Kavango Resources Regulatory News (KAV)

PRESS RELEASE

29 November 2019

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

SULPHIDE MINERALISATION INTERSECTED ON THE KSZ IN SW BOTSWANA

Kavango Resources plc (LSE: KAV), the exploration group listed on the Standard List segment of the main market of the London Stock Exchange and targeting the discovery of world-class copper-nickel-PGE deposits in SW Botswana, is pleased to announce that disseminated sulphide mineralization has been intersected in two high level gabbro sills during drilling on the Company's Kalahari Suture Zone Drilling Project (KSZ).

HIGHLIGHTS

·; Two gabbro sills containing disseminated sulphide mineralization have been intersected in hole RIT38DH1, which lies approximately 50km north-east of the town of Hukuntsi in SW Botswana.  

·; The sills were intersected at 340m and 367m respectively and were each about one third of a metre thick.

·; Gabbro sills have also been intersected in reverse circulation drillholes (RIT50DH1 & RIT50DH2), which lie 10kms south of Hukuntsi. The sills are respectively 12m and 14m thick and were intersected between 55-60m below surface.

·; Drilling on the third and last target (RIT08) is currently in progress.

A photograph of some core at RIT38 can be seen on Twitter at @KavangoRes or at https://www.kavangoresources.com/projects/kalahari-suture-zone

DISCUSSION and SIGNIFICANCE (a glossary of terms is found at the end of this RNS)

·; Until thin sections of the core have been made and examined, it is difficult to be certain that the sulphides intersected in the gabbros were generated in the molten magma (primary) or introduced into the solidified gabbro from an outside source (secondary).

·; The existence of primary sulphides in the gabbro would imply that there was sufficient "free" sulphur in the molten magma to scavenge metals (including Cu/Ni/PGEs) from the melt and deposit them in discrete locations (massive sulphides).

·; The observed contact between the gabbro and the coal seams in the hole suggests that coal and carbonaceous matter, rich in sulphur, was incorporated into the molten magma during emplacement.

·; Study of magmatic sulphide orebodies world-wide suggest that the thickness of the gabbroic sills has little bearing on the grade and value of the metals contained.

·; In this type of deposit, the gabbro sills and dykes represent conduits along which large volumes of magma passed on their way to the surface. What is important is the amount of magma that passed through the conduit - leaving metal rich, immiscible sulphide liquid behind to solidify into an orebody.

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

"We are highly encouraged by the discovery of disseminated metal sulphides in gabbro sills and the incorporation of coal seams into the melt. This lends significant support to Kavango's belief that the post Karoo magma chambers emplaced along the KSZ developed sulphur rich magma that allowed for the crystallization of large volumes of metal sulphides (Cu/Ni/PGE). It is expected that the study of thin sections and whole rock analyses (assays) will confirm the primary origin of the sulphides and thus the potential for these gabbros to host economically viable metal suphide deposits. Further details will be announced at the end of the drilling progamme."

For further information please contact:

Kavango Resources plc +44 20 3651 5705

Michael Foster

mfoster@kavangoresources.com

SI Capital Limited (Joint Broker) +44 1483 413500

Nick Emerson

Turner Pope Investments (Joint Broker) +44 20 3657 0050

Andy Thacker and Zoe Alexander

Note to Editors:

Kavango's 100% subsidiary in Botswana, Kavango Minerals (Pty) Ltd, is the holder of 15 prospecting licences covering 9,231 km2 of ground, including 13 licences over most of the 450km long KSZ magnetic anomaly in the southwest of the country along which Kavango is exploring for Cu-Ni-PGE 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). 

Glossary of Terms

·; 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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