Kavango Resources PLC Phase 2 Airborne Electromagnetic Survey completed (0933T)

TIDMKAV

RNS Number : 0933T

Kavango Resources PLC

18 March 2019

PRESS RELEASE

18 March 2019

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

PHASE 2 AIRBORNE ELECTROMAGNETIC SURVEY COMPLETED

Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world class mineral deposits in Botswana, is pleased to announce that Phase 2 of its airborne electromagnetic (AEM) survey carried out by SkyTEM over the northern section of the Company's Prospecting Licences that cover much of the Kalahari Suture Zone (KSZ) structure in southwest Botswana, has been completed.

HIGHLIGHTS:

AEM Survey

-- The SkyTEM AEM survey covered approximately 2,100 line-kms to the north of Hukuntsi in southwest Botswana, over Prospecting Licences PL163/2012, PL365/2018, part of PL364/2018 and single lines in PL509/2014 and PL510/2014;

   --     The SkyTEM AEM survey helicopter and crew have recently demobilized; 

-- Preliminary results indicate that SkyTEM's innovative new generation 312 HP (High Power) technology has achieved exceptional depth of investigation beneath the Kalahari sand cover and Karoo sediments due to the high moment (HM) mode with high current and low base frequency of 12.5 Hz. This system has been on the market since 2017 and therefore represents a major advance in AEM systems;

-- The SkyTEM AEM data is currently being interpreted and modelled by our duly appointed external Consultants, Aarhus Geophysics in Denmark, in conjunction with SkyTEM;

-- Results of the interpretation, with priority targets for ground follow-up and drilling, will be announced when they become available.

Michael Foster, Chief Executive Officer of Kavango Resources, commented:

"We are pleased to announce the successful conclusion of SkyTEM's AEM survey covering the northern part of KSZ project area. The KSZ project covers over 9,000 km(2) of prospective ground for the discovery of base metal deposits in southwest Botswana. The Company has now covered approximately 50% of the KSZ licence area with airborne geophysics. The key now is for a thorough ground follow up plus of course drilling of further priority targets over the coming months".

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.

Notes for Editors:

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 15 prospecting licences covering 9,231 km(2) of ground, including most of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Cu-Ni-PGE rich sulphide orebodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting the World Class Norilsk Ni-Cu-PGE orebodies in Siberia.

Exploration Model:

Kavango's exploration model is based upon the search for magmatic massive sulphide orebodies buried beneath up to 200m of overburden. The identification of drill targets follows a carefully constructed exploration program specifically developed by the Company for exploration in areas covered by Kalahari and Karoo sediments and sands.

The exploration program is initiated by identifying the location of magmatic intrusive rocks from an analysis of the regional magnetic surveys published by the Botswana Government. This is followed by an airborne electro-magnetic survey (AEM) carried out over the magnetic anomalies that have signatures indicating the presence of intrusive rocks at depth. By using the latest generation of low frequency helicopter-borne EM, conductors lying below the Kalahari/Karoo cover can be identified for further investigation. These conductors can be tested on surface by very high sensitivity soil sampling*, which can detect metal ions transported from buried, metal rich massive sulphide deposits associated with the emplacement of magmatic intrusive rocks.

Kavango uses a ground based geophysical technique known as Controlled Source Audio frequency Magneto Tellurics (CSAMT)** to identify the exact location of the conductors. The shape, orientation and depth of the conductors will determine if the conductor should be drilled. The presence of a metal in soil anomaly is also used to prioritise the conductors.

The next phase of the exploration involves the drilling of the conductor to determine the presence of sulphide mineralisation and its metal component (discovery). This is followed by the evaluation of the discovery, which will determine whether the deposit is large enough and rich enough to make an economically viable mine (feasibility).

*Kavango geologists have pioneered a high resolution soil sampling technique to detect ultra-fine metal particles which have been transported in solution from considerable depths of burial to the surface by capillary action and transpiration. Evaporation leaves the metal ions as accumulations within a surface "duricrust" which is then sampled and analysed. Zinc, which is the most mobile of the base metal elements (i.e. goes into solution easily) acts as a pathfinder to mineralization at depth.

**Massive sulphide (base metal) deposits can be detected by CSAMT because they conduct electricity easily (conductors) as opposed to silicate wall rocks (resistive).

For further information please contact:

 
Kavango Resources plc 
 
  Michael Foster                           [phone] 
[e-mail] 
 
City & Westminster Corporate Finance LLP   [phone] 
Nicola Baldwin 
 

SI Capital Limited (Broker) [phone]

Nick Emerson

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March 18, 2019 03:00 ET (07:00 GMT)