Kavango Resources plc said it had found a second target, similar to the Oylmpic Dam polymetallic operation, in the Great Red Spot (GRS) in its Kalahari Suture Zone (KSZ) nickel-copper project in Botswana.
GREAT RED SPOT
The company added that the GRS conformed to an idealised model for a large iron oxide copper-gold (IOCG) style mineralisation, similar to BHP Group Ltd’s IOCG deposit in Australia.
The GRS was first recognised as a large-scale exploration target in Botswana for major metal and mineral deposits in the mid-1970s.
An IOCG mineralisation model for the GRS was first proposed during the late 1990s.
SECOND MINERALISATION
The company has been exploring the 5km x 8km magnetic body since 2018 and recently drilled exploration holes KSZDD001 and KSZDD002.
Kavango said that IOCG systems could host highly valuable copper, gold and uranium ores, and that the large size and relatively simple metallurgy could produce extremely profitable mines.
“The company believes this is a significant development for the prospectivity of the GRS,” said the company in a statement today.
“IOCG deposits are an alteration “overprint” of the host geology when they form.
“Therefore, Kavango believes the IOCG model represents a second mineralisation style possibly present within the GRS, in addition to the existing potential for nickel-copper sulphide deposits.”
The company will conduct further audio-magnetotelluric technology (AMT) surveys over the area.
SIMILARITIES
Chief executive Ben Turney added that it was important to be careful when comparing a geophysical model to an existing ore deposit.
“Geology is complex and no two deposits are the same.
“We first appreciated the geophysical similarities between Olympic Dam and the Great Red Spot in November last year.
“Rather than rush to publish, we’ve instead worked diligently on this new target over the last six months.
“We’ve been mindful that while the tectonic settings of Olympic Dam and the GRS are similar, the host geology and alteration could be very different.
“Therefore, we sought to gather more evidence that the GRS could contain an alteration system, before publishing this new large-scale target.
“Our comparison with Olympic Dam is led by rigorous geophysical modelling.
“The correlation of the magnetic data with gravity data over the GRS is very similar to the nearly coincident magnetic and gravity anomalies originally identified at Olympic Dam.
“In addition, the shape and size of the modelled magnetic bodies of both Olympic Dam and the GRS almost mirror one another.
“The distinctive ‘crown shape’ is particularly noticeable.
“Where we feel we have an edge over the original Olympic Dam exploration programme is that we now have audio-magnetotelluric (“AMT”) technology.
“What is particularly exciting about the new IOCG target in the GRS is that it is in addition to our existing nickel/copper sulphide model, stacked beneath it.”