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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.
Power Metal Resources #POW – Acquisition of 8 new Prospecting Licences at the KCB increases the ground holding of local operating company Kanye Resources to 4,257km2
Power Metal Resources PLC (LON:POW) the London listed exploration company seeking large-scale metal discoveries across its global project portfolio, announces a significant expansion of exploration ground, targeting district scale copper-silver discoveries, in the Kalahari Copper Belt (“KCB”), Botswana.
The acquisition of eight prospecting licences (“PLs”) increases the strategic ground held by the South Ghanzi Project (“South Ghanzi” or the “Project”) by 229% to 4,257km2, making one of the largest licence footprints in the KCB.
The acquisition was completed by the Project’s local operating company Kanye Resources Pty Ltd (“Kanye”), in which Power Metal and joint venture (“JV”) partner Kavango Resources plc (LON:KAV) (“Kavango”) each have a 50% interest.
A map showing all the PLs held by Kanye can be viewed on the Company’s website through the following link:
https://www.powermetalresources.com/kalahari-copper-belt-licence-map/
The acquisition was originally announced to the market on 29 March 2021 and was subject to due diligence and licence transfer which has now been completed successfully. The original announcement may be viewed through the following link:
https://www.londonstockexchange.com/news-article/POW/kalahari-copper-belt-business-update/14916399
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“With the exploration success Power Metal and Kavango have achieved to date at the South Ghanzi Project, this substantial expansion of our land position within the KCB is a major development for our Company.
Without question the KCB joint venture with Kavango is currently one of Power Metal’s highest priorities and we have got to this point in short order through the exceptional work undertaken by the Kavango operational team.
The progress achieved in the KCB demonstrates the value we can generate for our shareholders when we focus our financial and managerial resources on projects that deliver high-impact exploration results efficiently and effectively.
We eagerly look forward to the planned drill programme at South Ghanzi, as well as inaugural and ongoing exploration results at our newly expanded land package within the KCB.”
ACQUIRED LICENCE HIGHLIGHTS:
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 Licence documentation has been 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”).
Cash acquisition costs have been funded equally by Power Metal and Kavango from existing cash resources and Kanye now controls 4,257km2 of PLs in the KCB. The cost to Power Metal amounts to US$215,000 (c.£153k) funded from existing cash resources.
The South Ghanzi Extension Licences (481km2)
· The original South Ghanzi Project included two licences (PL036/2020 and PL037/2020) covering an area of 1,294km2 south of the town of Ghanzi in the KCB.
· The South Ghanzi Extension PLs include four licences, two of which are adjacent to the South Ghanzi Project, which cover prospective structures identified from their recently completed Airborne Electromagnetic (“AEM”) survey.
· A further two licences include one licence comprising an area previously relinquished by MOD Resources Ltd (MOD Resources Ltd was acquired by Sandfire Resources NL (ASX:SFR) in October 2019), containing a soil-sampling anomaly, and one licence in an area west of PL036/2020 which is considered to be prospective for copper-silver mineralisation.
· Exploration at South Ghanzi is considerably advanced, with seven major copper/silver targets identified to date and locations for the planned upcoming drill programme currently being finalised.
The Mamuno Licences (2,482km2)
· The Mamuno Licences are four contiguous PLs on the western boundary of the KCB that cover a large anticlinal (possibly dome) system; that is plunging towards the west.
· The anticlinal structures at Mamuno are similar to that recently identified at the South Ghanzi Project (within PL 036/2020) and appear to be significantly larger.
· Within the licence area, the Ngwako Pan and D’kar Formation contact zone is variably exposed for over 100km (covering a possible reduction-oxidation (“redox”) boundary). The Kalahari sand cover over this exposed contact zone is relatively thin.
· The area is well accessed by the Trans-Kalahari Highway, which links the cities of Gaborone and Johannesburg with Windhoek and Walvis Bay in Namibia. Mamuno is a border town located near the Botswana and Namibia border.
KCB Environmental Management Plan (“EMP”)
Kavango has received final feedback from the Ministry of Mines and final processing of the KCB EMP is underway. Receipt of EMP approval is a key step required before exploration drilling can take place on PL areas.
The proposed EMP covers both the South Ghanzi, South Ghanzi Extension and Mamuno Licences.
Immediate expansion of exploration in the KCB
In-depth desktop analysis is underway on the recently acquired licences.
Kavango will deploy four field teams to the KCB to begin extensive soil sampling and plans are being finalised to further increase number of teams on the ground.
This work is in addition to the planned drill programme at the South Ghanzi Project targeting copper-silver discoveries. Further information with regard to drill targets and the programme itself will be provided to the market in due course.
JOINT VENTURE STRUCTURE
The KCB PLs (South Ghanzi, South Ghanzi Extension and the Mamuno Licences) are held in the name of Kanye Resources (Pty) Ltd, a private Botswana company in which Power Metal and Kavango each have a 50% interest through Kanye Resources plc, a UK holding company.
Exploration costs are equally shared. Kavango is the operator. There are plans to IPO Kanye Resources plc on a recognised stock exchange.
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 |
Notes to Editors:
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 principle focus on opportunities offering district scale potential across a global portfolio including precious and base 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 Resources #POW – Kalahari Copper Belt Update – Conditional Agreements Signed to Significantly Increase Kalahari Copper Belt Licence Footprint
Power Metal Resources plc (LON:POW) the AIM listed metals exploration and development company is pleased to provide a business update in respect of the Company’s Strategic Joint Venture (“SJV”) with Kavango Resources plc (“Kavango”)(LON:KAV).
Background:
The SJV covers precious, base and stategic metal opportunities in Botswana. Power Metal and Kavango each have a 50% interest in the SJV.
The plan is for the SJV to secure a listing in London, and to this effect a local Botswana operating company has been established called Kanye Resources (Pty) Limited (“Kanye Botswana”). Kanye Botswana is wholly owned by Kanye Resources plc (“Kanye plc”), a UK public company which will be the planned listing vehicle.
Power Metal and Kavango will each have a 50% shareholding in Kanye plc following completion of the restructuring exercise. Both companies will have representative directors on the board of Kanye plc and will contribute to the funding of Kanye plc and Kanye Botswana, during the listing process.
Formal transfer documents have been lodged with the relevant authorities in Botswana to transfer the four SJV licenses currently held in the name of Kavango Minerals (Pty) Ltd into Kanye Botswana. The four licences are as follows:
- South Ghanzi Project (Kalahari Copper Belt or “KCB”) covering 1,294 km2 in two prospecting licences and targeting copper/silver discoveries;
- Ditau Project covering 1,386 km2 in two prospecting licences and targeting rare earth element discoveries.
With its strategic footprint of exploration interests in Botswana, Kanye plc will seek to acquire additional exploration opportunities in the build up to listing, further enhancing its position.
Highlights:
- Power Metal is pleased to announce the signing of two conditional agreements that allow Kanye Botswana to acquire a 100% interest in eight prospecting licences (PLs) in the highly prospective Kalahari Copper Belt (“KCB”).
- Headline terms of the two agreements include:
- Four PLs in proximity to Ghanzi in the central zone of the Botswana KCB currently held by Shongwe Resources (Pty) Ltd and which can be acquired outright for a cash consideration of US$200,000.
- A further four PLs on the western end of the Botswana KCB, near the town of Mamuno adjacent to the Namibian border. Currently held by Vinmarsh Interprises (Pty) Ltd these can be acquired outright for a cash consideration of US$230,000.
- Both transactions are subject to due diligence and the approval of the Botswana authorities.
- The cash consideration totalling US$430,000 (c. £312,000) will be lodged in a nominated escrow account and released following completion of due diligence and licence transfer. Power Metal will fund 50% of the above cash consideration or US$215,000 (c. £156,000), from its existing USD cash reserves.
- After transfer of all ten KCB PLs, Kanye Botswana will control 4,255 km2 of prospective exploration ground in the KCB, targeting the discovery of commercial copper/silver deposits.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“The conditional acquisitions announced today, subject to due diligence and approvals in Botswana, would significantly increase the footprint of Kanye Botswana in the Kalahari Copper Belt. The additional ground complements that already held and we believe will add material value to the investment proposition, in advance of the planned listing in London.
The collaboration with Kavango has so far seen material exploration success and now has delivered an opportunity, through the conditional acquisitions announced today, for the SJV to become an even more significant participant in the rapidly advancing Kalahari Copper Belt exploration story.”
FURTHER INFORMATION
Strategic Joint Venture – Group Structure and Interests
The SJV currently has a 100% interest in the two Ghanzi South PLs on the KCB (1,294km2) and the two “Ditau” PLs south of the town of Kang in central Botswana (1,386km2), which is prospective for minerals associated with carbonatite including rare earth elements. All four PLs are currently being transferred into the name of Kanye Resources Botswana (Pty) Ltd from Kavango Minerals (Pty) Ltd.
Kanye Resources Botswana (Pty) Ltd, incorporated in Botswana, is a 100% subsidiary of UK registered Kanye Resources plc and is the SJV initiative between Kavango (50%) and Power Metal (50%). It is planned to list Kanye Resources plc on the London Stock Exchange later in the year.
Earlier in March 2021 SkyTEM Africa (PTY) Ltd completed over 1,300 line-km of airborne electromagnetic geophysical survey on the Ghanzi South PLs on behalf of Kanye. The contractor’s final report will be available in early April.
Shongwe Resources (Pty) Ltd
Subject to due diligence and approval of the Botswana authorities, the directors of Shongwe Resources have agreed to transfer four licences (480km2) situated south and west of Kanye’s Ghanzi South PLs for a cash consideration equivalent to US$200,000.
Kavango and Power Metal will each contribute 50% to the acquisition cost.
VinMarsh Interprises (Pty) Ltd
Subject to due diligence and approval of the Botswana authorities, the directors of VinMarsh Interprises (Pty) Ltd have agreed to transfer four licences (2,481km2) situated on the western end of the Botswana KCB near the border with Namibia in the vicinity of the town of Mamuno, for a cash consideration equivalent to US$230,000.
Kavango and Power Metal will each contribute 50% to the acquisition cost.
THE SOUTH GHANZI PROJECT
The SJV South Ghanzi Project includes two prospecting licences in the KCB (PL036/2020 and PL037/2020) covering an area of 1,294 km2.
The South Ghanzi Project, located on the highly prospective Kalahri Copper Belt (“KCB”) in northern Botswana, includes lengthy geological reduction-oxidation (“redox”) boundaries and geological fold structures that represent high priority 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 other structural trap-sites.
Several large-scale copper/silver ore deposits have been discovered on the KCB in association with fold hinges in areas now held under licence by Sandfire Resources Ltd (ASX:SFR) and Cupric Canyon (a privately owned mining development company). These deposits are relatively close to surface and may be amenable to open pit mining operations.
Accumulations of sulphide metals can be traced along the strike of redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.
THE DITAU PROJECT
The Ditau 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 10 “ring structures” (including at least one possible kimberlite).
The “ring structures” are potential carbonatites.
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.
One of the ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites.
Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.
Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.
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 |
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 metals exploration in North America and Australia together with base and strategic metal exploration in Africa. Project interests range from early stage greenfield exploration to later stage prospects currently subject to drill programmes.
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.
Kavango Resources #KAV – Licence acquisitions on the KCB in Botswana
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the signing of two agreements that would allow a 50/50 Joint Venture between Kavango and Power Metal Resources plc (LSE:POW) (“Power Metal”) to acquire a 100% interest in eight prospecting licences (PLs) in the highly prospective Kalahari Copper Belt (“KCB”).
Highlights
Ø The Joint Venture is incorporated in the Botswana registered, Kanye Resources (Pty) Ltd (“Kanye”), the 100% subsidiary of UK incorporated Kanye Resources Plc in which Kavango and Power Metal each hold a 50% interest.
Ø Kanye has signed two separate agreements to purchase 100% of the eight PLs. This includes:
– Four PLs in proximity to Ghanzi in the central zone of the Botswana KCB from Shongwe Resources (Pty) Ltd for US$200,000.
– A further four PLs near the town of Mamuno on the Namibian border for US$230,000, which has been signed with Vinmarsh Interprises (Pty) Ltd.
Ø Both transactions are subject to due diligence and the approval of the Botswana authorities.
Ø Kanye’s two existing PL’s that lie immediately south of the town of Ghanzi are currently held in the name of Kavango Minerals (Pty) Ltd and are in the process of being transferred to Kanye.
Ø After transfer of all ten PLs, Kanye will control 4,255km2 of exploration ground in the KCB, targeting the discovery of commercial copper/silver deposits.
Ø Results from the South Ghanzi AEM surveys are expected in April.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The acquisition (subject to approvals in Botswana) of eight new prospecting licences is a major step forward in the development of Kanye Resources Plc as a significant player in the exploration for copper in the highly prospective KCB. Kavango’s experienced “in country” exploration capacity combines well with the financial expertise and assets of Power Metal. We are happy with the progress we are making on this project and look forward to providing more updates over the coming weeks.”
Kanye
Kanye Resources (Pty) Ltd, incorporated in Botswana, is a 100% subsidiary of UK registered Kanye Resources Plc and is the Joint Venture initiative between Kavango (50%) and Power Metal (50%). It is planned to list Kanye Resources Plc on the LSE later in the year.
Kanye currently has a 100% interest in the two Ghanzi South PLs on the KCB (1,294km2) and the two “Ditau” PLs south of the town of Kang in central Botswana (1,386km2), which is prospective for minerals associated with carbonatite including rare earth elements. All four PLs are being transferred from Kavango Minerals (Pty) Ltd into the name of Kanye.
Earlier in March SkyTEM completed over 1,300km of airborne EM surveying on the Ghanzi South PLs on behalf of Kanye. The contractor’s final report will be available in April.
Shongwe Resources (Pty) Ltd
Subject to due diligence and approval of the Botswana authorities, the directors of Shongwe Resources have agreed to transfer four licences (480km2) situated south and west of Kanye’s Ghanzi South PLs for a cash consideration equivalent to US$200,000.
Kavango and Power Metal will each contribute 50% to the acquisition cost.
VinMarsh Interprises (Pty) Ltd
Subject to due diligence and approval of the Botswana authorities, the directors of VinMarsh Interprises (Pty) Ltd have agreed to transfer four licences (2,481km2) situated on the border with Namibia in the vicinity of the border town of Mamuno for a cash consideration equivalent to US$230,000.
Kavango and Power Metal will each contribute 50% to the acquisition cost.
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
Michael Foster
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson
The information in this press release that relates to “geological and/or geophysical results” for the South Ghanzi Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Moles consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. Mr Moles is a beneficial shareholder of Kavango Resources plc.
NOTES TO EDITORS
KAVANGO’S INTERESTS IN THE KALAHARI COPPER BELT
Kavango’s exploration licenses in the KCB include:
The South Ghanzi Project
– 50% working interests in prospecting licenses PL036/2020 and PL037/2020 (totalling 1,294km2), held in Joint Venture with Power Metal. (announced 21 September).
The LVR Project
– 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. The upward rock slopes of these fold hinges are known as synclines, while the downward rock slopes are called anticlines.
Several large-scale copper/silver ore deposits have been discovered on the KCB in such hinges in areas now held under licence by Sandfire Resources (ASX:SFR) and Cupric Canyon (a privately owned mining company). These deposits are relatively close to surface and are amenable to open pit mining operations.
Accumulations of sulphide metals can be traced along the strike of the redox boundaries (sometimes for many kilometres), since they often have a higher magnetic signature than the surrounding rock.
THE DITAU PROJECT
The Ditau Project comprises two prospecting licences (“PLs”) (PL169/2012 & PL010/2019) that cover an area of 1,386km 2 . Geophysical and geochemical analyses by Kavango in the two PLs have identified 10 “ring structures” (including at least one possible kimberlite).
The “ring structures” represent potential carbonatites.
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.
One of the ring structures is a 7km x 5km magnetic and gravity anomaly with significant zinc-in-soils values. Assay and whole rock geochemistry results from two drill holes drilled on this ring structure in 2019 by Kavango demonstrated the presence of an extensive zone of altered Karoo sediments sitting above a mafic intrusive body. The alteration extended to over 300m in depth in both holes, which were 1.8km apart. The geochemistry obtained from the drill core suggested that the alteration was due to “fenitization”, a type of extensive alteration associated with alkali magmatism and carbonatites.
Fenite alteration is particularly associated with carbonatite intrusions, where it occurs as an aureole or halos around the carbonatite intrusive. It can indicate the presence of mineralised intrusions in a similar way that alteration patterns are used in other ore systems, such as porphyry copper deposits.
Kavango suspects that the post-Karoo fenitized rocks intersected at Ditau may be comparable to the Longonjo carbonatite in Angola being developed as a neodymium and praseodymium open pit mine by Pensana Metals Limited.