Kavango Resources Regulatory News (KAV)

PRESS RELEASE

13 May 2020

 KAVANGO RESOURCES PLC

("Kavango" or "the Company")

 Exploration plan - Kalahari Suture Zone, Botswana

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the next stages of exploration in the Kalahari Suture Zone ("KSZ").

Highlights

v Exploration objectives:

- To discover world class Copper-Nickel-Platinum Group Metal ("PGM") deposit/s in the KSZ

- To identify high-potential drill targets in "underground traps"

- To increase the chances of future drilling success

v Exploration plan guided by Dr. David Holwell's Mineral Systems Review of the KSZ (announced 29 April 2020)

v Ongoing data analysis work in Q2 & Q3, including:

- Completion of 3D Underground Geological Model of northern part of the KSZ

- Additional data gathering from third party sources

v Field work and sample collection to commence once lockdown in Botswana is over, including:

- A whole rock geochemistry report on gabbro samples

- "Thin section" drill core samples to be sent to the University of Leicester's laboratory for mineralogical and petrographic testing

- Ground-based, high-powered electromagnetic loop surveys to confirm final drill targets

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

"Over the coming months we expect to make significant progress in validating our view that the underexplored KSZ is host to world class Copper-Nickel-PGM deposits.

Kavango has gathered more exploration data on the KSZ than any other company.

All our efforts to date have consistently confirmed the KSZ's significant potential. Our goal now is to deepen our understanding of the region's geology and to confirm our next targets for field exploration.

The analyses we are now completing will guide preparations for our next extensive drill campaign here and maximise our chances of success.

I look forward to providing further updates on the results of our work, including a future drilling timetable once complete."

Background

In October 2019 Kavango began its first exploratory drill campaign in the KSZ. It confirmed the presence of a number of important geological requirements for the potential of the KSZ to host one or more, large Copper-Nickel-PGM deposits.

The original objective of the campaign was to drill 1,000m over 3 holes.

However, by completing the first 3 holes under budget, Kavango was able to drill a further 3 holes.

The drilling confirmed the presence of an extensive magma plumbing system. This plumbing system is made up of vertical "dykes" and horizontal "sills", which acted as "conduits" or "feeders" transporting molten magma from deeply buried magma chambers to surface "vents". This occurred 180 million years ago during the Karoo Age.

Over time, the molten magma cooled to form what are known as "gabbroic intrusions". Kavango believes gabbroic intrusions in the KSZ could play host to large-scale Copper-Nickel-PGM deposits

- Similar magma plumbing systems are a notable feature of established world class Copper-Nickel-PGM mines, such as Norilsk (Siberia), Voisey's Bay (Canada), Raglan (Canada), Jinchuan (China) and the Thomson Nickel Belt (Canada)

Initial analysis of the KSZ drill cores strongly suggest that magma was flowing through the conduits long enough to allow for dense metal sulphide liquid to have accumulated and solidified in trap zones within the plumbing system.

In the next stage of its exploration programme, Kavango's objective is to drill and test trap zones within the plumbing system that lie within 300m of the surface.

Q2 & Q3 Exploration Programme in the KSZ

Although fieldwork is currently restricted in Botswana due to the Covid-19 lockdown, Kavango had already planned an extensive analysis of the existing data to improve its understanding of the KSZ's geology.

In the coming months, Kavango will focus on the compilation of a computer generated 3D model of the northern section of the KSZ with specific emphasis on the identification of metal sulphide accumulations in traps within the plumbing system.

The current task is to input into a database all of the information generated by Kavango's own exploration (airborne EM, soil geochemistry, drilling analyses etc) and also the data available both in the public domain (magnetic/gravity surveys etc), together with new data acquired from 3rd parties including drill logs and assays.

As soon as it is able, Kavango will act upon the recommendations made in Dr Holwell's Mineral Systems Review. The aim will be to obtain further evidence of sulphide mineralisation in the KSZ to guide future exploration. This will be an important part of validating the Company's geological model and will involve:

1. Confirmation that the silicate minerals in the gabbro are abnormally low in nickel, suggesting that nickel was diverted into the formation of an immiscible metal sulphide liquid (due to sulphur saturation) and subsequent crystallisation. Requires electron-microprobe analysis.

2. The petrographic and mineralogical description of thin sections from the gabbro drill cores, which will determine the nature and crystallisation history of the sulphides.

3. Undertake an analysis of the whole rock geochemistry. This will provide invaluable information about the composition and genetic history of the gabbroic magma.

Kavango will provide Dr Holwell and the University of Leicester with the samples it needs for the above laboratory work once lockdown restrictions are lifted in Botswana.

Once the restrictions are lifted, Kavango plans to conduct orientation ground-based, high-power, low frequency electromagnetic ("EM") loop surveys of selected targets in the KSZ.

These low-frequency loop surveys are likely to be effective in identifying mineralised deposits in trap zones within the magma plumbing system (gabbros).

Results from the loop surveys are expected to have a significant bearing on final target selection for future drilling in the KSZ.

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

+44 20 3651 5705

Michael Foster

mfoster@kavangoresources.com

SI Capital Limited (Broker)

+44 1483 413500

Nick Emerson

Note to Editors:

THE KALAHARI SUTURE ZONE, BOTSWANA

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). 

 KSZ DEFINITIONS

Massive sulphide deposits: 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".

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") formed as the molten magma cooled.

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

High-level sills: Are sills that are emplaced in the upper levels of the earth's crust, close to the surface.

Karoo: The Karoo System is a geological era consisting of rocks formed 310-180 million years ago. Named after the Karoo region of South Africa, it is confined to continents within southern hemisphere (plus India).

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.

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.