REG - Kavango Resources - Option to acquire further Zimbabwe gold projects

Kavango ResourcesAnnouncement

25/07/2023 15:15

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RNS Number : 1530H  Kavango Resources PLC  25 July 2023

PRESS RELEASE

25 July 2023

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Option to acquire two further Zimbabwe gold projects

 

Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals
exploration company, is pleased to announce that it has signed an exclusive
6-month option to acquire two gold exploration projects in Matabeleland,
southern Zimbabwe (the "Option").

The Hillside Project comprises 40 contiguous gold claims and contains a
historic high-grade underground mine. This is reported to have produced
historically 18,000 ounces ("oz") of gold at a grade of 7.7 grams per tonne
("g/t") over a strike length of more than 350m.

The Leopard Project comprises 44 contiguous gold claims and has supported
historical gold production from two underground mines. One of these ("Site
One") is reported to have produced more than 2,000oz from ore grading 3.5g/t
gold, while the second ("Site Two") is reported to have produced historically
more than 1Moz from ore at an average grade of more than 0.5g/t gold.

Kavango believes Hillside and Leopard (the "Projects") each have the potential
to host bulk mineable gold deposits.

Hillside is located on the same greenstone belt as the Nara Project, where
Kavango is currently completing due field diligence after signing an exclusive
2-year purchase option (announced >>> 26 June 2023
(https://polaris.brighterir.com/public/kavango_resources_plc/news/rns/story/x5zmj9x)
). Hillside is about 20km from Nara. Leopard is located on a separate
greenstone belt to the north.

Ben Turney, Chief executive of Kavango Resources, commented:

"I'm very pleased to announce that we have already been able to expand our
footprint in Zimbabwe after signing the Nara project last month. The Hillside
and Leopard projects both contain historically producing mines and have been
underexplored with modern-day exploration techniques.

We look forward to carrying out a thorough assessment of their commercial gold
potential during our 6-month option period, as we continue to build on our
first-mover advantage in Zimbabwe."

The Hillside Project

Kavango has identified multiple zones with the potential for scheelite and
gold production parallel to the trend responsible for the Hillside Project's
historical production.

The Company has designated three priority prospects within these zones with
near-surface, bulk mining potential.

Kavango has prepared an exploration plan for these three zones, which will
include (but not necessarily be limited to):

            -Mapping

            -Surface surveying

-Drilling to assess geology, nature of mineralisation, grade, and geophysical
properties

The Leopard Project

The Leopard Project is located in a favourable regional setting, surrounded by
historical and modern gold producing mines.

Site One is located within a shear zone to the north of the property. The
mine's underground and bulk mining exploration potential is evidenced by
nearby artisanal workings and historical, non-code compliant indicated and
inferred resource estimates of 200,000t @ 6.8g/t gold and 1Mt @ 5.5g/t gold
respectively.

Site Two is located towards the south of the property and was historically
mined down to a depth of 1km from surface within a north-south trending quartz
reef. No exploration has taken place at the mine since the 1930s, with
artisanal workings supporting its modern-day underground and bulk mining
potential.

Kavango plans to assess the underground and near-surface potential of these
two mines through:

            -Mapping

            -Sampling

-Twinning historical holes at Site One

Hillside and Leopard Project Option Terms

Kavango has entered exclusive, binding 6-month options to acquire the
Projects. The Company can exercise the exclusive options at its sole
discretion.

The 6-month option period will allow Kavango to perform an appropriate
exploration program to assess the potential of the Hillside and Leopard
Projects.

To exercise the options and acquire the projects, Kavango will pay the Vendors
or its designate/s US$500,000 in cash (the "Acquisition Price").

Kavango has also agreed to issue 84,000,000 shares in Kavango to the Vendors
or their designate/s, and assume responsibility for repayment of outstanding
debts relating to the projects of US$400,000. This debt will be repaid on its
existing terms, at a rate of US$7,500 per calendar month.

During the 6-month option period, Kavango will be granted full access to the
Hillside and Leopard project areas to conduct initial exploration. Kavango
will work alongside the Vendors of the Projects ("the Vendors") to ensure all
necessary permits are in place prior to beginning any field exploration. The
Vendors are separate parties to the vendor of the Nara Project. The Company is
currently establishing a field camp to support exploration and drilling at
Hillside and Nara.

Performance Consideration

On declaring of a code-compliant (e.g. JORC or equivalent) gold resource in
excess of 200,000 ounces of gold (inferred category or above) at the Leopard
Project by Kavango (the "Resource"), the Company will pay the Vendor or its
designate/s a payment in shares to a value of US$1 million at a 10% discount
to the prevailing 10-day volume weighted average price on the date of
publication of the Resource.

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.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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

For further information please contact:

Kavango Resources
plc

Ben Turney

+46 7697 406 06

First Equity (Broker)

+44 207 374 2212

Jason Robertson

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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