JOHANNESBURG (miningweekly.com) – London-listed African Diamonds CEO John Teeling believes that the future of diamonds remains “bright”, despite the current economic turmoil having a severe impact on the industry.

“Supplies are scarce,” he said on Wednesday, when African Diamonds announced that Botswana had renewed “high-potential” prospecting licences for two years.

Teeling said that the renewal of the licences in Botswana, where it is developing the AK6 project, would give African Diamonds time to evaluate the economic viability of the kimberlite pipes and new targets in its licence areas.

African Diamonds subsidiary Atlas’ prospecting licences, PL004 and PL007, had been renewed for two years and a new licence, PL605, near Damtshaa mine, had been issued.

“This is a very welcome development,” Teeling commented, adding that Botswana was the “pre-eminent” source of gem-quality diamonds.

PL004 covers 1 112 ha over AK8, AK9 and BK 5 kimberlite pipes, located near the Orapa and Damtshaa mines.

AK8 is a 5 ha kimberlite pipe containing some 20-million tons of ore to a depth of 300 m below surface, grade of three to seven carats per hundred tons (cpht) and a modeled diamond value between $35/t and $190/ct.

AK9 is a 3 ha pipe containing about 11-million tons of ore to a depth of 250 m below surface, grade of between 2,5 cpht and 3,5 cpht, but insufficient carats have been recovered to provide a fair diamond valuation.

African Diamonds said that the geological knowledge of BK5 was very limited.

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