Paragon Diamonds (LON:PRG) has gained access to a new kimberlite discovery near its Lemphane project in Lethotho.
This morning it announced that it was awarded a prospecting licence over a 23 square kilometre area that hosts the Motete kimberlite dyke. The license lets Paragon explore the area for at least two years.
An exploration team will be mobilised to the site before the end of this year, Paragon said.
It added that the kimberlite dyke has been traced continuously over at least 1 kilometre. According to Paragon the kimberlite attains widths in excess of 2 metres, with an average widths exceeding 1 metre.
Motete is located about 10 kilometres north east of the company's flagship Lemphane kimberlite project, where it is currently carrying out a bulk sampling programme. Additionally it is around 23 kilometres from Gem Diamonds Letseng mine.
Paragon chairman Luc Huyghebaert said: "The conferring of a licence over such a substantial, continuous and accessible kimberlite dyke, with obvious apparent diamond potential presents the company with an opportunity to develop a fast-track diamond production operation, subject to determining an economic grade and value, and a viable resource.
“As such it is our intention to immediately commence a detailed evaluation of this kimberlite in the coming weeks and months."