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Interest returns to known deposits, way paved for exploration

20th February 2015

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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The latest exploration boom in Botswana, although seemingly waning, has shifted the spotlight to several known deposits again, notes South African mining consultancy The MSA Group, stating that copper and nickel deposits are receiving special attention.

Recent high copper prices have resulted in the potential economic feasibility of lower-grade copper deposits in Botswana, MSA mineral resources principal consultant Jeremy Witley says, highlighting that Australian miner Discovery Metals is exploring and mining several copper deposits in the Kalahari Copperbelt of north-west Botswana. Explorer Khoemacau Copper Mining is exploring in the same belt and intends to embark on a mining project.

He points out that MSA is conducting a prefeasibility study, which is expected to be completed within the next two months for Botswana State-owned miner and smelter BCL, in partnership with Australian explorer Botswana Metals.

Further, The MSA Group also assisted in and finalised the due diligence work for another transaction in 2014, which BCL concluded to acquire shares in global nickel/copper producer Norilsk Nickel’s Nkomati nickel mine (a joint venture with miner African Rainbow Minerals), in South Africa, and the Tati nickel mine, near Francistown, in Botswana.

MSA also completed a concept level study and a mineral resource estimate for BCL regarding the Dikoloti nickel project, in north-east Botswana, in 2014. Witley notes that BCL is conducting another phase of drilling to gain better insight into the nature of the economics of the deposit and the nickel deposits that will feed into the BCL smelter.

Other recent ongoing copper projects include explorer Khoemacau’s Ghanzi project, for which the company was granted a prospecting licence extension for an additional two-year period, ending December 31, 2014. The project, which covers about 2 149 km2, is located in the centre of the Kalahari Copperbelt. The property contains sediment-hosted copper/silver deposits, with a demonstrated cumulative tested strike length of 70 km.

However, Witley acknowledges that there is only slight current exploration activity, owing to depressed metal prices and a lack of investment. He predicts that, amid these circumstances, Botswana will witness another exploration boom only after at least three years.

Nevertheless, MSA GM Ian Haddon highlights that several key factors pave the way for future exploration in Botswana, including ease of working with the relevant government authorities and investor confidence, reflected in the country’s high ranking on the World Bank Ease of Doing Business Index, where it is consistently included in the top five countries in sub-Saharan Africa.

This ease of government cooperation is supported by the government’s drive for local skills development, Witley says, adding that, while the country relies significantly on the diamond industry, government is keen to diversify the economy by encouraging interest in other commodity sectors such as copper, iron-ore, gold and coal.

“Although Botswana is still underexplored, there is significant potential for new discoveries and, while the country needs to manage the infrastructure requirements for bulk commodities, government seems to be sincere from a regulatory point of view. In light of this, the country remains an attractive investment destination for mining,” concludes Haddon.

Edited by Leandi Kolver
Creamer Media Deputy Editor

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