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

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