REG - Kavango Resources - KCB – Acquisition of six new PLs completes

Kavango ResourcesAnnouncement

16/11/2023 07:00

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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 7,629km(2). 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
(https://polaris.brighterir.com/public/kavango_resources_plc/news/rns/story/rmvvz2r)
) 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
 (https://polaris.brighterir.com/public/kavango_resources_plc/news/rns/story/rmvvz2r#_ftn1)
 )

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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