22 July 2024     

Kavango Resources

("Kavango" or "the Company")

BOTS Karakubis Copper Mineralised System Confirmed

Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals exploration company, is pleased to announce successful completion of drilling the first high priority target (the "First Target") at the Karakubis Copper Project in Botswana's Kalahari Copper Belt ("KCB"). Field analysis of drill cores taken from this target confirms the presence of a copper-silver mineralising system at Karakubis, as well as further indicators of structural trap sites.

This result validates Kavango's modelling of the KCB and confirms the prospectivity of the Karakubis Copper Project for large-scale copper/silver deposits. The Company now anticipates an increased chance of discovery over the remainder of its 5,000m diamond drill campaign at Karakubis (the "Drill Campaign").

Progress Overview

·    Kavango commenced the 5,000m Drill Campaign on 17 June (see announcement >>> 17 June 2024).

·    The primary objectives of the Drill Campaign were to confirm copper mineralising fluids passed through the Karakubis Block and that structural trap sites for potential large-scale copper/silver deposits are present.

·    Kavango met both objectives drilling the First Target.

·    Two holes were drilled into the First Target:

·    Hole KCBDD001 was drilled to a depth of 243.95m at no cost to the Company and abandoned due to technical issues.

·    Hole KCBDD002 was successfully completed to a depth of 514.38m.

·    Kavango has logged and made pXRF readings on core taken from both holes.

·    Core from both holes validates Kavango's interpretations applying geophysical data to model the KCB. This increases the Company's confidence in future drill targeting.

·    Spot readings taken from handheld pXRF indicate the presence of copper, silver, zinc and lead, suggesting the mobilisation of copper sulphides in mineralising fluids within a large system. This may provide a vector towards larger-scale mineralisation.

The drill rig mobilised to the second high-priority target. Hole KCBDD003 is currently at 232.58m.

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

"We started drilling at Karakubis to confirm the presence of a copper-silver mineralising system. Results from our first target have surpassed our expectations. The validate our geological model and confirm the potential to discover a large-scale copper/silver deposit.

Our original goal in the drill campaign was to prove the presence of a copper mineralising system and structural regional traps within Karakubis. We've met this objective within our first 500m. This speaks to our team's meticulous preparations prior to drilling. I would like to thank everyone involved for all they have contributed.

The core from the two holes validates the interpretations we've applied to modelling the Kalahari Copper Belt (KCB). In particular, the core highlights rock sequences consistent with and comparable to descriptions of lower D'Kar Formation sequences to the west in Namibia and along strike towards Sandfire Resources' (ASX:SFR) Motheo Mine to the northeast. The contact position between the D'Kar Formation and Ngwako Pan Formation is one of the main regional controls for large-scale copper/silver deposits and will be tested by other holes in the programme.

The intersection of pathfinder elements and pyrite, along with copper values in our pXRF readings, provides an encouraging indicator of the presence of structural trap sites. Such traps have enabled the accumulation of economic copper deposits elsewhere in the KCB.

Kavango looks forward to building on these results as our drilling continues. This is our most ambitious drill programme to date. Preparations took two years to maximise our chances of discovery success.

Now that we have received such strong confirmation that our modelling appears to be correct, we move forward in eager anticipation. With a further 4,300m of drilling planned over our remaining 14 high-priority targets, we believe our chances of discovery success have increased significantly."

Drill Objective

Kavango's exploration and drilling strategy at Karakubis is to validate the interpretations made to date from modelling of geological and geophysical data and to establish the stratigraphic position in the system, verify the presence of structural trap sites and confirm the presence of a copper/silver mineralising system through identification of pathfinder minerals.

Technical Overview

·    Hole KCBDD002 was completed to a depth of 514.38m. Hole KCBDD001 was drilled to a depth of 243.95m and abandoned at no cost to the Company. Kavango has retained the core from both holes.

·    Kavango has interpreted the lithologies intersected as being part of the lower D'Kar Formation of the Ghanzi Group, which is known to host the majority of the KCB's copper mineralisation.

·    The measured dip and strike of the bedding is comparable with those anticipated from Kavango's modelling of its Airborne Electromagnetic ("AEM") data and inversions.

·    Structural features including faults interpreted and projected by Kavango from the AEM data fit with logged intersections in the drill core.

·    The hole intersected extensive zones of hydrothermal alteration, a common feature of mineralisation on the KCB, from 90m downhole.

·    The hydrothermal alteration consists of bleaching, hematisation, silicification, albitisation and patchy carbonate replacement, with some sandstones becoming friable as cement between grains has been progressively leached.

·    Pyrite has been logged together with fine minerals containing pathfinder elements and carbonate-chlorite-Cu-Fe-sulphide replacement of pyrite in all the siltstone intersections.

·    The presence of pyrite together with pathfinder elements is a frequent indicator for the presence of a mineralised system.

·    Kavango's hand-held pXRF spot readings on the sulphides and clusters of pyrite replacements in veins and stringers within bedding report local values of up to 1.8% copper, 723ppm lead, 264ppm zinc and 116ppm silver¹.

·    This suggests the mobilisation of copper sulphides in mineralising fluids within the system, and may provide a vector towards further mineralisation.

·    The core is being cut and sampled and will be dispatched for assay in due course.

·    Kavango's contract driller, Mitchell Drilling, is currently drilling the company's second high priority target.

·    Further priority targets are anticipated as data processing and interpretation are completed for survey results from Survey Blocks 1A and 1B.

¹ These are pXRF spot values and are not expected to return potentially economic levels of mineralised intersections, rather they are considered to provide evidence of mineralising fluid activity within the system.

Drill hole KCBDD002

This is the first hole to be completed at Kavango's Karakubis Copper Project on the KCB. KCBDD001, adjacent, was partially drilled but abandoned and redrilled as KCBDD002 at no additional cost to the Company.

Figure 1: Cross section, viewed NE, showing KCBDD002, and displaying intersected lithology, structural features, alteration and logged sulphides in siltstones on a backdrop of AEM Inversion image. Lithologies are OVB=overburden, CALC=calcrete, ARK=arkose, SAK=sub-arkose, MRL=marl, SLT=siltstone & SST=sandstone

The sedimentary units in this hole comprise arkose, sub-arkose, sandstone and siltstone with minor marl. Several stacked, partial to complete sequences have been logged with the basal sections of the arkose and sub-arkose units occasionally containing siltstone rip-up clasts transitioning upwards into units with occasional heavy mineral layers and capped by siltstone and occasional marl units. The clastic dominated facies assemblage comprises thin to thick-bedded arkose, sub-arkose and massive amalgamated sandstone with thicknesses varying from meter scale to tens of meters. The siltstone, marlstone facies assemblage comprises laminated to thinly bedded fining upwards cyclic deposition of siltstone and mudstone in packages that vary from 1 or 2m to just over 5m in thickness.

The thickness and stacked nature of these partial to complete sequences are consistent with and comparable to descriptions of lower D'Kar Formation sequences to the west in Namibia and along strike towards Sandfire Resources' (ASX:SFR) Motheo Mine to the northeast.

The degree and styles of hydrothermal alteration are considered indicative of early metalliferous brines ascending along basin faults combining with later multiple episodes of faulting and hydrothermal fluid flow associated with the regional southeast vergent folding in the Ghanzi-Chobe belt.

The presence of pyrite logged together with fine galena, sphalerite and carbonate-chlorite-Cu-Fe-sulphides replacing pyrite in all the siltstone intersections is seen as a positive indication that the hydrothermal fluids may be part of a larger mineralised system, and of the prospectivity of the area.

The drilling programme will be adapted as more holes are completed and the information assimilated into the interpretation and modelling.

The drill rig has been moved to the second high-priority target and drilling is underway at Hole KCBDD003. Current depth is 232.58m. Further updates will be provided in due course.

Data on the sampling techniques and data relating to the Karakubis Project (JORC Table 1 and Table 2) is appended via the following >>> link here.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

Further information in respect of the Company and its business interests is provided on the Company's website at www.kavangoresources.com and on Twitter at #KAV.

For further information please contact:

Kavango Resources plc

Ben Turney

+46 7697 406 06

First Equity (Broker)

Jason Robertson

+44 207 374 2212

Kavango Competent Person Statement

The technical information contained in this announcement pertaining to geology and exploration have been read and approved by Brett Grist BSc(Hons) FAusIMM (CP).  Mr Grist is a Fellow of the Australasian Institute of Mining and Metallurgy with Chartered Professional status.  Mr Grist has sufficient experience that is relevant to the exploration programmes and geology of the main styles of mineralisation and deposit types under consideration to act as a Qualified Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Grist is an employee of Kavango Resources plc.