |
NOTES TO EDITORS
Power Metal Resources plc (LON:POW) is an AIM listed metals exploration and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests including precious metal exploration in North America and Australia together with base metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage drill ready prospects.
The Board and its team of advisors have expertise in project generation, exploration and development and have identified an opportunity to utilise the Company’s position to become a leader in the London market for investors wishing to gain exposure to proactive global metals exploration.