Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Improved demand for diamonds coupled with flat supply was making this a good time to be conducting diamond exploration, Aim-listed diamond explorer Botswana Diamonds chairperson John Teeling said in a statement on Monday.
He pointed out that the fundamentals of diamonds were “very strong” and that during the recent "bad years" demand had improved.
“People all over the world believe that a diamond is forever. Prices of rough diamonds confirm this. Though prices are volatile, the trend is good [and] prices have been strong to date in 2014.
“Existing mines are ageing and becoming more expensive to mine, [and] there is little new supply,” Teeling said, adding that the danger to prices posed by a potential flood of diamonds from the Marange fields, in Zimbabwe, had failed to materialise.
Further, exploration had been stunted by lack of funds for juniors, he pointed out, so future supply was uncertain. In this environment, Botswana Diamonds, which reported a narrowed operating loss for the six months ended December 31, of £222 000, as opposed to £256 000 for the prior comparative period, was an active explorer along with its joint venture (JV) partner Russian diamond major Alrosa.
Botswana Diamonds and Alrosa’s joint budget for 2014 amounted $1-million.
He said Botswana Diamonds, in conjunction with Alrosa was using technology “never before applied in Botswana” to explore for diamonds in the Orapa region.
“Alrosa has applied unique technical skills to identify targets, which they believe will be kimberlites containing diamonds. This technology [was] developed to see through the tundra in Siberia,” Teeling explained.
Currently, geologists from Botswana Diamonds and Alrosa were focusing on the 2.9 km2 PL117 licence area, where the first phase of work, which included a ground magnetic survey, an electromagnetic survey, soil sampling and panning for concentrates, had been completed.
“These concentrates are being shipped to St. Petersburg, in Russia, for mineralogical identification, grain counts and probing, and indicator minerals are in evidence,” the company said.
Botswana Diamonds noted that this was expected as PL117 contained AK10, a 5 ha kimberlite that contained previously discovered small quantities of diamonds.
“While not wishing to pre-empt the outcome of the analysis now being undertaken, it is expected that a drilling programme will follow,” the company said.
Further, samples had also been taken from the PL167 block, in the Orapa region, which was 100% owned by Botswana Diamonds.
These samples would also be analysed in Russia and the company expected to be able to report on these in May.
Meanwhile, discussions were ongoing with potential JV partners for licences in the Gope region of Botswana, where Botswana Diamonds and Alrosa had identified three targets.
“In the light of the high level of activity and the potential in the ground we hold in Botswana, we have scaled back exploration in other areas. We maintain our Cameroon block while we have dropped the two blocks in Mozambique,” the company concluded.