Company Announcements

04 October 2024  

Kavango Resources

("Kavango" or "the Company")

BOTS - Karakubis Project Update

Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals exploration company, is pleased to provide an update on its ongoing Phase 1 stratigraphic drill campaign at the Karakubis Copper Project ("Karakubis") in Botswana's Kalahari Copper Belt ("KCB").

Kavango's analysis of intersections from its first five holes has identified the same stratigraphic sequences at Karakubis as those believed to be present around Sandfire Resources' (ASX:SFR) Motheo Mine and similar to MMG's (HKEX:1208) Zone 5 Deposit. Motheo and Zone 5 are two of the largest known copper deposits in the KCB.

Further, all five holes demonstrate evidence of both functioning structural "trap-sites" and substantial hydrothermal alteration. The confirmation of these two geological "engines" is an important indicator that the ground at Karakubis has been subjected to the correct processes for the accumulation of large-scale copper-silver deposits.

Finally, the Company, through pXRF analysis, has confirmed the presence of copper, silver, lead and zinc mineralisation in all five holes it has drilled. The combination of these four metals is highly encouraging for Kavango's continued exploration for a major commercial discovery.  

Based on the promising results of the first five holes, Kavango is now conducting further geophysical surveying to narrow down its target list for future drilling. These surveys will be completed in parallel with the remainder of the current 5,000m diamond programme.  

Highlights

·    The Phase 1 drill campaign was designed to confirm stratigraphy and evidence for mineralising fluids having passed through structural trap sites capable of hosting large-scale copper/silver deposits

·    Five holes now completed for a total of 2,838m of its planned 5,000m

o All five holes have confirmed the primary objective of the current drill programme

·    The stratigraphy intersected in drilling so far varies from that of the surrounding region, as modelled by Kavango using open-source material prior to drilling.

·    However, Kavango has observed the same general sedimentary cycles at Karakubis as those believed to be present at Sandfire's tenements around the Motheo Mine and at MMG's tenements in the vicinity of the Zone 5 Mine.

·    Kavango has commenced further geophysical surveying to expand the Company's understanding of the structural setting within the Karakubis area.

o The Company has completed ground-breaking preliminary Induced Polarisation ("IP") to a depth of 1,200m and is in the process of collecting Controlled Source Audio MagnetoTelluric data

·    Initial analysis has also identified extensive alteration over broad zones, copper sulphides, and pathfinder minerals for copper-silver mineralisation in all drill intersections so far.

o Hole KCBDD006 has been the most encouraging hole to date, with the following highlights:

§ At 318.79m bornite was encountered with a pXRF copper reading of 1.28%

§ At 541.02m chalcopyrite was encountered with pXRf readings of 32.06% copper, 711ppm zinc, 604ppm Silver, 354ppm lead and 24ppm Molybdenum

·    These provide increasing evidence for what Kavango has interpreted to be a larger mineralised system and will be followed up with assay testing in the lab.

Figure 1: KCBDD006, NQ size core with Bornite in quartz vein at 318.79m

Figure 2: KCBDD006, NQ size core with Chalcopyrite in quartz vein at 541.02m

Figure 3: KCBDD006, NQ size core with Chalcopyrite in quartz vein at 541.02m

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"We are extremely pleased with how exploration of our Karakubis Copper Project, part of our 6,200km² KCB mineral rights package, is progressing. We are applying sophisticated targeting techniques that are delivering promising results. The chalcopyrite and bornite we encountered in Hole KCBDD006 are particularly encouraging indicators.

 Karakubis is an extremely large project that appears increasingly prospective for large-scale copper deposits. These technical steps are important for our team's understanding of the stratigraphy of the Karakubis area and are critical stage gates on our path towards commercial discovery."

Technical results and interpretation

All historic and completed geophysical data has now been compiled, inverted, modelled and incorporated into the regional exploration programme.

Initial drill targets were ranked and selected based upon the following criteria;

·    Geology (mapped field geology and geology interpreted from water boreholes and historic exploration drill holes),

·    Geophysics (including airborne survey data from government surveys and higher resolution Company survey programmes incorporating a combination of, magnetic, electromagnetic and gravity surveys, together with Inversions) and including ground surveys utilising multiple different Gradient Induced Polarisation ("IP") arrays with Stacked Schlumberger Sections and Inversions.

Figure 4: Kavango interpreted geological map overlain on regional First Vertical Derivative (1VD) geophysical image and showing selected drill holes in ranked order.

Kavango is using select features logged in the diamond drill cores as vectoring components to;

·    Help distinguish sedimentary cycles within the stratigraphy,

·    Identify key structural components,

·    Characterise hydrothermal alteration features

·    Classify mineralisation types and styles to target potential trap sites.

Figure 5: Kavango high resolution airborne magnetic Reduced to Pole ("RTP") high pass filtered image superimposed over interpreted geological map draped on regional airborne magnetic 1VD image and showing selected drill holes and completed holes with vectoring components.

The successful completion of five stratigraphic holes for 2,838.10m in the 5,000m Phase 1 diamond drill campaign at Karakubis has developed the exploration model. Further, it has provided detailed information on the variation in stratigraphy in this part of the belt, as well as the detection of significantly wide zones of hydrothermal alteration associated with faults and fold flexures. The results include the discovery of copper sulphides and pathfinder minerals in the siltstones within the sequence.

Table 1 Borehole details

All co-ordinates in WGS_1984_UTM_Zone_34S.

Prior to commencing drilling Kavango compiled a series of generalised lithostratigraphic sections from open-source material across and along the belt. Although there are some variations in stratigraphy to the generalised sections, significantly, the same general sedimentary cycles have been identified at Karakubis as are believed to be present at Sandfire's tenements around the Motheo Mine and at MMG's tenements in the vicinity of the Zone 5 Mine, with a lower series of coarsening upward lithological units overlain by an upper series comprising sequences of fining upward lithological units.

Figure 6: Cross-section looking NE from KCBDD006 (L1170) towards KCBDD002 & KCBDD003 (L1340) with IP Chargeability Inversions on each section line. The same IP chargeability features have been drill tested on both lines, 8.5km apart to assess the stratigraphy within and across the features and try to establish the overall stratigraphic position from the types of lithologies, sedimentary cycles and vector components.

The stratigraphic drilling to-date has intersected significantly wide zones of hydrothermal alteration associated with faults and fold flexures and includes the discovery of copper sulphides and pathfinder minerals in veins and along parting planes in the siltstones within the sequence.

Figure 7: Cross-section looking NE from KCBDD006 (L1170) towards KCBDD002 & KCBDD003 (L1340) with AEM Conductivity Inversions on each section line. The faulted structural feature on line L1340 is represented by a faulted anticline on line L1170 with wide zones of alteration noted in the "washouts" within the AEM data.

The presence of copper sulphides, in many cases, overprinting pyrite in veins, together with pathfinder minerals along parting planes, in the structural fabric and within more porous lithologies, is considered by Kavango to be evidence of a mineralised fluid having moved through what is interpreted to be a larger mineralised system.

Next Steps

Kavango plans to complete the current hole, KCBDD007, and then focus on completing the ground geophysical programme using IP and Controlled Source Audio frequency Magnetotellurics ("CSAMT") before resuming the Phase 1 drilling programme.

These survey programmes over carefully selected drill sections have been designed to test a number of parameters to help discriminate faults, folds and possible lithologies using differences in resistivity and chargeability to resolve the contact position between the D'Kar and Ngwako Pan Formations at depth, above which sits the drill targeted zone.

The Company has completed its first orientation survey of deep IP, calibrating the method to achieve quality data over significant depths down to 0m above sea level ("mASL") with a section of 1,200m depth extent. This data will now be peer reviewed, modelled and inverted.

The first orientation line of CSAMT has also just been completed, with further testing and lines planned. This data will also be peer reviewed, modelled and inverted.

These technical steps are important to the technical team's understanding of the stratigraphy of the Karakubis area and are critical stage gates on our path towards discovery.

Figure 8: KCBDD006 plotted on IP Line 1175E Dipole Insight 3D resistivity plot with airborne magnetic and regional bouguer gravity data.

Figure 9: KCBDD006 plotted on IP Line 1175E Dipole Insight 3D chargeability plot with airborne magnetic and regional bouguer gravity data.

Figure 10: KCBDD006 on measured CSAMT data just received from the field.

Kavango will systematically compile all the data from its drilling programme and use the data to vector towards a possible discovery.

For further information please contact:

Kavango Resources plc

Ben Turney

+46 7697 406 06

First Equity (Broker)

Jason Robertson

+44 207 374 2212

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been compiled by Mr David Catterall, a Competent Person and a member of a Recognised Professional Organisations (ROPO). David Catterall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 (JORC 2012). David is the principal geologist at Tulia Blueclay Limited and a consultant to Kavango Resources. David Catterall is a member of the South African Council for Natural Scientific Professions, a recognised professional organisation.  

The technical information contained in this announcement pertaining to geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada.  Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists.  Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralisation and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects.