London-listed Kavango Resources has announced an expansion to its current drill programme in the Kalahari Suture Zone (KSZ), an operational update on the KSZ and a £1.94-million placing.
In terms of the expansion of its drilling programme, a 550 m borehole is to be drilled through Target B1, following completion of operations at Targets A2 and C1
Target B1 is 475 m by 550 m, with a conductance of about 8 200 Siemens and decay constant estimated to be in excess of 350 m.
B1 is in a separate, distinct geological setting to the A-C corridor.
Geophysical consultant and contractor Spectral Geophysics will perform immediate down hole electromagnetic (EM) surveys on each borehole on completion.
Kavango has also noted a time domain electromagnetic (TDEM) survey update, with six target areas surveyed by Spectral, drill targets identified in Target Areas A2, C1 and B1 and no targets in Target Areas A1 and D
There is ongoing data analysis of Target Area B2.
Two further TDEM surveys are planned in Target Area B, with one targeting Target B1.
Meanwhile, the company notes strategic partnership discussions with Equity Drilling, which is owned and run by experienced African drill operators.
Kavango is in discussions with Equity Drilling concerning the formation of a strategic drilling partnership.
Kavango says it is considering a number of options, including (but not limited to) the possible acquisition of two drill rigs and support vehicles to act as a dedicated team across the company's portfolio of projects.
Any strategic partnership will be subject to due diligence and will likely be structured to involve payments in cash and shares.
With regard to the placing, 35.3-million new ordinary shares have been placed by First Equity, on behalf of the company, with institutional and other investors.
Kavango has raised gross funds of £1.94-million. Certain of the directors intend to subscribe for shares on the same terms as the placing.
"Exploration results this year, across all our projects, have consistently surpassed our expectations. This culminated in Friday's two announcements concerning the identification of Target B1 in the KSZ and seven drill targets at Ditau.
“We are especially encouraged by the results of the TDEM surveys in the KSZ. While the conductance of targets A2, C1 and B1 appears to suggest they fall within the range of massive sulphides, we take a high degree of comfort from the ‘negative’ results of A1 and D1.
“The fact that the TDEM surveys have selectively identified EM conductors gives us confidence we are using the right remote sensing technology to define specific drill targets. While we must remain measured in our response to these upbeat developments, we must also make sure we are prepared for one or more positive drill results,” CEO Ben Turney says.