Source - LSE Regulatory
RNS Number : 6183T
Kavango Resources PLC
15 November 2023
 

16 November 2023

Kavango Resources PLC

("Kavango" or "the Company")

 

KCB - Acquisition of six new PLs completes

Kavango Resources plc (LSE:KAV), the Southern Africa-focused metals exploration company, is pleased to confirm completion of its acquisition of a 90% working interest in six Prospecting Licences ("PLs") located in Botswana's Kalahari Copper Belt ("KCB") (the "Acquisition")

The Acquisition provides the Company with an extensive single contiguous project area in the KCB covering 7,629km2. Kavango is now one of the KCB's largest individual mineral rights holders.

Kavango believes its expanded project area is underlain by similar stratigraphy to that along strike of Sandfire Resources' (ASX:SFR) A4 deposit and Motheo Mine. Analysis of existing exploration data by the Company suggests this could incorporate a regional system that contains domal structures with folded and sheared trap sites. These are key exploration targets in the search for large-scale copper/silver mineralisation.

Kavango plans to commence follow-up work in the KCB later this month, and an update on this programme will follow.

Figure 1: Kavango's expanded, contiguous KCB land package 

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"These new licences grant us complete control of a contiguous, prospective system in an underexplored section of the KCB, a proven copper/silver region that hosts numerous mines and deposits.

I'd like to thank ENRG Elements for its support during our due diligence process. The mapping, soil geochemistry and drilling data it has provided has been highly valuable.

Kavango has strengthened its geological understanding of its new licences by mapping their lithological sequences and stratigraphy. Meanwhile, the presence of galena and sphalerite - two important pathfinder minerals for copper mineralisation - is also encouraging.

We will now continue to advance our understanding of the new licences' mineral potential by investigating the potential sub-basin we have identified and interpreting their structure with satellite imagery.

Both of these workflows will help us to develop priority drill targets over the coming months."

Further details

Kavango's six new PLs cover ground adjacent to its existing Karakubis Block next to the Namibian border. This is currently the priority focus area for the Company's KCB copper/silver exploration programme. The new PLs are also adjacent to the Company's South Ghanzi licence block.

In preparation for the completion of the Acquisition, Kavango carried out a detailed review of ENRG's previous exploration work, including mapping, soil geochemistry and drilling together with historical exploration work.

As a result of this review, Kavango believes the lower D'Kar Formation it mapped across PL049/2020 & PL052/2020 (two of its Karakubis PLs) extends into PL203/2016, PL127/2017 & PL205/2016 (three of its six new PLs).

During the review, Kavango received drill samples and logs from 5,566m of historical drilling completed by Icon and Ashmead.

Kavango's geologists have begun to interpret the lithological sequences on its new PLs by completing geological work on these drill logs in combination with systematic magnetic susceptibility measurements. The sequences comprise siltstones, carbonates and sandstones.

The Company's geologists have also begun to compile a stratigraphy for the new PLs that they believe to match existing field mapping and conform to sequences in the lower D'Kar Formation present across other parts of the KCB.

During its review, Kavango identified visible galena and sphalerite hosted in quartz-carbonate veins in the drill core and chips taken from this area. These are two important pathfinder minerals for copper mineralisation.

Additionally, systematic pXRF analysis along the cores and drill chips has confirmed the presence of elevated copper, lead and zinc at correlatable intervals.

Finally, Kavango's geologists and geophysicists believe they may have identified a gravity low likely related to a deeper sub-basin during a review of ENRG's previously acquired Airborne Electromagnetic ("AEM"), Gravity and Magnetic data over the Kara Antiform. The margins of this sub-basin could provide priority targets for trap site development and deposit formation. They can be further prioritised when cross-referenced with ENRG's historic magnetic, AEM, and soil geochemical datasets.

Background to the agreement

Kavango entered an agreement to acquire a 90% interest in the six new PLs earlier this year (announced >>> 25 September 2023) with Global Exploration Technologies (Pty) Limited ("GET"), a wholly-owned subsidiary of ENRG Elements (ASX:ENRG) ("ENRG").

Under the terms of the agreement, Kavango has now paid a total of AUD$1.5 million in cash to acquire 90% of the issued shares of Icon Trading (Pty) Ltd ("Icon") and Ashmead Holdings (Pty) Ltd ("Ashmead"), two of GET's subsidiary companies. Kavango will pay GET two further instalments of AUD$500,000 within 90 days and 180 days of the acquisition's completion.

The names of the six new PLs, along with their holding company, status, and expiry date, are found below.

PL Number

Company

Status

Expiry Date

PL127/2017

Ashmead Holdings (Pty) Ltd

2nd Renewal 

30/06/2024

PL128/2017

Ashmead Holdings (Pty) Ltd

2nd Renewal 

30/06/2024

PL129/2017

Ashmead Holdings (Pty) Ltd

2nd Renewal 

30/06/2024

PL203/2016

Icon Trading (Pty) Ltd

3rd Renewal 

30/09/2025

PL204/2016

Icon Trading (Pty) Ltd

3rd Renewal 

30/09/2025

PL205/2016[1]

Icon Trading (Pty) Ltd

3rd Renewal 

30/09/2025

Figure 2: Details of the GET PLs

Planned work

Kavango is currently procuring satellite imagery to advance its structural interpretation and mapping of alterations across the new PLs. The Company will share more details of its upcoming work plans in due course.

The Company is also in the final stages of awarding a contract for the flying of an AEM survey over its KCB PLs. The goal will be to map possible sub-basin and domal structures.

Further information in respect of Kavango and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc 

Ben Turney

+46 7697 406 06

First Equity (Broker)

Jason Robertson

+44 207 374 2212

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.

 

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