Kavango Resources (LSE:KAV) sat at an all-time high of 4p on Thursday after revealing additional ‘extremely encouraging’ drilling results at its Ditau prospect in Botswana. The £6m firm, which was trading up 8.1pc as at writing after leaping 16.4pc on Wednesday, said its second hole at the site had intersected over 320m of intensely altered Karoo sediments above a gabbroic intrusive.
Ditau is part of Kavango’s KSZ project in south-west Botswana, where it is exploring for copper, nickel, and platinum group elements (PGEs) rich sulphide orebodies along a 450km-long magnetic anomaly. According to the firm, the area covered by its KSZ licences displays a geological setting with distinct similarities to that hosting the world-class for copper, nickel, and PGEs orebodies in Siberia.
In Thursday’s update, Kavango said its second hole at Ditau, called DitDDH2, was finally stopped at a depth of 557.34m, offering good core recoveries and minimum deviation. Kalahari sands and sediments extended to 40m, while Karoo sediments continued for a further 438m until an intrusive was encountered at 478.55m.
The business added that geological logging and preliminary geochemical analysis has shown that the 320m zone of intensely altered rock was intersected before hitting the intrusive. Half core from this zone has been cut and sampled at 1m intervals and sent to Australia for assay.
Although Kavango cannot yet determine indicative values for gold, silver, and PGEs, it said initial results suggest elevated values for cobalt, zinc, nickel, and copper. Meanwhile, it added that the core also appeared to contain high levels of rare earth elements. The organisation will assess further drilling plans once it has received and interpreted assay values.
Kavango added that Thursday’s zone of intensely altered rock was similar to that encountered at its first hole – DitDDH1 – back in March. This met a 200m zone of intensely altered rock above the conductive drill target. It also showed significant sulphide alteration together with indicative cobalt values of up to 0.9pc and a weighted average of 0.2pc cobalt over 70m as well as elevated copper, zinc, lead and nickel values.
On Thursday, Kavango’s chief executive Michael Foster said: ‘We are extremely encouraged that the geophysics, geochemistry and the initial drilling which we have now completed at Ditau have been very successful in predicting a prospective hydrothermal system under complete cover.’
He added that the extensive system displays essential ingredients for one or more mineral deposit. These include intrusives for heat and metal source, receptive overlying sediments with accompanying alteration, and anomalous metal values.
‘Assays are eagerly awaited and will be announced to the market as soon as they become available. The Company will then be in a position to compile a 3-D model, with the extensive information we now have, to understand fully the potential of Ditau,’ he added.
Kavango’s co-founder Mike Moles recently authored a piece for MiningMaven on how these copper, nickel, and platinum group element-rich sulphide orebodies occur and why the firm is keen to locate them. To read it, please click here.
Author: Daniel Flynn
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