Kavango Resources Regulatory News (KAV)

PRESS RELEASE

30 November 2020

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

4 'Norilsk style' target areas selected in the KSZ

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the selection of 4 'Norilsk-style' primary target areas in the northern (Hukuntsi) section of the Company's Kalahari Suture Zone Project ("KSZ").

Highlights

v The 4 target areas in the Hukuntsi section of the KSZ (the "Targets") were selected using the 3D Magnetic Model developed by Kavango's geophysical team in conjunction with Mira Geoscience Inc.

v Target area selection was guided by a re-assessment of diamond drill hole CKP 8A by Dr David Holwell (Associate Professor at the University of Leicester).

- The 460m-drill hole was completed by the Canadian funded Kalahari Drilling Programme in 1983 and recently re-logged and sampled by Kavango geologists.

- The hole intersected 160m of Karoo gabbro and remains, in gabbro, and open at depth.

- Petrography work by Dr Holwell identified primary magmatic chalcopyrite (copper/iron sulphide) in the gabbro.

v An ongoing detailed ground magnetic survey over the Target areas aims to acquire added precision to the location and geometry of the targeted intrusive bodies.

- Kavango's exploration team will report on the results of this once complete.

v Large loop, low frequency ground electromagnetic ("EM") surveys will begin on the Targets in the coming weeks.

- These surveys will test for "high-speed EM conductors" associated with magmatic sulphide mineralisation containing copper-nickel-platinum group metals ("Cu-Ni-PGMs").

v An MSc research project in collaboration with the University of Leicester (the "Research Project") will begin in January.

- The Research Project will focus on the minerology and geochemistry of the gabbro intrusives in the Hukuntsi area and compare them with those hosting world class magmatic sulphide deposits (including Norilsk).

- Dr Holwell will supervise the Research Project, which will employ advanced analytical techniques (including electron-microprobe work) to test samples provided by the Company from previous drilling.

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

"Over the last six months Kavango has made a great deal of progress validating the Company's exploration hypothesis that the KSZ hosts one or more world-class deposits of Copper, Nickel and Platinum Group Metals.

Following approval by the FCA for the Company's prospectus (available on the Company's website) with respect to the recent £2million fund raising, Kavango is ready to move into the next phase of vitally important field exploration at Hukuntsi.

Our immediate goal will be to detect significant electromagnetic conductors in our 4 primary target areas, to determine specific targets for future drilling.

We are in advanced discussions with a local specialist contractor, who will undertake the large loop surveys for "high speed conductors" and we look forward to providing further updates in the coming weeks."

Identification of priority explorations targets at Hukuntsi

v The 3D Magnetic Model developed by Kavango in conjunction with Mira Geoscience has confirmed that:

the Karoo age intrusive gabbros sit immediately above older Proterozoic (Tshane) intrusives. Despite over one billion years difference in age, they appear to have used the same magma conduits, which follow deep seated faults in the earth's crust.

- differences in magnetic susceptibility can discriminate between the two generations of intrusives.

- the younger intrusives appear to be vertical "dyke like" bodies with deep "keels" that become horizontal "sill like" bodies at higher elevations, spreading out to form thin "gull-wing" sills. These would typically have intruded into the sulphur and carbon rich "Ecca" sediments of the Karoo (coal measures).

To see a video of how this process occurred please visit the following link:

https://twitter.com/KavangoRes/status/1316004057895645186?s=20  

- Airborne EM and CSAMT surveys support the magnetic data in showing the deep keels have a long axis, which extend for up to 15km.

- The width of the vertical "dyke-like" bodies increases significantly as they intrude upwards into the less consolidated Karoo sediments.

The depth from surface to the crystalline basement (or the Proterozoic gabbro) in the Hukuntsi section appears to range between 500m and 800m. These target depths are comparable to typical mining depths at the Norilsk mining centre.  

v Diamond Drill-hole CKP - 8A

- Drill hole CKP 8A is the only hole from the Kalahari Drilling Programme that drilled into a Karoo intrusive in the northern part of the KSZ.

- From surface the hole intersected a 40m section of hornfelsed (thermally metamorphosed) Karoo sediments before reaching the top of the gabbro intrusive at 299m. The hole continued until it reached 460m, when it was stopped - still in gabbro.

- Re-logging of the hole by Kavango's geologists has divided the gabbro section into 3 parts: a fine grained upper part with little evidence of cumulate textures; a middle section (from 350 to 380m) containing large feldspar phenocrysts; and a final 80m of coarse grained cumulates. This differentiation (from fine to coarse grain) may have allowed for a molten, immiscible metal-sulphide liquid to have gravitated towards the bottom of the intrusive chamber.

- Ten samples have been taken from the core for thin section work (petrology and mineralogy) and whole rock analysis by the University of Leicester under the Research Project.

- The hole collar has been located in the field and will be cleaned out (if possible) for down-hole geophysical surveys.

v High Resolution Ground Magnetic Survey

- Ground magnetic surveying is currently being undertaken by Kavango's geophysics team at 200m line spacings with readings every 12.5m. The data collected will be used to increase the resolution of the 3D magnetic model which was generated from data previously collected at 500m line spacings. The increase in magnetic resolution will provide better precision with regard to the location and depth of the gabbro bodies.

v Large Loop Ground-based EM Surveying.

- The Airborne EM surveys flown over the Hukuntsi Section of the KSZ in 2019 identified 75 conductors (some of them several kms long).

- However, the identification of conductors that may have represented massive sulphides was compromised by interference from conductive Karoo sediments and ground waters.

- A large loop, low-frequency ground EM survey will now be conducted to discriminate formational conductors from "high speed EM conductors" associated with metal sulphides.

The MSc Research Project

v The Research Project will commence in January 2021

- An MSc geology student from the University of Leicester will start compiling data for a thesis entitled "Mineralogy, Petrology and Geochemistry of the Karoo Gabbros of the KSZ and the similarities with World Class Magmatic Sulphide deposits of the World".

- Samples of core and exploration data will be provided by Kavango. It is anticipated that the student will have access to analytical facilities and equipment - including the use of an electron microprobe.

- The project will be supervised by Dr Holwell who is also a consultant of Kavango in relation to the KSZ.

- The project is due for completion at the end of Q2 2021.

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

For further information please contact:

Kavango Resources plc

Michael Foster

mfoster@kavangoresources.com

First Equity (Joint Broker)

+44 207 374 2212

Jason Robertson

SI Capital Limited (Joint Broker)

+44 1483 413500

Nick Emerson

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 12 prospecting licences covering 8,324.7km2 of ground, including 10 licences over a significant portion of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Copper-Nickel-PGM rich sulphide ore bodies. This large area, which is entirely covered by Cretaceous and post-Cretaceous Kalahari Sediments, has not previously been explored using modern techniques.

The area covered by Kavango's KSZ licences displays a geological setting with distinct similarities to that hosting World Class magmatic sulphide deposits such as those at Norilsk (Siberia) and Voisey's Bay (Canada). 

The Norilsk mining centre is about 2,800km northeast of Moscow and accounts for 90% of Russia's nickel reserves, 55% of its copper and virtually all of its PGMs. Kavango's licenses in the KSZ display a geological setting with distinct geological similarities to the magmatic sulphide deposits at Norilsk. Magma plumbing systems are a key feature of these deposits.

KSZ DEFINITIONS

High Speed EM Conductors: are bodies of highly conductive minerals such as graphite, magnetite and metal sulphides, which conduct electricity very rapidly provided the mineral grains are in contact with each other.

Cumulate rocks: are igneous rocks formed by the accumulation of crystals from a magma either by settling or floating.

Gabbro/gabbroic: A coarse grained, medium to dark coloured rock, formed from the intrusion of mantle derived molten magma into the earth's crust. Gabbroic rocks (or "gabbros") are formed as the molten magma crystallizes and cools.

Gabbroic sills: Relatively thin, planar, horizontal bodies of solidified gabbroic magma that intruded into layers of sedimentary rock whilst still molten.

Karoo: The Karoo System covers 1.5 million km2 of the semi-desert region of Southern Africa. Rocks in this system formed 180-310 million years ago.

Magma plumbing system: Magma plumbing systems are composed of stacked horizontal sills connected to each other via vertical dykes. A continuous flow of magma (containing "free" sulphur) through a magma plumbing system may have allowed the accumulation of metal sulphides in certain trap sites within the sills. This is because metal sulphides are heavy and tend to sink to the bottom of magma. Over time, accumulations of metal sulphide could have led to the formation of economic deposits of Copper-Nickel-PGMs. 

Massive sulphide: When a deposit consists almost entirely of sulphides it is termed "massive". When it consists of grains or crystals of sulphide in a matrix of silicate minerals, it is termed "disseminated".

Metal/Magmatic sulphide: Deposits of sulphide mineral concentrations in mafic and ultramafic rocks, derived from immiscible sulphide liquids. To view a video of how metal/magmatic sulphides form please visit -

https://twitter.com/KavangoRes/status/1316004057895645186?s=20  

Olivine: an olive-green, grey-green, or brown mineral occurring widely in basalt, peridotite, and other basic igneous rocks. It is a silicate containing varying proportions of nickel, copper, iron and other elements. Depleted Cu-Ni-PGM readings in olivines are an encouraging exploration vector, when searching for major Cu-Ni-PGM deposits.

Primary sulphides: Are sulphide complexes (or crystals) that form as the magma cools and are composed of elements that are present at the time of initial crystallization. Secondary sulphides may form after the magma has solidified either by the introduction of new elements into the rock or by re-mobilising elements already present through changes in pressure, heat etc.

Pyrite: A shiny yellow mineral consisting of various metallic-looking sulphides, including iron disulphide. Depleted Cu-Ni-PGM readings in pyrites are an encouraging exploration vector, when searching for major Cu-Ni-PGM deposits.

Sulphide mineralisation: If there is sufficient sulphur in the molten magma, it will tend to combine with metals (Cu, Zn, Ni, Co, Pb, PGEs etc.) to form metal sulphide complexes, which may coalesce to form massive sulphide deposits. If the melt is sulphide poor, the metals will be taken up into the silicate minerals that form as the magma cools and will not usually form economic deposits.

Xenolith: A xenolith is a piece of rock trapped in another type of rock. Most of the time, a xenolith is a rock embedded in magma while the magma was cooling.