Kraaipan Project

Laconia's acquisition of the Kraaipan Gold-Nickel-Copper-PGM Project provides the Company with a very unique opportunity to explore 50 strike kilometres of highly prospective greenstone rocks, which have only been subjected to minor previous mineral exploration.

The Kraaipan Project comprises Prospecting Licence, PL232/2016 ('Project Tenure') that is 866km2 in area and covers approximately 50 kilometre stretch of Kraaipan Greenstone Belt in southern Botswana (Figure 1). The Kraaipan Project is part of the larger NNW trending Amalia-Kraaipan-Greenstone-Terrane ('AKGT') of the Kaapvaal Craton. The AKGT in Botswana is directly along strike from significant gold deposits, as well as adjacent to significant PGE deposits across the border in South Africa.

The southern boundary of the project tenure is located along Botswana’s southern border with South Africa and can be accessed via well-maintained, all weather roads from Gaborone (capital of Botswana), approximately 150 kilometres to the north.

Figure: Location of the Kraaipan Gold-Nickel-Copper-PGM Project in relation to the Harmony’s Kalgold Mine and the African Rainbow Minerals’ Kalplats Project across the border in South Africa.

Gold Prospectivity

The Amalia-Kraaipan Greenstone Terrane (AKGT) in Botswana is interpreted as highly prospective for both lode-gold mineralisation as it is within the same terrane as the well-known Kalgold Mine in South Africa (Figure 1). The Kalgold Mine, owned by Harmony Gold Mining Company Ltd (‘Harmony’, JSE: HAR) has been in production since 1996 and had an estimated pre-mining mineral resource containing over 4 million ounces of gold. The gold mineralisation identified by previous exploration in the AKGT within Botswana is distinctly similar to that found at Kalgold. It occurs in swarms of quartz ± carbonate veins that obliquely cross-cut the Banded Iron Formation (‘BIF’) host rocks. In both areas, the gold mineralized veins are associated with disseminated sulphide mineralisation, dominated by pyrite, distributed around and between the quartz vein swarms.

Nickel, Copper and Platinum Group Metals Prospectivity

The AKGT is also interpreted to be prospective for Nickel, Copper and Platinum Group Metals (PGM) mineralisation associated with mafic intrusive rocks, similar to the style of mineralisation found at the Kalplats Project across the border in South Africa (Figure 1). The Kalplats Project is reported to contain over 6.5 million ounces of 3E (platinum + palladium + gold) PGMs2. The Kalplats mineralisation is hosted within the Stella Layered Intrusion, which is a layered intrusion of variably magnetite-rich gabbroic material (mafic intrusive igneous rocks). The PGM mineralisation at Kalplats occurs as magmatic segregation reef deposits hosted in magnetite gabbro closely associated with BIF, magnetite-rich quartzite and amphibolite layers.

Proposed Exploration Activities

As vast areas of these prospective greenstone rocks have been left unexplored due to various thicknesses of transported overburden, Laconia plans to utilise the well-developed and highly successful undercover exploration techniques, that are tried and tested in western and southern Australia (Yilgarn Goldfields, Gawler Craton, etc) to an exciting, well-endowed but poorly explored greenstone terrane. The most effective and successful uncover exploration techniques to find gold mineralisation similar to that found at Kalgold undercover is interpreted to be a combination of geochemical soil/calcrete sampling and geophysical surveys. In order to progress the exploration of the Kraaipan Project the company plans to:

Geochemistry

  • Complete regional soil sampling surveys and analyse for ‘Pathfinder’ elements e.g. Cu, Zn, As, Te, Bi, Ag, Rb, Ba, Zr, Sc and K using a full geochemistry suite, as well as low detection Au & PGMs.
  • Trench and drill (aircore) to sample the calcrete and top of the ba sement in areas of anomalous concentrations of ‘Pathfinder’ elements or gold anomalism from the soil sampling survey results.

Geophysics

  • Complete Airborne Electromagnetic Surveys to test for conductive anomalies coincident with geochemical anomalies.
  • Complete Induced Polarisation (IP) Surveys across any areas of anomalous concentrations of ‘Pathfinder’ elements or gold anomalism.

Drilling

  • Drill test exploration targets generated by the geochemical/geophysical results.
  • Drill to test the extents of the gold mineralisation outlined by previous explorers.

1- 2010 Mineral Resources and Mineral Reserves Report for Harmony Gold Mining Co. Ltd (JSE: HAR).
2- 2016 Mineral Resources and Mineral Reserves Report for African Rainbow Minerals (JSE: ARI)

Competent Person Statement

The information in this report that relates to exploration results is based upon information prepared and reviewed by Dr Quinton Hills who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Hills is an employee of Laconia Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Hills consents to the inclusion in this report of the matters based on information in the form and context in which it appears.