Kalahari Metals Limited (“KML”) is a Botswana focused exploration company targeting sediment hosted and stratabound copper and silver mineralisation on the Kalahari Copper Belt. The KML tenements are in close proximity to the Sandfire Resources Ltd (“Sandfire”, ASX: SFR) T3 Copper-Silver Project, which was discovered by the previous Metal Tiger/MOD Resources Ltd (“MOD”) (30%/70%) joint venture in March 2016.
(Sandiman & Perrinvale)
(+ 2% NSR on wholly owned licences)
Botswana (officially the Republic of Botswana) is a mining-friendly southern African country. It is one of the most stable economies on the continent and Africa's oldest continuous democracy. Formerly a British protectorate, following independence in 1966, Botswana has enjoyed more than five decades of uninterrupted civilian leadership, progressive social policies, and significant capital investment. The mining sector, principally diamond mining, is the primary driver of GDP with the tourism sector a secondary earner.
Botswana ranks as one of the least corrupt and best places to do business in Sub-Saharan Africa. The Fraser Institute mining survey Investment Attractiveness Index and Policy Perception Index ranked Botswana within the top-three African jurisdictions for mining investment in 2019 (https://www.fraserinstitute.org/sites/default/files/annual-survey-of-mining-companies-2019.pdf).
The project investment comprises an equity investment and a joint venture arrangement with Kalahari Metals. As announced on 12 April 2021, the Company has a 50.01% (H1 2020: 62.2%; 2020 full year: 62.2%) interest in Kalahari Metals, a private copper exploration company with direct and indirect exposure to twelve exploration licences in the Kalahari Copper Belt (“KCB”) covering 8,714km2. Cobre holds the remainder of the shareholding.
On 15 December 2020, Kalahari Metals signed a Share Purchase Agreement and Shareholders Agreement with Cobre, pursuant to which, Cobre agreed to purchase 49.99% of Kalahari Metal's shares, in exchange for newly issued shares in Cobre. Upon completion of the Transaction, and subject to obtaining change in control approval from the Minister of Minerals, Energy and Water Resources of the Republic of Botswana, Cobre will increase its shareholding in Kalahari Metals to 51% and Metal Tiger will reduce its shareholding to 49%.
On 6 April 2021, the Company announced that Cobre shareholders voted in favour of the conditional acquisition by Cobre of 51% of the issued share capital in Kalahari Metals, and as such, all conditions of the Transaction were satisfied, save for final receipt of the change in control approval from the Minister of Minerals, Energy and Water Resources of Botswana.
On 12 April 2021, the Company announced that the Kalahari Metals Transaction completed with Cobre purchasing 49.99% of the Kalahari Metal's shares in exchange for 20,999,214 newly issued ordinary shares in Cobre. Metal Tiger received 5,106,963 new Cobre Shares, increasing its holding to 26,006,963 Cobre Shares, representing approximately 16.62% of Cobre's enlarged share capital. Following the transfer, Metal Tiger holds 50.01% interest in Kalahari Metals with Cobre holding the remaining interest.
On 19 April 2021, Metal Tiger announced that the joint venture board of Kalahari Metals approved a major new drilling programme focussed on the discovery of copper/silver deposits on the Kalahari Copper Belt.
On 11 May 2021, drilling commenced on the Kitlanya East Project are in Botswana.
Further details on KML is available on their website: https://kalaharimetals.com .
Table 1: Kalahari Metals Limited 100% Owned Exploration Licence Holdings with Granted Metal Tiger Royalties
|Licence Number||Registered licence holder||Issue date||Area (km2)||Metal Tiger Net Smelter Royalty (NSR)|
|PL148/2017||Kalahari Metals Ltd||1-Jul-17||999||2%|
|PL149/2017||Kalahari Metals Ltd||1-Jul-17||1000||2%|
|PL342/2016||Kitlanya Pty Ltd||1-Jan-17||942||2%|
|PL343/2016||Kitlanya Pty Ltd||1-Jan-17||956||2%|
|PL070/2017||Kitlanya Pty Ltd||1-Apr-17||994||2%|
|PL071/2017||Kitlanya Pty Ltd||1-Apr-17||914||2%|
|PL072/2017||Kitlanya Pty Ltd||1-Apr-17||845||2%|
KML Project Overviews
KML holds an interest in 12 exploration licences, constituting the four project areas outlined below (Figure 1). The Botswana Copperbelt remains a relatively unexplored terrain, with potential for the discovery of both large and mid-tier copper deposits. Historical and contemporary exploration work over the Kalahari Copper Belt has shown that copper-silver mineralisation is typically stratigraphically located in reduced shales and siltstones of the D’Kar Formation (“DKF”) in proximity to the contact with underlying oxidised reed-beds of the Ngwako Pan Formation (“NPF”), stratigraphically known as the DKF-NPF REDOX contact. Although mineralisation is stratabound, sharing commonalities with the Central African Copperbelt of Zambia/DRC and the Kupferschiefer Cu district in Central Europe, later deformation has served to remobilise and locally upgrade copper deposits.
Locally, structure and trap-sites play an important role in controlling mineralisation. Based on KML’s regional target generation studies, including geophysics data interpretation and reprocessing, extensive historically untested potentially mineralised lithological strike has been identified. This includes over 500km of interpreted prospective geological contacts within the KML exploration ground.
The Okavango Copper Project (“OCP”) consists of the 100% owned KML prospecting Licences PL148/2017 and PL149/2017 and the Triprop JV prospecting licenses PL41/2012, PL42/2012 and PL43/2012. The OCP is located in the central portion of the Kalahari Copper Belt and is immediately along strike, on the perceived central structural corridor, to the east of the Cupric’s Zone 5 Deposit (Figure 2) and Sandfire’s T3 Project. Historical soil sampling (13,281 samples) confirmed extensive copper anomalism which was interpreted to derive from a possible REDOX contact within project area.
KML have flown regional airborne high-resolution electromagnetic and magnetic geophysics, to provide valuable information on the underlying structures and potential trap-sites for copper-silver mineralisation and to correlate the geology below the sand cover (Figures 3 & 4).
The OCP 2019 Drilling Programme consisted six holes (OCP01 to OCP06), 1,656m drilled, which successfully confirmed the presence of DKF-NPF stratigraphy and the DKF-NPF REDOX contact that hosts prospective Cu-Ag mineralisation.
The Ngami Copper Project (“NCP”) consists of the Triprop JV prospecting licences PL35/2012 and PL36/2012 and targets the structurally modified stratabound Cu (-Ag) mineralisation in Kalahari Copper Belt. The NCP is located to the NW of the central Kalahari Copper Belt (Figure 5).
Work completed to date includes high resolution magnetic geophysics, soil sampling, 2,000m of drilling and a regional airborne electromagnetic (“AEM”) survey. Soil sampling has confirmed the existence of anomalous copper, which may be related to an underlying interpreted REDOX contact (Figure 6).
Drilling has returned positive results with Cu mineralisation associated with hydrothermal veining structures intersected in several holes.
Recent airborne electromagnetic surveys have identified a number of ‘dome’ targets analogous to Sandfire’s T3 deposit. Re-interpretation of high-resolution magnetic data supported the possibility for mineralisation occurring in fold hinge zones with potential ‘dome’ targets. Follow-up regional airborne electromagnetics confirmed a number of compelling targets which are being investigated by a second phase of high-resolution electromagnetic geophysics.
The Kitlanya East Project (“KIT-E”) consists of licences 070/2017, 071/2017 and 072/2017 located on the southern margin of the Kalahari Copper Belt in proximity to both Sandfire’s T3 Project (Figure 7) and Cupric’s Banana Zone deposit.
Interpretation of magnetic geophysics data has identified a number of anticlinal structures where potential Cu-Ag mineralisation may be upgraded. This interpretation is supported by historical and recent sampling as well as water borehole data. Recent soil sampling identified a zinc anomaly associated with the northern anticline target, this anomaly is comparable to results over the T3 Project, situated 4km to the north. There is a historical Cu anomaly and historical drill intersections which confirmed the presence of copper prospective lower D’Kar stratigraphy.
The KIT-E Phase 1 Drilling Programme, which commenced in March 2020, is expected to consist of at least four diamond core holes, totalling a planned 1,200m of drilling. The holes will target mineralisation associated with DKF-NPF REDOX contact, as well as potential anticlinal structures, which may host mineralisation above the contact.
Figure 7: KIT-E area outline showing location of drill holes lithostructural interpretation and geophysical survey lines, numbered targets and the location of the T3 Project (Source: KML)
The Kitlanya West Project (“KIT-W”) consists of licences 342/2016 and 343/2016 located on the northern margin of the Kalahari Copper Belt adjacent to the Ngami Copper Project (Figure 8). The position of the project on the margin of the basin with further evidence in magnetic data of Kgwebe Formation basement in an anticline core is considered prospective for sedimentary copper deposits. Interpretation of magnetic data highlights several prospective fold structures for follow-up. Inversion work carried out on historical AEM data has highlighted three compelling ‘dome’ targets located in fold hinge zones identified in the magnetic data (Figure 9).