Kavango Resources Share Discussion Threads

[flashheart] 25/9/2020 18:34

That's good to know Mick. I took an initial stake here this afternoon for the first time and looking to add next week. I am particularly liking the initial Norilsk comparisons from these surveys.

[gasmanmick] 25/9/2020 16:34

Just listened to Mike Moles interview he states that once EM surveys can locate a number of targets in sills using 3D modelling he believes this will be good enough to attract a JV on “good terms”.
Staff on the ground in Botswana at moment.

[skiboy10] 25/9/2020 15:41

Heading up again

[the chairman elect] 25/9/2020 15:20

Will Kavango Resources become the next Norilsk Nickel?

If it turns out that Kavango Resources is sitting on the next Norilsk, don’t say nobody told you!

[palace pete] 23/9/2020 16:12

Plumped my holding up a bit today.Happy with the management the way we're kept informed and the way the story is unfolding.is it 1 or 2 ticks required for a full house?

[gasmanmick] 23/9/2020 13:32

Great article it addresses my only fear that the massive sulphides would be located too deep to be financially viable but the management are rightly concentrating on targets shallow enough to be viable for development by a major.
A JV will come and this management team won’t sell out cheaply this is Mike Moles pension fund lol “we,re here to make money”

[skiboy10] 23/9/2020 13:08

Alastair Ford
11:55 Wed 23 Sep 2020

Will Kavango Resources become the next Norilsk Nickel?

It’s not as outlandish a proposition as it sounds, given the geological structures that Kavango is beginning to uncover on its Kalahari Suture Zone project in Botswana.

“The first time Norilsk occurred to us as an exploration model was when we first looked at the historical drill core from the KSZ a few years ago,” says Mike Moles, one of Kavango Resources PLC's (LON:KAV) two principal geologists, who’s also a non-executive director.

“What struck us was that some of the gabbros had intruded into coal measures which typically contain large amounts of sulphur.”

What Moles is describing with regard to the core from the Kalahari Suture Zone is of course also a distinguishing feature of the giant copper-nickel-palladium deposits at Norilsk.

“At Norilsk,” says Moles, “gabbro intruded into coal measures and incorporated coal into the molten magma so that the sulphur was able to combine with the nickel, copper and platinum group metals and turn them into a heavy immiscible sulphide liquid. This sulphide liquid pooled in trap zones within the sills, and when these eventually cooled, they became the metal-rich deposits that have been so successfully mined for over a century.”

Was this a pattern that was replicated at the Kalahari Suture Zone? The historic drill core confirmed to Moles and Hillary Gumbo (who co-founded the company) that at least it was a question worth asking.

With that in mind, and with the help of a professor of geology from the University of Leicester, they set up a table of characteristics which were typical of Norilsk style mineralisation - of boxes that needed to be ticked - in order for the hypothesis to continue to hold good.

“We’ve got up to box number 12 or 13,” says Moles. “There are one or two more boxes we need to tick, but we haven’t had any negative results yet.”

The latest tick in the box was found through a complex three-dimensional modelling exercise completed by the company in August, and which continues to highlight similarities between the KSZ and Norilsk.

“I was struck by the similarity in the morphology of the sills from Norilsk and those from the KSZ,” says Moles.

“As the magma comes up and approaches the surface, it spreads out laterally along the weaker sedimentary horizons and is then extruded out on the surface as lava. In sectional view the KSZ sills appear as flat-lying intrusive bodies with a typical ‘gull wing’ shape in the extremities and a much thicker ‘keel’ towards the center.

Images of many of the Norilsk sills exhibit strikingly similar morphologies. As the molten magma cools, the heavy immiscible metal sulphide liquid tends to gravitate towards the bottom of the sills. Metals and sulphur will probably be much less abundant in the gull wings, but if you drill into the keels you stand a good chance of finding significant concentrations of massive sulphide accumulations.”

Now that the new 3D model is in place, the next steps will be crucial. Drilling is clearly now looming on the horizon, and the latest Kavango press release mentions that the company will seek to define six potential targets.

On the other hand, drilling in this part of the world is expensive and not something to be undertaken lightly. If there is a Norilsk lookalike at the Kalahari Suture Zone, the main reason why it has not yet been discovered could be that it’s buried beneath around 70 meters of Kalahari sand.

“We could just go and drill now,” says Moles, “but some of the keels are as much as 500 meters deep, so we are now searching for sills that are at a higher erosion level and are closer to the surface. Drilling is very expensive, so we also want to have a high level of confidence that our drill targets will contain massive sulphide accumulations”

Ahead of any drilling, Kavango is therefore planning to undertake ground based electromagnetic surveys using a special technique developed specifically for sand covered arid terrains. This technique employs a high-powered electromagnetic transmitter at a low frequency using a very long loop. The objective is to focus on the trap zones within the keels of the sills where high levels of electromagnetic conductivity would be expected.

“We are confident that our electromagnetic surveying will be able to pick up massive sulphides in the keels of these sills, if they exist,” says Moles.

A positive result would represent a tick in the final box before the drill rigs are deployed. But whether it’s Kavango that deploys those rigs or a potential industry partner remains an open question. For a company that may be sitting on the next Norilsk, its market capitalisation is a relatively modest £4.5mln, and its pockets are not deep.

One option would be to bring in a major industry partner to help with the heavy lifting. This could be beneficial on a couple of levels. Firstly, the sharing of the financial burden would obviously be welcome under the right circumstances. But secondly, if the drilling doesn’t hit straight away, a big-hitting partner with a clear understanding of the geological potential would be able to weather that disappointment and carry on working in a way that would be hard for a junior.

Whether it pans out that way remains to be seen. It’s a box ticking exercise, and for now it’s one box at a time. But if it turns out that Kavango Resources is sitting on the next Norilsk, don’t say nobody told you!

[palace pete] 23/9/2020 12:22

https://www.proactiveinvestors.co.uk/companies/news/929790/will-kavango-resources-become-the-next-norilsk-nickel-929790.html

[soulsauce] 22/9/2020 18:12

Thanks for posting Skiboy.

[skiboy10] 22/9/2020 17:25

Re: KSZ

"It's really now beginning to look quite exciting things are really gearing up now. We want to concentrate on that project."

"We don't have to rush out and raise money immediately. We will be able to keep going for a while on the KSZ project. We will be looking at the potential for other joint ventures particularly on the KSZ project at some time in the future."

[skiboy10] 22/9/2020 16:53

Kavango Metals 'gearing up' after announcing Botswana joint venture with Power Metal Resources

Kavango Resources PLC's (LON:KAV) Mike Moles speaks to Proactive London following the announcement of the Botswana strategic joint venture with Power Metal Resources.

The venture will see the formation of a new, jointly owned, privately held company that is focussed on large-scale mineral exploration projects in Botswana.

Moles says 'things are really gearing up now' and is confident funding is now in place to concentrate on resources in the Kalahari Suture Zone (KSZ).

[skiboy10] 21/9/2020 13:09

Kavango and Power Metal team up to search for vast metal deposits in Bostwana (KAV, POW)

Kavango Resources (LSE:KAV) and Power Metal Resources (LSE:POW) were on the rise on Monday morning after unveiling a new joint venture (“JV”) to explore for large-scale mineral deposits in Botswana.

Kavango has transferred four licenses into the new equally-owned and operated company covering 2,680km2 of ground in the country’s highly-prospective Kalahari Copper Belt (“KCB”)

Two of these licenses make up the “Ditau project”, which contains ten “ring structures” where Kavango has been exploring for large quantities of rare earth mineralization.

The other two are earlier-stage copper prospecting opportunities found directly to the southwest of Sandfire Resources’ TS and A4 Dome copper-silver discoveries.

Power Metal has paid Kavango £75,000 in cash to set up the JV. It has also issued it with 6 million POW shares at 1.25p each along with 5 million two-year, 2p warrants.

Critically, the company has also committed to spending $150,000 on exploration over two consecutive years.

This immediately provides the new JV with the financial firepower needed to begin the next phases of fieldwork at across Ditau and its prospecting licenses. Power Metal said planned work includes detailed regional soil geochemistry and a ground magnetic survey to firm up the position of drill targets.

Kavango and Power Metal may also purchase additional prospecting licenses to build on the JV’s strong Botswana positioning.

As announced in April this year, Kavango had originally entered a provisional agreement to sell 51% of the Ditau project licenses to Power Metal. However, the companies said on Monday that work has since shown that forming a JV presented a much larger opportunity for both.

As Power Metal chief executive Paul Johnson put it:

“We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration, which we intend to undertake with our JV partners.

“Moreover, the addition of two key Kalahari Copper Belt licences brings the Company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries. Again, ground exploration is key, and we intend to be proactive.”

Critically, the shared development of the JV licenses also allows Kavango to ramp up efforts at its primary project, the Kalahari Suture Zone (“KSZ”).

The explorer’s licenses cover a large portion of this 450km magnetic anomaly, which is entirely covered by desert sand and has never before been explored using modern mining techniques.

Over the summer, Kavango has made strong progress in its search for deposits along its KSZ licenses known as “sulphide ore bodies” that are rich with copper, nickel, and platinum group metals (“PGMs”). It is currently in the final stages of analysing a northern section of the geological structure called “Hukuntsi”.

Here, it has identified numerous large targets that present “Norilsk-style potential”. Based in Siberia, Norilsk is one of the most important mining centres in the world. It accounts for 90% of Russia’s nickel reserves, 55% of its copper, and virtually all of its PGMs.

Kavango has identified several magma plumbing systems across its KSZ licenses that are critical features of the enormous magmatic sulphide deposits responsible for Norilsk’s extensive mineralisation. To better understand these large regional structures, Kavango is now preparing to launch a maiden drilling programme.

“With such a large planned operational commitment, the board of Kavango felt the Company would benefit from introducing a new development partner to two licences on the KCB, and at Ditau,” said Kavango.

Each of these projects holds significant potential for discovery of substantial mineral deposits. Power Metals is an ambitious exploration company that has assembled a portfolio of global exploration interests. It is the ideal partner to work with Kavango's technical team.”

The new JV is currently held privately by Power Metal and Kavango. However, it has been incorporated for a future public listing, expected either a Canadian or British stock exchange.

As at writing, Kavango was trading 3.5% higher at 2.5p while Power Metal was sitting at 1.15p.


Author: Daniel Flynn

[skiboy10] 21/9/2020 13:01

@PowerMetRes CEO gives an audio update as #POW acquire a 50% interest in four Botswana prospecting licenses. Listening to CEO @pauljohnson9691 we may see the birth of a newly listed company #KAV JV #POW

[cashandcard] 21/9/2020 13:00

It clearly looks like some of their structures extend beyond the Hukuntsi area. So yes, it would be ideal to only have an agreement on the H area and the rest can await the results of what Kav or a partner discover.


Cash

[skiboy10] 21/9/2020 12:55

gasmanmick - if I remember correctly only approx 50% of the 8,000+ sq km has been surveyed by airborne EM. You are right a JV on the northern section and keeping the rest 100% owned to survey and develop later is a good plan.

[skiboy10] 21/9/2020 12:43

KAV & POW

Kavango Resources (KAV LN) 2.5p, Mkt cap £4.6m – Strategic joint-venture in Botswana

Kavango Resources reports the formation of a strategic joint-venture with Power Metals to accelerate the exploration of of its holdings in the Kalahari Copper Belt and exploration and drill target selection in the northern, Hukuntsi, zone of its Kalahari Suture Zone (KSZ) project.

The newly formed, private, Botswana company will take on Kavango’s two rare-earths and copper exploration projects within the Ditau project as well as its two copper exploration licenece within the Kalahari Copper Belt.

Power Metals will pay £75,000 to Kavango and fund the first £75,000 of exploration over the first 2 years plus provide up to £10,000 to fund the establishment of the joint-venture.

Power Metals will also issue 6m shares to Kavango at a price of 1.25p/share and a further 5m warrants to acquire shares at a price of 2p/share over 2 years and “1 for 1 replacement warrants, exercisable at 5p per share over two years”.

Chief Executive, Michael Foster, explained that “Over the course of completing the due diligence for the sale of the interest in our Ditau Project it became clear there was a much greater opportunity for both parties”.

Mr Foster said that the strategic alliance would “lead to a significant acceleration of our exploration efforts across both areas and we look forward to reporting our progress”.

The longer term aspiration for the joint venture is to “create a Botswana-focussed minerals exploration company, which will ultimately seek a separate listing on either a Canadian or British stock exchange”.

Conclusion: The establishment of a joint venture with Power Metals is expected to accelerate exploration of Kavango’s extensive exploration holdings in Botswana. We look forward to further news.

SP Angel

[gasmanmick] 21/9/2020 09:08

Would like to point out to newbies a large section of the KSZ has not even been surveyed by AEM yet.
So KAV could do a JV for surveyed area and keep rest of licence in house 100% owned with funds to drill it.
High risk is lowering with 3D model and AEM but massive rewards possible.

[the chairman elect] 21/9/2020 08:30

"In parallel to this, Kavango has made significant progress over the summer developing its project on the KSZ. The Company is in the final stages of analysis work on the northern (Hukuntsi) section of the KSZ.

Given the likely number and scale of these "Norilsk style" targets, Kavango is readying itself to prepare for a drill campaign to test the large regional structures it has identified on the KSZ."

[spangle93] 21/9/2020 08:12

Power Metals' take on it (the factual elements are of course identical)



"The new acquisition announced today is a significant development for Power Metal, adding further strategic metal projects into the business portfolio and in the secure, stable and supportive operating jurisdiction of Botswana. The acquisition also complements Power Metal's interest in the Molopo Farms Complex project, which is seeking a large-scale nickel-platinum group metal discovery in Botswana, and where a maiden drill programme is planned.

We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration which we intend to undertake with our JV partners. Moreover, the addition of two key Kalahari Copper Belt licences brings the Company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries. Again, ground exploration is key, and we intend to be proactive.

It is a pleasure to be working with the Kavango team who have considerable operational experience and a commitment to finding a new large-scale metal discovery in Botswana. This commercially focussed outlook is what we share at Power Metal. We have found the two teams have complementary skills and intend to blend our resources in the search for a metal discovery."

[2prsimo] 21/9/2020 07:58

A very inventive management team here

[skiboy10] 21/9/2020 07:55

#POW @PowerMetRes & #KAV @KavangoRes launch new 50/50 JV co:
~4x licences & 2,680 km2 base & strategic metal interests
~Will float on major exchange in 2021.."potential to deliver considerable discoveries"

[soulsauce] 21/9/2020 07:46

That is quite a comment about the KSZ 😉👍

[skiboy10] 21/9/2020 07:43

They also plan to list the new JV next year which will be interesting.

[soulsauce] 21/9/2020 07:41

Good news and makes sense. Allows the company to commit more time to the KSZ while furthering the other parts of the portfolio.