Kavango Resources Regulatory News (KAV)

PRESS RELEASE

29 April 2020

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

 MINERAL SYSTEMS REVIEW OF THE KSZ, BOTSWANA

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, wishes to announce the publication of a new independent technical review on the exploration potential of the Company's Kalahari Suture Zone ("KSZ") Project.

The review has been completed by Dr David Holwell, of D&D Geoconsultants using a Mineral Systems Approach ("MSA") (the "Review").

Dr Holwell (BSc MSc MCSM PhD) is a leading authority on the development of Copper-Nickel-Platinum Group Metals ("PGM") sulphide deposits associated with magmatic systems. Kavango is searching for "Norilsk-Style" deposits in the KSZ.

Highlights:

v Initial review of Kavango's KSZ Project completed by Dr Holwell

- The MSA is a more predictive method for finding large scale ore deposits.

- The full Review is available to view and download on the Kavango website.

- The Review confirms Kavango's assessment of the KSZ Project's significant economic potential.

- Follow up test work to be completed once travel restrictions lifted.

v Review highlights

- The Review confirms the presence of 10 key geological features present in world-class magmatic sulphide Copper-Nickel-PGM deposits at Norilsk (Siberia), Voisey's Bay (Canada), Raglan (Canada), Jinchuan (China), the Thomson Nickel Belt (Canada) and other similar magmatic sulphide deposits worldwide.

- The Review recommends a number of exploration steps for the Company to take in establish whether additional geological features are present in the KSZ, which are typically found in world-class Copper-Nickel-PGM deposits.

- Exploration of the KSZ to include combination of desktop and drill core analysis and field exploration.

- The Review concludes that the KSZ "is a prime setting for a magmatic Nickel-Copper-PGM deposit."

v Proposed collaboration with the University of Leicester, UK to examine economic potential of the KSZ

- Applied research project, under Dr Holwell's supervision.

- The research work will include petrology, mineralogy, electron microprobe work, whole rock geochemistry and thin section work on exploration data gathered by Kavango.

v Kavango to release KSZ work programme plan in coming weeks.

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

"The Review of the Kalahari Suture Zone Project by Dr Holwell and the work carried out to date by the Company represents confirmation that Kavango is "on track" to make a mineral discovery in the near future. The huge value of deposits such as the Copper-Nickel-PGM rich ores in the Norilsk-Talnakh camp - of the order of hundreds of billions of dollars within a single ore shoot - provides a powerful incentive to develop an understanding of the geology of the KSZ and identify effective detection techniques.

We look forward to working with Dr Holwell on this exciting exploration project."

Review preparation

The Review was written by Dr Holwell (BSc MSc MCSM PhD) and Daryl Blanks (MGeol AusIMM) of D&D Geoconsultants. The Review confirms Kavango's assessment of the KSZ Project's significant economic potential.

Dr Holwell is a leading authority on the development of Copper-Nickel-PGM sulphide deposits associated with magmatic systems. Dr Holwell has published over 40 peer-reviewed publications, he is a Fellow of the Society of Economic Geologists, and Regional Vice President for Europe for the Society for Geology Applied to Mineral Deposits.

Dr Holwell and Ms Banks applied the Mineral Systems Approach in analysing data gathered from the Company's exploration of the KSZ. The Mineral Systems Approach is a more predictive method for finding deposits by understanding the combination of geological processes that are required to form and preserve ore deposits at all scales.

Documentation supplied by Kavango included:

- Over 25,000 regional and detailed soil samples

- Re-logging of historical drill holes

- Whole rock geochemistry analysis of the KSZ gabbros (Dr MD Prendergast 2015)

- CSAMT surveys over historical drill holes and soil anomalies

- A 21km CSAMT line across the KSZ

- Two helicopter-borne EM surveys covering a total of 4,070 line-kms

- The 3D EM Model

- 1,092m of combined RC and diamond drilling with assays for PGE and base metals

- Thin section microscope work.

Review Highlights

The following quotes are taken from the Review:

- After examining Kavango's data on the KSZ, the Review concludes that the KSZ "is a prime setting for a magmatic Copper-Nickel-PGM deposit".

- "The KSZ comprises two distinct mafic-ultramafic complexes of different ages that conform to many of the key features of prospective Copper-Nickel-PGM sulphide mineral systems, particularly the geodynamic setting at the margins of a craton, and the association with dyke-sill complexes along major crustal lineaments (pathways)." 

- "…the more recent mafics, that intrude the Karoo sediments, are linked to more prospective plume-related magmatism likely to represent the feeder systems to the Karoo flood basalts. These mafics are preserved at a shallower depth. Additionally, the Karoo intrusions contain strong geochemical signatures (high Copper/Palldium ratios) indicative of sulphide saturation in the parental magmas."

- "…the strongest evidence for sulphide saturation and the formation of magmatic sulphides in the system is in the Copper/Palldium ratios that are way above the mantle range (1000-7000), with one as high as 84,000, indicating the parent magmas to the Karoo-aged mafics segregated sulphide, which concentrated Palladium (and other chalcophile metals) into an earlier sulphide liquid.

- "Many of the world's largest ore deposits occur in the plumbing systems beneath areas of flood basalts in LIPs (e.g. Noril'sk beneath the Siberian traps)."

- "The area is relatively underexplored and to date there is no evidence from an MSA perspective that is unfavourable towards potential discovery."

The shallow Karoo Sediments & deeper Tshane Complex

The Review confirms the KSZ comprises of two distinct mafic-ultramafic complexes that conform to many of the key features of large-scale prospective Copper-Nickel-PGM sulphide mineral systems.

The Review notes that the older Tshane Complex (thought to be ~1 billion years old) contains cumulates with disseminated sulphides. The presence of any potential sulphide deposit in the Tshane Complex would likely be deeper underground (perhaps >500 m). The Tshane Complex could host attractive future exploration targets, however the Review recommends that Kavango continue to focus its exploration efforts on the shallower Karoo Sediments.

The more recent mafics that intrude the Karoo Sediments (which are about 180 million years old) are likely to represent the feeder systems to the Karoo flood basalts. They are more plume related in composition and preserved to a shallower depth.

The Karoo Sediments contain strong geochemical signatures indicative of sulphide saturation in the parental magmas.

The Review identifies 10 key geological features present in in the Karoo Sediments, which are also present in other world-class magmatic sulphide Copper-Nickel-PGM deposits at Norilsk (Siberia), Voisey's Bay (Canada), Raglan (Canada), Jinchuan (China) and the Thomson Nickel Belt (Canada).

The following table presents 10 important geological features associated with world-class magmatic sulphide Copper-Nickel-PGM deposits that Dr Holwell has confirmed in his Review as being present on the KSZ:

The Review concludes: "the KSZ is highly prospective with good potential to host economic deposits of Copper-Nickel-PGM sulphides. If the Karoo intrusives represent feeder zones then it is likely that deposits hosted by these intrusions would be significant."

Next steps in the KSZ

The Review recommends a number of exploration techniques for the Company to adopt in its next phase of exploration. The goal will be to confirm whether there are additional geological features present in the KSZ, associated with world-class magmatic sulphide Copper-Nickel- PGM deposits. These techniques include:

- Downhole geophysics, especially Electro-Magnetic Surveys ("EM")

- Low frequency ground EM using very large loops and high powered transmitters

- Gravity surveys

- Further 3D Computer modelling

- Controlled-Source Audio-Frequency Magnetotellurics ("CSAMT") resistivity surveying

- Further soil sampling - especially for Copper, Nickel and Iron.

Dr Holwell and Kavango will work together in the coming months to deepen the Company's understanding of the KSZ.

The Company will announce its planned work programme in the coming weeks.

In addition to this the Company has also proposed a research collaboration project with the University of Leicester (the "University"), to be overseen by Dr Holwell.

The goal of the research project will be to help confirm the economic potential of the KSZ. The Company will supply data and samples gathered from its field exploration efforts to the University of Leicester. This will give Kavango access to the University's research facilities and testing equipment.

Research work will include petrology, mineralogy, electron microprobe work, whole rock geochemistry and thin section work on exploration data gathered by Kavango.

Kavango will publish results from this collaboration as it receives them.

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

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

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 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.

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.

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