Kavango Resources renews Botswana LVR project licences; says momentum ‘quietly gaining’

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Kavango Resources PLC (LSE:KAV) renewed its two prospecting licences for the LVR project in the Kalahari Copper Belt (KCB) in Botswana and said, elsewhere in the country it has requested a hole to be extended to help it refine its model of its the Kalahari Suture Zone (KSZ).


The LVR project covers 1,091 sq km of prospective ground in the KCB and is held in a joint venture with LVR GeoExplorers. Kavango is earning into the project and to date acquired a 25% stake.


First drill targets were announced on 03 June 2021. Field exploration is ongoing and a further update is expected in the coming weeks, a statement said.


Ben Turney, Kavango’s chief executive, added: “The LVR Project is quietly gaining momentum.


“We think PL082 is particularly interesting. Analysis and fieldwork so far suggest this licence could contain a mirror of Cupric Canyon’s Banana Zone South Limb on the other side of the Ghanzi Ridge.”


Kavango has the right to acquire a 90% interest in the LVR Project through a staged mechanism over seven years from 2 June 2021.


Three stages remain in the earn-in agreement, which require that Kavango spend up to 27.5mln BWP (c.GBP1.8mln) in exploration expenditure to earn its 90% interest.


Stage 1 of the venture was completed on 2 June 2021, meaning Kavango has earned 25% interest in the two licences.


Later on Friday, Kavango said it has requested Mindea Exploration and Drilling Services to extend Hole TA2DD002 to 1,000m depth, which is the technical limit of the drill rig on site within acceptable safety margins.


As of today, the hole was at 821m, with 170m of continuous Proterozoic mafic/ultramafic rocks encountered, the company said.


“Kavango’s senior field geologists have continued to make visual inspection of the core and have reported visible alteration and interstitial blebs of chalcopyrite in different sections of the hole. The lithologies range from coarse grained to extremely pegmatitic, the latter logged in zones that extend 20-30m in thickness.”


The company told shareholders that “thorough analysis is required” of all core samples retrieved before any conclusions can be drawn as to what has been encountered so far.

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