Last checked at 3 Jun 2020 07:00
PRESS RELEASE
3 June 2020
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Kalahari Copper Belt Prospecting Licences Granted
Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce it has been granted two Prospecting Licences ("PLs") in the Botswana section of the highly prospective Kalahari Copper Belt (the "KCB").
Kavango's two new PLs are located directly to the southwest of Sandfire Resource's T3 and A4 Dome copper-silver discoveries.
Highlights
v Two new Prospecting Licences in the KCB - PL036/2020 and PL037/2020
- 100% owned
- Contiguous licence areas, covering 1,294.2km2, immediately south of the town of Ghanzi
- Initial 3 year licence term, which can be extended to a maximum of 7 years.
- Combined Year 1 work commitment of £75,000
- Increases the Company's exposure to the KCB following the JV Agreement with LVR GeoExplorers Ltd ("LVR") on two strategically located licences announced in February 2020
v The KCB is a key emerging exploration province for major sedimentary copper-silver deposits
v Acquisition of further licences underway
v Easing of lockdown restrictions to commence in Botswana from start of June
- Company to reinitiate field exploration as soon as possible
v Corporate presentation updated on website
Michael Foster, Chief Executive Officer of Kavango Resources, commented:
"We are delighted to have secured these two new prospecting licences. It is thanks to our in-country presence and knowledge that Kavango has been able to add to its portfolio of strategic exploration assets in the highly prospective Kalahari Copper Belt.
Given the positioning of these two new licences, in such close proximity to major copper-silver discoveries, we are eager to commence exploration here as lockdown restrictions are loosened in Botswana."
About the Kalahari Copper Belt ("KCB")
The KCB stretches 1,000km from northern Botswana to central Namibia and is prospective for copper-silver deposits. The KCB is relatively underexplored and is a key emerging trend globally, located in stable and pro-mining jurisdictions.
In recent years the KCB has attracted substantial exploration interest. This has resulted in significant copper-silver discoveries including:
- Cupric Canyon's Zone 5 deposit ("Zone 5"), which hosts a mineral resource of 91.7 million tonnes ("Mt") grading at 2.1% copper and 14 grams a tonne ("g/t") of silver.
- MOD Resources' and Metal Tiger's (LSE:MTR) commercial discovery at T3, which was subsequently acquired by Sandfire Resources (ASX:SFR) ("Sandfire") in October 2019.
The T3 Project currently hosts a mineral resource of 60.2Mt grading at 1.0% copper and 14.0g/t silver and an Ore Reserve of 342,700 tonnes of contained copper and 14.6 million ounces ("Moz") of silver.
- Sandfire's A4 Dome satellite discovery, which is located directly to the west of T3 and is subject to an ongoing resource drilling campaign, due to recommence in June.
Building a Strategic Exploration Portfolio in the KCB
Kavango is in the process of building a strategic portfolio of exploration licences in the KCB.
Prior to applying for any Prospecting Licences ("PLs"), Kavango undertakes extensive desktop and due diligence studies. In addition, the Company analyses publicly available exploration data to enhance its geological and geophysical understanding of the area.
On 17 February 2020, Kavango announced it had entered into a Joint Venture with LVR GeoExplorers (Pty) Ltd ("LVR"), which includes an earn-in arrangement whereby the Company has the right to earn up to a 90% interest in PL 082/2018 and PL 083/2018. The earn-in is in 4 stages over a maximum eight-year period (50% within a maximum of 3 years).
- PL 082/2018 - (137.36km2) lies 30km north of MOD Resources' T3 mine development and is completely surrounded by MOD/Metal Tiger/Sandfire PLs including their T5, T6, T9, T10, T14 and T15 targets. The PL lies astride the main Ghanzi - Maun tarred highway.
- PL 083/2018 - (21.00km2) is close to the Namibian border south of the Trans-Kalahari Highway and adjacent to a block of PL's held by Kopore Metals Limited.
The Company has confirmed that it has now been granted two further PLs, which lie in a highly prospective area immediately south of the District capital of Ghanzi:
- PL 036/2020 - (590.20km2) for initially 3yrs to 31Mar'23 -- Yr1 exploration expenditure BWP 548,000 (about £37,500) - 100% owned by Kavango
- PL 037/2020 - (704.00km2) for initially 3yrs to 31Mar'23 -- Yr1 exploration expenditure BWP 548,000 (about £37,500) - 100% owned by Kavango
- These two new PLs are 100% owned by Kavango.
Kavango has recently applied for additional PLs in prospective areas and will provide further updates in due course.
The position of Kavango's two new 100%-owned PLs, together with the two PLs subject to the LVR Joint Venture, is provided in the presentation on the Company's website.
Easing of Lockdown Restrictions in Botswana
On 22 May 2020 the Government of Botswana announced its "Return to Work" plan to ease the travel restrictions put in place in response to the Covid-19 pandemic. While the infection rate in Botswana has been relatively low, the Government is adopting a cautious approach in normalising business and other activities. Easing the restrictions is expected to commence in early June and the Company will provide further updates about recommencing field exploration, as soon as it is able.
Updated Corporate Presentation
Further to today's announcement, Kavango has updated its corporate presentation and published it on the Company's website:
https://www.kavangoresources.com/investor-relations/presentations
For further information please contact:
Kavango Resources plc
Michael Foster
mfoster@kavangoresources.com
SI Capital Limited (Broker)
+44 1483 413500
Nick Emerson