Aim-listed diamond explorer Botswana Diamonds’ wholly owned subsidiary, Atlas Minerals, has signed a joint venture (JV) agreement with Russia-based OJSC Alrosa subsidiary Sunland Holdings to conduct diamond exploration in Botswana.
The JV, which requires equal contributions from each party, will use Alrosa’s exploration technology, which is available to Sunland, while Atlas Minerals will provide on-site expertise and access to Botswana Diamonds’ extensive diamond database.
“This will be the first time that Alrosa’s exploration technology will be used in Botswana,” states Botswana Diamonds chairperson John Teeling.
He adds that this agreement is good news for Botswana Diamonds and for the country, as it will attract investment.
“We have been working with Alrosa for more than 18 months, selecting the best land in the Orapa and Gope areas of Botswana and identifying multiple targets for the first phase,” Teeling notes.
He adds that applications for exploration licences in the Orapa region have already been submitted.
“The first ground has been obtained and work is expected to start in the third quarter of this year, with an initial project bud-get of $1-million.
“More diamond deposits remain to be discovered in Botswana. The unique technologies being brought to bear on the Kalahari sands improve the chances of success,” Teeling said.
The company also announced a JV with black economic-empowered coal mining company Siseko Minerals, which will result in the companies exploring 13 licences in South African diamond miner Brightstone’s block in the Gope area of Botswana.
The JV, which was announced in July, will explore an area of 6 518 km2.
Teeling notes that the Gope region is prospective, with diamond miner Gem Diamond’s Ghaghoo mine, which is being developed, and the KX36 discovery by diamond miner Petra, which is being explored.
The Ghaghoo mine is located in the Central Kalahari Game Reserve, in Botswana, and was acquired in 2007. Its total resource is estimated at 20.53-million carats, with current value of $5.3-billion.
“Under the terms of the agreement, Botswana Diamonds becomes the operator of the block and will earn into Brightstone’s mine, which is already established in the region, by spending up to $940 000 over three years to earn 51%. The budget for the first year is $140 000,” Teeling states.
He adds that Botswana Diamonds personnel have analysed all available geochemical, geophysical and drilling log data on the Brightstone licences and have identified a series of targets, adding that detailed work on the targets has already started.
“This involves groundwork to identify the best location at which to drill the target, followed by the actual drilling,” states Teeling.
“We are delighted to have reached an agreement with Botswana Diamonds and we are confident that our exploration efforts will yield positive results,” says Siseko Minerals executive director Thabang Mvambi.
Teeling adds that the emerging success of the new Karowe mine, first discovered by the Botswana Diamond founders, is generating increasing interest in the country and that Karowe is producing big, valuable diamonds.
The Karowe mine is located in north-central Botswana and is part of the Orapa Letlhakane kimberlite district. The kimberlite at the mine comprises a single, trilobate kimberlite pipe that is pinched at surface, and its suboutcrop consists of a core of kimberlite, covering an area of 4.2 ha, surrounded by an area where the kimberlite is capped by basalt or basalt breccia.
He points out the KX36 discovery, in the Gope area, and the development of the Ghaghoo mine are further focusing attention on the Gope region.
“We are farming into the Brightstone 13 licence block, as we are confident that we will find previously unknown kimberlites. “Alrosa also has technologies that they believe can penetrate the Kalahari sand to identify structures below. With sufficient sample data, they believe that they can predict diamondiferous kimberlites. Work will begin in the coming weeks,” he notes.