JOHANNESBURG (miningweekly.com) – Botswana Diamonds’ focus will remain on discovering new sources of diamonds in the Southern African State despite potentially volatile market prices and an oligopolistic industry dominated by Alrosa, De Beers, Rio Tinto and Dominion Diamonds.
Chairperson John Teeling outlined in a preliminary results statement for the financial year ended June 30, on Monday, that the group would continue to solidify its joint venture (JV) partnership with Alrosa – the world’s largest diamond producer – and had narrowed focus on “extensive” exploration licences in the Orapa diamond region.
During the year under review, a team deployed by the JV conducted two extensive fieldwork programmes and a four-hole drilling programme on Block 117 in the Orapa region, two of which intersected kimberlite veins.
“[This was] a reasonable but not a great result. Further work is being carried out on the drilling results, but we are unlikely to drill further on that licence as the targets look small,” Teeling outlined.
Focus had now turned to the 5-licence block PL206 to PL210 covering 1 357 km2 of highly prospective ground identified by Alrosa almost two years ago.
A major fieldwork programme was carried out in September and October and “substantial” quantities of concentrated soil samples were now being analysed, with early evidence suggesting that the technical analysis was identifying good drilling opportunities.
“Alrosa will identify a series of targets on the blocks and we will agree a budget for 2015 that will include drilling and more fieldwork to better pinpoint drilling locations,” he noted.
The JV had also identified targets across the 13 licences contained within the 6 500 km2 Brightstone block in the Gope region of Botswana.
“[We] have been actively speaking to parties regarding farm-in arrangements into the Brightstone block. While there has been some interest, there is no guarantee that any transaction will be completed.
“Botswana Diamonds’ preference is for a deal that would see a partner with the appropriate expertise taking on the operatorship and funding of the exploration, with the company retaining a minority carried interest,” he said.
While Alrosa and Botswana Diamonds had yet to agree on a formal exploration programme for the various explorations licences in which both parties held an interest, Teeling said he would be surprised if it did not include “a double-digit number of drill holes”.
Looking to the company’s balance sheet, Botswana Diamonds widened its total comprehensive loss for the year, from £518 245 in the 2013 fiscal period to £1.02-million, resulting in a basic loss a share of 0.57p for the period.