Botswana Diamonds (LON:BOD) has commissioned an 11,000 tonne bulk sampling programme in the diamond-rich Orapa region of Botswana.
The programme will focus on the three kimberlites, BK5, AK8 and AK9, all of which are known to contain diamonds. A commercial scoping study was completed on these kimberlites recently. Most of the work will focus on BK5, where it will take a 9,000 tonne sample, while 1,000 tonnes will be taken from AK8 and AK9.
Work will begin in March and the programme should take around 9 months to complete. The bulk sampling should allow the company to establish grades and the value per carat, which will in turn allow it to evaluate their economic viability.
“The focus will be on BK5 located near the Damtshaa diamond mine,” chairman John Teeling said.
“This is the biggest known kimberlite in our portfolio, with historical grades of 7 carats per hundred tonne.
“Assuming this grade holds up then the value of each carat will be critical. AK8 and AK9 are located close to the AK6 mine coming on-stream later this year and within trucking distance of Lethlakane.”
While Botswana Diamonds is one of AIM’s youngest companies, it joined the junior market just last week, but you can’t really call it a ‘newbie’. Both its assets and management team will be familiar to many investors. The company is led by John Teeling, one of AIM’s best known deal makers.
It comprises the exploration assets of African Diamonds which was sold to Lucara Diamond Corp in a share-based deal worth £51 million back in December. Lucara only had eyes for African Diamond’s AK6 diamond mine and the remaining exploration assets were spun out into the newly formed Botswana Diamonds.
With the successful discovery, development and sale of the AK6 diamond mine now behind them Botswana Diamonds management team will now focus on the AK8, AK9 and BK5 kimberlites which are already known to contain diamonds.
Teeling adds: "While this is the first major project for Botswana Diamonds, we have been working on these Orapa kimberlites for some eight years.”
“In recent months, we undertook a study to identify the minimum cash value per ton of ore necessary to sustain viable operations ranging from a quarrying and trucking project to a stand-alone mine.
“This work will help to establish the potential revenue per ton by improving our grade estimates and by giving us sufficient diamonds to establish a reasonably accurate value per carat.”
The first bulk sampling results are expected by June 2011.