Kavango Resources Regulatory News (KAV)

PRESS RELEASE

29 January 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Completion of first TDEM survey on the KSZ

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce completion of the first Time-Domain Electromagnetic Survey ("TDEM" Survey) in the northern (Hukuntsi) section of the Company's Kalahari Suture Zone Project ("KSZ").

Highlights

v 6 TDEM Surveys across 4 target areas:

- Target Area A is 8km x 9km (Targets A1 & A2)

- Target Area B is 6km x 10km (Targets B1 & B2)

- Target Area C is 4.5km x 5km (Target C1)

- Target Area D is 3.5km x 8km (Target D1)

- The Targets cover a combined surface area of 182.5km2 in which there are some deep "keels" with long axes

v High resolution ground magnetic surveys of all the Target Areas now completed.

v First TDEM Survey complete

- 3km x 3km TDEM Survey run over Target A1

- Data processing and interpretation in progress

- Mira Geoscience 3D computerised geophysical modelling of Hukuntsi Target A ground magnetics near completion

- First TDEM survey completed within budget

v TDEM field team remobilised to target A2

v Final results from all the TDEM survey and ground magnetic 3D modelling expected in Q2.

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

"The completion of the first TDEM survey at Hukuntsi is an important milestone for Kavango. We will work to process the data as quickly as we can, whilst the survey team moves onto the next target.

Our goal is to identify underground high-speed conductive bodies that occur within the gabbros. Given all the scientific evidence in support of metal sulphide accumulations at depth and the generation of a sophisticated magnetic model of the intrusive bodies, the company believes that a number of drill targets are likely to be identified over the next few weeks".

TDEM Survey of Target A1

Ground based Time Domain Electromagnetic (TDEM) "large loop" surveys, use high power, low frequency transmitters to identify high-speed conductors at depths of up to 1,000m.

Such conductors, which are likely to be caused by accumulations of metal sulphides, have distinctly different conductivity to surrounding host rocks.

Due to the work completed over the last two years, Kavango has a fairly comprehensive understanding of the subsurface geology of Hukuntsi and its gabbroic intrusions (solidified magma, from the Karoo Age).

The Company's 3D Magnetic Model provides a well defined "map" of Hukuntsi's gabbroic sills (horizontal layers of solidified magma). Modelling of some of the world 's largest magmatic metal deposits (Norilsk, Voisey's Bay etc.) combined with geochemical and petrological studies of drill core from Hukuntsi suggests that the sulphide accumulations will be concentrated in the deeper parts (keels) of the intrusive gabbros.

The TDEM surveys are designed to identify these conductive bodies within or adjacent to the gabbro intrusives. Once identified, these conductive zones will be analysed and prioritised for diamond drilling.

Spectral Geophysics Ltd ("Spectral"), a specialist contractor, is conducting the TDEM Surveys on behalf of Kavango. Spectral have a very high reputation in southern Africa and have many years of experience in conducting EM surveys in the arid terrain of the Kalahari.

At Target A1, Spectral used a 1km x 1km loop, which covered a survey area of 3km x 3km.

Spectral has remobilised its field team to Target A2 and will use the same 1km x 1km loop.

Kavango will provide further updates in the coming weeks.

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

Kavango Competent Person Statement

The information in this press release that relates to "geological and/or geophysical results" for the South Ghanzi Project is based on information compiled or reviewed by Mr Mike Moles BSc (Geology) & BSocSci (African Studies), a competent person who is a Member of the Australian Institute of Mining & Metallurgy. Mr Moles has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity, which he is undertaking 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'. Mr Moles consents to the inclusion in this release of the exploration results for the Project in the form and context in which it appears. Mr Moles is a beneficial shareholder of Kavango Resources plc.

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.