Kavango Resources Regulatory News (KAV)

PRESS RELEASE

2 July 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Ditau Project update - drill targets identified

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce an update on the Company's Ditau Project ("Ditau"), searching for Rare Earth Elements ("REEs").

Ditau is held in a 50/50 Joint Venture with Power Metal Resources plc (LSE:POW) ("Power Metal"). Kavango is the operator.

Highlights

Ø Geophysical and geochemical surveys completed on 12 targets areas

Ø 7 specific drill targets identified

- Each target includes a possible carbonatite intrusive body lying within range of reverse circulation ("RC") drilling

- All targets within 300m depth

- 3 of the 7 targets classified as "high priority"

Ø Target I1 is a large, intense magnetic dipole

- Spans 17km by 8km

- Shallow depth to source of less than 100m

- Kavango believes I1 sits just under the Kalahari sands

- Lies at an intersection of two major regional fault zones

- Anomalous niobium values identified. Niobium is used in various superconducting materials and industrial alloys

Ø Target I4

- Spans 7.5km by 5km

- Shallow depth to source of less than 100m

Ø Target I10

- Spans 2.5km by 2.8km

- High AMT resistivity, coincidental with a gravity high

Ø Data processing and interpretation in progress for final drill readiness

Ø Environmental Management Plan in place

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

"While our primary focus has been on developing our interests in the KSZ and KCB, we have been much encouraged by the number of drillable intrusive targets identified at Ditau. Most of these appear to be post Karoo in age and lying at a shallow depth beneath Kalahari sand cover.

It is particularly encouraging to have identified seven drill-ready targets, with three of those being classified as high priority. Carbonatite hosted deposits of Rare Earth Elements (REEs) hold significant strategic and commercial value. Kavango's targets are relatively shallow, which should make it straightforward to determine this project's potential

We look forward to revisiting Ditau later this year, once we've completed our other high-impact drill campaigns."

Exploration at Ditau

Kavango has identified 12 ring structures within the two prospecting licences making up the Ditau Project.

Falconbridge Explorations Ltd identified a similar large ring structure (KW2), located 23km to the north of Ditau, in the 1970s. On drilling KW2, anomalous values of niobium were detected in carbonatite rock (REEs were not assayed for at the time). Niobium is used in various superconducting materials and industrial alloys.

KW2 is thought to be part of a "cluster" of post-Karoo, carbonatites in the Kang area, of which Ditau is a part.

There is increasing evidence that at least some of the ring structures at Ditau contain carbonatite. An integrated exploration programme of surveys is being undertaken over the 12 ring structures (targets).

Each target is undergoing the following assessments/surveys:

SOIL GEOCHEMISTRY: 3 lines of soil geochemical sampling with specific attention to values of Niobium and REEs

CSAMT & AMT SURVEYING: To "map" the lithological contacts to determine conductivity and resistivity. The CSAMT survey was carried out using Geometrics' Stratagem EH4 unit, which measures ground electromagnetic signals and calculates ground resistivity down to depths of 1km.

Most targets were surveyed using the low-frequency version of the Stratagem without a transmitter (AMT), which sees down to 1.6km. Readings were taken at 50m station intervals along a profile.

GROUND MAGNETIC SURVEYING: The Earth is like a giant magnet due to ferromagnesian minerals in its core. Locally, various rocks have different magnetic properties due to variable magnetic mineral content. Carbonatites usually produce magnetic "high" anomalies compared to their host rocks.

The G856AX proton precession magnetometer was used in the ground magnetic surveys. One G-856AX was used as a "base station" magnetometer taking readings at 30-second intervals and the other as a hand-carried instrument with a simple, push button operation. Readings were taken at 12.5m intervals along profiles.

GRAVITY SURVEYING: Carbonatites usually have higher density than their host rocks.

Gravimeters are generally used to measure relative gravity, of which there is a wide variety. The most modern gravimeters are Autograv, which include significant improvements compared to the old spring based systems.

An Autograv CG-3 gravimeter was used in the survey on Target I10. Readings were taken every 50m with a local base station visited 3 times a day. The Autograv obtains a reading by continuously averaging a series of one-second samples.

DATA INTERPRETATION: The Company's approach to this involves "layering" survey data sets on geological and structural maps, to produce drill targets.

Results

Ø Interpretation of the results from the first 7 ring structure drill targets has identified 3 priority targets which demonstrate good potential to host to carbonatite (I1, I4 and I10).

- I1 is a large, intense magnetic dipole that spans 17km by 8km and has a shallow depth to source of less than 100m. I1 lies at an intersection of two major regional fault zones.

- I4 spans 7.5km by 5km and has a shallow depth to source of less than 100m.

- I10 spans 2.5km by 2.8km and exhibits high AMT resistivity, coincidental with a gravity high.

Ø These targets appear to sub-outcrop just below the Kalahari sand cover (c.70m), within easy reach of RC drilling within 300m of service.

Ø Anomalous niobium values have been detected on one of these targets (Target I1).

Plans for further Work

Ø Further surveys will be completed on the remaining 3 ring structure targets.

Ø It is proposed to drill the 3 top priority targets before the end of the year. The Environmental Management Plan is in place.

Ø Samples from the drilling will be assayed for whole rock geochemistry and REEs.

The POW/KAV Joint Venture

The Ditau PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.

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

Ben Turney

bturney@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 technical information contained in this announcement has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration 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 is a beneficial shareholder of Kavango Resources plc.

NOTES TO EDITORS

THE DITAU PROJECT

The Ditau Project comprises two prospecting licences ("PLs") (PL169/2012 & PL010/2019) that cover an area of 1,386km2. Geophysical and geochemical analyses by Kavango in the two PLs have identified 12 "ring structures".

The "ring structures" have the potential to host carbonatite rocks.

Carbonatites are the principal source of rare earth elements (REEs) including the much sought-after elements Neodymium (Nd) and Praseodymium (Pr), which are used in the manufacture of the new generation of electric vehicles (EVs), magnets and other high-tech applications. Other elements/minerals associated with carbonatites include Niobium, Phosphates, Monazite, Strontium, Magnetite and even Copper.