Kavango Resources Regulatory News (KAV)

PRESS RELEASE

14 May 2021

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

South Ghanzi - copper/silver exploration update

Extensive anomalies identified, including seven AEM conductive targets

Kavango Resources plc (LSE:KAV), the exploration company targeting the discovery of world-class mineral deposits in Botswana, is pleased to announce the identification of seven conductive targets in the Company's South Ghanzi copper exploration project ("South Ghanzi") in the Kalahari Copper Belt ("KCB").

The seven targets were defined by the Airborne Electromagnetic ("AEM") surveys flown over South Ghanzi in February. Follow up ground-based exploration of the geophysical anomalies has delivered very encouraging results, with close correlation between copper-zinc in soils geochemistry, regional geological mapping and the AEM data.

These findings align closely with previous fieldwork conducted by Kavango and the established regional exploration model for the discovery of major copper/silver deposits within the KCB.

South Ghanzi is held in a Joint Venture with Power Metal Resources plc (LSE:POW) ("Power Metal"). Kavango is the operator.

Highlights

Ø Seven conductive, kilometre-scale anomalies defined by AEM surveys, recently flown by SkyTEM Ltd

- Each anomaly represents a potential drill target

- Initial data interpretation suggests a range of target depths of 40m to 400m for exploration drilling

- Kavango will follow up with additional soil sampling, trenching and geological mapping ahead of a drilling program planned for later in 2021.

Ø Three of the conductors are associated with anticlines/fold structures. These are the highest priority targets for further exploration.

Ø Target 36A ("Acacia") is a 4km x 4km conductor on the northern boundary of PL 036-2020

- Lies within a fold "nose", which is plunging southwest

- Made up of at least 4 individual pods of high conductivity

- Soil geochemistry directly over the anomaly demonstrates elevated levels of copper (>42ppm) and zinc (>75ppm)

- Zinc is a key pathfinder element for the discovery of major copper/silver deposits within the KCB.

Ø Target 36G ("Morula") is estimated to be about 2km wide with at least 12km of strike on a south-westerly trend along the central backbone of PL 036

- AEM data and the soil geochemistry suggest this target represents the sheared and thrust faulted southern limb of the "Acacia" fold

- The soil geochemistry anomaly along the Morula target extends for over 12km demonstrates and is open at both ends

- Seven 4km long soil sample lines (500m spaced with 100m spaced samples) completed, with four intersecting the southwest and three intersecting the northeast of Morula. The two groups of soil sample lines were 7km apart

- All soil sample lines returned readings with significant concentrations of copper (38ppm to 62ppm) and zinc (59ppm to 111ppm) across the 12km soil anomaly

- Seven infill soil sample lines planned at 1km spacing, to test the extent of potential mineralisation across the Morula conductor/anomaly.

Ø Target B ("Baobab") is a 2km x 3km closed conductor, about 1km south west of the Morula fold and 4km south east of Ghanzi town within PL 036/2020

- The Target sits across the "nose" of a second, "opposing" fold on the same stratigraphic horizon as Acacia.

- Baobab is in a very encouraging geological setting. Soil geochemistry Survey underway.

Ø Target E ("Elephant") lies in the southeast corner of PL 037/2020. It is a broad, 2.5km wide intense conductor with a strike of at least 6km and open at both ends

- Unlike most of the other targets, the main body of the Elephant anomaly is between 400 and 600m from surface

- A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.

Ø 3D AEM model interpretation of South Ghanzi is in progress and will include re-logging of water borehole chips and historic drillholes.

Ø An Environmental Management Plan ("EMP") application is progressing

- Upon award of the EMP, the Company plans to initiate exploration drilling across a number of these targets.

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

"The Airborne EM program has demonstrated that the two Ghanzi South PLs have significant potential for the discovery of copper/silver mineralisation. The generally shallow depth of the conductors is a major asset.

We are confident we are looking at numerous mineralised systems. The copper and zinc readings taken from Kalahari cover are promising, but we will only be able to gauge economic viability after drilling and assay testing.

In the meantime, the acquisition of a new portable XRF analyser will speed up the soil geochemistry surveys. Trenching through shallow Kalahari cover is also possible in some areas and will assist in the geological mapping. The aim is to have a more complete understanding of the geology before a drilling program is undertaken later in the year.

The results to date from the South Ghanzi Project have been very promising. We are particularly encouraged by the elevated copper and zinc readings, which correlate closely with sizeable sections of the shallow depth AEM conductors.

With the Environmental Management Plan application progressing well, the next few months in South Ghanzi will be key."

South Ghanzi exploration

The South Ghanzi PLs lie within the Central Structural Corridor of the Kalahari Copper Belt immediately south of the town of Ghanzi.

Sedimentary horizons hosting copper/silver mineralisation in the KCB are known to be conductive. AEM surveys are a recognised and tested exploration method for identifying high priority drill targets.

Kavango's strategy in the KCB is to identify conductive targets and then to complete follow up investigation, using other proven exploration methods including geological mapping and testing of soil geochemistry through extensive sampling. The correlation of positive zinc and copper soil geochemistry readings to positive AEM results is a highly encouraging exploration vector.

Given Kavango's understanding of the regional lithology and stratigraphy of the KCB, the Company is optimistic about the progress it has made in South Ghanzi over recent months.

Specifically, the identification of a number of smaller anticlines associated with conductors suggests there are multiple promising drill targets at South Ghanzi.

AEM survey results

SkyTEM Ltd, a Danish geophysical contractor, conducted the AEM surveys over South Ghanzi in February 2021.

A total of 1,271 line kms were flown over the 2 PLs, which comprise a total area of 1,294km2. The AEM surveys, flown together with airborne magnetic surveying, were carried out on lines 200m apart and an approximately North-South orientation.

The survey blocks were selected by Kavango's geophysical team, based upon analysis of magnetic data, soil geochemistry, remote mapping of geological structures and field mapping of the stratigraphy and structural geology.

The AEM surveys defined seven distinct conductor anomalies on both PLs. These are mostly related to fold hinge structures and confined to the interface between the Ngwako Pan and D'Kar Formations. Significantly, the conductors are usually coincident with copper and zinc soil anomalies detected using portable XRF equipment.

- Copper is a less mobile element in soil, so the identification of such elevated readings is promising

- As a more mobile element, zinc is a known "pathfinder element" in the search for major copper/silver deposits. Zinc has been successfully used as an exploration vector for other discoveries in the KCB.

The most significant conductor (Acacia) lies just south of the northern boundary of PL036/2018 about 9km SW of Ghanzi town. The conductor is approximately 4km x 4km in area and is made up of at least 4 individual pods. The conductive material appears to exist almost from surface to a depth of no more than 200m. The conductor lies almost entirely within the fold "nose", which is plunging to the SW and within the D'Kar Formation just above its contact with the Ngwako Pan Formation.

Kavango has completed extensive soil sampling over Acacia, having taken samples over 16km of lines. Results demonstrate extensive copper and zinc anomalies over the conductive target. The majority of the anomalous readings were >42ppm copper and >75ppm zinc.

An associated conductor (Morula) lies just to the south of Acacia and is also supported by a strong copper in soils anomaly. The conductor is at least 2km wide and over 12km along strike (open at each end). 

This conductor probably represents the southern limb of the same fold, but appears to be sheared along a thrust fault. This sheared limb has been cut by a number of NNE trending structures (faults). Such faults are known to be associated with mineralisation elsewhere on the KCB. The Company might elect to conduct further AEM surveys to close off the anomaly and establish its true extent.

The third priority conductor (Baobab) is 2km x 3km in area and is contained within the "nose" of a second major fold on the same stratigraphic horizon as the Acacia target. The size and geological setting for this conductor is encouraging. Kavango will prioritise soil sampling of this area in the coming weeks.

The fourth priority conductor (Elephant) lies in the southeast corner of the South Ghanzi Project and is also supported by a strong copper in soils anomaly. The conductor is at least 2.5km x 5km in area and remains open along strike.

Unlike the other targets, the main body of the Elephant anomaly is between 400 and 600m from surface. A number of faults intersect the main body, giving rise to several close surface conductors, which could be sampled with shallow drilling.

The Company might elect to conduct further AEM survey work to close off the conductor and establish its true extent.

Environmental Management Plan

Kavango initiated the EMP application in February. The award of an EMP is a prerequisite for exploration drilling in Botswana.

The Department of Environmental Affairs ("DEA") has accepted the project brief for the EMP. A consultant, working on behalf of Kavango, will now engage and consult with local farmers, before submitting a report to the DEA to progress the application.

The POW/KAV Joint Venture

The South Ghanzi PLs are held in the name of Kavango and are subject to a JV Agreement in which each company holds a 50% interest via Kanye Resources plc. Exploration costs are equally shared. Kavango is the operator. Application has been made to transfer the PLs into a recently established Botswana JV company, Kanye Resources (Pty) Ltd. There are plans to IPO Kanye Resources plc on a recognised stock exchange.

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 has been read and approved by Mr Mike Moles (BSc (Geology) & BSocSci (African Studies), who is a Member of the Australian Institute of Mining & Metallurgy (MAusIMM) and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Moles is a beneficial shareholder of Kavango Resources plc.