Kavango confident in KCB copper systems following extensive target discovery (KAV)

Kavango Resources (LSE: KAV) unveiled its discovery of extensive copper/silver targets on two prospecting licences in the Kalahari Copper Belt on Thursday.

Chief executive Michael Foster said the latest Airborne Electromagnetic (“AEM”) surveys in Botswana provided “compelling justification for Kavango’s strategy in the Kalahari Copper Belt” (“KCB”).

“We are confident we have identified copper mineralised systems, which we now have to test through drilling,” Foster said.

The KCB is a mineral belt extending nearly 1,000 kilometres from northeast Botswana to western Namibia. The discovery rate at the KCB has accelerated over the past ten to fifteen years, with two copper-silver mines developed there.

An increasing draw has been the rising price of copper, which some expect to hit $15,000 per tonne as electrification drives up demand. Year-to-date, the price is already up more than 20%, having surpassed $10,000 already.

Electric vehicles use double the amount of copper as hybrid vehicles, as do other green technologies like wind – with just one wind turbine containing as much as four tonnes of copper. In fact, renewable energy technology uses up to five times the copper of traditional power generation methods like fossil fuel plants.

Kavango’s recent AEM surveys detected the latest targets at prospecting licences (“PLs”) 082/2018 and 083/2018. Both PLs are held in a joint venture (“JV”) farm-in with LVR GeoExplorers, known as the LVR project.

The firm highlighted “strong soil geochemical anomalies” above the targets at surface.

With 1,216 kilometres (“km”) of AEM surveys flown over the project in March, the first stage of the farm-in is complete, and Kavango now holds a 25% stake in the LVR project.

Under its JV agreement, the company has the right to acquire up to a 90% interest in the PLs through its commitments, in stages, to exploration expenditure.

At drill-ready PL 082/2018, the AEM surveys identified a series of conductors over a deformation zone 3.5km wide. The conductors are located along strike of Cupric Canyon’s Boseto Mine in the northeast and the Plutus deposit.

The primary target at PL 082/2018 is a large EM conductor that extends to 400 metres (“m”) at a minimum from the surface. The company highlighted that the PL is distinctly similar to “Cupric Canyon’s Banana Zone South Limb”, located on the Ghanzi Ridge’s south side.

PL 083/2018 is not drill ready yet, as more field exploration is still needed to “delineate drill targets”. However, it has over 10km of AEM conductors on its southeast side with two main targets that are 6km and 4km wide. The two targets possess “copper in soils anomaly over three lines”, with 500m spacing, and the anomaly is still open.

The PL 083/2018 conductors have an underlying linear magnetic anomaly that extends for more than 2km under the soil anomaly.

Kavango expects to start drilling in the third quarter of 2021, once the Environmental Management Plan is awarded.

Foster commended the company’s “highly effective” integrated approach to exploration, which combines “soil geochemistry, stratigraphical and structural mapping together with geophysical surveying”

A trenching program at PL082/2018 plus further soil geochemistry on PL083/2018 are planned before the drill programme later this year.

Author: Anna Farley

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Kavango Resources’ massive metal sulphide potential grows with major new findings in Botswana (KAV)

Wednesday saw Kavango Resources (LON: KAV | OTCMKTS: KVGOF) reveal a survey providing yet more evidence of metal sulphides at its potentially enormous Botswana project.

Data confirmed the highly conductive anomaly previously identified at Kavango’s Kalahari Suture Zone (“KSZ”) project, with a conductance of approximately 3,000 Siemens. This suggests the presence of metal sulphides at the KSZ.

By Kavango’s estimation, the anomaly is 1 kilometre long and open along strike, extending between 250 metres and 700 metres below the surface.

The decay constant for the anomaly was about 340 msec. In conjunction with the conductance of around 3,000 Siemens, Kavango considers the readings to be “consistent with nickel sulphide deposits elsewhere in the world”.

Location-wise, the anomaly is also in the perfect geological setting, at the bottom of a ‘keel’ in the gabbroic intrusion according to the firm’s magnetic 3D model.

Spectral partnership

Kavango’s latest data comes from a Time Domain Electromagnetic (“TDEM”) survey completed by Spectral Geophysics in Target Area A of the KSZ.

The goal of the latest survey was to corroborate the presence of the previously identified large-scale conductive anomaly at the project. The survey certainly achieved this, and provided yet more evidence that the anomaly is indeed a nickel sulphide deposit.

In addition, Spectral successfully deployed an upgraded configuration of its equipment.

With the A3 survey complete, Spectral deployed its team and equipment to Target Area B1 straight away. This target was already prepared by Kavango’s field exploration team.

The survey at Target Area B1 is already nearly complete, with data due later this week. This data will also be processed, interpreted, and reviewed in due course.

After that, Spectral is set to move immediately to Target Area B2, which Kavango is preparing right now. 

Kavango and Spectral’s partnership is focused around identifying high-priority targets for drilling, and involves the company issuing 3.0 million shares to Spectral at a 3p per share issue price. These partnership shares have a 12-month lock-in.

A promising project

The KSZ, located in Botswana, includes 14 prospective licences that cover more than 7,500 square kilometres. Kavango is exploring the KSZ for metal sulphide ore bodies rich in copper, nickel, and platinum group metals.

Most excitingly for investors in Kavango, the setting for the KSZ is noticeably similar to the Norilsk mining centre in Siberia. This is one of the world’s largest and most metal-rich mines, producing around 20% of global nickel as well as 10% of the world’s cobalt and 3% of its copper. 

Kavango is now set to begin planning a drilling programme while results from the TDEM surveying are processed and interpreted.

Although the drill programme’s timing and extent are yet to be fixed, Kavango currently expects it to include holes up to 450 metres through the A2 conductive target. These holes are intended to intercept the conductor at about 400 metres.

Warrant exercise and outlook

Kavango also said that it received notices to exercise warrants over close to 6 million new shares, receiving £59,500 of subscription money. These warrant shares are being issued pursuant to an exercise of warrants announced back in April 2020.

Kavango’s shares were up 2.4% in London on Wednesday at 3.18p. However, the firm’s £10.8 million market cap could stand to re-rate significantly if the potential scale of the KSZ is realised. With work confirming that Kavango’s project bears a striking similarity to Norilsk, the company’s investment potential seems clear.

 

Author: Anna Farley

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Kavango partnership signals impressive leap forward at KSZ amid excellent survey news (KAV)

Kavango Resources (LON: KAV) on Tuesday announced great news on top of yet more great news, with both a strategic partnership and the likely identification of a large electro-magnetic anomaly in its Kalahari Suture Zone (“KSZ”) project in Botswana. The company is looking for large-scale nickel-copper deposits, at a time when both metal prices are soaring.

In the first of yesterday’s announcements, Kavango revealed it had found what looks to be a large conductive body in Target Area A in the Hukuntsi section of the KSZ. 

The compelling anomaly was found using data from a Time Domain Electro-Magnetic (“TDEM”) survey and seems to be located between 250 and 700 metres from the surface. With a 1km strike length, the suggestion is this is a highly promising future drill target for the company, in its quest to uncover a major mineral deposit.

Spectral Geophysics conducted the survey, which showed that the anomaly appears to be in the lower parts of a gabbro ‘keel’. This was predicted by Kavango’s proprietary 3D-Underground Model, announced back in September 2020.

In what chief executive Michael Foster called a “prudent step”, Kavango sought “expert independent verification of the TDEM data” as well confirmation that it has been correctly gathered in the field. Interestingly, the company did not rush to publish news that it had identified the anomaly in February. Instead, the directors chose to go through this rigorous verification process, to gain as much confidence as they could that what they believed they had discovered could be relied upon.

So far, analysis confirms that Spectral’s work was high quality, as anyone would expect from “one of Southern Africa’s leading firms” in the exploration space.

The fact that Spectral has proven its ability to provide good data makes it all the more impressive that Kavango is bringing Spectral in as a partner.

The two firms have already signed a strategic partnership, under which Kavango will issue 3.0 million shares at 3p each, tied in for 12 months, as well as 3.0 million warrants with a 4.25p per share exercise price.

Spectral is to share technical knowledge with Kavango, helping the company optimise future KSZ underground remote surveys.

Not only that, but Spectral will also prioritise assigning its advanced surveying technologies to the zone for a 24-month period. This looks significant for the future development of this enormous project.

Meanwhile, Kavango is to share results from its independent assessments of remote survey data with Spectral. The firm’s field exploration team will also lend additional support to Spectral to help deploy sensing technologies to target areas more quickly.

Ben Turney, executive director at Kavango, said the deal has “guaranteed Spectral’s focused attention” when it comes to unlocking the KSZ. This is “absolutely” expected to accelerate progress in the area, given that Spectral’s interests now align with Kavango’s and its shareholders.

Given the share tie-in, Spectral can only make the most of the deal in the event of “significant medium-term success”, Turney said. This means Spectral is “extremely motivated” to make the project work and provide Kavango with “the best-quality drill targets”.

The KSZ is located in Botswana and includes 14 prospective licences spanning 7,573.1 square kilometres.

Of the 14 licences, 12 are over a sizeable chunk of the 450-kilometre long KSZ magnetic anomaly. This is where Kavango is exploring for metal sulphide ore bodies rich in copper, nickel, and platinum group metals (“PGM”).

One of the draws of the KSZ is its similarity to the Norilsk mining centre, located in the Arctic Circle in Siberia and quite probably the largest mine on earth. Norilsk produces around 20% of the entire world’s nickel, 10% of its cobalt, and 3% of global copper.

This shows up in the 3D Underground Model according to Turney, who highlighted the encouraging similarity in morphology between the KSZ and Norilsk.

With the latest TDEM results, Kavango can be even more sure of the model itself and is now feeling, as Turney put it, “very confident” in its accuracy.

“The fact that we found this conductor in the right position, as projected by our model, is a very encouraging sign,” Turney said.

The next step for Kavango will be re-surveying the potential anomaly on two to three other survey lines from the new TDEM loop position, which should provide additional confirmation. This is on top of completing independent verification of the Spectral results.

Foster noted that, while the company had been “hopeful” of the possibilities from the first TDEM surveys of the KSZ, the firm was “encouraged to have identified a conductive body of this size, in this geological setting so early in the programme.”

This was echoed by Turney, who said this new development was “definitely ahead” of Kavango’s expectations at the current project stage.

Kavango has been charging head-on in Botswana. It is set to see drilling later in 2021 from its interests both in the KSZ and the Kalahari Copper Belt (“KCB”). 

Most recently, in late March, Kavango unveiled a new joint venture announcement in the KCB, involving two signed agreements to acquire eight KCB prospecting licences. The JV is part of a Kanye Resources subsidiary, established in Botswana and known as Kanye Resources (Pty) Ltd (“Kanye Botswana”).

Kavango and Power Metal Resources (LSE:POW) each have a 50% interest in Kanye, with an exciting London listing planned later this year.

Kavango is also earning a 90% interest in the KCB’s LVR project, which will be held in a JV with LVR GeoExplorers.

Preliminary data plots from all airborne electromagnetic (“AEM”) surveys at the KCB so far have conformed to the company’s models, with further definitive results expected soon.

With so much happening for Kavango in Botswana, this latest news from the KSZ highlights the wealth of opportunities in the country – as well as the company’s strong position to capitalise on these opportunities. Now, with Spectral on board as a partner and powerful surveying technology at its disposal, Kavango is gathering speed. The company looks like it is ready to make plenty of progress over the coming months.

Author: Anna Farley

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Kavango and Power Metal announce further push into the game-changing Kalahari Copper Belt (KAV, POW)

Kavango Resources (LON: KAV) and Power Metal Resources (LSE:POW) started the week with a new joint venture announcement, strengthening ties yet again in the sensational Kalahari Copper Belt.

Botswana’s Kalahari Copper Belt (“KCB”) is among the world’s leading frontiers in terms of copper exploration, a site of frequent discoveries and activity. This latest joint venture (“JV”) involves two signed agreements to acquire eight KCB prospecting licences.

The JV is part of a Kanye Resources subsidiary, established in Botswana and known as Kanye Resources (Pty) Ltd (“Kanye Botswana”). Kavango and Power Metal each have a 50% interest in UK-based Kanye, with a highly anticipated London listing planned later this year.

Kanye Botswana has signed two agreements for 100% of all eight licences.

One of these agreements is with Shongwe Resources and covers four licences, totalling 480 square kilometres in the Botswana KCB’s central zone. Kavango and Power Metal each cover half of the $200,000 acquisition cost.

The other agreement is with VinMarsh Interprises, with VinMarsh’s directors to transfer the other four licences, totalling 2,481 square kilometres on the western area of the Botswana KCB near the Namibia border. The $230,000 cost for these will also be split equally between the JV partners.

On top of this, formal documents have been submitted to transfer four licences currently held by Kavango Minerals to Kanye Botswana. These are the two licences for the South Ghanzi copper/silver project and the two Ditau rare earth element project licences.

Once all KCB prospecting licences are transferred, Kanye Botswana will control an impressive 4,255 square kilometres of prospecting exploration ground in the KCB. These will seek to discover commercial copper/silver deposits in the highly exciting region.

The acquisitions are all subject to due diligence and approvals in Botswana.

Power Metal chief executive Paul Johnson highlighted the fact that these new licences “would significantly increase the footprint of Kanye Botswana in the Kalahari Copper Belt” and complement existing licences in the KCB.

Johnson added that Power Metal believes the production licences “will add material value to the investment proposition, in advance of the planned listing in London”.

Kavango’s chief executive, Michael Foster, called the latest licences “a major step forward” in developing Kanye Resources as a “significant player” when it comes to copper exploration in the KCB. He also noted the excellent combination of Kavango’s “experienced ‘in country’ exploration capacity” with Power Metal’s “financial expertise and assets”.

Foster further expressed that Kavango is pleased with progress so far and looked forward to more updates in the weeks ahead.

Alongside its JV projects with Power Metal, Kavango is also earning a 90% interest in the LVR project. This project is also located in the KCB and will be held in a JV with LVR GeoExplorers.

Earlier in March, Kavango posted strong results from early airborne electromagnetic (“AEM”) surveys at both the LVR and South Ghanzi projects. Preliminary data plots from the AEM surveys conformed to the company’s developing KCB models.

Not only that, but these initial results also correlate with results from previous exploration efforts. In particular, AEM survey results so far closely correlate to Kavango's interpretation of geological structures in the region and confirm areas of interest found though prior soil sampling and ground magnetic surveys.

Data processing for the AEM surveys has already started and Kavango expects to post the results later this spring. Kavango will then use these results to help find targets for test drilling in the second half of the year.

The KCB is not Kavango’s only area of focus in Botswana. The firm is also exploring the Kalahari Suture Zone (“KSZ”), where data analysis has already confirmed potential for a massive, transformational nickel and copper discovery.

This analysis found that, millions of years ago, conditions at the KSZ proved just right to form concentrated pools of especially valuable and sought-after base metals like nickel and copper.

Copper is performing well, with prices up late last week as the vaccination roll-out kept ahead of expectations and US labour data proved positive. By midday Friday, there was a 2.1% increase in copper for May delivery as futures hit $2.04 a pound on New York’s Comex market.

Author: Anna Farley

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Broker sees huge upside in Kavango Resources with major Botswana discovery on the cards (KAV)

AIM-listed Kavango Resources (LSE: KAV) has the potential to produce a near-term 76% share price gain, according to a new note by First Equity. 

The copper and nickel explorer could hit 5.2p in short order, the broker said, from its current 2.8p.

Analyst Jason Robertson said the copper and nickel explorer also has “a medium to high probability of making a major exploration discovery within the next 18 months.”

Kavango is seeking world-class Norilsk-style nickel sulphide deposits from its 100%-owned flagship project at the Kalahari Suture Zone (KSZ) in Botswana. 

Investors may be wise to position themselves in the stock ahead of any potential landmark discoveries being made in the coming year as the Group ramps up its exploration activities,” the analyst added.

Norilsk in northern Russia hosts the planet’s richest supply of copper-nickel-PGM metals. The huge Siberian mine accounts for 50% of the world’s palladium production, along with 20% of global nickel and platinum. 

Success on this level for Kavango in Botswana would attract not only new investors but also possible big player industrial participants, Robertson said. 

Derisking the play is a recent JV with fellow AIM-listed Power Metal Resources (LSE: POW). And Kavango is also now fully-funded for a 2021 drill campaign after it successfully raised £2m from a heavily oversubscribed 10 November placing. 

At the time, CEO Michael Foster noted the company was now “well-funded to pursue ambitious exploration plans and unlock what we believe is the KSZ’s considerable potential.” 

KSZ potential booms

Kavango has a drill programme of 5,000 metres planned for 2021. In December 2020, it revealed it had identified four Norilsk-style ‘mega targets’ in the northern Hukuntsi section of the KSZ.

To confirm these targets, Kavango used proprietary techniques to produce the first ever 3D geological models of the region, followed by intensive ‘large loop’ surveys which are much more precise than standard airborne electromagnetic analysis. These give the £8.9m market cap company “a crucial competitive advantage” to determine high-priority drill targets, Robertson noted.

Previous work has confirmed important similarities between the KSZ and other major global metal sulphide deposits, including Norilsk and Voisey’s Bay in Canada. 

The broker note also focuses on Kavango’s management team, which it says has a successful track record in minerals discovery and realising value from exploration projects. 

Director Mike Moles “added significant value to several early-stage assets, including a Mozambique coal project that was sold to Riversdale, and then subsequently acquired by Rio Tinto for a sizeable US$4bn,” the note mentions. 

Joint venture

In 2020, Kavango signed terms with Power Metal Resources for a JV covering two of its Kalahari Copper Belt (KCB) licences and two licences at the Ditau Project for a 50% interest. Field explorations are currently underway.

The partners could seek to list a separate investment vehicle on UK or North American markets, enhancing additional value for shareholders, Robertson notes. 

The focus is an exploration-rich target area of west-central Botswana, which is near many world-class copper and silver discoveries made in the last 15 years such as Cupric Canyon’s Zone 5 and Sandfire Resource’s T3, T4 and A4 deposits.

POW CEO Paul Johnson “previously added considerable value to a Botswana project via a similar style JV” in his previous position at Metal Tiger (LSE:MTR), the note adds. 

Exploration drilling could follow in 2021 if results prove positive. 

Given the management’s experience in adding considerable value to resource projects in previous ventures, and high likelihood of finding similar world class deposits to those nearby and currently controlled by Cupric Canyon and Sandfire in the Kalahari Copper Belt,“ investors should watch Kavango Resources for an entry point in early 2021, Robertson concluded. 

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance