Kavango Resources PLC Significant drill targets identified in Botswana (8914J)

TIDMKAV

RNS Number : 8914J

Kavango Resources PLC

10 December 2018

PRESS RELEASE

10 December 2018

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

SIGNIFICANT DRILL TARGETS IDENTIFIED IN BOTSWANA

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 positive results from geophysical follow-up work carried out since the completion of Phase 1 of the airborne electromagnetic (AEM) survey over the Company's Kalahari Suture Zone (KSZ) Project.

Ground based Audio-frequency Magnetotellurics (AMT) surveys have now been conducted over the northern part of the KSZ project and also over the Ditau Prospect area within the KSZ Project. AMT surveys are able to determine the exact location of conductors as well as their orientation, depth and size.

HIGHLIGHTS:

KSZ Project - Northern

-- Ground based AMT surveys (see below for definition and links to images) have now been carried out over 6 of the 26 conductors identified in the AEM survey (Phase 1) in the northern part of the KSZ Project.

-- Selection for ground follow up was based on the strength of the conductors and the coincidence of a zinc in soils anomaly on the surface above the conductor. Zinc, which is the most mobile of the base metal elements (i.e. goes into solution easily) acts as a pathfinder to mineralisation at depth.

-- Several of the conductors appear to be large, steeply dipping bodies that may represent mineralization from near surface down to at least 400m from the surface. These conductors all represent potential drill targets.

-- The ground follow-up programme will continue in the northern part of the KSZ Project to investigate more of the Phase 1 AEM anomalies over the coming months.

KSZ Project - Ditau Prospect

-- At the Ditau Prospect, which has a strike of over 7km, multiple lines of AMT surveying have now identified two elongated conductors extending from just below the surface to depths in excess of 600m.

-- The two Ditau conductors are open at both ends and extend north-south for at least 4km and represent very compelling geophysical anomalies which are both coincident with strong zinc in soil anomalies.

-- The Ditau magnetic body is associated with a significant gravity anomaly and probably represents a mafic intrusive at depth. These conductors represent prime priority drill targets for the first part of next year.

-- The remarkable coincidence of significant (probably mineralised) EM conductors at depth with zinc in soils anomalies on surface represents compelling evidence that Kavango's soil sampling technique is able to detect mineralisation above considerable depths of cover.

-- The Company believes that a combination of AEM surveying, zinc in soils geochemistry and AMT ground based resistivity surveying will continue to identify multiple high quality drill targets over the coming months.

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

"We are extremely pleased to be able to report that the initial AEM survey results show that a number of the conductive anomalies identified coincide with significant geochemical (zinc in soil) anomalies.

Priority targets have now been followed up on the ground with AMT resistivity surveys and exciting potential drill targets have been identified, including at the Ditau Prospect, which forms part of the KSZ Project.

It has been highly encouraging to note the effectiveness of Kavango's exploration strategy and techniques, which are already beginning to deliver positive results.

The KSZ Project covers over 9,000km2 of prospective exploration ground including the 450km KSZ magnetic trend which has the potential to host Norilsk type Cu/Ni/PGE massive sulphide ore bodies. This huge area, which is entirely covered by surface (Kalahari) sand cover, has not previously been explored for minerals using modern techniques.

The Company, which was only listed at the end of July, is already identifying drill ready targets which should only increase with further flying. The Company remains fully focused in its pursuit of the discovery of world class mineral deposits within the KSZ Project area in Botswana by following up on all of the above during 2019."

Notes for Editors:

Kavango's 100% subsidiary in Botswana is the holder of 15 prospecting licences covering 9,231 km(2) of ground including most of the 450 km long KSZ magnetic anomaly along which Kavango is exploring for Cu-Ni-PGE rich sulphide orebodies.

The area being explored displays a geological setting with distinct similarities to the Norilsk deposits in Siberia, host to the world's largest Ni-Cu-PGE mines.

Geophysical techniques such as Induced Polarisation (IP) and Controlled Source Audio-frequency Magneto-Tellurics (AMT) penetrate below the over-lying Kalahari sand cover and Karoo sediments which extend over much of SW Botswana. Massive sulphide deposits can be detected by AMT because they conduct electricity easily (conductors) as opposed to silicate wall rocks (resistive). Large conductors extending from near surface to deep levels below surface could contain considerable amounts of mineralisation and are what the Company is looking for. There is no guarantee the conductors identified are mineralised but if they are, and if the mineralisation is economic, this would be transformational for the Company.

Kavango geologists have developed 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.

Click on the link below to see the AMT images:

https://www.kavangoresources.com/images/2018/12/08/rns-10-dec-8-fig1-3.jpg

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 / Alan Gunn

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

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December 10, 2018 02:00 ET (07:00 GMT)