08 Aug 2013

Aim-listed Botswana Diamonds has reached an agreement with privately owned Evershap Investments to operate and jointly own the 2.9 square km PL 117/2011 diamond mining licence in Orapa.

A statement from the company states that it could earn up to a 51 per cent interest in the joint venture company Newco, which would  own the licence, by spending up to $300 000 over three years.

Chairperson, John Teeling says in the statement that Botswana Diamonds had over the past two years, analysed all available geochemical and geophysical data on the Orapa area.

It also states that a series of focused targets, one of which was on the Newco block that contained AK10, a diamondiferous kimberlite, which the company’s predecessor, African Diamonds discovered in 2004, had been identified.

Also, it says although extensive drilling of AK10 by African Diamonds did not reveal a commercial deposit, a recent review of data suggested that the area was worth revisiting.

“We are now using new technology and new eyes to look at the licence. This is a very prospective area,” Teeling says.

Detailed work on the block, the statement says, would start in the coming weeks and would involve groundwork to identify the best location to drill the target, followed by drilling.

The Orapa area, it adds, was known to be highly prospective for diamonds, containing several producing diamond mines and diamond development projects.

It further highlights that last week, Botswana Diamonds entered into an agreement with Siseko Minerals to earn a 51 per cent stake in the Brightstone block in the Gope region, where Gem Diamonds is developing the Ghagoo mine and Petra Diamonds made a discovery on block KX36.

Botswana Diamonds also has exploration projects in Cameroon and its exploration team was responsible for the discovery of one of the 20 kimberlite mines in the world, the Karowe mine. ENDS