Kalahari Metals Ltd, U.K. reg. 10751423 35-39 Maddox Street, London, W1S 2PP Tel: +44 77 8692 9966 6 December 2019 KALAHARI METALS EXPLORATION UPDATE Kalahari Metals Limited (“KML” or “Company”) is pleased to provide an exploration update covering progress on drill programmes running on its Okavango Copper (“OCP”) project, recently completed soil sampling and airborne electromagnetic (“AEM”) on Kitlanya West (“KIT-W”) and issue of environmental permitting for both Kitlanya projects. Highlights: • The 2019 drilling programme at OCP has been completed with 6 holes drilled to test for fold-hinge and limb-related Cu-Ag mineralisation associated with the D’Kar - Ngwako Pan (“DKF” and “NPF”) Formation contacts which extend from Cupric Canyon’s Banana Zone and Zone 5 deposits; o 5 of the 6 holes have intersected the DKF-NPF contact at the modelled depth; o Recently completed hole OCP06 has intersected a broad zone of visible Cu- sulphide mineralisation hosted in veins, fractures and disseminated forms (circa 100m); o The remaining holes display anomalous Pb, Zn, Ag along with elevated Cu values based on pXRF and logging results; • Regional soil sampling traverses and airborne electromagnetic survey over KIT-W has identified conductive targets likely representing prospective lower DKF units with associated Pb-Zn soil anomalies; • Environmental management plans for both KIT-E and KIT-W have been issued by the Botswana Department of Environment providing the green light for commencement of drill testing of targets in the KIT-E project in January 2020. Okavango Copper Project drill results A drill programme consisting of 6 holes totalling 1656m, has been completed on the OCP project. Drill hole planning has relied on detailed AEM modelling which has proven highly effective in estimating the 3D position of carbonaceous marker units in the lower DKF. Using the marker conductors, drill holes successfully intersected the prospective lower DKF stratigraphy and underlying NPF without relying on drill traverses or pilot holes traditionally employed to target the DKF-NPF contact. The result is a significant cost benefit and more effective means for testing the extensive prospective strike under areas with thicker cover. The locality of the OCP drill holes are illustrated in Figure 1. The current phase of drilling has focussed on testing for evidence of a mineralised halo surrounding a potential deposit situated in both fold-hinge and fold limb settings. Drill holes OCP01 to OCP05 explore the fold-hinge and northern limb of target OCP-FH-01. The target shares many similarities with Cupric Canyon’s Banana Zone which includes a number of deposits in the fold hinge and limbs and is situated along structure. Drill holes OCP01 to OCP05 have intersected prospective reducing lower DKF stratigraphy overlying typically oxidizing footwall NPF. The rocks encountered are directly comparable to elsewhere in the Kalahari Copper Belt, with the target package (below lowermost thick massive Sandstone package “MSST”, above NPF) increasing in thickness from the NE to the SW.
Kalahari Metals Limited (“KML” or “Company”) is pleased to provide an exploration update covering progress on drill programmes running on its Okavango Copper (“OCP”) project, recently completed soil sampling and airborne electromagnetic (“AEM”) on Kitlanya West (“KIT-W”) and issue of environmental permitting for both Kitlanya projects.
Highlights:
• The 2019 drilling programme at OCP has been completed with 6 holes drilled to test for fold-hinge and limb-related Cu-Ag mineralisation associated with the D’Kar - Ngwako Pan (“DKF” and “NPF”) Formation contacts which extend from Cupric Canyon’s Banana Zone and Zone 5 deposits;
o 5 of the 6 holes have intersected the DKF-NPF contact at the modelled depth; o Recently completed hole OCP06 has intersected a broad zone of visible Cu-
sulphide mineralisation hosted in veins, fractures and disseminated forms (circa 100m);
o The remaining holes display anomalous Pb, Zn, Ag along with elevated Cu values based on pXRF and logging results;
• Regional soil sampling traverses and airborne electromagnetic survey over KIT-W has identified conductive targets likely representing prospective lower DKF units with associated Pb-Zn soil anomalies;
• Environmental management plans for both KIT-E and KIT-W have been issued by the Botswana Department of Environment providing the green light for commencement of drill testing of targets in the KIT-E project in January 2020.
Okavango Copper Project drill results
A drill programme consisting of 6 holes totalling 1656m, has been completed on the OCP project. Drill hole planning has relied on detailed AEM modelling which has proven highly effective in estimating the 3D position of carbonaceous marker units in the lower DKF. Using the marker conductors, drill holes successfully intersected the prospective lower DKF stratigraphy and underlying NPF without relying on drill traverses or pilot holes traditionally employed to target the DKF-NPF contact. The result is a significant cost benefit and more effective means for testing the extensive prospective strike under areas with thicker cover. The locality of the OCP drill holes are illustrated in Figure 1. The current phase of drilling has focussed on testing for evidence of a mineralised halo surrounding a potential deposit situated in both fold-hinge and fold limb settings. Drill holes OCP01 to OCP05 explore the fold-hinge and northern limb of target OCP-FH-01. The target shares many similarities with Cupric Canyon’s Banana Zone which includes a number of deposits in the fold hinge and limbs and is situated along structure. Drill holes OCP01 to OCP05 have intersected prospective reducing lower DKF stratigraphy overlying typically oxidizing footwall NPF. The rocks encountered are directly comparable to elsewhere in the Kalahari Copper Belt, with the target package (below lowermost thick massive Sandstone package “MSST”, above NPF) increasing in thickness from the NE to the SW.
Anomalous Pb-Zn halos were intersected above the MSST of the DKF, frequently related to dilational veining. There has been a notable increase in amount and frequency carbonate veining due SW of the northern limb target OCP-FH-01. Similarly, there has been an increase in the amount of carbonate lithologies at the base of the DKF. OCP04 intersected the thickest carbonate package (marl to limestone) that is interpreted to have been formed in a shelf environment as part of a carbonate reef setting, somewhat similar to the Zone 5 deposit. Drill hole OCP06 targets the southern limb contact on an anticline extending some 40km due NE from Cupric Canyon’s Zone 5 deposit. The drill hole intersects similar lower DKF stratigraphy to OCP01 to OCP05 with a marked increase in quartz-carbonate veining. Mineralisation consisting of vein, fracture and disseminated bornite, chalcopyrite and fine-grained chalcocite has been logged over a broad zone (100m) extending into the NPF footwall. Although predominantly in trace amounts, several zones of thicker vein hosted mineralisation are noted in proximity (or directly below) the DKF-NPF contact.
Figure1. Locality map illustrating the positions of completed drill holes on a lithostructural interpretation. The interpreted DKF-NPF contact from AEM modelling is overlain and coloured by
Z, correlating exceptionally well with confirmed drill depths.
Results are summarised in Table 1 below.
Table 1. Summary of drill results for OCP (CPY=chalcopyrite, BN=bornite, CC=chalcocite)
Drill hole
DKF-NPF contact
intersected
EOH Hole depth
Key geological features Mineralisation
OCP01 Yes 357m
Kalahari Thickness: 94m. CAR Marker Thickness: 50m. MSST Thickness: 39m. Target Package thickness: 25m. Flat laying lower DKF Stratigraphy, drilled in the fold hinge zone. The units are plunging around 11˚ towards NE.
No visible Cu Mineralisation.
OCP02 Yes 282m
Kalahari Thickness: 95m. CAR Marker Thickness: 34m. MSST Thickness: 65m. Target Package thickness: 11m. DKF package dipping around 40˚ towards NW.
No visible Cu Mineralisation. Trace amount of (Pb-)Ag mineralisation.
OCP03 Yes 204m
Kalahari Thickness: 97m. CAR Marker Thickness: > 5m. MSST Thickness: 32m. Target Package thickness: 14m. DKF package dipping around 35˚ towards NW.
No visible Cu Mineralisation. Trace amount of Pb-Ag mineralisation.
OCP04 Yes 294m
Kalahari Thickness: 91m. CAR Marker Thickness: 31m. MSST Thickness: 50m. Target Package thickness: 26m. DKF package dipping around 55˚ towards NW. Intersected a considerably thick basal carbonate package (17m) consisting of marl and highly calcareous siltstones/limestone overlying the NPF.
No visible Cu Mineralisation. Trace amount of (Pb-)Ag mineralisation.
OCP05 No 177m
Kalahari Thickness: 89m. CAR Marker Thickness: 45m. MSST Thickness: > 8m. DKF package dipping around 40˚ towards NW.
No visible Cu Mineralisation.
OCP06 Yes 342m
Kalahari Thickness: 81m. CAR Marker Thickness: 20m. MSST Thickness: 30m. Target Package thickness: 27m. DKF package dipping between 63˚ and 79˚ towards SE.
Vein and fracture related, to stringers and disseminated CPY, BN and minor CC(?) mineralisation from 240 – 255; 272 - 342m); Overall trace amounts of Cu sulphide mineralisation, with increased intensity proximal to the DKF-NPF contact.
Examples of intersected mineralisation from OCP06 are illustrated in Figure 2.
240.58m Carbonate Vein-hosted CPY adjacent to brecciated Qz vein, MSST,
DKF.
251.00, S0-hosted disseminated CPY with Fe-oxides. Calcareous Sandstone with intercalated laminated Siltstone,
DKF.
284.25m: Stringers of CPY, laminated
limestone, DKF.
Disseminated BN and CPY in bleached
NPF within upper contact or transition zone at 292m
BN and possible CC in quartz vein in NPF at 302m
Vein Related BN in NPF at 305 m
Figure 2. Core photos highlighting nature of mineralisation at selected intervals in OCP06. (CPY=chalcopyrite, BN=bornite, CC=chalcocite)
Core cutting for OCP06 is currently in progress with plans in place to send samples from OCP01, OCP03, OCP04 and OCP06 for analysis.
Assay results from OCP02 highlight anomalous Ag content with elevated Cu reaching a maximum of 0.225% over 0.5m near the DFF-NPF contact (Table 2). Initial field observations regarding visible chalcocite mineralisation were proven incorrect with metallic minerals more likely attributed to a Pb-Ag bearing mineral. All follow-on mineralisation logging has utilised a pXRF to ensure comments regarding Cu-bearing sulphides are verified prior to analysis with wet chemistry.
Table 2. Assay results for OCP02 over the target stratigraphy above the DKF-NPF contact
A regional AEM survey was completed over the KIT-W license at 2km line spacing with the objective of mapping Kalahari cover thickness and potential lower DKF conductors which can be used to model the position of the underlying target DKF-NCP contact:
• Modelling of results suggests the Kalahari cover is thinner than initially interpreted, varying between 30 and 60m thickness;
• Three prominent conductors have been identified in fold-hinge zones interpreted from magnetic data – these may represent analogues to Sandfire Resources NL’ T3 deposit;
• Weak conductors in interpreted lower D’Kar units may be representative of carbonaceous marker units above the DKF-NPF contact.
A total of 3550 soil samples were collected on regional traverses across the license property. Results have been analysed using a desktop Niton pXRF. Further analysis with TerraleachTM TL1 low concentration partial leach is planned. Results are summarised as follows:
• Interpretation of Kgwebe basement volcanics is supported by their geochemical signature and associated elevated Cu and Pb;
• Elevated to anomalous Pb, Zn (and to a lesser degree Cu) associated with interpreted lower DKF stratigraphy including potential fold hinge and fold closure targets.
Seven compelling targets have been identified using a combination of AEM and soil sampling. Targets include a range of fold closure, anticline hinge zones, T3-type ‘domes’, and traditional limb styles of Cu-Ag mineralisation.
Figure 2. KIT-W lithostructural interpretation with AEM conductors, Pb sample results and targets of interest highlighted.
Kitlanya Environmental Management Plan and initial drill programme
Mandatory gazetting of KML’s environmental management plan for both Kitlanya projects has been completed. The Botswana Department of Environmental Affairs has provided authorisation to proceed with exploration activities including drilling of targets on both Kitlanya properties.
Plans are in place to commence drilling at KIT-E in early 2020. Drilling will initially consist of 4 scout diamond holes which will target fold hinge structures identified in the recent detailed AEM survey which may represent CAR marker units in the lower DKF providing a similar stratigraphic marker to OCP. A more comprehensive sampling programme will be undertaken concurrently with
the diamond drill programme. Sampling results will be combined with drilling to generate targets for more extensive RC drilling.
Figure 3. KIT-E AEM mid-channel image overlain on detailed magnetic data. Drill targets are highlighted along with nearby T3 deposit and priority AEM targets generated by Mod Resources
