Kavango Resources (LSE:KAV) fell 6.3pc to 3.75p on Thursday morning as it revealed that it had taken another step forward in the drilling of its Ditau Camp prospect Botswana.
The £6m exploration firm said it has now received assay results for two holes drilled earlier this year at the prospective site from a business called Genalysis Laboratories in Australia. Genanalysis assayed a total of 489 core samples prepared by Intertek Laboratories in Johannesburg for 65 elements. It then carried out 12 duplicate check assays, ran 14 control standards and 14 blanks during the assay run.
Having received the assay results, Kavango is now undertaking its own program of checks and duplicates at an independent laboratory as per standard industry practice.
Ditau Camp forms part of Kavango’s KSZ project in Botswana, where it is targeting the discovery of world-class mineral deposits at depth using industry-leading drilling and sampling techniques. The prospect is underlain by magnetic and gravity anomalies that suggest a 7km x 5km intrusive body at depth. The alteration zone was discovered using ground-based geophysical techniques.
In Thursday’s update, Kavango’s chief executive said: ‘We are pleased to have received the assay results from the two drill holes at Ditau. Kavango is now completing its own check assays at an independent laboratory in South Africa, which is normal industry practice. We will then be in a position to fully check, assess and interpret the results so as to formulate our plans for Ditau.’
He added that Kavango’s preferred option would be to farm-out Ditau Camp to an industry partner due to its size and the firm’s ongoing, primary focus on the Kalahari Suture Zone (KSZ) structure in south Botswana. Drilling is expected to begin at the 450km-long magnetic anomaly, on which the majority of Kavango’s 15 prospecting licences sit, later this year.
Kavango is exploring the trend for copper, nickel, and PGE-rich sulphide orebodies. Despite the area displaying a geological setting with distinct similarities to that hosting the world-class Norilsk Ni-Cu-PGE orebodies in Siberia, it has not previously been explored using modern techniques.
Thursday’s news comes just several days after Kavango announced that it had acquired a new prospecting licence at Ditau. The new area covers 916.4km2 to the south-west of the organisation’s existing licence and includes the extensions of the Ditau geological and geophysical structures that have potential for base metal mineralisation. In a statement, Foster said that Kavango felt that the new licence could be ‘instrumental in the farming-out of Ditau.
To read our recent investor Q&A session with Kavango Resources’ chief geologist Mike Moles, please click here.
Author: Daniel Flynn
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