KAV

  • ‘We only need to find one deposit to confirm our theory is correct’: Kavango Resources on hunting for sulphide orebodies in Botswana

    Last month saw Kavango Resources (LSE:KAV) announce the first results of its airborne EM survey to find massive sulphide orebodies in Botswana. The surveying has so far identified 26 conductors along the Kalahari Suture Zone (“KSZ”) for follow up groundwork, exceeding management’s expectations.

  • An introduction to magmatic sulphide orebodies with Kavango Resources co-founder Mike Moles

     

    Since listing in London last July, Kavango Resources (LSE:KV) has been making progress in its quest to locate magmatic, massive sulphide orebodies in Botswana. In particular, the company is focused on a 450km-long magnetic anomaly called the Kalahari Suture Zone (KSZ), where it hopes to discover deposits of copper, nickel, and platinum group elements. In this piece, Kavango co-founder and seasoned geologist Mike Moles explains how the magmatic sulphide orebodies Kavango is searching for are formed, what they could contain, and how they can be developed into a marketable product.

    Until Kavango started work on the KSZ, the mineral potential of the area had not been investigated using modern exploration techniques. Kavango believes that the KSZ represents a similar geological setting to the giant Norilsk copper/nickel/PGE deposits in Siberia. The firm has now begun an initial 1,000m drill program at its nearby Ditau prospect.  Meanwhile, the company is continuing to line up further drilling targets through the combination of an extensive airborne EM survey and a pioneering, high-resolution soil sampling technique that detects ultra-fine metal particles.

    What are magmatic sulphide orebodies?

    Magmatic ore deposits are formed in association with the intrusion of mafic/ultra-mafic magma into (or sometimes on top of) the rocks forming the earth’s crust. This magma contains more dark minerals like olivine and pyroxene than light-coloured minerals like silica-rich feldspars and quartz.

    Examples of mafic/ultra-mafic rock include gabbro, peridotite and dunite. Most of the minerals making up these rocks are still silicates but they tend to contain relatively higher proportions of base and precious metals in their crystal lattices than felsic minerals. The diagram below shows this dynamic in action. When these metals are concentrated at high enough grades and in large enough quantities to be economically mined, they are called ‘magmatic ore deposits’.

     

    This diagram shows examples of both mafic and felsic rocks (Credit: W.W. Norton & Company)

    It is worth noting that magmatic ore deposits are not the same as volcanogenic massive sulphide (VMS) deposits. These are formed from the interaction of seawater with submarine volcanism. The extrusive volcanism represents a ‘heat engine’ that drives the hydrothermal alteration of both the lavas and the country rock. The metals that are ‘dissolved’ by the alteration then combine with sulphur in the seawater. This leads to the deposition of metal sulfide deposits on the seafloor or within the country rocks.

    How are they formed?

    Mafic/ultra-mafic magma is the product of the partial melting of ultra-mafic rock and sub-ducted crust. The magmas rise into the solid crust partly due to thermal convection (hot spots), partly due to the melting of sediments containing water, and partly due to density, temperature & pressure differentials.

    In some cases, the magmas intrude into areas of structural weakness like deep-seated faults or ancient craton edges or suture zones. Here, the magma can reside for varying periods in what are known as ‘magma chambers’ where it interacts with the enclosing rock.

    During this period, the magma may partly crystalize and alter the chemical composition of the residual magma. Further pressure from below may then force this ‘evolved’ magma into shallower depths.  In some cases, it may eventually reach the surface, where rapid decompression may result in the extrusion of lava (e.g. basalt). Extrusive lavas cool rapidly, but the magma in the magma chambers may take several million years to cool and crystalize to form solid rock. 

    Following this, the concentration of the critical ‘ore’ minerals occurs through a number of different primary and secondary processes.

    Primary concentrations

    The mafic/ultra-mafic magmas vary in chemical composition depending upon their source rocks and the degree of partial melting that occurred during their formation. The molten magma may end up containing quantities of sulphur and water.

    As the magma in the magma chamber begins to cool it starts to crystalise, with some minerals crystalising before others. This changes the chemical composition of the residual magma, leading it to be enriched in certain elements through a process known as ‘fractional crystallisation’.

    The chemistry of the residual magma may also be changed by the incorporation of volumes of ‘country’ rock from the walls of the chamber. It is particularly advantageous for the magma to incorporate volumes of coal or coal shale that contains both sulphur and carbon. This appears to be the case with the gabbros on Kavango’s KSZ project. If the residual magma becomes enriched with sulphur, most of the metals will prefer to bond with the sulphur rather than form oxides or take up sites within the silicate lattices. The metal sulphide liquid is late to crystallize and forms an ‘immiscible’ liquid, which is heavy relative to the recently formed silicate minerals. This metal-rich sulphide liquid tends to crystallize on the cool walls of the intrusion or gravitates to the floor where it forms a concentrate - the massive sulphide. 

    Concentration and crystallization of this immiscible liquid can also occur at other localities due to a sudden drop in pressure or introduction of new magma into the chamber. This type of mineral concentration is usually dependent upon large quantities of magma passing through the magma chamber, constantly enriching the residual magma in metal sulphide liquid.

    A variation of this model occurs in very large mafic/ultra-mafic (layered) intrusive bodies such as Bushveldt, Duluth, and Stillwater. These are closed or partly-closed systems where magma replenishment is less important. In these bodies, sulphur is also less important. After the first phase of crystallization, the residual liquid becomes enriched in certain elements. This may lead to the crystallization of another mineral species until the residual liquid becomes depleted in the elements needed for that phase. This leads to cyclical fractionation producing alternation layers of mineral species. At some point in this very slow process, bands of chromite might form as the concentration of chrome in the residual melt combines with oxygen in the system. As the silicate crystals form, gaps occur between them. These gaps may be filled with the immiscible sulphide liquid, which is rich in copper, nickel and PGEs. In some cases, these sulphide-rich layers are rich enough to be economic.

    Another variation are Komatiites, which seem to be restricted to very ancient ‘Archean’ terrains formed at a time when there was no free oxygen in the air. They are essentially ultra-mafic lavas that once flowed over the surface of the earth and were enriched in sulphur.  As the lavas cooled, the metals combined with the sulphur and the resulting immiscible liquid sank to the paleo-surface, where it accumulated in depressions and hollows forming sulphide concentrations. An example of this is Kambalda.

    A magnetic image of the Kalahari Suture Zone, where Kavango is searching for massive sulphide orebodies 

    Secondary concentrations

    Secondary concentrations occur at some point in time after the intrusive has solidified (crystallised). The majority of these deposits are formed by hydrothermal alteration. Essentially, this is the activity of very hot water (or brines) circulating through the intrusive and concentrating the metals further, either within the intrusive itself or transported some distance away, where the precipitation of the minerals is favourable.  These secondary deposits come in the form of re-crystallised sulphides or as oxides/carbonates and can be very high grade.

    What do they look like?

    On the surface, weathered massive or disseminated sulphide orebodies will form ‘gossan’. These are generally rusty coloured rocks with a rough, crinkly texture. Gossans can be very high grade, although metallurgically these metal oxide ores can be difficult to process. Massive sulphide ore is generally very heavy, formed of a mass of shiny suphide crystals, and will smell of suphur when hit with a hammer. Disseminated sulphide ore will have large numbers of shiny sulphide crystals within a matrix of the host rock (usually gabbro or altered mafic rock).

    An example of the various layers of a sulphide mineral vein, with gossan at the top (Credit: Bastian Asmus, Archaeometallurgy) 

    How are they found?

    The metal particles within the sulphide crystals are too small to find with the naked eye in streams or soils.

    Most of the oldest mines are sited where outcrops of gossan were discovered. Typically, the gossans were assayed for metal values. When these proved to be positive, drilling was conducted beneath the gossans to identify sulphide mineralisation below the level of oxidation. Usually, the oxides were not mined, due to the difficulty of extracting the metal.

    Although there have been some discoveries in very remote areas in recent times by finding the gossans, most exploration for magmatic sulphide ore bodies is now conducted by remote sensing for hidden orebodies.

    Before starting the search, geologists will select areas where a discovery is likely. These will be in areas where mafic/ultra-mafic intrusives are known to occur. Preferably this will be in association with a major structural fault along which intrusives from below the crust can migrate. 

    Soil sampling can identify metals coming to surface, whilst geophysical techniques can identify massive sulphide bodies at depth by testing the electro-magnetic signals of the ground being explored. This can be done by airborne EM surveys, which can cover hundreds of kms of survey per day and will typically identify conductors to 200 - 300m depth.

    EM conductors identified from the airborne surveys are then followed up by ground-based geophysical techniques to identify drilling targets. Depths to targets can be calculated and drilling can be conducted to investigate the anomalies. 

    How are they extracted? 

    Once a metal sulphide deposit has been identified, drilled out and a resource calculated; a feasibility study will be carried out to determine whether it can be mined economically. It will be decided how the deposit is to be mined; open cast or underground mining.

    During the mining operation, only the ore of a certain grade will be processed. The ore will then be crushed and milled to liberate the sulphides from the host rock (gangue). The resulting product will then undergo floatation which will separate the sulphides from the guague. The sulphides are then smelted to burn off the sulphur (usually captured), leaving a metal matte, which is then sent to a refinery where the economic metals are separated and extracted. The product is either sold at the matte stage or as a metallic product after refining.

    Author: Mike Moles

    Mike is the co-founder of Kavango Resources (LSE:KAV), where he is currently a non-executive director and responsible for exploration strategy in Botswana. He has 30 years of experience in mineral exploration in southern Africa and has formerly held senior roles at Delta Gold, Reunion Mining, and Lonmin.

  • An introduction to magmatic sulphide orebodies with Kavango Resources co-founder Mike Moles

     

    Since listing in London last July, Kavango Resources (LSE:KV) has been making progress in its quest to locate magmatic, massive sulphide orebodies in Botswana. In particular, the company is focused on a 450km-long magnetic anomaly called the Kalahari Suture Zone (KSZ), where it hopes to discover deposits of copper, nickel, and platinum group elements. In this piece, Kavango co-founder and seasoned geologist Mike Moles explains how the magmatic sulphide orebodies Kavango is searching for are formed, what they could contain, and how they can be developed into a marketable product.

    Until Kavango started work on the KSZ, the mineral potential of the area had not been investigated using modern exploration techniques. Kavango believes that the KSZ represents a similar geological setting to the giant Norilsk copper/nickel/PGE deposits in Siberia. The firm has now begun an initial 1,000m drill program at its nearby Ditau prospect.  Meanwhile, the company is continuing to line up further drilling targets through the combination of an extensive airborne EM survey and a pioneering, high-resolution soil sampling technique that detects ultra-fine metal particles.

    What are magmatic sulphide orebodies?

    Magmatic ore deposits are formed in association with the intrusion of mafic/ultra-mafic magma into (or sometimes on top of) the rocks forming the earth’s crust. This magma contains more dark minerals like olivine and pyroxene than light-coloured minerals like silica-rich feldspars and quartz.

    Examples of mafic/ultra-mafic rock include gabbro, peridotite and dunite. Most of the minerals making up these rocks are still silicates but they tend to contain relatively higher proportions of base and precious metals in their crystal lattices than felsic minerals. The diagram below shows this dynamic in action. When these metals are concentrated at high enough grades and in large enough quantities to be economically mined, they are called ‘magmatic ore deposits’.

     

    This diagram shows examples of both mafic and felsic rocks (Credit: W.W. Norton & Company)

    It is worth noting that magmatic ore deposits are not the same as volcanogenic massive sulphide (VMS) deposits. These are formed from the interaction of seawater with submarine volcanism. The extrusive volcanism represents a ‘heat engine’ that drives the hydrothermal alteration of both the lavas and the country rock. The metals that are ‘dissolved’ by the alteration then combine with sulphur in the seawater. This leads to the deposition of metal sulfide deposits on the seafloor or within the country rocks.

    How are they formed?

    Mafic/ultra-mafic magma is the product of the partial melting of ultra-mafic rock and sub-ducted crust. The magmas rise into the solid crust partly due to thermal convection (hot spots), partly due to the melting of sediments containing water, and partly due to density, temperature & pressure differentials.

    In some cases, the magmas intrude into areas of structural weakness like deep-seated faults or ancient craton edges or suture zones. Here, the magma can reside for varying periods in what are known as ‘magma chambers’ where it interacts with the enclosing rock.

    During this period, the magma may partly crystalize and alter the chemical composition of the residual magma. Further pressure from below may then force this ‘evolved’ magma into shallower depths.  In some cases, it may eventually reach the surface, where rapid decompression may result in the extrusion of lava (e.g. basalt). Extrusive lavas cool rapidly, but the magma in the magma chambers may take several million years to cool and crystalize to form solid rock. 

    Following this, the concentration of the critical ‘ore’ minerals occurs through a number of different primary and secondary processes.

    Primary concentrations

    The mafic/ultra-mafic magmas vary in chemical composition depending upon their source rocks and the degree of partial melting that occurred during their formation. The molten magma may end up containing quantities of sulphur and water.

    As the magma in the magma chamber begins to cool it starts to crystalise, with some minerals crystalising before others. This changes the chemical composition of the residual magma, leading it to be enriched in certain elements through a process known as ‘fractional crystallisation’.

    The chemistry of the residual magma may also be changed by the incorporation of volumes of ‘country’ rock from the walls of the chamber. It is particularly advantageous for the magma to incorporate volumes of coal or coal shale that contains both sulphur and carbon. This appears to be the case with the gabbros on Kavango’s KSZ project. If the residual magma becomes enriched with sulphur, most of the metals will prefer to bond with the sulphur rather than form oxides or take up sites within the silicate lattices. The metal sulphide liquid is late to crystallize and forms an ‘immiscible’ liquid, which is heavy relative to the recently formed silicate minerals. This metal-rich sulphide liquid tends to crystallize on the cool walls of the intrusion or gravitates to the floor where it forms a concentrate - the massive sulphide. 

    Concentration and crystallization of this immiscible liquid can also occur at other localities due to a sudden drop in pressure or introduction of new magma into the chamber. This type of mineral concentration is usually dependent upon large quantities of magma passing through the magma chamber, constantly enriching the residual magma in metal sulphide liquid.

    A variation of this model occurs in very large mafic/ultra-mafic (layered) intrusive bodies such as Bushveldt, Duluth, and Stillwater. These are closed or partly-closed systems where magma replenishment is less important. In these bodies, sulphur is also less important. After the first phase of crystallization, the residual liquid becomes enriched in certain elements. This may lead to the crystallization of another mineral species until the residual liquid becomes depleted in the elements needed for that phase. This leads to cyclical fractionation producing alternation layers of mineral species. At some point in this very slow process, bands of chromite might form as the concentration of chrome in the residual melt combines with oxygen in the system. As the silicate crystals form, gaps occur between them. These gaps may be filled with the immiscible sulphide liquid, which is rich in copper, nickel and PGEs. In some cases, these sulphide-rich layers are rich enough to be economic.

    Another variation are Komatiites, which seem to be restricted to very ancient ‘Archean’ terrains formed at a time when there was no free oxygen in the air. They are essentially ultra-mafic lavas that once flowed over the surface of the earth and were enriched in sulphur.  As the lavas cooled, the metals combined with the sulphur and the resulting immiscible liquid sank to the paleo-surface, where it accumulated in depressions and hollows forming sulphide concentrations. An example of this is Kambalda.

    A magnetic image of the Kalahari Suture Zone, where Kavango is searching for massive sulphide orebodies 

    Secondary concentrations

    Secondary concentrations occur at some point in time after the intrusive has solidified (crystallised). The majority of these deposits are formed by hydrothermal alteration. Essentially, this is the activity of very hot water (or brines) circulating through the intrusive and concentrating the metals further, either within the intrusive itself or transported some distance away, where the precipitation of the minerals is favourable.  These secondary deposits come in the form of re-crystallised sulphides or as oxides/carbonates and can be very high grade.

    What do they look like?

    On the surface, weathered massive or disseminated sulphide orebodies will form ‘gossan’. These are generally rusty coloured rocks with a rough, crinkly texture. Gossans can be very high grade, although metallurgically these metal oxide ores can be difficult to process. Massive sulphide ore is generally very heavy, formed of a mass of shiny suphide crystals, and will smell of suphur when hit with a hammer. Disseminated sulphide ore will have large numbers of shiny sulphide crystals within a matrix of the host rock (usually gabbro or altered mafic rock).

    An example of the various layers of a sulphide mineral vein, with gossan at the top (Credit: Bastian Asmus, Archaeometallurgy) 

    How are they found?

    The metal particles within the sulphide crystals are too small to find with the naked eye in streams or soils.

    Most of the oldest mines are sited where outcrops of gossan were discovered. Typically, the gossans were assayed for metal values. When these proved to be positive, drilling was conducted beneath the gossans to identify sulphide mineralisation below the level of oxidation. Usually, the oxides were not mined, due to the difficulty of extracting the metal.

    Although there have been some discoveries in very remote areas in recent times by finding the gossans, most exploration for magmatic sulphide ore bodies is now conducted by remote sensing for hidden orebodies.

    Before starting the search, geologists will select areas where a discovery is likely. These will be in areas where mafic/ultra-mafic intrusives are known to occur. Preferably this will be in association with a major structural fault along which intrusives from below the crust can migrate. 

    Soil sampling can identify metals coming to surface, whilst geophysical techniques can identify massive sulphide bodies at depth by testing the electro-magnetic signals of the ground being explored. This can be done by airborne EM surveys, which can cover hundreds of kms of survey per day and will typically identify conductors to 200 - 300m depth.

    EM conductors identified from the airborne surveys are then followed up by ground-based geophysical techniques to identify drilling targets. Depths to targets can be calculated and drilling can be conducted to investigate the anomalies. 

    How are they extracted? 

    Once a metal sulphide deposit has been identified, drilled out and a resource calculated; a feasibility study will be carried out to determine whether it can be mined economically. It will be decided how the deposit is to be mined; open cast or underground mining.

    During the mining operation, only the ore of a certain grade will be processed. The ore will then be crushed and milled to liberate the sulphides from the host rock (gangue). The resulting product will then undergo floatation which will separate the sulphides from the guague. The sulphides are then smelted to burn off the sulphur (usually captured), leaving a metal matte, which is then sent to a refinery where the economic metals are separated and extracted. The product is either sold at the matte stage or as a metallic product after refining.

    Author: Mike Moles

    Mike is the co-founder of Kavango Resources (LSE:KAV), where he is currently a non-executive director and responsible for exploration strategy in Botswana. He has 30 years of experience in mineral exploration in southern Africa and has formerly held senior roles at Delta Gold, Reunion Mining, and Lonmin.

  • As BMW drops Congolese cobalt, which firms might stand to benefit? (GEMC, FMC, KAV, ABM, PGM, HZM)

    Last month saw leading car maker BMW reveal plans to stop buying cobalt for its electric vehicles (EVs) from the Democratic Republic of Congo (DRC) in 2020/21. As it stands, the DRC provides around 60pc of the world’s cobalt supply, meaning the critical battery metal’s price is influenced heavily by the geopolitically unstable nation’s ongoing turmoil. With this in mind, could the promise of additional vehicle manufacturers following in BMW’s footsteps favour cobalt miners operating in more stable jurisdictions?

    Changing plans

    As reported by electrive.com, BMW board member Andreas Wendt announced the company’s plans to halt cobalt purchases from the DRC in an interview towards the end of March. He said the firm made its decision because cobalt demand has already decreased somewhat due to technical developments. It expects this dynamic to continue.

    What’s more, Wendt added that there remains ‘enough [cobalt] deposits that have not yet been explored’. As such, the organisation expects to replace its Congo cobalt supply with materials and resources from other jurisdictions around the world.

    The decision comes several months after BMW announced a collaboration with chemicals giant BASF, battery maker Samsung SDI, and development agency GIZ to improve cobalt mining working conditions in the DRC. The firms said that they were exploring ways to improve working and living conditions in areas where cobalt is extracted using manual labour.

    Companies with operations in the DRC are currently facing challenges in the areas of environment, health and safety, and human rights when cobalt is extracted through artisanal mining. This dangerous practice makes up around 15-20pc of Congolese cobalt production. There are also concerns around the use of child labour in the nation, while the cost of doing business has also increased thanks to a recent mining code change that saw royalty costs shoot up to 10pc.

    Market fluctuation

    Cobalt prices have staged a massive rally in recent years due to an anticipated increase in the use of EVs around the world. Given that around three-quarters of electric vehicle batteries currently contain cobalt, the market for the metal is expected to double over the next four years alone and quadruple by 2028.  To express this another way, 62pc of global cobalt demand is likely to come from battery manufacturers by 2020, up from 51pc in 2016 and 20pc in 2006.

    Despite the continuation of this long-term trend, prices of the metal have slumped recently. Indeed, they have fallen from $25/lb to $13.61/lb in the first three months of 2019 alone. This has been driven by numerous factors, including a slightly slower-than-expected uptake of EVs, a rush to mine as much cobalt as possible, and a change in subsidies in China - responsible for half of global EV sales.

    However, the price has arguably been most depressed by a large amount of new supply coming online from the DRC. The cobalt market’s current reliance on the country became clear in November when prices soared after Glencore abruptly halted sales of the metal from the country after discovering uranium at its key mine.

    If more carmakers were to follow BMW in cutting off their ties to DRC’s cobalt market, then it raises the question of where supply is going to come from – especially if EV demand explodes as predicted. Indeed, there are still very few companies operating as a pure play on the metal.  As it stands, 98pc of the world’s cobalt arises as a by-product of mining for other metals.

    Aside from the price increases associated with supply threats, this dynamic would make the cobalt assets held by junior miners outside of the DRC look more attractive to both buyers of the metal and larger miners. In this situation, many firms could stand to benefit.

    Key players

    One example is Global Energy Metals(TSX-V:GEMC), which is currently preparing to build upon its strong UK shareholder base by co-listing in London. The firm is developing a diversified global portfolio of cobalt assets, including project stakes, projects and other supply sources.

    The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia, where it executed the final agreements to take a 100pc interest last November. It is also in the process of acquiring an 80pc stake in two Nevada-based cobalt sites called the Lovelock Cobalt Mine and the Treasure Box Project. These are located just 150km east of Tesla’s Gigafactory. Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada.

    Also building a foothold in the cobalt space within the Canadian market is Forum Energy Metals(CVE:FMC). Although the firm’s most prominent focus is on the uranium and copper markets, it has entered Idaho’s cobalt belt with the acquisition of the Quartz Gulch exploration property. Its goal is to discover near surface mineral deposits by both exploring its 100pc-owned properties and developing strategic partnerships and joint ventures.

    Another example is Kavango Resources (LSE:KAV), which listed in London last July. The business focuses on locating magmatic, massive sulphide orebodies in Botswana, with a particular focus on a 450km-long magnetic anomaly called the Kalahari Suture Zone (KSZ).

    Last month, Kavango revealed that the first hole drilled at its Ditau prospect in the KSZ had encountered a 200m zone of intensely altered rock holding a 70m area containing significant sulphide alteration. This presented indicative cobalt values of up to 0.9pc and a weighted average of 0.2pc cobalt alongside elevated copper, zinc, lead, and nickel values. The company called the result ‘extremely encouraging’ and ‘suggestive of mineralisation at depth’.

    Another firm looking to increase its battery metal exposure is African Battery Metals (LSE:ABM), which recently returned to trading with a refinanced balance and new management team after a period of difficulty. The firm, which is now led by industry veterans Paul Johnson and Andrew Bell, owns cobalt-prospective in the Cameroon and Côte d’Ivoire as well as the DRC. It is also on the hunt for new opportunities as it looks to take advantage of today’s poor funding climate for vendors.

    Other outfits with exposure to cobalt include Phoenix Global Mining(LSE:PGM), which holds two prospective cobalt properties in Idaho, and Horizonte Minerals (LSE:HZM), which owns Vermelho nickel-cobalt project. Names such as Greatland Gold (LSE:GGP), IronRidge Resources (LSE:IRR), Keras Resources (LSE:KRS), and Mkango Resources (LSE:MKA) also have exposure to the metal in their portfolio.

    The tactic of using battery metals to get exposure to the ‘EV boom’ is likely familiar to investors by now, given the unavoidable hype that has surrounded the sector for some time. However, if BMW’s decision to ditch the DRC catches on it could provide an exciting, fresh twist to the narrative that may work in favour of many of the businesses mentioned above.

    Author: Daniel Flynn

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

    The Author has not been paid to produce this piece by some of the companies mentioned above.

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

    Catalyst Information Services Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by some of the companies mentioned above.

    MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy. 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

  • Cause to celebrate as Kavango and Power Metal KCB survey finds seven extensive anomalies (KAV, POW)

    Kavango Resources (LON:KAV) and Power Metal Resources(LON:POW) posted highly encouraging survey results on Friday, with an impressive seven targets now identified at the South Ghanzi copper project.

    South Ghanzi, a 50-50 joint venture (“JV”) between Power Metals is located in Botswana’s underexplored Kalahari Copper Belt (“KCB”). This mineral belt extends for almost 1,000 kilometres from northeast Botswana all the way to western Namibia.

    The KCB discovery rate has accelerated over the past ten to fifteen years, delineating significant new mineral resources, with two copper-silver mines developed.

    Now, the JV partners are intent on securing their own slice of the pie, with Airborne Electromagnetic (“AEM”) surveys in February defining seven kilometre-scale anomalies, each representing a possible drill target.

    Follow up ground-based exploration found what Kavango rightly described as “very encouraging results”. There was close correlation between the AEM data, copper-zinc in soils geochemistry, and regional geological mapping.

    Michael Foster, Kavango’s chief executive, commented on the “very promising”results so far from South Ghanzi, and the “elevated copper and zinc readings”especially.

    All of this closely aligns with Kavango’s prior fieldwork, as well as the regional exploration model. Based on initial data interpretation, the target depths range from 40 metres (“m”) to 400m for exploration drilling.

    Foster said the “generally shallow depth of the conductors is a major asset” for the JV.

    The next step for operator Kavango will be additional soil sampling, as well as trenching and geological mapping before the drill programme planned later this year.  Three of the conductors identified were “associated with anticlines/fold structures”, making them the highest priority for this programme.

    First priority is target 36A, known as Acacia, a 4 kilometre (“km”) by 4km conductor located inside a fold “nose”, plunging southeast. Directly over this anomaly, soil geochemistry found extensive elevated copper and zinc levels – more than 42 parts per million (“ppm”) copper and over 75 ppm zinc.

    Paul Johnson, chief executive of Power Metal, said the company was “particularly encouraged” by Acacia. He noted that the target contained both “a high conductivity signature” found in the AEM survey as well as “almost perfectly coincident” zinc and copper-in soil anomalies.

    Johnson pointed out that these “are key signatures typical of nearby copper-silver discoveries within the Belt”.

    Second priority target 36G, Morula, is around 2km wide, plus at least 12km of strike – open at both ends. Morula is likely to be “the sheared and thrust faulted southern limb of the ‘Acacia’ fold”. Soil sample lines taken at Morula found significant 38ppm to 62ppm copper concentrations and 59ppm to 111ppm zinc all across the 12km soil anomaly.

    Then there’s target B, or Baobab, a 2km by 3km closed conductor sitting across the ‘nose’ of a second on Acacia’s same stratospheric horizon. This is the third priority target.

    An addition to the first three is target E, or Elephant, 2.5 kilometres wide and with a strike of at least 6km. This is open at both ends, with Elephant’s main body between 400m and 600m from surface. This is unusual for the project, given the generally shallower depth of other conductors.

    Elephant is fourth priority, and has a number of faults intersecting the main body, resulting in “several close surface conductors”that might be sampled though shallow drilling.

    On top of all this, Kavango may choose to conduct even more AEM survey work aimed at closing off and establishing the true extent of the conductor.

    “The exploration story at South Ghanzi continues to progress at pace and we eagerly await the next phase of results and drill testing of several of these high-priority targets,” Johnson said.

    The copper price recently hit a new high, with a current copper shortage and declining inventories set to push prices even higher. Right now, Bank of America is expecting a 186,000 tonne deficit for 2021 and a 369,000 tonne shortfall in 2022.

    The red metal is in high demand thanks to electrification, with electric cars especially requiring a great deal of copper. An electric vehicle might need over a mile of copper wiring for its stator windings alone.

    On the regulatory front, the Environmental Management Plan (“EMP”) for South Ghanzi, submitted in February, is making progress.

    Botswana’s Department of Environmental Affairs (“DEA”) has now accepted the EMP project brief. The next step will see a consultant, on Kavango’s behalf, start engaging and consulting with local farmers. The consultant will then submit “a report to the DEA to progress the application”.

    Kavango and Power Metals each hold their 50% interest in South Ghanzi through Kanye Resources, with plans underway for a Kanye IPO on a recognised stock exchange.

    “With the Environmental Management Plan application progressing well, the next few months in South Ghanzi will be key,” Foster concluded.

    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 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

  • Excellent results lead Kavango and Power Metal to crown Morula new South Ghanzi priority (KAV, POW)

    Kavango Resources (LON: KAV) and Power Metal Resources (LSE:POW) on Monday unveiled yet more encouraging results from their South Ghanzi project in the Kalahari Copper Belt.

    Since an announcement on May 14, Kavango has now completed and analysed samples taken from 16km of infill soil-sampling at Morula.

    Airborne Electromagnetic (“AEM”) surveys at South Ghanzi previously defined “seven kilometre-scale conductors” at South Ghanzi. Targets Acacia and Morula are the highest priority short term, with Acacia previously top of the list.

    Now, as a result of these latest highly encouraging results, Morula has overtaken Acacia to become the 50/50 joint venture’s (JV) highest priority target for exploration.

    As soon as the JV partners obtain the necessary Environmental Management Plan (“EMP”) for South Ghanzi, drilling at Morula will begin.

     

    Encouraging results

    The latest sampling involved four 4km-long sample lines spaced 1km apart, sampled every 100m.

    Work found anomalous copper levels, from all soil sample lines, of between 35 parts per million (“ppm”) and 68ppm, as well as anomalous zinc levels of between 59ppm and 111ppm.

    These new readings closely correlated with results from seven original soil-sampling lines at South Ghanzi.

    Impressively, samples confirmed that the conductor/anomaly at Morula extends at least 12km along strike.

    This “clearly defined mineralised zone” is on a south-westerly trend and runs parallel to two steep anticlinal structures. It is open in both directions along strike.

    The JV partners are now working to assess optimal locations for drilling at Morula and Acacia, where targets look to be near the surface and have “minimal Kalahari sand cover”.

    Estimated intercept depths for drilling are between 120m and 200m.

     

    Well researched targets

    Until Morula, Acacia was the highest priority target for drilling at South Ghanzi. Acacia is located on Prospecting Licence (“PL”) 036/2020’s northern boundary, inside an interpreted fold “nose”.

    In geology, a fold is when factors like heat, stress, and pressure cause rocks to bend or flex. Folds can have a “nose”, a curved shape at the fold’s tip where metals often accumulate.

    Soil geochemistry over the anomaly shows highly elevated copper levels of more than 42ppm and zinc of more than 75ppm.

    Morula, meanwhile, is an estimated 2km wide, with its at least 12km of strike following a south-westerly ttend along PL 036’s central backbone.

    The target was discovered by extending soil sampling lines south of Acacia, and is “supported by a well-defined AEM linear conductor”. 

    Through geological mapping, the JV parties have found evidence that Morula is the mineralised sheares southern limb of the Acacia fold.

    Initial drilling depths for Morula are thought to be less than 200m, based on AEM profiles showing relatively shallow mineralisation.

     

    Transformational potential

    The two companies have made plans to transfer the PLs for South Ghanzi into Kanya Resources, their recently established Botswana JV company. Looking ahead, the two intend to float Kanye on a recognised stock exchange.

    Kavango chief executive Michael Foster said “Morula is rapidly developing into one of the most exciting drill targets in our entire portfolio”, noting that the company plans to start drilling “as soon as we can, after we have received approval of our EMP”.

    Paul Johnson, Power Metal’s chief executive, commented on “the substantial opportunity the Kalahari Copper Belt offers for major base metal discoveries”.

    He pointed out that, during his time as chief executive of Kalahari Copper Belt explorer Metal Tiger (LON: MTR) in 2016, “we followed a similar exploration methodology”.

    That same methodology led to the discovery of the T3 Deposit, a “transformational”discovery for Metal Tiger and its shareholders.

    “The exploration datasets from South Ghanzi have delineated very strong drill targets and I am very much looking forward to the commencement of a programme of drill testing at the Project,” Johnson concluded.

    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

     

  • Excitement grows as Power Metal and Kavango get underway in the Kalahari Copper Belt (POW, KAV)

    Power Metal Resources (LSE:POW) and Kavango Resources (LSE:KAV) are to begin exploration on the Kalahari Copper Belt (KCB) in Botswana, where they are targeting a large copper-silver discovery. 

    Their 50:50-held KCB Joint Venture operates in a well-known area of newly-discovered sediment-hosted copper deposits that are now being developed as fully-fledged mining operations. 

    Chief executive Paul Johnson said the plan is to follow an “efficient, disciplined, and methodical approach” designed to build a geological model of the license area that can be tested swiftly through drilling.  

    Exploration will focus on soil sampling and geophysics to identify “dome structures” that are known to host potential copper deposits regionally. The JV will then quickly move on to test drilling of shallow targets. 

    Kavangoand Power Metal’slicenses, PL036/2020 and PL037/2020, cover 1,294km2 immediately south of Botswana district capital Ghanzi. Here, they are surrounded by several hugely significant copper discoveries made in recent years. 

    Both are along strike west of Australian mid-tier miner Sandfire Resources (ASX:SFR), which is already working in the region on T3 and A4 dome-hosted copper-silver discoveries.  

    Meanwhile, Cupric Canyon Capital’s world-class copper and silver mine Zone 5 also sits in northwestern Botswana. This private firm raised $565 million in 2019 to develop its Khoemacau project. and its annual production is expected to exceed 63,000 tonnes of copper and 1.9 million tonnes of silver.

    ASX-listed miner MOD Resources was working on a similar high grade copper-silver project nearby called T3 before it was snapped up in a £93 million takeover by Sandfire in October 2019.  

    News that exploration will get underway is the culmination of years of hard work by both Power Metal and Kavango to understand the region and the metals these structures hold. 

    The Kalahari Copper Belt extends a vast 1,00km-by-250km from northeast Botswana into central Namibia. Both countries are safe, mining-friendly jurisdictions. 

    And as The Economist noted recently, copper prices have been rising in tandem with gold, an unusual state of affairs during a period of manufacturing slowdown. As gold rose towards $2,000 per ounce, copper surged to a two-year high of over $6,500 in July 2020. 

    Economic downturns usually result in a predictable decoupling in the prices of the two metals. As gold climbs with investors seeking a safe haven, copper tends to dip as construction projects fall away. The steep shock caused by the Covid-19 pandemic did see copper prices drift from a peak of $6,300 per tonne in January to just over $4,700 in March. But despite lockdowns covering most of the western world, the price of copper did start climbing again and has continued this general trend into the latter half of the year.

    With copper now behaving much more like gold, Power Metal Resources and Kavango Resourcesare perfectly placed to take advantage. 

    Johnson added: “Power Metal is seeing a number of its projects launch exploration programmes and it is particularly positive to see the expeditious launch of exploration at the KCB JV in Botswana.”

    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 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

     

  • Kavango and Power Metal team up to search for vast metal deposits in Bostwana (KAV, POW)

    Kavango Resources(LSE:KAV) and Power Metal Resources(LSE:POW) were on the rise on Monday morning after unveiling a new joint venture (“JV”) to explore for large-scale mineral deposits in Botswana.

    Kavango has transferred four licenses into the new equally-owned and operated company covering 2,680km2of ground in the country’s highly-prospective Kalahari Copper Belt (“KCB”)

    Two of these licenses make up the “Ditau project”, which contains ten “ring structures” where Kavango has been exploring for large quantities of rare earth mineralization.

    The other two are earlier-stage copper prospecting opportunities found directly to the southwest of Sandfire Resources’TS and A4 Dome copper-silver discoveries.

    Power Metalhas paid Kavango £75,000 in cash to set up the JV. It has also issued it with 6 million POW shares at 1.25p each along with 5 million two-year, 2p warrants.

    Critically, the company has also committed to spending $150,000 on exploration over two consecutive years.

    This immediately provides the new JV with the financial firepower needed to begin the next phases of fieldwork at across Ditau and its prospecting licenses. Power Metalsaid planned work includes detailed regional soil geochemistry and a ground magnetic survey to firm up the position of drill targets.

    Kavangoand Power Metalmay also purchase additional prospecting licenses to build on the JV’s strong Botswana positioning.

    As announced in April this year, Kavangohad originally entered a provisional agreement to sell 51% of the Ditau project licenses to Power Metal.  However, the companies said on Monday that work has since shown that forming a JV presented a much larger opportunity for both.

    As Power Metalchief executive Paul Johnson put it:

    “We are keen to develop more insight into the potential of the Ditau Camp project, and this can only be achieved through proactive ground exploration, which we intend to undertake with our JV partners. 

    “Moreover, the addition of two key Kalahari Copper Belt licences brings the Company into a highly prospective copper territory which, as I have personally experienced, has the potential to deliver considerable discoveries.  Again, ground exploration is key, and we intend to be proactive.”

    Critically, the shared development of the JV licenses also allows Kavangoto ramp up efforts at its primary project, the Kalahari Suture Zone (“KSZ”).

    The explorer’s licenses cover a large portion of this 450km magnetic anomaly, which is entirely covered by desert sand and has never before been explored using modern mining techniques.

    Over the summer, Kavangohas made strong progress in its search for deposits along its KSZ licenses known as “sulphide ore bodies” that are rich with copper, nickel, and platinum group metals (“PGMs”). It is currently in the final stages of analysing a northern section of the geological structure called “Hukuntsi”.

    Here, it has identified numerous large targets that present “Norilsk-style potential”. Based in Siberia, Norilsk is one of the most important mining centres in the world. It accounts for 90% of Russia’s nickel reserves, 55% of its copper, and virtually all of its PGMs.

    Kavango has identified several magma plumbing systems across its KSZ licenses that are critical features of the enormous magmatic sulphide deposits responsible for Norilsk’s extensive mineralisation. To better understand these large regional structures, Kavangois now preparing to launch a maiden drilling programme.

    With such a large planned operational commitment, the board of Kavango felt the Company would benefit from introducing a new development partner to two licences on the KCB, and at Ditau,” said Kavango.

    Each of these projects holds significant potential for discovery of substantial mineral deposits. Power Metals is an ambitious exploration company that has assembled a portfolio of global exploration interests. It is the ideal partner to work with Kavango's technical team.”

    The new JV is currently held privately by Power Metaland Kavango. However, it has been incorporated for a future public listing, expected either a Canadian or British stock exchange.

    As at writing, Kavangowas trading 3.5% higher at 2.5p while Power Metalwas sitting at 1.15p.

     

    Author: Daniel Flynn

    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 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 announces identification of multiple drill targets for ‘world-class mineral deposits’ in Botswana (KAV)

    Kavango Resources (LSE:KAV) rose to 2.4p on the offer today as the company announced it has identified several high-quality drill targets at its prospective Kalahari Suture Zone (KSZ) project in Botswana. With the news marking yet another step towards the recently-listed business potentially locating what it describes as ‘world-class mineral deposits’, could this weakness provide an exciting buying opportunity?

  • 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 director Turney to take the reins as new chief executive (KAV)

    Kavango Resources (LON: KAV) on Tuesday made the announcement it is promoting executive director Ben Turney to the role of chief executive officer.

    “His assumption of the role of CEO is a natural progression, both for him and for the company,” the mineral exploration firm said.

    Turney, who was appointed as executive director at the start of 2021, will take over from 40-year industry veteran Michael Foster.

    Foster has been chief executive at Kavango since its July 2018 listing and will remain with the company as a non-executive director.

    The firm said Turney “has been very active” ever since he joined the board, instigating “a number of important initiatives”. These have improved not only operations, but also communications, commercial development, and financial management.

    For example, the incoming CEO was “instrumental in securing” Kavango’s strategic partnership with Spectral Geophysics covering the Kalahari Suture Zone (“KSZ”) in Botswana.

    The partnership involves Spectral sharing its technical knowledge with Kavango, helping the company optimise future KSZ underground remote surveys. Kavango agreed to issue 3.0 million shares at 3p each to Spectral, tied in for 12 months, as well as 3.0 million warrants with a 4.25p per share exercise price.

    At the time of the deal, Turney himself said it “guaranteed Spectral’s focused attention”in unlocking the KSZ and was “absolutely” expected to accelerate progress there.

    Turney was also key to securing terms for the company’s deal with Mindea Exploration and Drilling Services/Equity Drilling.

    “In Ben Turney we have a new CEO who has considerable energy and drive, and who shares the board's determination to deliver value to shareholders out of our various Botswana projects,” said non-executive chair David Smith.

    Kavango’s annual general meeting takes place later this week. Subject to shareholder approval at this meeting, Hillary Gumbo – managing director of Botswana subsidiary Kavango Minerals – will join the company’s board.

    Gumbo is responsible for exploration activities in Botswana was one of Kavango Minerals’ founders. He has been an important executive team member for years and is an experienced geophysicist.

    The company also took the time to thank Chuck Forrest, who recently stepped down as chief financial officer but will remain a consultant as needed. ONE Advisory, which provides accounting services externally, will manage Kavango’s financial function.

    Turney said the firm still has “plenty of work to do” and considerable opportunities with “three potentially major projects”each with “a chance of delivering a major metals discovery”.

    These projects include the Kalahari Suture Zone, as well as two Kalahari Copper Belt (“KCB”) joint ventures: the South Ghanzi joint venture with Power Metal (LON: POW), and the LVR joint venture with LVR GeoExplorers.

    The board changes follow a series of exciting company announcements. Year-to-date, Kavango’s shares are up more than 120% as its projects approach major milestones.

    For example, the latest results from its Morula target at South Ghanzi were so encouraging that it has surpassed the Acacia target and become the number one priority for drilling.

    Not only that, but earlier in June Kavango said drilling will start this month in the northern Hukuntsi section of the KSZ. Drilling is set to begin no later than Wednesday next week.

    “We are well funded and have advanced exploration programmes, delivering a constant stream of new data. Everything is now in place for an exciting period of growth,” Turney concluded.

    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 hits on major geological formation with world-class nickel-copper-PGM potential (KAV)

    Main market-listed Kavango Resources(LSE:KAV) has a secret hiding under trillions of tons of rock in Botswana.

    And something rather interesting cropped up in its full year results to 31 December 2019, published on 26 May 2020.

    The company has a huge license area totalling 5,573km2 across the Kalahari Suture Zone (KSZ) in the south west of the African nation.

    CEO Michael Foster noted how the region continues to show considerable potential for the discovery of world-class base metals deposits.

    “Kavango has gathered more exploration data on the KSZ than any other company. Over the coming months we expect to make significant progress in validating our view that the underexplored KSZ is host to world-class copper-nickel-PCM deposits.”

    “In addition, we are nearing completion of our first farm-out by selling a 51% interest in the Ditau project,” he said.

    Power up

    Ditau covers 1,386km2. At its centre are ten vast geological formations known as ring structures, many kilometres across. Ring structures are widely associated with the presence of volcanic carbonatites, the primary source of rare earth elements (REE).

    On 15 April 2020 shares in partner firmPower Metals(LSE:POW) rocketed when it announced it had agreed to buy the stake in Ditau to target “highly prospective” REE deposits. Rare earth elements are critical for manufacturing numerous high-tech applications, including electric vehicle motors and batteries.

    Kavango has also added to its portfolio in the Kalahari Copper Belt, where two new mines are being developed.

    But excitement is growing here for another reason.

    Kavango Chairman Douglas Wright writes: “Our primary goal in the coming months is to deepen our understanding of the KSZ project and identify future drill targets.”

    This deeper understanding is what I want to focus on today. 

    Underground: watch this space

    50 years ago, an important Canadian nickel-copper producer called Falconbridge was working in the Kalahari Suture Zone. Its scientists were convinced that south west Botswana held the key to vast deposits of undiscovered diamonds that could make fortunes and transform world markets.

    Excitedly drilling target holes, the scientists were disappointed to find absolutely barren rock. It didn’t seem to make sense. Running out of money, the Canadian company was forced to abandon the site and leave perplexed.

    Using much more precise instruments, a new hypothesis has been formed. And it’s good news for Kavango’sshareholders.

    Advances in geological mapping since the 1970s, including 3D computer modelling, have revealed that, far from being barren, in fact, the opposite is true.

    Wright notes: “There is now a large body of evidence suggesting that the accumulation of nickel and copper-bearing metal sulphides occurred within the high level gabbroic intrusions of the KSZ.”

    What really happened

    Kavango began drilling at the KSZ in October 2019, beginning with three target holes across 1,000m.

    The point of the campaign was to identify high-potential targets in what are known as underground traps. It is these traps that so confused the Canadian scientists back in the 1970s.

    Drilling confirmed the presence of an extensive magma plumbing system. This is a feature of established nickel-copper-PGM deposits in some of the largest and most profitable mines in the world, including Norilsk in Siberia, Canada’s Raglan and Voisey’s Bay, and Jinchuan in China.

    This magma plumbing system had filtered molten magma, carrying dense metal sulphide liquid through a series of vertical and horizontal fissures. Because metallic elements are heavier than the surrounding rock, they accumulated and solidified in underground traps further below the surface.

    Kavango believes — backed by the latest science — that these underground traps contain intensely concentrated metal deposits just waiting to be exploited.

    In the next stage of its exploration Kavango will drill and test trap zones in the plumbing systems that lie within 300m of the surface. And initial drill samples are being sent to the University of Leicester for mineralogical and petrographic testing.

    Then the main task is to combine Kavango’s data from extensive analysis, which includes airborne electromagnetic surveys and soil geochemistry, together with gravitational surveys in the public domain.

    And 3D computer modelled reports to confirm their theory will be prepared across Q2 and Q3 2020. No wonder that chief executive Michael Foster says Kavango are looking forward to an “exciting programme” of exploration in 2020.

    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, does not own 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 hits record high as second Ditau drill hole hits large zone of ‘intensely altered rock’ (KAV)

    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

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

    The Author has not been paid to produce this piece by the company or companies mentioned above.

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 jumps on fresh evidence of major Norilsk-style deposits in Botswana

    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. 

    Testing success

    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. 

    AnApril 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

    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 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 raises £2 million as ambitious KSZ drill programme expands (KAV)

    Kavango Resources (LON: KAV) on Monday announced not only an expansion of its Kalahari Suture Zone drill programme but also an almost £2 million placing.

    To start with, there’s the expansion of the Kalahari Suture Zone (“KSZ”) drilling programme in Botswana. This now involves drilling an impressive 550m borehole through Target B1, once operations at Target A2 & Target C1 are complete.

    Mindea Exploration and Drilling Services (“Mindea”), the drill operator, began drilling at the KSZ in June with two ‘proof of concept’ geological holes. Mindea started with A2, and will proceed to C1 before moving on to B1.

    Target B1 itself measures 475m by 550m and has a conductance of approximately 8,200 Siemens as well as an estimated decay constant of more than 350ms. While A2 and C1 share the same geological corridor, B1’s geological setting is separate and distinct.

    The company said Spectral Geophysics will be performing “immediate down hole electromagnetic (“EM”) surveys” on all boreholes upon completion.

    So far, Spectral has conducted Time Domain Electromagnetic (“TDEM”) surveys on six target areas. These identified drill targets in A2, C1, and B1 but not A1 or D.

    Analysis of Target Area B2 data is still ongoing, with two more TDEM surveys planned for Target Area B, including on for Target B1.

    Chief executive Ben Turney said the negative A1 and D1 results bring “a high degree of comfort”, since they means that the TDEM surveys are selectively identifying EM conductors. This is proof that the firm is “using the right remote sensing technology to define specific drill targets”.

    As previously announced, 49% Mindea shareholder Equity Drilling and Kavango are in talks to form a strategic drilling partnership. Equity Drilling is currently “owned and run by highly experienced African drill operators”.

    Options on the table include Kavango’s potential acquisition of two drill rigs as well as support vehicles which would form a “dedicated team” across the firm’s project portfolio.

    The company said that any such partnership would be “subject to due diligence” and is expected to involve both cash and share payments. More announcements will follow.

    Turning to the placing, then, First Equity placed 35.3 million new shares on Kavango’s behalf with institutional and other investors at a 5.5p per share price. This was only a 5% discount to the share price at the time.

    The firm’s shares were trading higher, in fact, on Monday—up 3.5% at 6p each.

    The placing involves a one-for-one warrant for all placing participants, with an 8.5p per shar exercise price for a two-year period.Warrants are subject to an acceleration clause, meaning that if Kavango’s shares close at more than 17p for five trading days then the company can give notice of an accelerated exercise with a ten-day deadline for payment.

    Gross funds raised amount to £1.94 million.

    Certain directors are in talks to potentially take part in a subscription on the same terms as the fundraise, with an announcement to follow later this week if they reach an agreement.

    Turney said that while “Kavango is already well financed”, its budget was designed for “a specific work programme” with “a certain amount of drilling in 2021” while the company pursued if ‘proof of concept’ objective in the KSZ.

    However, he explained, the board has now realised that its projects need “much more extensive campaigns”.

    In response, the firm has advanced its Equity Drilling talks “about instigating much larger drill programmes” whish respond to Kavango’s “rapid progress” so far in the fiel 

    The chief executive highlighted the “minimal discount and an excellent price” for the financing, reflecting the strength of the company’s position. 

    “With our general overheads already budgeted for, Kavango will now deploy the new funds into pursuing our ambition of making one or more major mineral discoveries,” Turney concluded.

     

    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, does not own 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 receives Ditau assay results as it positions for asset farm-out (KAV)

    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

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

    The Author has not been paid to produce this piece by the company or companies mentioned above.

    Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 – On the road to another Norilsk in Botswana? (KAV)

    The Norilsk nickel mine sits high in the Russian Arctic plains, 1,700 miles northeast of Moscow in the permafrost of the Taimyr Peninsular.

    Here, in the Arctic Circle’s second-largest city, virtually all of Russia’s copper and Platinum Group Metals (“PGMs”) are produced. Not only that, but this polar mine accounts for 50% of the world’s palladium, some 20% of its nickel, 20% of all platinum, over 10% of the world’s cobalt, and 3% of all copper mined globally.

    This staggering production rate won’t slow down any time soon. Recent reserve estimates suggest Norilsk’s current output rates can be maintained for upwards of another 50 years. This is thanks to 500 million tonnes of probable PGM ore reserves, including 6 million tonnes of nickel, 9 million tonnes of copper, 62 million ounces of palladium, and 16 million ounces of platinum. 

    For an idea of just how valuable this mine is, consider that Norilsk’s largest shareholder is one of the richest men in Russia.

    Oligarch Vladimir Potanin swooped in for a 34.5% stake in MMC Norilsk Nickel Ltd (Nornickel) when it was privatised by the Russian government in 1995. His net worth is now reported to be close to $24 billion.

    That’s a lot of money, but it’s not just Potanin basking in Norilsk’s riches. According to the Financial Times, Norilsk has generated the highest shareholder return of any large diversified miner over the last five years. As of 2020, the company has a market value of over $40 billion - nearly twice that of Anglo American (LSE:AAL), and $10 billion more than Glencore (LSE:GLEN).

    How exciting, then, that Kavango Resources plc (LSE:KAV) is exploring a project that could rival the best of what Norilsk has to offer.

    Kavango chief executive Michael Foster has repeatedly described the company’s targets here as “highly attractive”. However, those in the know would say that this is quite the understatement.

    Kavango holds 12 prospecting licences across the KSZ and the adjacent Ditau Project in a huge, near-7,000km2 area.  Prof. David Holwell of the University of Leicester, a world authority on magmatic sulphide deposits, describes the KSZ as “a prime setting for a magmatic Ni-Cu-PGE deposit.”

    Kavango is hard at work targeting nickel-copper-platinum-group-element deposits across the 450km length of the KSZ.

    Fig. 1. Kavango’s 3 areas of exploration

    Foster is keen to draw the Norilsk comparison for one precise reason: it’s backed by geoscience.

    The same black, granular intrusive rock that hosts Siberia’s vast metal deposits – known as gabbro - is found under the Botswana sands, exactly where Kavango is drilling.

    “We believe the results from our 2019 drilling in the KSZ have brought us closer to confirming a Norilsk-style ‘plumbing system’ through which significant quantities of metal sulphides were transported,” Foster explains.

    Copper-Nickel-PGM deposits can accumulate in vast underground ‘traps’ — as molten metal-sulphides filter down through the cooling silicate magma. As at Norilsk, these accumulations can form huge ore bodies over a prolonged period of magma flow, which appears to be the case on the KSZ.

    One of the most important results from the drilling and rock sampling by Kavango to date has been the confirmation that most of the gabbroic magma intruded into sulphur-rich coal shales.

    Why is this key?

    It tells Kavango’s geologists that the sulphur content of the magma would have increased due to the incorporation of sulphur rich coal shales into the melt. Therefore, more of the valuable metals (Nickel & Copper) would have combined with the sulphur to form sulphide accumulations.

    Magmatic sulphide specialist Dr Martin Prendergast examined the geochemistry of the gabbro samples and concluded that the silicates seem to have “lost” metals during the crystallisation of the magma whilst the ratios of Cu/Zn and Cu/Pd strongly suggest that “sulphide saturation” would have occurred leading to the formation of metal sulphides. The location of these sulphide deposits are relatively simple to confirm in geophysical surveys because they conduct electricity so easily.

    In Kavango’s recent Mineral Systems Review by Prof. Holwell it is suggested that large volumes of metal sulphides including copper, nickel and platinum could be found in trap zones associated with gabbro dykes (vertical) and sills (horizontal).

    If this is correct and the accumulations are close enough to surface to mine economically, it will then be a case of identifying the location of these deposits with ground based geophysical surveys and obtaining samples of the mineralisation.

    With so much ground to cover this is obviously a big job for Kavango, but the potential rewards are huge.

    If the company is successful and identifies commercial metal deposits then this will be transformational for the company’s stock price. This will be the main focus of Kavango’s exploration efforts well into 2021.