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(Alliance News) - Kavango Resources PLC on Monday reported a widened loss in the first half of 2019 amid spending on exploration in Botswana.
Kavango's pretax loss for the six months leading to June 30 widened to USD295,000 from USD36,000. The company did not generate any revenue in either period. In the recent half-year, it spent USD796,000 on exploration, mostly in Botswana, up from USD52,000 a year before, both of which were capitalised.
The company's net assets increased to USD3.8 million from USD2.2 million a year before.
The drilling at Kavango's Ditau prospect in Botswana has been completed but assay results - which determines the quality of minerals - have fallen short of expectations.
Despite this, Kavango Chair Douglas John Wright said: "The alteration and deformation in both the intrusive gabbro and the overlying sediments continues to suggest that Ditau is a prospective target for mineralisation. The company now needs to confirm if the extensive zone of alteration is related to the carbonatites discovered nearby by Falconbridge in the 1970s. The discovery of carbonatite at Ditau would represent a major advance towards the identification of economic mineralisation at this prospect. Further geological investigation of Ditau is now being undertaken and an update will be published soon.
"As we enter the 2nd half of 2019, the company looks forward to the challenges and opportunities that lay ahead. We have a great team, prospective areas under licence, and with the support of our shareholders we can achieve great results."
Shares in Kavango were trading 5.1% higher at 2.05 pence each on Monday in London.