Kavango Resources - Ongoing project progress in Botswana, and Covid-19
("Kavango" or "the Company")
Ongoing project progress in
- Kavango's 10 prospecting licenses ("PLs") cover a substantial portion of the 450km strike length of the KSZ (5,580 km2) (the "KSZ Licenses).
- The KSZ's regional geology bears distinct similarities to world-class magmatic sulphide Copper-Nickel-Platinum Group Metal ("PGM") deposits at Norilsk (
- Following the successful 2019 drilling campaign, the Company and its independent consultants are now constructing a computerized 3D underground map (model) of the northern part of the KSZ project area (the "3D Underground Model").
- The goal is to identify future high-priority drill targets
- Data from multiple sources are being incorporated into the model including results from the recent drilling, ground geophysics and airborne surveys, as well as third party drilling data from other mineral exploration efforts and water bore holes.
- The Company is now fully funded for the next phase of exploration work at the KSZ.
v Kalahari Copper Belt ("KCB")
- Further PLs under review to be included in the Kalahari Copper Belt Joint Venture (the "KCB JV")
- Kavango also assessing other PLs, with a view to taking 100% direct interests
- Ongoing desktop examination and compilation of historical exploration data, reports, maps and research papers, including soil sampling results, airborne electro-magnetic surveys, drilling data from exploration and water boreholes over the entire
- Following the announcement in 2019 that Kavango was seeking a Joint Venture partner for the
- Planned orientation work on the
- 3 carbonatites were discovered in the 1970s by
- De Beers has granted Kavango site access to its license area, subject to adoption of an environmental management plan
- Non-invasive geophysical work is planned, subject to Power Metals' agreement
- The Falconbridge Orientation will be designed to guide future exploration of the "10 ring structure" magnetic targets thought to represent carbonatites at Ditau.
v Covid-19 update
- Minimal disruption so far to the Company's operations with recent work focused on analysis and modeling of all data collected over the last 18 months.
"Following completion of our recent strategic financing, we are extremely pleased to report on the progress we have made over recent months. We have kept dilution to a minimum, as we now enter the next crucial phase of exploration across our portfolio of projects.
Our goal is to discover world-class metal deposits in
We are particularly encouraged by the initial results we've seen from
A glossary of geological terms is provided at the end of this announcement.
Kalahari Suture Zone Further Exploration
The Norilsk mining centre is about 2,800km northeast of
Typically, magma plumbing systems are composed of stacked horizontal sills connected to each other via vertical dykes.
A continuous flow of magma (containing "free" sulphur) through a magma plumbing system may have allowed the accumulation of metal sulphides in certain trap sites within the sills. This is because metal sulphides are heavy and tend to sink to the bottom of magma.
Over time, accumulations of metal sulphide could have led to the formation of economic deposits of Copper-Nickel-PGMs.
The data from the drilling campaign is now being incorporated into a computerized 3D Underground Model (an underground map) by the Company and its consultants. The 3D Underground Model also incorporates data from ground geophysics and airborne surveys, as well as third party drilling data from other mineral exploration programs and water boreholes.
The construction of the 3D Underground Model of those areas within the northern section of the KSZ that show the development of a high-level plumbing system will allow Kavango to identify "trap zones" within the intrusives (sills) that have the potential to host metal sulphide mineralization. Those zones will be tested with ground based EM surveying using high powered transmitters that are designed to penetrate conductive overburden and saline ground water. A contractor for this work has already been identified.
Kavango is fully funded for this next phase of development at the KSZ.
KSZ economic potential report
In parallel to further exploration work, the Company has commissioned Dr
The Company expects to release the findings of the report in the coming weeks.
The Kalahari Copper Belt
Further to the announcement on
The Company is currently considering additional licenses in the KCB either for inclusion within a KCB JV or to by making fresh applications in its own name.
Kavango will make further updates on this in due course.
Further to the announcement on 15 April, Power Metals is conducting due diligence, in expectation of completing its acquisition of a 51% interest in the
Subsequent onsite exploration and drilling led the Company to recognise 9 additional geophysical "ring structures", which are thought to represent structures related to carbonatite magmatism. Carbonatites are the primary source of niobium and Rare Earth Elements ("REE").
In the first half of 2019, the Company completed the drilling of two exploration holes. Assay results from these, released last August, confirmed the presence of alkali metasomatism (fenitisation), which is associated with the emplacement of alkaline intrusives into the overlying Karoo sediments. This is a geological indicator of the presence of carbonatites.
Subsequently Kavango learned that in the early 1970s, while undertaking diamond exploration in the area,
The presence of the 3 "
De Beers has granted the Company physical access to the
The Company expects that the Falconbridge Orientation program will commence upon completion of Power Metals' due diligence (Covid-19 dependent). In the meantime, the Company will prepare the necessary paperwork and adopt De Beers' environmental management plan.
Due to the lockdown in the
Kavango will provide further updates concerning its operations in relation the Covid-19 response if it becomes necessary.
New date for Admission of Placing Shares
As previously announced on
It is expected that Admission will now become effective and that dealings in the Placing Shares will commence at
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:
NOTE TO EDITORS AND GLOSSARY OF TERMS:
THE KALAHARI SUTURE ZONE
Kavango's 100% subsidiary in Botswana,
The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey's Bay (Canada).
When a deposit consists almost entirely of sulphides it is termed "massive". When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed "disseminated".
Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth's crust.
Gabbroic sills: Relatively thin, planar bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.
High-level sills: Are sills that are emplaced in the upper levels of the earth's crust, close to the surface.
Sulphide mineralisation: If there is sufficient sulphur in the molten magma, it will tend to combine with metals (Cu, Zn, Ni, Co, Pb, PGEs etc.) to form metal sulphide complexes, which may coalesce to form massive sulphide deposits. If the melt is sulphide poor, the metals will be taken up into the silicate minerals that form as the magma cools and will not usually form economic deposits.
Primary sulphides: Are sulphide complexes (or crystals) that form as the magma cools and are composed of elements that are present at the time of initial crystallization. Secondary sulphides may form after the magma has solidified either by the introduction of new elements into the rock or by re-mobilising elements already present through changes in pressure, heat etc.
ECONOMIC POTENTIAL OF CARBONATITES
Until recently carbonatites were regarded as unusual and academically interesting geological bodies but significant interest was only generated once the demand for Rare Earth Elements ("REEs") was established (in the last few years). Hitherto many carbonatites were mined for their phosphate content (fertilizer), or for economic deposits of Niobium, Strontium, Uranium, Thorium, Magnetite, Barium and Vermiculite. One of the world's most productive carbonatites, Palabora, has been in production continuously since 1953 and is South Africa's principal source of copper. About one out of nine carbonatites world-wide have been mined commercially (Simandi & Paradis 2018).
Both the market and production of REE's is dominated by China who are also leading the research into the technological application of these metals. Western countries have recently become alarmed about the strategic advantage that China now exerts over REE technology such that new deposits of these elements are in high demand.
This information is provided by RNS, the news service of the
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