Botswana Diamonds PLC is strategically positioning itself for a period of substantial growth and development, as evidenced by its Interim Statement and Financial Results for the six months ending December 31, 2018. The company is accelerating its efforts across multiple projects in Southern Africa, with a clear focus on advancing its diamond exploration and mining portfolio. A key highlight from the statement is the anticipated commencement of production at the Thorny River project in South Africa, slated for mid-2019, marking a pivotal transition from exploration to active mining.
Advancing Thorny River: From Development to Production
The Thorny River diamond dyke project in South Africa represents a cornerstone of Botswana Diamonds’ near-term production strategy. Significant progress has been made, with the company confirming that all necessary preparations are well underway. A crucial step, the appointment of a mining contractor, has been successfully completed, ensuring that the operational phase will be managed by experienced professionals. This foundational work sets the stage for efficient and effective resource extraction.
Further streamlining operations, Botswana Diamonds has finalized an agreement to process the kimberlites at a nearby processing plant. This collaborative approach minimizes capital expenditure and leverages existing infrastructure, a smart move for optimizing initial production costs and timelines. The refurbishment of this processing plant is currently in progress, with expectations for wet testing to commence within a matter of weeks. Wet testing is a critical phase that verifies the plant’s operational readiness and efficiency before full-scale processing begins, ensuring all systems are performing optimally.
With delineation drilling already completed, a process vital for precisely defining the ore body’s size, shape, and grade, the company is now awaiting the finalization of permits. Assuming these regulatory approvals are secured as anticipated, bulk sampling is projected to begin in May 2019. This initial bulk sampling phase is designed to ramp up to an impressive 20,000 tons per month, providing crucial data on diamond grade and quality, and further de-risking the project as it moves towards sustained production. The methodical progression from drilling to permitting, followed by bulk sampling and eventual full-scale production, underscores Botswana Diamonds’ diligent and strategic approach to project development.
Unlocking Potential in South Africa’s Free State Kimberlites
Beyond Thorny River, Botswana Diamonds is making significant strides in its exploration efforts in the Free State province of South Africa. This region holds immense historical significance in the diamond industry, being home to iconic mines such as Koffiefontein and Jagersfontein. The company has reported the exciting “re-discovery” of eight kimberlite pipes in this highly prospective area. Kimberlite pipes are primary sources of diamonds, making such discoveries incredibly promising for future mining prospects.
To thoroughly evaluate these newly identified targets, Botswana Diamonds has completed a comprehensive suite of geological investigations. This includes “whole rock geochemistry,” which analyzes the chemical composition of the entire rock sample to understand its formation and potential for diamondiferous material. “Mineral chemistry” focuses on the chemical makeup of individual minerals within the kimberlite, providing clues about the diamond potential and the depth of origin. Additionally, “detailed ground geophysics work” has been conducted, employing various techniques to map subsurface geology and identify anomalies that could indicate the presence of diamond-bearing structures. This rigorous multi-disciplinary approach ensures a robust assessment of the kimberlites’ potential. Building on these positive results, a phased drilling programme has been proposed and is currently in the planning phase, designed to systematically test these targets and assess their economic viability.
Strategic Partnership and Exploration in Zimbabwe’s Marange Fields
Botswana Diamonds is also expanding its footprint into Zimbabwe, a country with a rich history of diamond production, particularly in the Marange Diamond Fields. The company’s study of the Heritage Concession within this region has yielded “positive results,” indicating significant potential. This venture is pursued through a joint venture agreement with Vast Resources plc (Vast), underscoring Botswana Diamonds’ strategy of forming strategic partnerships to de-risk and advance projects.
The next crucial step in the Heritage Concession involves investigating the potential of both modern alluvial diamond deposits and older conglomerates on the property. Alluvial deposits are diamonds found in riverbeds or ancient streambeds, often eroded from primary kimberlite sources. Older conglomerates refer to sedimentary rocks containing rounded fragments of other rocks, which can also host diamonds. Assessing both types of deposits allows for a comprehensive understanding of the project’s resource base. Assuming these initial investigations continue to yield positive results, the field work will be closely followed by an intensive program of drilling, pitting, and bulk sampling. This systematic exploration methodology is designed to quantify the diamond resources and will form a critical part of a pre-feasibility study. Such a study would evaluate the project’s technical and economic viability, potentially justifying further capital investment beyond the initial US$ 1 million committed to the program by Vast Resources, signaling the potential for a much larger project development.
Navigating Prospects in Botswana: Maibwe and Gope Region
Botswana, a global leader in diamond production, remains a core focus for Botswana Diamonds. The company has recently completed a comprehensive report on the Maibwe prospect, located in the highly prospective Gope region of the Kalahari. This report was prepared for the liquidator of BCL, which holds a 51% ownership interest in the licenses for the prospect. Botswana Diamonds itself holds a net 15% interest in the company associated with these licenses. The company has announced that it expects the liquidator to offer the BCL stake for sale, which could present a significant opportunity for Botswana Diamonds to increase its ownership or for a new strategic partner to enter the project.
In another promising development within Botswana’s Gope Region of the Kalahari Desert, heavy mineral sampling of eight previously discovered geophysical anomalies has been successfully completed. This detailed sampling program yielded a remarkable 267 kimberlitic indicator minerals. These indicator minerals are key to diamond exploration, as they are often found in close association with diamonds and can lead explorers to their kimberlite source. The discovered minerals included 41 garnets, 13 chromites, 139 ilmenites, 4 chrome diopsides, and 70 olivines. Each of these minerals provides valuable insights into the potential diamond-bearing nature of the host rock.
A subsequent grain analysis, conducted by Remote Exploration Services of Cape Town, concluded that the sources of these indicator minerals were likely to be local. This conclusion is based on the abundance, significant size, and fresh surface textures of the discovered minerals. The freshness and size of indicator minerals typically suggest that they have not traveled far from their original kimberlite source, significantly narrowing down the search area and increasing the probability of locating the diamondiferous pipes nearby. This finding is particularly encouraging for future exploration campaigns in the Gope region, validating the company’s targeted approach and highlighting the high prospectivity of the area.
Sunland Minerals: Consolidating Ownership and Seeking New Partnerships in Orapa
Botswana Diamonds has also consolidated its position in the Orapa region of Botswana, another globally renowned diamondiferous area. The company is now the 100% owner of Sunland Minerals, the entity developing its projects in Orapa. This complete ownership was achieved after Botswana Diamonds successfully acquired the 50% stake previously held by its former joint venture partner, Alrosa. This acquisition simplifies the operational structure and provides Botswana Diamonds with full control over the strategic direction and pace of development for the Orapa projects.
Looking ahead, Botswana Diamonds has revealed that a potential new investor has expressed interest in acquiring 50% of Sunland Minerals. This prospective partner is described as a large diamond producer itself, bringing “new ideas” and a keen interest in discovering new kimberlites in Botswana. Such a partnership would not only introduce fresh capital and expertise but also validate the potential of Sunland’s projects and the Orapa region’s prospectivity. It represents a strategic move to potentially share the investment burden while leveraging the experience and insights of a major industry player, thereby accelerating exploration and development efforts and enhancing the likelihood of new discoveries.
Botswana Diamonds: A Future Focused on Growth and Strategic Expansion
In summary, Botswana Diamonds is demonstrating a robust and dynamic approach to diamond exploration and development across Southern Africa. From the imminent production at Thorny River in South Africa to the exciting re-discoveries in the Free State, the strategic partnership in Zimbabwe’s Marange Fields, and the promising results from the Maibwe and Gope regions in Botswana, the company is meticulously building a diversified and high-potential portfolio. The consolidation of ownership in Sunland Minerals and the attraction of new major investors further underscore its strategic acumen and the intrinsic value of its assets.
The systematic application of advanced geological and geophysical techniques, combined with strategic partnerships and a clear pathway to production, positions Botswana Diamonds for significant future growth. The company’s focus on high-quality, diamondiferous kimberlites in established diamond-producing regions minimizes risk while maximizing the potential for substantial discoveries and economic returns. As these projects continue to advance, Botswana Diamonds is firmly establishing itself as a key player in the global diamond industry, poised to deliver considerable value through diligent exploration, strategic development, and efficient production.