Last checked at 25 Jul 2023 15:02
PRESS RELEASE
25 July 2023
KAVANGO RESOURCES PLC
("Kavango" or "the Company")
Option to acquire two further Zimbabwe gold projects
Kavango Resources plc (LSE:KAV), the Southern Africa focussed metals exploration company, is pleased to announce that it has signed an exclusive 6-month option to acquire two gold exploration projects in Matabeleland, southern Zimbabwe (the "Option").
The Hillside Project comprises 40 contiguous gold claims and contains a historic high-grade underground mine. This is reported to have produced historically 18,000 ounces ("oz") of gold at a grade of 7.7 grams per tonne ("g/t") over a strike length of more than 350m.
The Leopard Project comprises 44 contiguous gold claims and has supported historical gold production from two underground mines. One of these ("Site One") is reported to have produced more than 2,000oz from ore grading 3.5g/t gold, while the second ("Site Two") is reported to have produced historically more than 1Moz from ore at an average grade of more than 0.5g/t gold.
Kavango believes Hillside and Leopard (the "Projects") each have the potential to host bulk mineable gold deposits.
Hillside is located on the same greenstone belt as the Nara Project, where Kavango is currently completing due field diligence after signing an exclusive 2-year purchase option (announced >>> 26 June 2023). Hillside is about 20km from Nara. Leopard is located on a separate greenstone belt to the north.
Ben Turney, Chief executive of Kavango Resources, commented:
"I'm very pleased to announce that we have already been able to expand our footprint in Zimbabwe after signing the Nara project last month. The Hillside and Leopard projects both contain historically producing mines and have been underexplored with modern-day exploration techniques.
We look forward to carrying out a thorough assessment of their commercial gold potential during our 6-month option period, as we continue to build on our first-mover advantage in Zimbabwe."
The Hillside Project
Kavango has identified multiple zones with the potential for scheelite and gold production parallel to the trend responsible for the Hillside Project's historical production.
The Company has designated three priority prospects within these zones with near-surface, bulk mining potential.
Kavango has prepared an exploration plan for these three zones, which will include (but not necessarily be limited to):
-Mapping
-Surface surveying
-Drilling to assess geology, nature of mineralisation, grade, and geophysical properties
The Leopard Project
The Leopard Project is located in a favourable regional setting, surrounded by historical and modern gold producing mines.
Site One is located within a shear zone to the north of the property. The mine's underground and bulk mining exploration potential is evidenced by nearby artisanal workings and historical, non-code compliant indicated and inferred resource estimates of 200,000t @ 6.8g/t gold and 1Mt @ 5.5g/t gold respectively.
Site Two is located towards the south of the property and was historically mined down to a depth of 1km from surface within a north-south trending quartz reef. No exploration has taken place at the mine since the 1930s, with artisanal workings supporting its modern-day underground and bulk mining potential.
Kavango plans to assess the underground and near-surface potential of these two mines through:
-Mapping
-Sampling
-Twinning historical holes at Site One
Hillside and Leopard Project Option Terms
Kavango has entered exclusive, binding 6-month options to acquire the Projects. The Company can exercise the exclusive options at its sole discretion.
The 6-month option period will allow Kavango to perform an appropriate exploration program to assess the potential of the Hillside and Leopard Projects.
To exercise the options and acquire the projects, Kavango will pay the Vendors or its designate/s US$500,000 in cash (the "Acquisition Price").
Kavango has also agreed to issue 84,000,000 shares in Kavango to the Vendors or their designate/s, and assume responsibility for repayment of outstanding debts relating to the projects of US$400,000. This debt will be repaid on its existing terms, at a rate of US$7,500 per calendar month.
During the 6-month option period, Kavango will be granted full access to the Hillside and Leopard project areas to conduct initial exploration. Kavango will work alongside the Vendors of the Projects ("the Vendors") to ensure all necessary permits are in place prior to beginning any field exploration. The Vendors are separate parties to the vendor of the Nara Project. The Company is currently establishing a field camp to support exploration and drilling at Hillside and Nara.
Performance Consideration
On declaring of a code-compliant (e.g. JORC or equivalent) gold resource in excess of 200,000 ounces of gold (inferred category or above) at the Leopard Project by Kavango (the "Resource"), the Company will pay the Vendor or its designate/s a payment in shares to a value of US$1 million at a 10% discount to the prevailing 10-day volume weighted average price on the date of publication of the Resource.
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.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
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
+46 7697 406 06
First Equity (Broker)
+44 207 374 2212
Jason Robertson
Kavango Competent Person Statement
The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP). Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status. Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.