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#GMET Golden Metal Resources PLC – First Day of Dealings
Golden Metal Resources plc, a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA, is pleased to announce that, at 08:00 today, its ordinary shares will commence trading on AIM under the ticker GMET. As part of the process of admission to trading on AIM (“Admission”), the Company has raised gross proceeds of £1.98m through the issue of 23,317,643 new ordinary shares of £0.01 each at a placing price of 8.5 pence per share, equating to a market capitalisation of £7.16 million on Admission.
Overview
The key strengths and attributes of Golden Metal can be summarised as follows:
Location:
The state of Nevada is a well-regarded, mining investment friendly jurisdiction. It was ranked third in the Fraser Institute’s global mining investment attractiveness index survey in 2021 and has a long history of mining and a strong mining and ancillary business support network. Nevada is one of the principal producers of precious metals in the world, with 25 precious metal mines currently in production, accounting for approximately 70 per cent. of the United States total gold production in 2020. In 2018 Nevada accounted for 83 per cent. of the US’s total gold production.
According to the Nevada Mining Association (2022), as of November 2021, 11,000 people were employed by the metal mining sector within the state, with a Nevada Gross Domestic Product contribution of US$3.2 billion in 2020.
Projects with Critical and High-Demand Minerals:
The Company’s 100% owned Pilot Mountain Project (“Pilot Mountain”) hosts a tungsten-copper-silver-zinc Mineral Resource Estimate (MRE) which includes 12.53Mt at 0.27% W03 (tungsten tri-oxide) with significant copper-silver-zinc credits. Tungsten is an in-demand and critical metal as outlined below:
· Tungsten is included in the British Geological Survey’s UK Critical Minerals list (2022), the US Geological Survey’s (USGS) Critical Minerals list (2022) and the European Commission’s Critical Raw Materials list (2020).
· The global demand for tungsten is forecast to rise annually (3-7 per cent. per annum according to the British Geological Survey) and is predicted to outstrip available supply, which is likely to place continued upward pressure on prices in the near-term.
Management Team:
A proven management team with:
· a broad spectrum of knowledge and capabilities;
· substantial technical and listed company experience; and
· extensive North American operating experience with connections to various in-country consulting teams.
Diverse Project Base:
The Golden Metal portfolio consists of four Nevada based projects (collectively the “Nevada Projects”) comprising the Pilot Mountain Project and three exploration stage projects: the Golconda Summit Project (gold), the Garfield Project (copper-gold-silver) and the Stonewall Project (gold-silver).
The Nevada Projects are all well located within major metallogenic belts containing active, globally important precious- and base-metal mining operations. All the assets have favourable geology which is prospective for skarn, carlin, epithermal and porphyry deposit types. The portfolio is focussed on tungsten, gold, silver and base metal mineralisation.
In particular, the Pilot Mountain Project offers significant exploration upside potential as well as the opportunity for Golden Metal to de-risk the Project on a number of fronts. These include building on the existing MRE, furthering and updating technical studies relating to the potential development of the known resources, further permitting, making relevant grant applications, including to the DOD Defence Production Act (DPA) Title III grant office as well as commodity marketing and further metallurgical studies.
In total, the Nevada Projects cover a combined area of approximately 22.83 km2.
Oliver Friesen, CEO of Golden Metal, commented:
” Golden Metal’s admission to AIM comes at a time when it is clear that the world needs more critical, precious-and base-metals. This represents an exciting opportunity for a company such as ours with ownership of four diverse exploration and development assets located wholly within one of the top mining jurisdictions in the world. I believe that our Pilot Mountain Project, with its tungsten MRE, offers the greatest potential for exploitation, given that the US currently has no domestic primary production of the metal and is looking to reduce its heavy reliance on imports of critical metals from China. We are looking forward to actively pushing forward various exploration and corporate developments both within the US and UK and will provide further updates to the market on these various plans in due course.
I would like to thank all of the Golden Metal team and pre-IPO investors for their patience as we methodically worked through the various exploration and corporate developments which have led the Company to the exciting position it is in now. “
Background
Golden Metal is a mineral exploration company focused on tungsten, gold, copper, silver and zinc within Nevada, USA. It was established for the purpose of holding all of the Nevada mining assets of Power Metal Resources plc (“Power Metal”) and progressing the exploration and development of those assets. The Company holds four mining assets comprising the 100% owned Pilot Mountain, Garfield and Stonewall Projects together with an earn in option over the Golconda Summit Project. Each Project consists of unpatented lode mining claims located entirely on land managed by the United States Bureau of Land Management.
The Directors believe that the combination of a suite of high-quality, diversified Nevada based mining assets within a single, US-focused AIM-quoted vehicle creates a compelling investment opportunity. It is their opinion that the Nevada Projects hold several underexplored, highly prospective tungsten, gold, copper, silver and zinc exploration targets. The Directors consider that the Pilot Mountain Project has the potential to increase its existing tungsten focused MRE and to expand on multiple tungsten, copper, silver and zinc-rich zones identified by minimal historical drilling. In addition, the Directors consider that the Golconda Summit Project has the potential for a major gold discovery to follow the identification of significant surface gold mineralisation during a 1989 trenching programme. Accordingly, the Company’s exploration focus will be on these two projects but the Directors also believe there is potential value to be realised at the Garfield and Stonewall Projects.
On 8 April 2022, the Company raised £750,000 through a pre-IPO Financing at a price of 6.67 pence per Ordinary Share, following which Power Metal held 83.13 per cent. of the existing ordinary shares. On Admission, Power Metal will hold 62.1 per cent. of the Company’s enlarged share capital.
Placing, Subscription, Acquisition and Use of Proceeds
The Company has raised gross proceeds of £1,982,000 through a placing and subscription through the issue of 12,449,208 Placing Shares and 10,868,435 Subscription Shares at a price of 8.5 pence per share.
The net proceeds from the Placing and Subscription will be used by the Company to:
· provide funding for the Company to further explore and develop the Nevada Projects; and
· provide the Company with ongoing working capital to support its business operations.
Warrants
Together with every two Placing Shares and every two Subscription Shares, each Placee and Subscriber will also be granted one warrant entitling the holder to subscribe for one further new Ordinary Share at 10.75 pence per Ordinary Share, for a period of 12 months from Admission, and one warrant entitling the holder to subscribe for one further new Ordinary Share at 17 pence per Ordinary Share, for a period of 24 months from Admission. Further details of the warrants are set out in Part VI of the Company’s AIM admission document.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018).
Forward Looking Statements
This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company’s or any third party’s ability to execute and implement future plans, and the occurrence of unexpected events.
Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.
For further information visit www.goldenmetalresources.com or contact the following:
|
Golden Metal Resources plc Oliver Friesen (CEO) |
Tel: +44 (0) 20 7583 8304 |
|
Cairn Financial Advisers LLP Nominated Adviser Sandy Jamieson/Jo Turner/Louise O’Driscoll |
Tel: +44 20 7213 0880 |
|
First Equity Limited Broker Jonathan Brown/Jason Robertson |
Tel: +44 20 7374 2212 |
The Projects:
Pilot Mountain Project
The Pilot Mountain project is an advanced exploration and mineral resource definition stage project located in Mineral County in western Nevada. The project covers an area of 14.80 km2 (3,656.1 acres) and is located 200km southeast of Reno and 18km east of Mina, Nevada. It is well situated for the supply of power, water and skilled labour and proximity to transport infrastructure in Mineral County and is centred around four existing mineral deposits: Garnet; Good Hope; Gunmetal and Desert Scheelite, all of which possess significant skarn-style tungsten-copper-silver-zinc mineralisation. The Pilot Mountain project consists of 176 active lode mining claims and 4 filed mill site claims. The four mill site claims filed at the former Dunham mill site have secure access to groundwater supply sufficient for the proposed project.
Golconda Summit Project
Golden Metal is the operator of the Golconda Summit project, which is held under an earn-in right to acquire up to 100 per cent. of the project from the mineral claim owner pursuant to an option agreement. The Golconda Summit project is an exploration stage gold and silver project located in Humboldt County and situated at the confluence of the Getchell and Battle Mountain – Eureka metallogenic trends, and consists of 44 lode mining claims, covering a total area of approximately 3.22 km2 (795.4 acres) located approximately 27km east of Winnemucca.
Garfield Project
The Garfield project is an early exploration stage copper, gold and silver property consisting of 39 lode mining claims covering 3.23 km2 (797.9 acres) located in Mineral County, Nevada, approximately 14km due east of the town of Hawthorne and 120km due west-northwest of Tonopah.
Stonewall Project
The Stonewall project is an exploration stage gold-silver property prospective for epithermal gold-silver mineralisation. The property consists of 19 lode mining claims covering 1.59 km2 (392.5 acres) located on the northern flank of Stonewall Mountain, on the western edge of the Nellis Airforce Range Restricted Access Area, in Nye County, Nevada, approximately 24km south-east of the historic gold mining town of Goldfield and 60km due south of Tonopah.
#FCM First Class Metals – Exploration Program Update
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK metals exploration company seeking large scale metal discoveries across its extensive Canadian Schreiber-Hemlo land holding is pleased to provide an update on activities during the first half of 2022 across its portfolio.
HIGHLIGHTS
– Ground exploration/reconnaissance work commenced across six of the seven properties.
– + 4000 line Km of helicopter borne low level VTEM magnetic survey flown over North Hemlo.
– Ontario Junior Exploration Program (OJEP) Grant award of $200,000CAD.
– Drilling commenced by earn in-JV partner Palladium One Inc at West Pickle Lake Nickel PGM target.
– Progression of key structural survey on the North Hemlo, Esa & Magical properties by Telluris Consulting.
-Full historical data review completed across all properties.
-Samples at the Laboratory assays pending for multiple rock-chip, soils/MMI sampling across six properties.
Properties
FCM holds 100% ownership of seven claim blocks covering over 180km² along a 150km strike of the Hemlo-Schreiber-Dayohessarah greenstone belt which also contains the >23M oz shear hosted Hemlo gold mine operated by Barrick Gold.
The significant potential of the properties for precious, base and battery metals relate to: ‘nearology’ insomuch that all properties lie close to identified mineral anomalism, for example Palladium One’s RJ and Smoke Lake nickel projects are close to the FCM’s West Pickle Lake soil / VTEM anomaly. This also demonstrates the second critical asset the properties hold: vector, anomalies, be they geological, geochemical or geophysical that have demonstrated mineral potential extend on to FCM’s properties. The West Pickle Lake prospects is believed to be an extension of the RJ Zone on to FCM’s claims.
Furthermore, the properties have not been extensively explored either historically or more contemporaneously . This is predominantly attributable to the overall lack of outcrop. However, modern exploration techniques are better able to ‘see through’ the ground cover and to identify anomalies.
FCM has initiated a concerted and will sustain a continued exploration programme on its seven properties which includes not only ground reconnaissance: traditional, time proven geological sampling but also airborne geophysical surveys. The ground-based exploration is further focussed by a structural interpretation undertaken by Tony Starling of Telluris Consulting which will be reported separately.
Dr Tony Starling is a world leading expert in the interpretation of structural targets identified by Remote Sensing with extensive experience in Archean settings similar to the ones we find in the Hemlo-Schreiber Greenstone Belt
FCM believes this study will identify potential structural trends in areas of overburden enabling exploration efforts to be more focussed and efficient.
North Hemlo-Flagship Property
The Flagship North Hemlo property was consolidated with the acquisition of the Hemlo North block from Power Metals Plc. and now contains 427 contiguous single cell mining claims covering approximately 90km², including the JV with Palladium One Inc over 33 claims covering the West Pickle Lake showing.
Two inferred shears have been identified crossing the property. There are several historical ‘showings’ considered to merit further exploration. Targets are not only base metals – nickel, but also several potential gold anomalies. Significantly the anomalous gold values are associated with molybdenum, highlighted at Dead Otter Lake where historic samples from a trench returned 3.10g/t Au and 0.59% molybdenum.
There are ongoing exploration activities on neighbouring blocks focussing on both gold and base metals, with those targets trending onto North Hemlo, including the West Pickle Lake (WPL) anomaly considered an extension of the RJ showing on Palladium One Inc.’s property, identified by a VTEM survey. WPL is under an earn in-JV with Palladium One who is currently drilling on the prospect.
FCM undertook a +4,000 line-km helicopter borne low level VTEM magnetic survey over the whole of the North Hemlo property, the data is currently being processed for interpretation.
FCM applied and have been successfully awarded an Ontario Junior Exploration Program (OJEP) Grant of $200,000CAD from the Minister of Northern Development, Mines, Natural Resources and Forestry Ontario in part contribution to the costs involved in this VTEM survey and exploration on the North Hemlo claim block.
FCM has had exploration teams on the ground at North Hemlo since May and over 350 rock and soil samples have been collected for analysis. Results pending.
Esa
The Esa property covers 20km² and is situated only 11km north of the Hemlo gold mine. A strong geophysical response dissecting the property has been in part ground-truthed and supports the interpreted presence of a shear, (also identified on adjacent properties to the west, trending on to Esa). The raw data from a previous VTEM survey has been acquired and will be reprocessed and interpreted This inferred shear across the property has formed the focus of field work to date with over 150 rock and soil samples collected for gold and base metal analysis, results pending.
Sugar Cube
Sugar Cube is the second largest property in the portfolio, covering 43km². the claim block is located immediately north west and contiguous to the extensive land package covering the Sugar Zone gold mine operated by Silver Lake Resources. Very little field work is reported to have been conducted over Sugar Cube area and the extensive ‘cover’ – gravels and muskeg, means that initial planned exploration method will involve an airborne geophysics survey in order to confirm the presence of greenstone style geology.
McKellar
The McKellar property is situated in prime geological location. As well as being adjacent to the Generation Mining’s Marathon Palladium Project, the property covering 11km² contains historical showings / samples for gold as well as silver as well as a diatreme with anomalous REE reported.
There are also a significant number of showings within the vicinity of McKellar, including the Prairie River West showing which returned 1.13g/t Au and 45g/t Ag, as well as the Marhill Prospect to the west with values up to 18.5g/t Ag. Importantly these showings are hosted in the mafic to intermediate metavolcanics which are identified in the western extension of the property: nearolgy and vector.
Historical exploration on the property includes not only the diatreme but a drill hole on the Gold Bar Lake prospect reporting over 1% Cu, 6% Zn as well as 0.5g/t Au and 60g/t Ag. Elsewhere on the property samples of 6,419ppm Mo (molybdenum) and 4,400 Zn are reported. Whilst the small scale historic Little Pic silver mine produced ‘ore’ containing variously 618g/t Ag and over 7% Pb and 32% Zn.
McKellar probably contains the most historic showings of the seven properties, however it is not consider ‘explored’ as the majority of the exploration conducted has been in the vicinity of these showings.
FCM has initiated exploration on the western sector of the property and to date has collected 89 rock samples, assays pending.
Magical
The Magical block of 14 claims, whilst only covering 3km² it is located northwest of the Hemlo gold mine and immediately east of the Hemlo Explorers Pic project recently optioned by Barrick the operators of Hemlo. There is a significant lack of historical exploration across the property, this is attributed to the overburden. Available geophysics indicates a mafic to intermediate volcanic unit strikes NE across the property and is constrained on both contacts by later plutons. Both to the south west and north east along the interpreted strike (off property) of the volcanic unit there are reported samples of 1.5g/t Au and 70g/t Ag as well as 10% Zn and almost 9% Pb. Importantly the ‘valley’ float sample of a mafic volcanic found only 600m north off property assayed 16.2g/t Au.
During an initial reconnaissance visit the FCM contracted geological team collected 12 rocks 56 MMI soils, final assays results pending
Enable
The Enable 41 claims block is also dissected by a geological feature striking north east which can be traced off property to historical showings. This geological contact between the Terrace Bay batholith ad mafic volcanics interspersed with concordant iron formations cut by quartz-feldspar porphyry dykes emanating from the batholith. Less than 2 kilometres off property, along this contact are the historic samples of Hays Lake with 9.64g/t Au and 20g/t Ag, probably from the Acker G vein contained in the north east trending (towards Enable) 3m wide shear zone. Also, to the south west is the ‘Joa Walton’ occurrence with 192.7g/t Au and 401g/t Ag. This trend where it crosses the property contains the historic Perch Lake West showing with a reported 1.85gh/t rock chip sample. During a brief reconnaissance a number of quartz veins were identified on the property and a total of 64 rock samples collected, assays pending.
Coco-East
The Coco East 30 claim block is the most western FCM property and is located about 10km east of the Metallum Resources recommissioned zinc mine. Importantly peripheral to the Coco property there are many historical showings, particularly in the western sector which contains the eastern extension of the Big Duck Lake porphyry, this geological unit has been and continues to be the focus of extensive exploration. Less than 3km to the west of the property the Coco Estelle deposit has a reported 53,700 tonnes grading 10.7g/t Au. The Big Birch showing which is on the property returned 0.56ppm Au and 2.8ppm Ag. An initial ground reconnaissance over part of the property in the area of the Big Birch showing collected 46 rock samples, final assay results pending.
Future Work Program
Continued exploration is planned across the seven properties. The basis of the autumn programmes will be not only follow up on the expected geochemical targets generated from the samples currently being analysed, but also on-going reconnaissance of the North Hemlo, Esa and possible McKellar blocks. This will be augmented with the interpretation of both the VTEM covering North Hemlo and Esa as well as a new survey on the Sugar Cube block of claims planned later in the year.
The company is currently in discussion with the First Nation groups with traditional land claims over the FCM properties with a view to submitting exploration permit applications to the Provincial Mining Authority. These permits, once approved will allow for ‘invasive’ exploration, including trenching and drilling. North Hemlo will be the primary focus.
Marc J. Sale CEO First Class Commented:
‘The recent successful listing of First Class Metals PLC in what are generally considered woeful market conditions is testimony to not only the management team but the quality of the assets: the claim portfolio created. We are as a team enthusiastic about the future given the historical data assimilation and encouraging exploration results (visual) to date.
We have hit the ground running hard, the activity in the first half of 2022 leading up to and past the IPO will set us off in a good state to deliver on our objective of developing the potential of these multiple highly prospective projects.
I look forward to reviewing and reporting on the number of programs and initiatives we have commenced which are currently ongoing in the coming weeks and months’.
ENDS
For further information, please contact:
First Class Metals PLC
James Knowles, Executive Chairman 07488 362641
Marc Sale, Chief Executive Officer 07711 093532
Ayub Bodi, Executive Director 07860 598086
First Equity Limited (Financial Adviser & Broker ) 020 7374 2212
Jonathan Brown
Jason Robertson
#KAV Kavango Resources – KSZ – Second Mineralisation Target Type at the GRS and Placing to expand exploration programme
The Great Red Spot (the “GRS”) has been recognised as a large-scale exploration target in Botswana for major metal and mineral deposits since the mid-1970s. However, technology has only advanced sufficiently in recent years to allow effective exploration of this.
Kavango Resources plc (LSE:KAV) has been conducting exploration over this 5km x 8km magnetic body since 2018. Most recently, the Company drilled exploration holes KSZDD001 and KSZDD002 in this area. Initial results from KSZDD001 (announced 16 November 2021) provided Kavango with an exploration lead that appeared to support a late 1990’s theory about the GRS, in that it could host a form of Iron Oxide Copper-Gold (“IOCG”) style mineralisation.
IOCG systems can host highly valuable copper, gold and uranium ores. The large size and relatively simple metallurgy can produce extremely profitable mines.
Following six months of additional field exploration and detailed desktop analysis, Kavango confirms it now believes the GRS conforms to an idealized model for a large IOCG-style system.
The Company believes this is a significant development for the prospectivity of the GRS. IOCG deposits are an alteration “overprint” of the host geology when they form. Therefore, Kavango believes the IOCG model represents a second mineralisation style possibly present within the GRS, in addition to the existing potential for nickel/copper (Ni/Cu) sulphide deposits.
Highlights
– IOCG mineralisation model for the Great Red Spot (“GRS”) first proposed in late 1990s
– This is a second possible mineralisation style for the GRS, which Kavango is now targeting in addition to the Ni/Cu sulphide model
– Initial contact with Proterozoic basement host rocks at 950m depth
– Draft economic comparables study confirms potential viability of the modelled IOCG deposit type at this depth in this region
– Great Red Spot exhibits similar geophysical signatures to the Olympic Dam IOCG ore deposit in Australia. These include:
– Coincident aeromagnetic and ground gravity anomalies, with clear spatial and structural symmetries
– Similar “crown-like” shape in inversion results (morphology)
– Strong 30 milliGal Gravity anomaly (announced 21 January 2021)
– Multiple zones for possible alteration (heterogeneities) identified by 16km of advanced Audio-Magnetotelluric (“AMT”) surveys
– Physical property testing of core samples recovered from Hole KSZDD001 in November 2021 revealed concentrations of magnetite
– KSZDD001 intercepted a limb of the magnetic modelled “crown”
– Magnetite zones are associated with other IOCG deposits
– Kavango’s interpretation of the magnetic model of the GRS, projects that the magnetite content intensifies closer to the centre of the GRS
– Regional geological setting supports the prospectivity of the GRS to host multiple ore deposit styles:
– The GRS sits on the western edge of the Kaapvaal Craton
– It lies in the nexus of 4 interpreted significant regional faults
– Enhanced probability to host large magmatic intrusions and alteration systems, due to the structural complexity and tectonic location
– Next steps
– Further AMT surveys over the GRS
– Final report of an economic potential study for the IOCG model
– Kavango to present the GRS IOCG exploration model to shareholders in the next week
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“It is important to be careful when comparing a geophysical model to an existing ore deposit. Geology is complex and no two deposits are the same.
We first appreciated the geophysical similarities between Olympic Dam and the Great Red Spot in November last year. Rather than rush to publish, we’ve instead worked diligently on this new target over the last 6 months. We’ve been mindful that while the tectonic settings of Olympic Dam and the GRS are similar, the host geology and alteration could be very different.
Therefore, we sought to gather more evidence that the GRS could contain an alteration system, before publishing this new large-scale target.
Our comparison with Olympic Dam is led by rigorous geophysical modelling. The correlation of the magnetic data with gravity data over the GRS is very similar to the nearly coincident magnetic and gravity anomalies originally identified at Olympic Dam. In addition, the shape and size of the modelled magnetic bodies of both Olympic Dam and the GRS almost mirror one another. The distinctive “crown shape” is particularly noticeable.
Where we feel we have an edge over the original Olympic Dam exploration programme is that we now have Audio-Magnetotelluric (“AMT”) technology. AMT allows us to measure resistivity deep into the Earth’s crust, to map rock types and areas of alteration. With the sophisticated modern inversion software available to Kavango, we are able to produce very clearly defined section views. This could prove to be invaluable as we advance this project.
The magnetite lead is also an intriguing one. While KSZDD001 was not targeting the IOCG target, it did (inadvertently) intercept one of the limbs of the magnetic “crown”. The concentration of magnetite encountered corresponds to what could represent a larger zone of magnetite close to the centre of the GRS. If this model proves to be correct it could be a physical indicator of an IOCG system.
What is particularly exciting about the new IOCG target in the GRS is that it is in addition to our existing nickel/copper sulphide model, stacked beneath it. We also continue to rapidly advance this nickel/copper sulphide program and look forward to publishing the next phase of TDEM results.
Meanwhile, there is much more work we need to do on the IOCG target in the coming months. The next steps include publication of the final report of the economic comparables study that we have commissioned and also to complete the next phase of AMT surveys to enhance our model.”
Summary of IOCG exploration theory
Kavango proposes an additional exploration target zone for the Great Red Spot (the “New Target Zone”). The New Target Zone is in addition to and lies beneath the current target horizon for the Karoo hosted nickel/copper sulphide exploration program.
The New Target Zone meets the criteria of a coincident magnetic and gravity anomaly, that was used by Western Mining in 1975 as sufficient justification to drill their Olympic Dam target. The Great Red Spot magnetic anomaly inversion is very similar to an inversion of public domain data for Olympic Dam, in terms of size and morphology.
The New Target Zone has also exceeded these criteria with the addition of long 8km Audio-Magnetotelluric profiles, which have identified resistivity changes that could relate to the identification of alteration within the GRS.
An IOCG model was first proposed for the GRS in the late 1990’s. The addition of new geophysical data and inversion technologies have greatly enhanced this opportunity, by providing new resolution in detail and depth on this target.
Kavango commissioned an independent economic comparables study to test the viability of the New Target Zone as a viable economically interesting target. The draft report confirms this and Kavango will release the final report on completion.
Geological Setting
The Great Red Spot is on the western margin of the Kaapvaal Craton, which Kavango interprets as a promising location for magmatic intrusions and mineralising systems. It lies at the nexus of 4 interpreted regional geological structures.
Kavango’s interpretation of available regional data leads the Company to conclude that the Great Red Spot is located in an enhanced position for the potential for multiple ore deposit models, including both the IOCG and Ni/Cu magmatic sulphide systems.
Idealised IOCG model and Olympic Dam summary
IOCG systems are often multi-kilometre mineralised “overprints” of local host rocks. They can vary a great deal in their composition but do share several common characteristics. IOCG systems are known as “alteration” systems, meaning that mineralisation formed during hydrothermal phase transitions. These hydrothermal phases are driven by deep magmatic intrusives that act as heat sources. This means, an IOCG system can “overprint” the host rock lithology with both alteration and mineralization.
Typically, IOCG systems feature both hematite and magnetite alteration zones (forms of iron oxide), which can host copper, gold, cobalt, silver and uranium.
Olympic Dam comparison with the Great Red Spot
Olympic Dam is a large multi-kilometre scale IOCG alteration system that was discovered by Western Mining in 1975. It has been mined and extensively studied. Although Olympic Dam is considered unique, IOCG deposits are numerous and many are mined.
The New Target Zone at the Great Red Spot was first proposed in the late 1990s. The addition of new geophysical data and modern inversion technologies have greatly enhanced this opportunity, by providing better resolution of the target in detail and to depth.
Kavango has used three separate data sets to develop its geophysical model for the New Target Zone, including:
– Airborne Magnetic data
– Ground Gravity data
– Ground AMT data
The New Target Zone includes a coincident magnetic and gravity anomaly closely comparable to the one that was used by Western Mining in 1975 as the basis for testing the Olympic Dam target.
Kavango believes its use of AMT technology provides the Company with a more robust exploration model than the one used by Western Mining. AMT technology was not utilized at Olympic Dam and recent developments in inversion software have made the exploration technique even more powerful.
AMT sections taken by Kavango over the GRS indicate complexities below 950m within the Proterozoic host rocks, which the Company believes may represent initial indications of possible IOCG-style alteration zones.
Given the interpreted complexity and size of the possible alteration zones Kavango has identified using AMT, the Company needs to carry out further work to resolve each zone to allow for more effective targeting of potential mineralization.
Further AMT surveys have been commissioned and the Company will release results once processed.
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce a heavily oversubscribed £750,000 placing at 3p per share. This represents no discount to the offer price of Kavango’s shares at close on Friday 06 May.
Highlights
– Placing:
– 25,000,000 New Ordinary Shares (the “Placing Shares”) have been placed by First Equity Limited (“First Equity”), on behalf of the Company with institutional and other investors (the “Placing”)
– The Placing has been conducted at a price of 3p
– A one-for-one warrant will be issued to all placing participants, exercisable at 5p per share for a period lasting until 31 December 2023 (the “Warrants”)
– The Company has raised gross funds of £750,000
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“We received an offer from First Equity on Friday to raise money for Kavango over the weekend. We set a maximum limit of £750,000 and received offers to subscribe for nearly double this amount.
At this stage in Kavango’s development, the additional working capital will support expanding our exploration programme. We are also conscious to manage dilution at this level. A number of work streams are nearing completion and we will be able to deploy the new funds quickly.
We would like to thank First Equity and their clients for their strong support .”
Placing
The 25,000,000 New Ordinary Shares have been conditionally placed by First Equity Limited on behalf of the Company with institutional and other investors, including high net worth and retail investors, to raise £750,000.
Each New Ordinary Share has, on a one-for-one basis, a warrant attached exercisable at 5p for a period lasting until 31 December 2023. The warrants are subject to headroom approval and are expected to be issued around July 2022 to subscribers.
Admission and Total Voting Rights
Application will be made for the Placing 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 will commence at 8.00 a.m. on 23 May 2022 (or such later time as may be agreed between First Equity and the Company being not later than 5.00 p.m. on 31 May 2022 (the “Long Stop Date”).
Following Admission, the total issued share capital of the Company will consist of 435,462,052 Ordinary Shares. Therefore, the total number of voting rights in the Company is 435,462,052 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 Twitter at #KAV.
For further information please contact:
Kavango Resources plc
Ben Turney
+46 7697 406 06
First Equity (Joint Broker)
+44 207 374 2212
Jason Robertson
SI Capital Limited (Joint Broker)
+44 1483 413500
Nick Emerson