Kavango Resources Regulatory News (KAV)

PRESS RELEASE

12 June 2020

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

 Kalahari Suture Zone Botswana, 3D Modelling Update

 Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the appointment of a specialist geological modelling firm, Mira Geoscience Ltd., to advance target selection for future drilling in the Kalahari Suture Zone ( "KSZ").

Highlights

v Mira Geoscience is a world leader in advanced geological and geophysical 3D modelling, including the interpretation of mineral systems and drill target identification for the mining and mineral exploration industries.

v Kavango has now supplied Mira Geoscience with a comprehensive set of all the historical data pertaining to the northern section of the KSZ, (3,238km2) as well as the data collected from its own exploration activities.

v The data supports Kavango's assertion that the KSZ has the potential to host multiple "Norilsk style" Copper-Nickel-PGM deposits. This assertion is supported by the recent report by Prof. David Holwell which can be found here:

- https://www.kavangoresources.com/media/attachments/2020/04/29/mineral-systems-review-of-the-ksz-botswana.pdf 

v The completed Model will map the size, location and orientation of gabbroic sills and dykes (conduits) across the KSZ in relation to their sedimentary host rocks (Karoo) and the overlying Kalahari cover.

v Mira Geoscience's 3D Model is designed to identify potential subsurface trap zones that occur in association with the conduits at depths of up to 300m from surface.

v Such trap zones represent areas where the (heavy) metal sulphides may have accumulated during the ascent of gabbroic magma towards the surface and therefore constitute targets for further investigation.

v Follow up would involve high powered, low frequency ground EM surveys to identify mineralisation prior to drilling.

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

"Over the last six months, Kavango has compiled a great deal of historical and current information from drill-hole logs and geophysical surveys to produce a comprehensive data-base. This will assist Mira Geoscience in the development of a computerised 3D Model of the northern section of the KSZ.

The Model will be designed to identify trap zones within which metal sulphide accumulations may have developed. This modelling is "state of the art" exploration and we are optimistic that it will lead to a mineral discovery in the near future."

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

SI Capital Limited (Broker)

+44 1483 413500

Nick Emerson

NOTE TO EDITORS:

The Kalahari Suture Zone ("KSZ")

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

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 covers 1.5 million km2 of the semi-desert region 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. 

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.

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.