Kavango Resources Regulatory News (KAV)

PRESS RELEASE

08 March 2022

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

New TDEM Loop Designs for the B1 Target Area

Following completion of Hole KSZDD002 to target depth of 650m (announced 28 February), Kavango Resources plc (LSE:KAV) has redesignated the B1 Conductor as the "B1 Target Area".

The B1 Target Area is located above the Great Red Spot (the "GRS"), a large-scale 5km by 8km coincident magnetic and gravity anomaly in the northern (Hukuntsi) section of the Kalahari Suture Zone ("KSZ").

The B1 Target Area has been re-modelled and contains two conductor targets ("the Targets"), which the Company believes are prospective for nickel/copper (Ni/Cu) sulphides.

- Target B1-1 is a shallowly dipping modelled plate, with a conductance of 16,000 Siemens. This level of conductance is consistent with possible Ni/Cu massive sulphides

- Target B1-2 is a vertically dipping modelled plate with a conductance of 2,500 Siemens, and is consistent with the presence of possible Ni/Cu net textured sulphides

The existence of the two Targets has been confirmed by a Downhole Electromagnetic ("DHEM") survey of borehole KSZDD002, and the modelling of both the DHEM and Surface TDEM in tandem.

An intrusive Karoo gabbro was intersected at the modelled target depth of Target B1-2 in drillhole KSZDD002, which indicates the right host rock environment for Kavango's exploration model. The Targets conform to Kavango's idealised model for a potential massive sulphide body in a shallow dipping Karoo gabbro sill, associated with a possible Karoo gabbro vertical feeder dyke containing net textured sulphides. The Company plans to drill test the Targets with two boreholes.

To this end, Kavango has now finalised designs for new Surface Time Domain Electromagnetic surveys ("Surface TDEM") and subsurface DHEM surveys, using two large 1km x 1km electromagnetic loops. These two loops are designed to 'null couple' separately with each of the two Targets, to test rigorously the new modelled conductive plates. The surveys will aim to gather data to refine the size, shape, depth and orientation of the Targets. These data will then be modelled to finalise the drill collar locations.

Kavango is in discussion with Spectral Geophysics Pty to conduct the TDEM and DHEM surveys over the B1 Target Area as soon as a team and equipment become available.

In addition to this, work is ongoing to conduct a much more extensive TDEM campaign across the Hukuntsi area of the KSZ, including (but not limited to) the GRS and the "30km Strike" target zone (announced 23 November 2021). Based on initial results from its recent drill campaign, the Company's objective is to build an inventory of high conductance targets for future exploration and drilling.

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

"Armed with the downhole survey data we gathered from KSZDD002, we have a high degree of confidence in the configuration of the follow up Surface TDEM and DHEM surveys over the B1 Target Area. These have been designed to refine the geometries of the two targets we have modelled.

The 16,000 Siemens, slightly dipping modelled body is of most interest at this stage. As exciting as this target could be, we have to plan prudently to maximise our chances of intercepting it with the drill bit at the next attempt.

We will mobilise the team and surveying equipment to test as quickly as we can this target and the 2,500 Siemen vertically dipping modelled body.

Thanks to the drilling of KSZDD002, we now have two conductors as priority future exploration targets. I look forward to providing further updates once we have been through our process of verifying the results independently."

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.