Company Announcements

PRESS RELEASE

13 August 2024

KAVANGO RESOURCES PLC

("Kavango" or "the Company")

ZIM -- Assays confirm Nara gold mineralised system

Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals exploration company is pleased to announce the receipt of assay results for its recent diamond drilling programme at the Nara Gold Exploration Project ("Nara") in Matabeleland, southern Zimbabwe.

The assay results confirm the presence of a gold mineralising system at Nara, highlighting anomalous gold zones underneath and directly associated with surface artisanal gold-producing structures. Kavango will now develop its understanding of these new zones before testing them with follow-up drilling.

Kavango holds an option to acquire Nara until June 2025 (announced >>> 26 June 2023).

Highlights

·    Kavango has now received assay results for six initial scoping holes recently drilled for a total of 1,364.4 meters ("m") at Nara.

o The assay results confirm five out of six holes succeeded in intersecting the quartz vein shear structures worked by artisanal miners.

·    Higher gold grades of >5 grams per tonne ("g/t") were returned from interpreted narrow pinched zones within these structures.

·    The assay results provide confirmation of a gold mineralised system at Nara and support the potential for a large system of gold-bearing shears at the project.

·    Higher-grade assays at depth offer compelling evidence for continuation of structures, along with shallow structures under thick cover not yet found or worked by artisanal miners.

·    Kavango will now integrate its completed Induced Polarisation ("IP") surveys and modelled inversions over Nara with its drill data.

o The Company expects the work to identify further drill targets aimed at both expanding the footprint of existing deposits at the project and testing new structures.

Ben Turney, Chief Executive of Kavango Resources, commented:

"Our work in Zimbabwe is progressing at such a pace that Kavango's exploration team is increasingly focussed on exploration for mining.

Our first phase of exploration at the Nara Project confirms the potential for a large-scale gold-bearing system here. We believe this is shaping up to become an underground opportunity for Kavango Mining to pursue. We are encouraged both by the grades we have encountered and widespread gold mineralisation.

We will now complete our analysis of the data we have gathered to design the next phase of drilling. We will provide an update on this in the coming weeks and plan to mobilise a second rig a little later this year."

Progress Overview

The Company's objective was to intersect quartz vein shears underlying gold-producing artisanal workings and historic underground mine workings. Artisanal gold production at Nara takes place in narrow surface workings <0.5m wide along successive structural shear zones hosting anastomosing quartz veins. Individually worked quartz vein shears characteristically pinch and swell at depth, with arsenopyrite observed within gold-bearing quartz veins and altered wall-rock. The artisanal miners often use the presence of arsenopyrite to guide their development.

The assay results confirm five out of six holes succeeded in intersecting the quartz vein shear structures worked by artisanal miners. Higher gold grades of >5 grams per tonne ("g/t") were returned from narrow pinched zones within these structures. Evidence from the artisanal surface workings suggest there are, as yet untested, wider zones where the mineralised structures widen.

The assay results provide confirmation of a gold mineralised system at Nara and support the potential for a large system of gold-bearing shears at the project. Higher-grade assays at depth offer compelling evidence for continuation of structures, along with shallow structures under thick cover not yet found or worked by artisanal miners. Concurrently collected ground Induced Polarisation ("IP") gradient array surveys in conjunction with stacked Schlumberger Sections over Nara provides further context for the interpreted lateral and depth extensions of the gold producing artisanal structures.

Kavango will now integrate its completed IP surveys and modelled inversions over Nara with its drill data. The Company expects the work to identify further drill targets associated both with expanding the footprint of existing deposits at the project and testing new structures.

Results and Interpretation

The Nara Project extends for 3km along the western sheared margin of the greenstone belt across 2.5km to the eastern boundary (1.1km), with a core comprised of metavolcanics bordered by banded iron formations, cross-cut by basic dykes occupying dilational structures.

Kavango's initial drilling focused on old mine workings and abundant artisanal workings along parallel structural features consisting of anastomosing quartz veins in shears with sulphides and arsenopyrite.

Six scoping holes were completed, totalling 1,364.4m, to test the gold bearing potential underneath the old mine workings and artisanal surface workings. All six holes have been logged, cut and sampled, and sample assays have now been received. Analysis for gold was by 25g fire assay with AAS finish and carried out at Performance Laboratories (Pty) Ltd, Harare.

Table 1, below, provides significant results of >0.5g/t Au. All holes were assayed over their full cored length.

Table 1:  Significant intersections (>0.5 g/t Au) (*All thicknesses are apparent downhole intersection thicknesses). NASSDD001: No significant results.

Table 2: List of boreholes

Kavango's initial scope drilling focused on historic mine workings and abundant artisanal surface workings along parallel structural features consisting of anastomosing quartz veins shears with sulphides and arsenopyrite.

Six scoping holes were completed, totalling 1,364.4m to test the gold bearing potential underneath the old mine workings and artisanal surface workings.

The Kavango technical team interprets these results as significant when considering the following qualifying factors:

·         The drill intersections appear to reflect the narrower (<0.5m) portions of the anastomosing quartz vein shears that host the artisanal gold production with their characteristic pinch and swell morphology.

·         The sampling of half NQ drill core (47.6mm diameter) is thought to be indicative rather than representative of the gold bearing structures given the anastomosing nature of the veins, and the probable nugget effect.

·         The assay values may under-represent the quartz vein shear structures as compared with grades reported by artisanal miners from their production at depth on the same and similar structures, and past production at the historic mines.

·         The Nara Claims area contains 5 historical gold mines that were mined between 1904 to the 1960's, with production from 4 of the mines totalling over 93,000 Oz gold, Table 3.

Table 3: Production figures from 4 of the historic mines within the Nara Claims Baglow 1998

Figure 1 below, shows the regional geological setting of the Nara Claims occupying the sheared western and eastern margins of the greenstone belt bordered by banded iron formations ("BIF"), which form distinct magnetic features in Figure 2.

Figure 1: Location map of Nara options (approximate boundary outlined in blue), backdrop is the geology of the greenstone belt with structural features, historic mine locations and artisanal surface workings. Kavango's drill hole collar positions are marked.

The historic mine workings and gold producing artisanal workings can be seen to overlie mapped structural features or faults and shears interpreted from both regional and local ground magnetics in conjunction with air photo and satellite images.

Concurrently collected ground Induced Polarisation ("IP") gradient array surveys in conjunction with stacked Schlumberger Sections (Figure 3) over Nara provide context for possible extensions of the gold producing artisanal structures at depth and along strike. These also provide indications for further exploration possibilities on other shallow structures that may be under thicker cover and not found or worked by the artisanal miners.

Figure 2: Nara project area with drill hole collar positions overlaid on a backdrop of local ground geophysical Analytical Signal (AS) image overlying the regional Reduced to Pole (RTP) 1^st Vertical Derivative (1VD) image. The BIF units form distinct magnetic highs on the margin of the greenstone belt.

Figure 3: Nara project area with drill holes demarcated and labelled on a backdrop of local ground gradient array IP with Stacked Schlumberger Sections.

Next Steps

The completed gradient array IP and modelled inversions will be integrated with the existing drill data. The combined interpretation is expected to identify further drill targets targeted at both expanding the footprint of existing deposits and testing new structures.

A sampling exercise in currently underway to collect a bulk sample from one of the historic mine workings as well as representative samples from as many of the gold producing artisanal workings as possible.

In order to assess the wider prospectivity of the area and compare current artisanal gold production with historic underground mine production, the assays from this sampling programme will be compared with assays from the drill programme.

Kavango intends to recommence drilling at Nara, once it has completed this analysis. The Company will provide a further update in due course.

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)

+44 207 374 2212

Jason Robertson             

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.