JOHANNESBURG (miningweekly.com) – Aim-listed Botswana Diamonds would start the first ground phase of its joint venture (JV) with Russian diamond company Alrosa in January, with Russian geologists set to start fieldwork on the PL117, 2.9 km2, licence area in Orapa, Botswana.
The objective of the initial fieldwork, Botswana Diamonds chairperson John Teeling said on Friday, would be to refine drill targets, after which a drilling programme was expected to take place in March and April.
“There are high expectations for this work but it is grassroots exploration,” Teeling said.
The company further stated that while PL117 contained the top-ranking targets, a series of other targets were also lined up to follow, including areas where deep sand cover had meant that no kimberlites had ever been discovered.
“Alrosa believes that its exploration techniques can predict the location of diamondifereous kimberlites up to 100 m below a cover of Kalahari sand and basalt. The first test of this will be in the first and second quarter of next year when the joint venture will explore PL117, [located] close to the new Karowe mine, which is producing spectacular diamonds,” Teeling explained.
Meanwhile, Alrosa also undertook an analysis of the Gope area, in Botswana, with highly positive results.
Gem Diamonds was currently developing the Ghagoo mine in the region, while Petra Diamonds made a discovery on block KX36 in the east of the area.
Botswana Diamonds said it had the option, through a JV with Siseko Minerals, of earning a 51% interest in the Gope area’s Brightstone block, which covered 13 licences, by spending up to $940 000 over three years.
“Our geologists, with the assistance of Alrosa, have identified a series of targets [in the region] which, finance permitting, we will explore in 2014,” Teeling added.
FUTURE
Teeling said, at the moment, Botswana Diamonds’ exploration ambitions were limited by its finances.
“The retail market for fresh equity in Aim-listed explorers is virtually nonexistent. Falling share prices not only dilute existing shareholders when funds are raised but make funding more difficult, as investors believe that by waiting prices will be lower and, often, they are right.
“We are hoping to place shares with long-term investors and [our] directors will take shares instead of financial compensation,” he pointed out.
He added that Botswana Diamonds would, however, have the funds to operate the Alrosa JV, which had a 2014 budget of £600 000 on a 50:50 basis.
The company’s second priority would be to fund the Gope area exploration.