- Kavango Resources said testing of samples taken from the Ditau prospect in Botswana showed two drill holes had not shown economic levels of mineralisation.

Shares in the company subsequently plunged more than 40%.

Kavango said concerns had been raised over apparent inconsistencies in previous testing results received from the Genalysis Laboratory in Australia, so it had requested some samples to be re-assayed.

In addition, 33 duplicate samples were sent for inter-laboratory checks at SGS Labs in Johannesburg.

'Having now received the results of these check assays, Kavango is now satisfied that the original Genalysis results are correct and reliable,' the company said.

However, it said the latest assay results showed lower-than-expected values from the altered Karoo sediments in both holes.

The gabbroic rocks, meanwhile, appeared to be more mineralized, with anomalous values of gold and base metal occurring towards the bottom of one of the holes.

'Whilst the assay results show that the first two holes at Ditau have not identified economic mineralization, the geochemistry generated by the laboratory supports the existence an alkaline igneous complex featuring a number of ring structures,' chief executive Michael Foster said.

'This would explain the large volume of alteration encountered in both holes, which is possibly due to fenitization associated with the emplacement of carbonatites into the Karoo sediments.'

'This is an exciting development in the continuing exploration of the Ditau prospect.'

'Some of the world's biggest copper and rare earth deposits are associated with such intrusives.'

'Further ground based geophysics will be undertaken followed by drilling to advance the investigation of this intriguing prospect.'

'In the meantime discussions are being held with industry partners with a view to sharing the costs of further exploration.'

At 2:42pm: [LON:KAV] Kavango Resources Plc Ord 0.1p share price was -1.5p at 1.9p

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