ZIM: Hillside Prospect 4 Assay Results

Kavango Resources plc (LSE: KAV), the Southern Africa focussed metals exploration company, is pleased to announce the first assay results from the Hillside Prospect 4 gold project ("Prospect 4") in Matabeleland, southern Zimbabwe.

• Hole SKDD001 was a scoping hole sited to target mineralisation in a steeply dipping shear zone below artisanal workings (announced >>> 25 January 2024).
• SKDD001 was drilled to a total depth of 247.40 m and intersected the targeted shear zone being worked by the artisanal miners.
• Best results* in the hole include:
• 2.53 m @ 29.08 g/t gold from 97.47 m, associated with visible gold (average peak grade of 212.07 g/t over 0.34 m).
• 1.32 m @ 1.80 g/t gold from 214.46 m.
• The hole contains multiple further broad zones of geochemically anomalous gold values thought to relate to additional shear zones.
• An Induced Polarisation (IP) survey identified three further potential shear zones, parallel to the one being worked by artisanal miners.
• Results are pending on four other holes drilled across three other Hillside prospects.
• Kavango Mining to examine near surface gold mining potential at Prospect 4, based on intersected grades and ongoing artisanal mining in the area.

*All quoted thicknesses are apparent down hole intersection thicknesses

Ben Turney, Chief Executive of Kavango Resources, commented:

"This result far surpasses our expectations at Prospect 4.

Prospect 4 is our fourth-ranked target at Hillside. These results underline the Hillside Project's overall potential to host over 1 million ounces of mineable gold.

We sent the cores from Hole SKDD001 for immediate fire assay testing at a SADCAS accredited laboratory in Zimbabwe because of the visible gold. The near-term potential for possible mining at Prospect 4 was apparent as soon as we saw the core. We now need to test this potential with swift and methodical follow-up exploration. We are particularly looking forward to testing the additional three shear zones we believe we've identified here.

In terms of the results, we have pursued rigorous quality assurance and quality control. We also retested the high-grade gold zone.

We are delighted that the initial fire assays include one particularly significant gold intersection grading at 29.08 grams per tonne (g/t) over 2.53 m at a depth of 97.47 m. The secondary zone of 1.8 g/t over 1.32 m at 214 m depth is also encouraging. Given that we encountered anomalous gold throughout Hole SKDD001, we now need to return to Prospect 4 to assess further its commercial potential.

While we continue drilling at the Nara Project, we will send the SKDD001 pulps for multi-element testing at an internationally accredited laboratory in Johannesburg. We have confidence in the data we've published today and the tests in Johannesburg will help guide future drilling.

Having brought Kavango Mining into production in March, we are set up operationally to bring any new discovery into production with relative speed. While more drilling is needed to evaluate the scale of the opportunity, this is a highly promising start."

Prospect 4 Assay Results and Geology

The host rock intersected in diamond drill hole SKDD001 consists of felsic gneiss and schists, thought to be of Archean age. These feature extensive quartz veining and locally contain a visually estimated up to 5% pyrite with arsenopyrite and chalcopyrite. Visible gold was observed at a downhole depth of 97.68 m. (See figure 1), and was further confirmed at assay, with an average peak grade of 212.07 g/t over 0.34 m. Five assays were run on the sample to confirm this grade, with AAS finish returning grades of 172.29 g/t, 214.38 g/t and 250.89 g/t gold, and gravimetric finish returning grades of 211.79 g/t and 210.99 g/t.

True thickness will be evaluated once additional holes are available to determine final geometry. The hole is inclined at 60° towards the target, which is understood to dip towards the drillhole at a steep angle (actual geometry is expected to be confirmed by a second hole in the future).

Analysis for gold in diamond drill hole SKDD001 was carried out as a 25g fire assay with AAS fusion on halved core samples. Analysis was carried out by a Zimbabwe based laboratory accredited by SADCAS. Kavango inserted 20% standards, duplicates, and blanks as additional quality control measures.

Figure 1: Visible gold at 97.68 m in drillhole SKDD001, confirmed by assay. Scale is in cm and mm.

A table of significant results (>0.5g/t Au) is provided below. Full results for the hole are presented in Appendix 1.

*All thicknesses are apparent downhole intersection thicknesses

The hole was drilled as a diamond core scoping hole using a combination of HQ and NQ diameters. All core was logged in the field and cut in half using a core saw before being sent for analysis. Samples were taken based on geological contacts, and/or of approximately 1m length. Core recovery was monitored closely throughout, and recovery exceeded 95% below the weathered regolith. Any voids were noted. Core was consistently cut perpendicular to the dominant fabric which hosts the quartz veins and associated sulphides.

The drillhole was aligned to transect a number of artisanal workings while also crosscutting the mapped lithologies and the first of four interpreted shear zones identified from ground IP (Figures 2, 3 & 4).

Figure 2: Prospect scale geology with drillhole trace for hole SKDD001.

Figure 3: Oblique view west through SKDD001 borehole trace showing downhole geology and structures and gold peaks with surface IP (resistivity) on surface and in section.

Figure 4: Oblique view west through SKDD001 borehole trace showing downhole geology and structures and gold peaks with surface IP (chargeability) on surface and in section.

Other than geological mapping and limited soil sampling in the 1980s Kavango is not aware of any previous modern mineral exploration in the area. Kavango has compiled historic mapping and geophysical interpretations into a series of working maps (Figures 5 & 6).

Figure 5: District scale geology with drillhole trace for hole SKDD001.

Figure 6: District scale drone magnetic survey, Reduced to Pole 1st Vertical Derivative (RTP_1VD) image with interpreted features, showing position of drillhole SKDD001.

Next Steps

Kavango has completed four other holes across its Hillside prospects (see Table 1) and is awaiting assays for previously submitted samples.

The Company has now been granted an export permit which will enable it to send the pulps from these samples to an internationally accredited laboratory in Johannesburg for Fire Assay and multi-element analysis. These results will then serve as referee samples for check purposes. All results will then be combined, and results ranked across the prospects to allow Kavango to focus future drilling programmes on developing the most promising targets to identify possible gold resources.

Table 1: Kavango Hillside drillholes drilled to date. SKDD001 gold assays are reported here, remaining holes are pending analysis. Hole co-ordinates are not published here due to confidentiality considerations pending exercise of the Hillside Option.

Kavango Mining, which is now set up and operating, will on completion of all assays review the results from SKDD001 and future follow up holes to see, based on the assay data and artisanal activity if there may be a future opportunity to develop near-surface mining on this prospect.

Kavango has the Hillside Project under option until 23 April 2024 (announced >>> 23 January 2024). The Company intends to exercise the option before this date.

APPENDIX 1

APPENDIX 2

Full Assay Results - HILLSIDE DRILLHOLE SKDD001

*All quoted thicknesses are apparent thicknesses