Botswana Diamonds (LON:BOD) said it is in advanced negotiations to partner with a group that has “new technologies and approaches” to finding diamonds.
“The objective of the joint work is to identify large diamondiferous kimberlite pipes with the potential to become high-volume, high-value long life mines,” said chairman John Teeling.
“The initial focus of this new venture will be in North East Botswana including the Orapa area.”
As the name suggests, the company is focused on Botswana. However it also very exciting projects in Cameroon and Zimbabwe.
Teeling said the market fundamentals for the stones are strong and support the company’s exploration strategy.
“Diamond demand is vigorous while supply is at best stable,” he told investors.
“We are operating in the best areas to find diamonds.
“We have strengthened an already successful team and we are confident that there are more mines to be found in Botswana where we hope to repeat our earlier success using new technology and new insights.”
His comments were made as the group posted results for the period from the date of incorporation in September last year to June 31 this year. This showed the group made an operating loss of £696,472. The company had cash of £290,577 as at the end of June.
Teeling and his team enjoyed success with African Diamonds.
It was African Diamonds that recognised the potential, developed, and last year sold, the AK6 kimberlite mine in Botswana, which is located close to the massive Orapa diamond mine.
“The Botswana Diamonds' approach to exploration is simple, but rigorous - go where the geology is best, go where there are or were mines and remember that you cannot find a mine in an office,” Teeling said.
“These rules dictate low overheads and an acceptance of political risk in return for better geological opportunities.”