TIDMKAV
RNS Number : 7218T
Kavango Resources PLC
29 March 2021
PRESS RELEASE
29 March 2021
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Prospecting Licence acquisitions on the Kalahari Copper Belt,
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 4,255km(2)
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 (1,294km(2) ) and the two "Ditau" PLs south of the town
of Kang in central Botswana (1,386km(2) ), 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 (480km(2) ) 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 (2,481km(2) ) 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
mfoster@kavangoresources.com
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 1,294km(2) ), 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.
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