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.

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.

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.

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

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

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

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

Power Metal Resources (LON:POW)welcomed news of a deal last week that stands to accelerate exploration considerably at one of its highly prospective Botswana-based projects.

On Friday, Kavango Resources (LSE:KAV)announced that it had signed a three-month option that, if exercised, would see it acquire 51.15% of the Molopo Farms Complex (“MFC”) project in an all-share transaction. Under the terms of the deal, Power Metal would continue to hold on to a 40% stake in the asset, which it secured earlier this year, while London peer Evrima (LSE:EVA)would hold on to the remaining 8.85%.           

Covering 1,723km²in south Botswana, the MFC project is highly prospective for nickel, copper, and platinum group elements (“PGEs”)–all metals that are currently enjoying strong demand in the face of limited supply. As the map below shows, the asset also sits firmly in a key area of mining activity, in the vicinity of projects being explored by peers such as Rio Tinto Exploration, Premier Gold Resources, and Kumo Resources.