Kavango Resources (LON:KAV) ZIM: Tailings Resource Upgrade Nara Gold Project

Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals explorer, is pleased to announce that it has received an updated Resource Estimate (the “Resource Estimate”) for the largest tailings dump at the Nara Gold Project (“Nara”) in Zimbabwe.

HIGHLIGHTS

–     The updated Resource Estimate for the first time provides a Measured category of mineral resource.

–     Resource Estimate concludes that the two Nara tailings dumps tested together contain:

–     Upgrade of 77,664 tonnes (“t”) to Measured Category, at an average of 0.54 grams per tonne (“g/t”) gold, for a total of 1,346 ounces of gold contained.

–     Indicated Mineral Resource of 221,934t at an average of 0.65 g/t gold, for a total of 4,637 ounces gold contained.

–     An Inferred resource of 12,178t at 0.66g/t gold, for a total of 257 ounces gold contained.

–     Previously identified upside potential at the tailings dump remains in addition, highlighting the opportunity to increase tonnage at as-yet-untested depths.

–     Testwork to assess the optimal processing route is now underway at a local facility.

Ben Turney, Chief Executive of Kavango Resources, commented:

“This upgrade to the Nara Tailings Mineral Resource Estimate follows the acquisition of additional data. This has increased our confidence in the resource at the Nara tailings dumps. As a result, we have now declared a Measured Resource, together with an increase in combined tonnage.

Given that the tailings have already been mined, the upgrade in resource strengthens the attractiveness of the Nara project. Following our recent discovery of a near-surface, high-grade zone at Hillside, we are quickly assembling a cluster of near-term revenue generators for Kavango Mining to operate profitably alongside our main exploration activities.

Kavango is now completing test work to identify the optimal method for processing the tailings and bringing them into production. This includes metallurgical testing that will inform final plant design. We look forward to providing a further update later this quarter.”

Background

A Maiden Resource dated 5 March 2024 was previously released by Kavango for the Nara tailings (announced >>> 6 March 2024). One of the recommendations from the consultant who produced the resource was to obtain additional density data, as the then limited data meant that a standard density value had to be utilised. This also limited resource categorisation, part of which would otherwise have been of a Measured category.

This data has now been collected, allowing for both an upgrade in category of part of the resource, and an increase in overall tonnage contained.

Mineral Resource Statement

Table 1.      Nara Tailings Mineral Resource statement, effective date 12 April 2024

NOTES:

1.        The Mineral Resource is reported at a cut off grade of 0 (zero) g/t Au.

2.        Tonnage is based on a global density average of 1800kg/m3 estimated from density sampling carried out over the impoundment surfaces to a depth of 4m.

3.        Mineral Resource estimates are not precise calculations being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results.  Therefore, reporting of tonnage and grade figures reflects this relative uncertainty and figures are rounded to appropriate significant figures.  As a result, some error may be incurred when reporting global figures based on rounded values.

4.        The Mineral Resource Statement presented above has been classified in accordance with the requirements of the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC 2012 Edition). The Competent Person who assumes responsibility for reporting of the Mineral Resource is Dr John Arthur who is a Competent Person as defined by the JORC Code 2012 Edition, having more than 5 years experience that is relevant to the style of mineralisation and type of deposit described herein, and to the activity for which he accepts responsibility. The effective date of the Mineral Resource statement is 12 April 2024.

5.        The Mineral Resource statement is prepared following the guidelines set out in London Stock Exchange AIM notice, Guidance for Mining and Oil & Gas Companies (AIM16, Appendix 3).

6.        Resources are not constrained other than by the geological boundary limits of the Mineralised unit and search radii limits approximated from variographic analysis.  At this stage no consideration has been made as to what tonnes and grade would be reasonably expected to be extracted profitably. Notwithstanding, the Competent Person considers the distance constraints in both the dip and strike directions to be a reasonable approximation and expectation of potential mining extents.

7.        Mineral Resources which are not Ore Reserves do not have demonstrated economic viability.  The estimate of Mineral Resource reported may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

8.        The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to the Indicated Mineral Resource and must not be converted to a Ore Reserve.  It is reasonably considered that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

9.        Currently, no Ore Reserves have been established for the Nara Project

Next Steps

Kavango has commenced metallurgical test work to assess further the potential recovery of gold, reagent consumption, and operating parameters for a possible future facility to process Nara’s gold tailings.

The Company will follow this up with a study aimed at commercialising Nara’s gold tailings opportunity to achieve early cashflow.

Kavango intends to investigate potential upside in the Mineral Resource Estimate identified by Dr. Arthur’s work.

Multiple holes stopped short due to intersecting items such as past concrete infrastructure, meaning there is potential for the tonnage to increase.

Likewise, some grade enrichment with depth was also seen in multiple holes, potentially because of gravity concentration. Given that not all holes reached target depth this may offer additional contained gold beyond the original target depths scoped out for the auger drilling.

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