Kavango Resources (LSE: KAV) has been granted two new prospecting licenses in the highly prospective Kalahari Copper belt in Botswana.
The two 100%-owned licenses, PL-036/2020 and PL037/2020 cover 1294.2km2 and have been granted on three year terms. This can be extended to a maximum of 7 years.
The location is directly south west of large copper-silver discoveries operated by $870m AUD market cap Australian explorer Sandfire Resources (ASX: SFR). Sandfire is currently infill drilling to confirm sought-after mineralisation at its test location.
Kavango Chief Executive Michael Foster said his management team’s quality in-country contacts helped the company snap up the licenses as soon as they came on the market.
He said: “Given the positioning of these two new licences, in such close proximity to major copper-silver discoveries, we are eager to commence exploration here as lockdown restrictions are loosened in Botswana."
Field exploration is expected to commence in mid-to-late June 2020.
He added that the acquisition of further licenses was underway.
The Kalahari Copper Belt is a key emerging exploration region for major copper-silver deposits.
In January 2020 the company signed up to a joint venture agreement with LVR GeoExplorers for two prospecting licenses, giving Kavango the right to take up to 90% interest by a staged earn-in. They are surrounded by developments operated by MOD Resources (ASX:MOD), AIM-listed metals investor Metal Tiger (LSE:MTR) and Sandfire.
At the time Johnson said: “We believe the signing of the JVA represents excellent value or shareholders.”
Kavango also has a particularly interesting world-class nickel-copper-PGM potential zone under exploration. More detail here.
Author: Mark Sheridan
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