Kavango Resources Regulatory News (KAV)

PRESS RELEASE

21 January 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

Great Red Spot - strong gravity anomaly identified

Kavango Resources plc (LSE:KAV) the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce completion of a ground gravity survey (the "Gravity Survey") over the Great Red Spot ("GRS"), in Target Area B of the Company's Kalahari Suture Zone ("KSZ") project.

The GRS is a previously identified large-scale ~11km diameter magnetic anomaly that has been subject to limited historic exploration.

The Gravity Survey has identified a strong gravity anomaly, which is coincident with the roughly 2250 nanoTesla positive magnetic anomaly of the GRS.

The gravity anomaly has an amplitude of approximately 30 milliGal and is roughly 7km in diameter at its widest along the North-South geophysical lines.

Gravity anomalies are due to density contrasts in rock units relative to the background geology. In mineral exploration a strong gravity anomaly can indicate the presence of an intrusion, alteration and mineralisation.

Highlights

· Visual inspection of drill core from KSZDD001 and reinterpretation of existing magnetic data encouraged Kavango to perform the Gravity Survey

· Gravity Survey was carried out over Target Area B in December, covering boreholes KSZDD001 (drilled to 1,000m) and KSZDD002 (currently at 390m)

· Scintrex CG-5 Autograv gravimeter and Leica GPS1200 RTK differential GPS were used to perform Gravity Survey

· Total of seven 13km lines of gravity data were acquired, including:

- Five North-South lines at 800m spacing

- 2 East-West tie lines at 2,000m spacing

- Stations spaced at roughly 200m along each line (460 stations)

· Strong ~30 miliGal Bouguer anomaly detected

· Kavango is now preparing an Audio-Magnetotelluric ("AMT") survey over the GRS to futher refine its understanding of this target

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

"While it is too early to start drawing definitive conclusions, we are keen to pursue the possibility that the Great Red Spot could host stacked mineralised systems.

Although this is a relatively new geological theory for Kavango, it is interesting that it builds on our existing work. The younger, shallower Karoo gabbros over the Great Red Spot remain our primary focus, but we are increasingly aware of the potential for the deeper, much older Proterozoic gabbros to host an entirely separate system.

Reinterpretation of our existing magnetic model helped send us down this path and it is encouraging that the gravity survey results are coincident with the magnetics.

Quite what that system will prove to be remains to be seen, but we are led by the data in this. The more independent evidence we can gather that supports a new deposit, the more compelling the case will become.

This is why we are now prioritising the AMT survey as a next step. Our hope is the AMT survey will provide a third data set, which complements the results from magnetic and gravity surveys."

Keeping an open mind in minerals exploration is crucial. We did not set out last year to find a new potential mineralizing system in the deeper Proterozoic rocks

Background

The Great Red Spot (GRS") is a previously identified large-scale ~11km diameter magnetic anomaly that has been subject to limited historic exploration.

Thanks to significant advances in geophysical technology and analytical software over the last two decades, Kavango believes it has been able to create a more accurate geophysical model of the Great Red Spot (the "New GRS Model"). The New GRS Model combines historic data with data gathered by the Company in its exploration of the KSZ (announced 22 September 2021).

Following completion of Hole KSZDD001, which was drilled 1,000m into the GRS, preliminary visual inspection of the drill core revealed the presence of sulphides and abundant magnetite throughout the 49m intersection of the Proterozoic gabbro encountered at the bottom of the hole (announced 16 November). Kavango is currently testing the origin of the sulphide and magnetite, through detailed petrographic work and various assay techniques at internationally accredited laboratories in South Africa.

Following further internal analysis, Kavango began to investigate the possibility that the GRS might host two distinct, separate mineralised systems (announced 22 November 2021). These are:

· A younger Karoo-age system prospective for Nickel/Copper/Platinum Group Elements, which Kavango is currently testing through drilling the B1 Conductor

· An older Proterozoic-age system, which Kavango is in the process of developing a mineralisation model for

Kavango believes the coincidental source of the magnetic and gravity anomalies in the GRS may lie within the Proterozoic gabbros.

The purpose of the AMT survey will be to provide a third standalone data set, to deepen Kavango's understanding of the geophysical anomaly in the heart of the Great Red Spot. Lines are currently being cut for the survey and results are expected in the coming months.

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 pertaining to geophysics have been read and approved by Mr. Jeremy S. Brett, M.Sc., P.Geo., Senior Geophysical Consultant, Jeremy S. Brett International Consulting Ltd. in Toronto, Canada. Mr. Brett is a member of the Professional Geoscientists of Ontario, the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysical Society, and the Society of Economic Geologists. Mr. Brett has sufficient experience that is relevant to geophysics applied the styles of mineralization and types of deposits under consideration to act as a Qualified Person as defined under the Canadian National Instrument 43-101, Standards of Disclosure for Mineral Projects. 

Note to Editors:

THE KALAHARI SUTURE ZONE

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 16 prospecting licences covering 8,831.1km2 of ground, including 14 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

Chalcopyrite: A copper rich sulphide mineral (CuFeS2), widely occurring in magmatic sulphide ore bodies.

EM Super 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.

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.

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

Norilsk Style: copper/nickel/PGE mineralisation associated with the intrusion into the upper parts of the Earth's crust of mafic magma, which form magma chambers that sit below volcanic vents or fissures that extrude basaltic lava onto the surface (Hawaii is a possible modern equivalent). The Norilsk intrusions tend to have distinct morphologies, combining thin gabbro sills (wings) with deep keels (thought to be associated with feeder dykes) at the base.

Norilsk Model: a genetic geological model similar to that pertaining to the Norilsk/Talnakh deposits in Siberia. Traditionally, it was thought that, during emplacement, the magma incorporated sulphur rich country rock (e.g. coal measures) or evaporites into the melt, which allowed the molten magma to become sulphur saturated. The free sulphur would then combine, preferentially, with Cu/Ni/PGE metal ions to form metal sulphides, which, being heavy, tended to accumulate in traps or into the keel of the magma chamber. However, modern research suggests that the process might be more complex and may also involve changes of the chemical and physical properties of the magma during the introduction of new pulses of molten material from below. Such sudden changes may have caused rapid segregation of metal sulphides within and above the feeder dykes within the keel of the intrusion.

Pegmatitic: Pegmatites are very coarse grained igneous rocks having grain sizes in excess of 3cm, Pegmatites are thought to form as a result of very slow crystallisation and may contain exotic minerals from a volatile-rich melt.

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.