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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.
Kavango Resources #KAV – KCB: South Ghanzi – 18km long open target at Morula
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce further encouraging soil sampling results from PL 036/2020 (“South Ghanzi Project”) in the Kalahari Copper Belt (“KCB”).
150km of soil sampling lines have now been completed over the Acacia and Morula targets on the South Ghanzi Project. Morula is now estimated to be at least 18km long (up from 12km previously announced) and between 800m and 2.4km in width. The anomaly remains open along strike in both directions.
In addition to this, a third sub-parallel geochemical anomaly has been identified immediately to the south of Morula. This target (designated name “Happy”) appears to be at least 5km long and 700m wide.
Promising, in-soil copper readings have been recorded on all three targets (Acacia, Morula and Happy).
The South Ghanzi Project is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Highlights
Ø Extension of infill soil sampling
– Additional infill soil sampling lines extended from 5.5km to 11km
– Longer lines led to the identification of the Happy Target.
– Total of 150km of soil sampling lines now complete over Acacia, Morula and Happy
– 2,105 soil samples taken
– 1,199 samples returned copper in soil readings >30ppm
– 1,050 samples returned zinc in soil readings >29ppm (zinc is a “pathfinder” element for sedimentary hosted Copper-Silver deposits)
Ø 11 additional sample lines over Morula have confirmed:
– The target is at least 18km in length
– Width varies from 800m to 2.4km
– Open along strike in both directions
– 63 highly anomalous copper readings >45ppm, with 5 results >62ppm
– Zinc in soils correlates closely with copper readings, including 95 highly anomalous zinc readings of >71ppm Zinc including 9 results >91ppm
– The clearly defined mineralised system appears to follow a large regional fault/shear zone
Ø New copper/zinc in soils anomaly identified as the Happy Target:
– 5km long and 700m wide
– Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm, and 28 samples assaying between 71ppm to 86ppm zinc.
Ø Next steps
– Induced Polarization (IP) and Audio-frequency Magnetotellurics (AMT) surveys planned to define drill targets
– Further soil sampling on Acacia, Morula, Happy and other targets in the South Ghanzi Project
Ben Turney, Chief Executive Officer of Kavango Resources, commented:
“Morula is big. The maps we will publish on our website of the soil sampling result paint a compelling visual picture, but we remain grounded at this stage.
As exciting as the development of Morula is, we will only ever be able to prove if there is an economic resource there by drilling. We expect the Environmental Management Plan to be awarded in the very near future. At that point we can finalise plans for mobilising a rig to the South Ghanzi Project.
I would like to thank our team in the Kalahari Copper Belt for their dedication, their creativity and their ambition. The decision to double the length of the soil sampling lines appears to have paid off, with the identification of the Happy Target.
With the additional funds we recently raised, Kavango can now plan confidently for much more extensive exploration in the field, including accelerated drilling as soon as we are able.”
Background to Targets Morula and Acacia
Ø The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020
– Situated within a fold “nose”, which is plunging southwest
– Lies just above the D’Kar – Ngwako Pan contact zone.
– Made up of at least 4 individual pods, which emit strong EM readings.
– Soil geochemistry directly over the anomaly demonstrates highly elevated levels of copper (>42ppm) and zinc (>75ppm).
– Considered to be the highest priority drill target until the Morula Target was identified.
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB
Ø The Morula Target is estimated to be between 800m and 2.4km wide with at least 18km of strike on a south-westerly trend along the central backbone of PL 036.
– Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined AEM linear conductor.
– Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.
– This was followed by four 4km long infill soil sample lines (1km apart with 100m sample intervals) to close the gap
– All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 18km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.
Ø The Happy Target is estimated to be between 700m and 2.4km wide with 5km of strike sub-parallel to Morula.
– Discovered by extending soil sampling lines south of the Morula Target
– Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm, and 28 samples assaying between 71ppm to 86ppm zinc.
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. Application has been made to transfer the PLs into a recently established 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.
Power Metal Resources #POW – Latest KCB Soil Sampling Extends Morula Target Geochemical Anomaly to Over 18km
Power Metal Resources PLC (LON:POW) a AIM listed metals exploration and development company is pleased to announce results from further geochemical soil sampling and geological mapping on the Morula Target in Prospecting Licence (“PL”) 036/2020 at the South Ghanzi Project (“South Ghanzi” or the “Project”) located in the Kalahari Copper Belt (“KCB”), Botswana.
South Ghanzi is held under a 50/50 Joint Venture (“JV”) with Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator of the Project.
A total of 150km of soil sampling lines have now been completed over South Ghanzi’s Acacia and Morula targets. The Morula Target geochemical anomaly is now over 18km long (up from 12km previously announced on 21 June 2021) and varies between 800m and 2.4km in width. The geochemical anomaly remains open along strike in both directions towards the northeast and southwest.
In addition to this, a third sub-parallel geochemical anomaly has been identified immediately to the south of the Morula Target. This target (designated name “Happy”) is approximately 5km long and approximately 700m wide.
A map displaying South Ghanzi copper geochemical results is available to view on the Company’s website through the following link:
https://www.powermetalresources.com/south-ghanzi-copper-map/
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“The current 18km length of the Morula Target is dramatic, particularly as the target remains open in both directions. Alongside this the discovery of a further geochemical anomaly named “Happy”, is another surprising and positive development at South Ghanzi.
What is also encouraging is that we are seeing strong coincidence between the copper-zinc geochemical anomalism with previously defined airborne electromagnetic (“AEM”) conductors.
Work continues on the Project and a key focus will be ground geophysics which will help us define drill targets which we plan to drill test subject to approval of the Environmental Management Plan.
Kavango’s in-country operations team have done a fantastic job executing on the various exploration plans and South Ghanzi has quickly become a key focus for Power Metal Resources.
Whilst the drill programme is the critical step to determine the tenor of mineralisation below the surface at South Ghanzi, the strength of exploration data that has been acquired thus far demonstrates that the Project holds major discovery potential for sedimentary hosted copper-silver mineralisation.”
PROGRAMME HIGHLIGHTS:
· Extension of infill soil sampling
– Additional infill soil sampling lines extended from 5.5km to 11km.
– Longer lines led to the identification of the Happy Target.
– Total of 150km of soil sampling lines now complete over the Acacia, Morula and Happy targets.
– A total of 2,105 soil samples have now been taken over all targets.
– 1,199 samples returned Cu-in-soil readings >30ppm Copper (“Cu”).
– 1,050 samples returned Zinc (“Zn”) in-soil readings >29ppm Zn (zinc is deemed to be a “pathfinder” element for sedimentary hosted Copper-Silver deposits).
· Eleven additional sample lines over the Morula Target have confirmed:
– The geochemical anomaly is greater than 18km in length.
– Varies between 800m to 2.4km in width along its extent.
– Open along strike in both directions towards northeast and southwest.
– 63 highly anomalous copper readings of >45ppm Cu, with 5 results >62ppm Cu.
– Zn-in-soil results correlate closely with copper readings including 95 highly anomalous zinc readings of >71ppm Zn, including 9 results >91ppm Zn.
– The clearly defined geochemical base metal anomaly appears to follow a large northeast-southwest regional fault/shear zone.
· New copper/zinc in soils anomaly identified as the Happy Target:
– Approximately 5km long and 700m wide.
– Soil sampling returned readings with significant concentrations of copper including 33 samples between 35ppm to 57ppm Cu, and 28 samples assaying between 71ppm to 86ppm Zn.
· Next steps
– Geophysics: Induced Polarization (IP) and Audio-frequency Magnetotellurics (AMT) surveys planned to define drill targets.
– Further soil sampling on Acacia, Morula, Happy and other targets in the South Ghanzi Project.
BACKGROUND TO THE MORULA, ACACIA and HAPPY TARGETS
· The Acacia Target is defined by a 4km x 4km conductor on the northern boundary of PL 036/2020
– Located within a fold “nose”, which is plunging southwest .
– Lies just above the D’Kar – Ngwako Pan formation geological contact zone.
– Made up of at least 4 individual pods, which emit strong electro-magnetic (EM) geophysics readings.
– Soil geochemistry directly over the AEM anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm).
– Along with the newly defined Morula Target, Acacia is one of the highest priority drill targets at South Ghanzi.
· The Morula Target is estimated to be between 800m and 2.4km wide with at least 18km of strike length on a south-westerly trend along the PL 036/2020 licence boundary.
– Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined slightly offset AEM geophysics linear conductor.
– Geological mapping, AEM conductivity results as well as the latest soil sampling data suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were initially 7km apart.
– Follow up soil sampling included four 4km long infill soil sample lines (1km apart with 100m sample intervals).
– All soil sample lines returned readings with significant copper and zinc anomalisms confirming the continuity of the geochemical anomaly over a strike length of 18km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow at an estimated depth of roughly 200m.
· The Happy Target is estimated to be between 700m and 2.4km wide and 5km along strike which is sub-parallel to the Morula Target.
– Discovered by extending soil sampling lines south of the Morula Target.
– All soil sample lines returned readings with significant concentrations of copper and zinc anomalism.
THE POWER METAL/KAVANGO 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, an England and Wales public company.
Exploration costs are equally shared. Kavango is the operator of the Project.
Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd which is wholly owned by Kanye Resources plc.
There are plans to list 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 and development company seeking a large scale metal discovery.
The Company has a global portfolio of project interests 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.
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 – KCB: South Ghanzi – Morula target update
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce results from further soil sampling and geological mapping on the Morula Target in PL 036/2020 (South Ghanzi Project) in the Kalahari Copper Belt (“KCB”).
Following the announcement on 14 May 2021, Kavango has completed and analysed samples from 16km of infill soil-sampling at Morula, which confirms that the conductor/anomaly extends along strike for at least 12km.
The South Ghanzi Project is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Morula is now our highest priority exploration target at South Ghanzi.
Highlights
Ø Previously, seven kilometre-scale conductors were defined by Airborne Electromagnetic (“AEM”) surveys at South Ghanzi
– Morula & Acacia identified as the highest priority targets in the short-term
– Drilling planned as soon as the South Ghanzi Environmental Management Plan (“EMP”) is approved
Ø Infill soil sampling of Morula
– Four sample lines, each 4km long, 1km apart, sampled every 100m (using the high sensitivity deflation zone sampling method developed by Kavango).
– Anomalous levels of copper (35ppm to 68ppm) and zinc (59pmm to 111ppm) correlate closely with results from original seven soil-sampling lines
– Clearly defined mineralised zone of 12km, on a south-westerly trend, parallel to two steep anticlinal structures
– Open along strike in both directions
Ø Assessment of optimal drill locations now underway at Morula and Acacia
– Targets appear to be close to surface.
– Minimal Kalahari sand cover
– Estimated intercept depths of 120m to 200m
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“Following identification of the Acacia and Morula conductor/soil anomalies we’ve focussed our exploration efforts on the Morula Target over recent weeks.
These initial results are highly encouraging. They emphasise the potential and scale of this 12km long mineralised zone. Morula is rapidly developing into one of the most exciting drill targets in our entire portfolio.
We plan to start drilling here as soon as we can, after we have received approval of our EMP.”
Background to Targets Morula and Acacia
Ø The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020
– Situated within a fold “nose”, which is plunging southwest
– Lies just above the D’Kar – Ngwako Pan contact zone.
– Made up of at least four individual pods, which emit strong EM readings.
– Soil geochemistry directly over the anomaly demonstrates highly elevated levels of copper (>42ppm) and zinc (>75ppm).
– Considered to be the highest priority drill target until the Morula Target was identified.
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB
Ø The Morula Target is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036.
– Discovered by extending soil sampling lines south of the Acacia Target and supported by a well-defined AEM linear conductor.
– Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.
– Now, four new 4km long infill soil sample lines (1km apart with 100m sample intervals) have been completed to close the gap.
– All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 12km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.
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. Application has been made to transfer the PLs into a recently established 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:
The South Ghanzi Project
Ø 50 % working interests in prospecting licenses PL036/2020 and PL037/2020, to be held in a Joint Venture with Power Metal Resources (LSE:POW) (announced 21 September), which cover 1,294km 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. 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), since 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 Kalahari Copper Belt 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 – KCB Kanye Resources Exploration Update – Morula target soil sampling confirms conductor/anomaly extends along strike for at least 12km
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to announce results from further geochemical soil sampling and geological mapping on the Morula Target in Prospecting Licence (“PL”) 036/2020 at the South Ghanzi Project (“South Ghanzi” or the “Project”) in the Kalahari Copper Belt (“KCB”), Botswana.
The South Ghanzi Project is held in a 50/50 Joint Venture (“JV”) with Kavango Resources plc (LSE:KAV) (“Kavango”). Kavango is the operator of the Project.
· Following the announcement on 14 May 2021, Kavango has completed and analysed samples from 16km of infill soil-sampling at Morula, which confirms the conductor/anomaly identified by airborne electromagnetic geophysics conducted previously and extends along strike for at least 12km.
· Morula is now the highest priority exploration target at South Ghanzi.
· Exploration test drilling planned later this summer on award of Environmental Management Plan. Further details on the drill programme to be provided in due course.
Paul Johnson, Chief Executive Officer of Power Metal Resources plc, commented:
“Today’s news includes significant and positive Project developments.
At Morula we have confirmed a soil geochemistry anomaly of at least 12km strike length, presenting a considerable scale target, which also remains open at both ends.
Power Metal and Kavango are seeking large scale copper-silver discoveries and without question the progress to date is even better than expected.
Once again, I am reminded of the substantial opportunity the Kalahari Copper Belt offers for major base metal discoveries. In 2016, whilst CEO of Metal Tiger plc, we followed a similar exploration methodology which led to the discovery of the T3 Deposit, a discovery which was to be transformational for that company and its shareholders.
The exploration datasets from South Ghanzi have delineated very strong drill targets and I am very much looking forward to the commencement of a programme of drill testing at the Project.”
HIGHLIGHTS:
· Previously, seven, kilometre-scale conductors defined by airborne electromagnetic (“AEM”) geophysics surveys at South Ghanzi:
– Morula & Acacia identified as the highest priority targets in the short-term.
– Drilling planned as soon as the South Ghanzi Environmental Management Plan (“EMP”) is awarded.
· Infill soil geochemical sampling of Morula:
– 4 sample lines, each 4km long, 1km apart, sampled every 100m.
– Concentrated levels of copper (35ppm to 68ppm) and zinc (59pmm to 111ppm) in soil correlate closely with results from original seven soil-sampling lines.
– Soil geochemistry clearly defined a 12km long anomalous zone, on a south-westerly trend, parallel to the perceived geological strike and to two steep anticlinal structures.
– Soil geochemical anomaly remains open along strike in both directions.
· Assessment of optimal drill locations now underway at Morula and Acacia with further information to follow in due course with regard to the proposed drill programme:
– Targets appear to be close to surface.
– Minimal Kalahari sand cover expected.
– Estimated mineralised intercept depths of 120m to 200m.
BACKGROUND TO THE MORULA AND ACACIA TARGETS
· The Acacia Target is a 4km x 4km conductor on the northern boundary of PL 036/2020:
– Lies within an interpreted fold “nose”, which is plunging southwest
– Lies just above the expected D’Kar – Ngwako Pan contact zone.
– Soil geochemistry directly over the anomaly at Acacia Target demonstrates significantly anomalous levels of copper (>42ppm) and zinc (>75ppm).
– Acacia was considered to be the highest priority drill target until the Morula Target was identified.
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB
· The Morula Target is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036/2020:
– Discovered by extending soil sampling lines south of the Acacia Target but also supported by a weaker AEM linear conductor.
– Geological mapping, the AEM data and the soil geochemistry suggest this target represents the mineralised sheared (and possibly thrust faulted) southern limb of the “Acacia” fold.
– It appears to be a linear zone of deformed rocks, lying where the syncline (between 2 anticlines) should be located.
– Initially, seven 4km long soil sample lines (500m apart with 100m spaced samples) were completed, with four intersecting the southwest and three intersecting the northeast parts of Morula. The two groups of soil sample lines were 7km apart.
– Now, four new 4km long infill soil sample lines (1km apart with 100m sample intervals) have been completed to close the gap.
– All soil sample lines returned readings with significant concentrations of copper (35ppm to 62ppm) and zinc (59ppm to 111ppm) confirming the continuity of the geochemical anomaly over a strike of 12km.
– AEM profiles suggest that the depth of mineralisation is relatively shallow such that initial drilling depths would be less than 200m.
THE POWER METAL/KAVANGO 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, an England and Wales public company.
Exploration costs are equally shared. Kavango is the operator of the Project.
Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd which is wholly owned by Kanye Resources plc.
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:
|
Power Metal Resources plc |
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Paul Johnson (Chief Executive Officer) |
+44 (0) 7766 465 617 |
|
SP Angel Corporate Finance (Nomad and Joint Broker) |
|
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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 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.
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 – Kanye Resources Exploration Update – Extensive anomalies identified, including seven AEM conductive targets at Kalahari Copper Belt
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the identification of seven conductive targets in the Company’s South Ghanzi copper exploration project (“South Ghanzi”) in the Kalahari Copper Belt (“KCB”).
The seven targets were defined by the Airborne Electromagnetic (“AEM”) surveys flown over South Ghanzi in February. Follow up ground-based exploration of the geophysical anomalies has delivered very encouraging results, with close correlation between copper-zinc in soils geochemistry, regional geological mapping and the AEM data.
These findings align closely with previous fieldwork conducted by Kavango and the established regional exploration model for the discovery of major copper/silver deposits within the KCB.
South Ghanzi is held in a Joint Venture with Power Metal Resources plc (LSE:POW) (“Power Metal”). Kavango is the operator.
Highlights
Ø Seven conductive, kilometre-scale anomalies defined by AEM surveys, recently flown by SkyTEM Ltd
– Each anomaly represents a potential drill target
– Initial data interpretation suggests a range of target depths of 40m to 400m for exploration drilling
– Kavango will follow up with additional soil sampling, trenching and geological mapping ahead of a drilling program planned for later in 2021.
Ø Three of the conductors are associated with anticlines/fold structures. These are the highest priority targets for further exploration.
Ø Target 36A (“Acacia”) is a 4km x 4km conductor on the northern boundary of PL 036-2020
– Lies within a fold “nose”, which is plunging southwest
– Made up of at least 4 individual pods of high conductivity
– Soil geochemistry directly over the anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm)
– Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB.
Ø Target 36G (“Morula”) is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036
– AEM data and the soil geochemistry suggest this target represents the sheared and thrust faulted southern limb of the “Acacia” fold
– The soil geochemistry anomaly along the Morula target extends for over 12km demonstrates and is open at both ends
– Seven 4km long soil sample lines (500m spaced with 100m spaced samples) completed, with four intersecting the southwest and three intersecting the northeast of Morula. The two groups of soil sample lines were 7km apart
– All soil sample lines returned readings with significant concentrations of copper (38ppm to 62ppm) and zinc (59ppm to 111ppm) across the 12km soil anomaly
– Seven infill soil sample lines planned at 1km spacing, to test the extent of potential mineralisation across the Morula conductor/anomaly.
Ø Target B (“Baobab”) is a 2km x 3km closed conductor, about 1km south west of the Morula fold and 4km south east of Ghanzi town within PL 036/2020
– The Target sits across the “nose” of a second, “opposing” fold on the same stratigraphic horizon as Acacia.
– Baobab is in a very encouraging geological setting. Soil geochemistry Survey underway.
Ø Target E (“Elephant”) lies in the southeast corner of PL 037/2020. It is a broad, 2.5km wide intense conductor with a strike of at least 6km and open at both ends
– Unlike most of the other targets, the main body of the Elephant anomaly is between 400 and 600m from surface
– A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.
Ø 3D AEM model interpretation of South Ghanzi is in progress and will include re-logging of water borehole chips and historic drillholes.
Ø An Environmental Management Plan (“EMP”) application is progressing
– Upon award of the EMP, the Company plans to initiate exploration drilling across a number of these targets.
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
“The Airborne EM program has demonstrated that the two Ghanzi South PLs have significant potential for the discovery of copper/silver mineralisation. The generally shallow depth of the conductors is a major asset.
We are confident we are looking at numerous mineralised systems. The copper and zinc readings taken from Kalahari cover are promising, but we will only be able to gauge economic viability after drilling and assay testing.
In the meantime, the acquisition of a new portable XRF analyser will speed up the soil geochemistry surveys. Trenching through shallow Kalahari cover is also possible in some areas and will assist in the geological mapping. The aim is to have a more complete understanding of the geology before a drilling program is undertaken later in the year.
The results to date from the South Ghanzi Project have been very promising. We are particularly encouraged by the elevated copper and zinc readings, which correlate closely with sizeable sections of the shallow depth AEM conductors.
With the Environmental Management Plan application progressing well, the next few months in South Ghanzi will be key.”
South Ghanzi exploration
The South Ghanzi PLs lie within the Central Structural Corridor of the Kalahari Copper Belt 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 multiple promising drill targets at South Ghanzi.
AEM survey results
SkyTEM Ltd, a Danish geophysical contractor, conducted the AEM surveys over South Ghanzi in February 2021.
A total of 1,271 line kms were flown over the 2 PLs, which comprise a total area of 1,294km2. The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart and an approximately North-South orientation.
The survey blocks were selected by Kavango’s geophysical team, based upon analysis of magnetic data, soil geochemistry, remote mapping of geological structures and field mapping of the stratigraphy and structural geology.
The AEM surveys defined seven distinct conductor anomalies on both PLs. These are mostly related to fold hinge structures and confined to the interface between the Ngwako Pan and D’Kar Formations. Significantly, the conductors are usually coincident with copper and zinc soil anomalies detected using portable XRF equipment.
– Copper is a less mobile element in soil, so the identification of such elevated readings is promising
– As a more mobile element, zinc is a known “pathfinder element” in the search for major copper/silver deposits. Zinc has been successfully used as an exploration vector for other discoveries in the KCB.
The most significant conductor (Acacia) lies just south of the northern boundary of PL036/2018 about 9km SW of Ghanzi town. The conductor is approximately 4km x 4km in area and is made up of at least 4 individual pods. The conductive material appears to exist almost from surface to a depth of no more than 200m. The conductor lies almost entirely within the fold “nose”, which is plunging to the SW and within the D’Kar Formation just above its contact with the Ngwako Pan Formation.
Kavango has completed extensive soil sampling over Acacia, having taken samples over 16km of lines. Results demonstrate extensive copper and zinc anomalies over the conductive target. The majority of the anomalous readings were >42ppm copper and >75ppm zinc.
An associated conductor (Morula) lies just to the south of Acacia and is also supported by a strong copper in soils anomaly. The conductor is at least 2km wide and over 12km along strike (open at each end).
This conductor probably represents the southern limb of the same fold, but appears to be sheared along a thrust fault. This sheared limb has been cut by a number of NNE trending structures (faults). Such faults are known to be associated with mineralisation elsewhere on the KCB. The Company might elect to conduct further AEM surveys to close off the anomaly and establish its true extent.
The third priority conductor (Baobab) is 2km x 3km in area and is contained within the “nose” of a second major fold on the same stratigraphic horizon as the Acacia target. The size and geological setting for this conductor is encouraging. Kavango will prioritise soil sampling of this area in the coming weeks.
The fourth priority conductor (Elephant) lies in the southeast corner of the South Ghanzi Project and is also supported by a strong copper in soils anomaly. The conductor is at least 2.5km x 5km in area and remains open along strike.
Unlike the other targets, the main body of the Elephant anomaly is between 400 and 600m from surface. A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.
The Company might elect to conduct further AEM survey work to close off the conductor and establish its true extent.
Environmental Management Plan
Kavango initiated the EMP application in February. The award of an EMP is a prerequisite for exploration drilling in Botswana.
The Department of Environmental Affairs (“DEA”) has accepted the project brief for the EMP. A consultant, working on behalf of Kavango, will now engage and consult with local farmers, before submitting a report to the DEA to progress the application.
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. Application has been made to transfer the PLs into a recently established 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.com and 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.
Power Metal Resources #POW – Kanye Resources Exploration Update – Extensive anomalies identified, including seven AEM conductive targets at Kalahari Copper Belt
Power Metal Resources PLC (LON:POW) the AIM listed metals exploration and development company is pleased to provide an exploration update in respect of the South Ghanzi Project which is part of the Kanye Resources Botswana focussed corporate vehicle Strategic Joint Venture (“SJV”) with Kavango Resources plc (LON:KAV) who are the operator of the SJV, see announcement of 29 March 2021.
The South Ghanzi Project is focussed on exploration for copper-silver deposits on the Kalahari Copper Belt (“KCB”), Botswana.
Further to the completion of over 1,200 line-km of airborne electromagnetic (“AEM”) geophysics survey flown by SkyTEM Surveys ApS (“SkyTEM”) over South Ghanzi (announced 17 March 2021), the results of AEM data processing and interpretation have delineated seven conductive anomalies constituting high priority targets for further work.
Follow up ground-based investigation of AEM conductive anomalies has delivered encouraging results. Where existing soil sampling results coincide with an AEM anomaly (Target A1 named “Acacia”) there is a close positive correlation between elevated copper (“Cu”) and zinc (“Zn”) results in soil geochemistry, a conductive anomaly and regional geological mapping.
The soil geochemical survey lines will now be extended to provide further coverage and resolution over A1, and additional soil surveys will be placed over the remaining conductive anomalies.
The additional soil data in conjunction with geological logging of existing water borehole rock chips, the AEM results, and further geological modelling will help fine-tune the placement of drill holes in a planned programme to test emerging high priority targets for copper mineralisation later in 2021 as outlined below.
These findings align closely with previous fieldwork conducted and the established regional exploration model for the discovery of major copper/silver deposits within the KCB.
Paul Johnson, Chief Executive Officer of Power Metal Resources, commented:
“We are extremely pleased with the exploration progress made by our joint venture partner Kavango at the South Ghanzi copper-silver project, centrally located within the burgeoning Kalahari Copper Belt. The exploration work completed over the last 12 months at South Ghanzi has been carried out in a systematic and disciplined manner which has paid off with the discovery of at least seven highly compelling exploration and drill targets.
Power is particularly encouraged by the 4km x 4km Acacia target, as it possesses not only a high conductivity signature detected by the AEM survey, but also almost perfectly coincident Zn- and Cu-in-soil anomalies, which are key signatures typical of nearby copper-silver discoveries within the Belt.
The exploration story at South Ghanzi continues to progress at pace and we eagerly await the next phase of results and drill testing of several of these high-priority targets.”
Technical Summary
Ø Seven conductive, kilometre-scale anomalies defined by the processed SkyTEM AEM survey data:
– Each conductive anomaly represents an area of focus for follow-up geochemical sampling and drill testing.
– Initial data interpretation suggests a range of target depths of 40m to 400m for exploration drilling.
– Follow-up work includes additional soil sampling and geological modelling ahead of a drilling programme planned for later in 2021.
Ø Three of the AEM conductors are associated with interpreted anticlines/fold structures. These are the highest priority targets for further exploration.
Ø Target A1 (“Acacia”) is a 4km x 4km conductor on the northern boundary of the PL 036/2020 licence area:
– Located within an interpreted fold “nose”, which is plunging southwest.
– Soil geochemistry directly over the anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm) relative to background.
– Zinc is believed to be a key pathfinder element for the discovery of copper/silver deposits within the KCB.
Ø Target G (“Morula”) is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of licence PL 036/2020:
– AEM data and the soil geochemistry suggest this target possibly represents the mineralised southern limb of the “Morula” fold.
– Subject to further infill soil survey lines and verification, the soil geochemistry anomaly along the Morula target holds the potential to extend over 12km based on the geophysical data and existing results from seven 4km long soil sample lines (at 500m line-spacing and 100m sample points). Four survey lines currently intersect the southwest of Morula with three intersecting the northeast. The two groups of soil sample lines are currently 7km apart.
– All soil sample lines returned readings with significant concentrations of copper (38ppm to 62ppm) and zinc (59ppm to 111ppm) where they cross the 12km long Morula target.
– Seven infill soil sample lines are planned at 1km spacing, to test the extent of elevated copper and zinc across Morula.
Ø Target B (“Baobab”) is a 2km x 3km closed conductor, about 1km south west of the Morula fold and 4km south east of Ghanzi town within PL 036/2020:
– The Target sits across the “nose” of a second major “opposing” fold, interpreted to be on the same stratigraphic horizon as Acacia.
– Baobab is in a very encouraging geological setting and a soil geochemical survey is planned in the near term.
Ø Target E (“Elephant”) lies in the southeast corner of PL 037/2020. It is a broad, 2.5km wide conductor with a strike of at least 6km and open at both ends:
– Unlike most of the other targets, the main body of the Elephant anomaly is interpreted to be between 400 and 600m below surface.
– A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.
– Soil geochemistry demonstrates elevated levels of copper and zinc across this anomaly.
Ø 3D modelling of the SkyTEM AEM data is planned to include re-logging of water borehole rock chips and historical drillholes.
Ø An Environmental Management Plan (“EMP”) application is progressing. Upon award of the EMP, Kanye plans to initiate exploration drilling on the South Ghanzi Project.
Exploration Rationale
The South Ghanzi licences (PL 036/2020 and PL 037/2020) cover an area of 1,294 km² and 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 and AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.
Kanye’s strategy in the KCB is to follow-up conductive AEM targets with proven exploration methods including soil geochemical sampling, geological/structural mapping, and three-dimensional data inversion modelling. The correlation of positive zinc and copper soil geochemistry in conducive structural settings with positive AEM results is a successful exploration vector for drill targeting.
The current understanding of the regional lithology and stratigraphy of the KCB has helped with the identification of a number of smaller anticlines associated with the AEM conductors which, subject to further verification and soil sampling, could form the basis for multiple potential drill targets across the South Ghanzi Project.
AEM Survey Results
SkyTEM Ltd, a Danish geophysical contractor, conducted a total of 1,271 line-kms of AEM survey over the South Ghanzi licences (PL 036/2020 and PL0 37/2020) in February 2021. The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart with an approximately North-South orientation.
The survey blocks were based upon analysis of magnetic data, soil geochemistry, remote mapping of geological structures and field mapping of the stratigraphy and structural geology.
The AEM surveys defined seven distinct conductor anomalies across both licences. These appear to be mostly related to fold hinge structures and are interpreted to be confined to the interface between the Ngwako Pan and D’Kar Formations. The coincidence of AEM conductors with copper and zinc soil anomalies is an important exploration vector.
– Copper is a less mobile element in soil, so the identification of elevated Cu readings over background levels through Kalahari Cover is promising.
– As a more mobile element, zinc is believed to be a key “pathfinder element” in the search for major copper/silver deposits. Zinc has been successfully used as an exploration vector for other discoveries in the KCB.
The most significant AEM conductor (Acacia) lies just south of the northern boundary of PL036/2018 about 9km SW of Ghanzi town. The conductor is approximately 4km x 4km in area and is made up of at least 4 individual pods. The conductive material appears to exist almost from surface to an interpreted depth of no more than 200m. The conductor lies almost entirely within a fold “nose”, which is plunging to the SW and within the D’Kar Formation just above its contact with the Ngwako Pan Formation.
To date 16 line-km of soil sampling has been completed over Acacia. Results demonstrate extensive copper and zinc anomalies over the conductive target with average results over 42ppm copper and over 75ppm zinc.
The Morula target lies just to the south of Acacia and is also supported by a strong copper in soils anomaly. The conductor is at least 2km wide and over 12km along strike (currently open at each end).
This target probably represents the southern limb of the same fold but appears to be sheared along a thrust fault. This sheared limb has been cut by a number of NNE trending structures (faults). Such faults are known to be associated with mineralisation elsewhere on the KCB.
The third priority conductor (Baobab) is 2km x 3km in area and is contained within the “nose” of a second major fold interpreted on the same stratigraphic horizon as the Acacia target. The size and geological setting for this conductor is encouraging. Kavango will prioritise soil sampling of this area in the coming weeks.
The fourth priority conductor (Elephant) lies in the southeast corner of the South Ghanzi Project and is also supported by a strong copper in soils anomaly. The conductor is at least 2.5km x 5km in area and remains open along strike.
Unlike the other targets, the main body of the Elephant anomaly is interpreted to be between 400 and 600m below surface. A number of faults intersect the main body, giving rise to several close surface conductors which could be sampled with shallow drilling. The close surface conductors are the higher priority exploration targets.
Environmental Management Plan Update
The EMP application process was initiated in February. The award of an EMP is a prerequisite for exploration drilling in Botswana. The Department of Environmental Affairs (“DEA”) has accepted the project brief for the EMP. A consultant, working on behalf of Kavango, will now engage and consult with local farmers before submitting a report to the DEA to progress the application.
FURTHER INFORMATION
Strategic Joint Venture – Group Structure and Interests
The SJV currently has a 100% interest in the two Ghanzi South prospecting licences (“PLs”) prospective for copper/silver mineralisation on the KCB (1,294km2) and the two ‘Ditau Project’ PLs south of the town of Kang in central Botswana (1,386km2). The Ditau Project is prospective for minerals associated with carbonatite intrusions 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%). As announced 17 March 2021, a listing of Kanye Resources plc on the London Stock Exchange is planned for later in the year.
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 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.
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 – 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.