Kavango has expanded its interest in Botswana with its involvement in the increasingly important Kalahari Copper Belt (“KCB”).
The KCB is currently a prime focus in the exploration for sediment-hosted stratabound copper-silver deposits. The region is under-explored and has experienced an accelerated discovery rate over the last 10 to 15 years with the delineation of significant new Mineral Resources and the development of two copper-silver mines.
Typical terrain in the KCB area
Much of this exploration has been focussed on the Ghanzi Ridge area northeast of Ghanzi where the Kalahari cover is thinnest. The mineral belt is known to extend to the southwest into Namibia and significant potential remains to test the strike extension of mineralisation-controlling structures in the Ghanzi region. Most of the mineralised zones occur within 200m of surface and deposits discovered to date have the potential for open pit mining.
The KCB extends for nearly 1,000km from northeast Botswana to western Namibia. The copper mineralisation is hosted within a sedimentary basin or rift similar to the Zambia/DR Congo – Central African Copper Belt. The mineralisation is strata-bound, lying within a contact between two sedimentary units. The strata have been folded, with the fold axis running predominantly NE–SW. Where the folding brings the mineralised contact towards the surface, a fold hinge is formed (an anticline). The folding creates low pressure zones within the fold hinges into which mineralising fluids migrate. These fluids are rich in copper (and silver). Economic copper deposits are most likely to be formed where the critical contact exists within the anticlinal fold hinges. The location of some of these anticlines is already known. Many of the licences in Kavango’s portfolio appear to have anticlines running through them. In other licences the presence of anticlines is suspected.
Sedimentary copper deposits are attractive to exploration companies because they can form orebodies that compete with porphyry coppers on tonnage but are generally much higher grade.
In January 2020, Kavango signed a Joint Venture Agreement (JVA) with a local Botswana company, LVR GeoExplorers (Pty) Ltd, which gives Kavango the right to earn up to a 90% interest in two KCB prospecting licences (“PLs”) - PL082/2018 & PL083/2018. The terms of the JVA requires Kavango to spend a minimum of $125,000 on each of the PL’s in the first year to achieve a 25% interest; followed by $225,000 over the next two years to take Kavango’s interest to 50%.
PL082/2018 lies 35km north of the T3 mine being developed by MOD Resources (now Sandfire Resources) and is considered to be highly prospective. PL083/2018 is located SW of Ghanzi near the border with Namibia.
In April 2020, Kavango confirmed that it has been granted two further PLs, in the KCB immediately south of the District capital of Ghanzi:
- PL 036/2020 – (590.20km2) for an initial period of 3yrs to 31 March 2023 – Yr1 exploration expenditure BWP548,000 (about £37,500) – 100% owned by Kavango
- PL 037/2020 – (704.00km2) for an initial period of 3yrs to 31 March 2023 – Yr1 exploration expenditure BWP 548,000 (about £37,500) – 100% owned by Kavango
These two new PLs are 100% owned by Kavango. Provided the work and expenditure commitments are met, their tenure may be extended to a maximum of 7 years.
PL036/2020 and PL037/2020 are part of a new strategic joint venture (“SJV”) with Power Metal Resources Plc (“POW”). The SJV will see the formation of a new, jointly owned, privately held company that is focussed initially on these two PLS and the Ditau Project (PL169 and 010). The terms of the SJV are set out in the Ditau Project page.
The KCB Project area is accessed by a 670 km well maintained paved road (the A2) from Gaborone to Ghanzi via the town of Kang. Paved roads either crosscut or pass close to the four PLs. Access within the PLs is via a well-developed network of bush tracks.