Shares in AIM-listed Kavango Resources (LSE: KAV) bounced to new yearly highs on the release of a new report confirming Norilsk-style deposits in the firm’s Botswana territory.
Kavango shares surged 15% in early Thursday trading.
Core samples taken from a 2019 drill programme in the highly-prospective Kalahari Suture Zone show the rock and mineral composition closely matches that of Norlisk in northern Russia.
These results are “an important step forward for the company”, Kavango CEO Michael Foster said.
The company is now selecting targets for ground-based low frequency electromagnetic survey, to be carried out as soon as Covid-19 restrictions are lifted.
Norilsk deposits host some of the world’s richest mineralised zones of copper-nickel-platinum group metals. The polar mine accounts for 50% of the entire global production of palladium, 20% of its nickel and 20% of the world’s platinum. Reports suggest the Siberian production has enough resources to continue working for another 50 years.
Despite the difficulties of the lockdown in Botswana, the company couriered its samples to Johannesburg in South Africa for initial analysis, then forwarded them on to independent consultant Dr Martin Prendergast in Scotland for interpretation.
Dr Predergast tested the Kavango samples and confirmed two additional shared characteristics. They include cumulate rocks and crucially, sulphide liquid fractionation.
An April 2020 report by Leicester University’s Dr David Howell confirmed the presence of 10 geological features found in Kavango’s Kalahari Suture Zone. These are associated with economically viable magmatic sulphide deposits.
This is further evidence of huge upside for the company’s 2020 drilling programme.
Now geologists know that the massive zone also features sulphide liquid fractionation and cumulate rocks, it adds more power to the Norilsk comparison.
Dr Prendergast’s report is now on its way to Dr Howell for further interpretation and review.
Author: Mark Sheridan
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