(Alliance News) - Kavango Resources PLC on Monday said it has signed non-disclosure agreements with a number of mining companies for a possible Ditau Camp project joint venture and has found evidence of possible rare earth elements.
Shares in Kavango were down 4.9% at 1.76 pence in London at midday.
Analysis of core drilling at Ditau, which is located in Botswana, has suggested the presence of fenitization, which is a type of alternation associated with carbonatites. In total, 10 magnetic ring structures at Ditau have been found and are prospective for carbonatites - the primary source of rare earth elements.
Kavango intends to use funds already set aside for further Ditau work to undertake surveys over the ring structures in search of carbonatite targets, in order to demonstrate the existence of carbonatite in its licences.
Given "the costs of a prolonged exploration programme" at Ditau, Kavango has signed agreements " with several major and mid-tier companies concerning possible future joint ventures" at Ditau.
Kavango Chief Executive Michael Foster said: "There is mounting evidence that Ditau is at the centre of a previously unrecognised alkali magmatic complex. The current orientation exercise is designed to confirm the existence of carbonatite associated with the 10 ring structures identified to date. A number of mining companies have shown interest in this project, and we look forward to working with an industry partner to realise fully its potential."
Kavango Resources (KAV)