TSX-listed Tsodilo Resources has submitted a renewal application for prospecting licence 369/2014 to the Botswana Department of Mines (DoM) within the Ministry of Mineral Resources, Green Technology and Energy Security.
The renewal application is for a two-year period and the area includes the company’s BK16 kimberlite project.
The centrepiece of the renewal application is the Phase II surface bulk sampling programme, which will be the extraction, processing and diamond recovery of 20 000 t of kimberlite.
In January, the company presented encouraging modelled grade and diamond value reports for the BK16 kimberlite from its Phase I sampling programme that consisted of a 2 077 t large diameter drilling (LDD) bulk sample.
Phase I sampling was designed to obtain an initial determination of the quality and value of the BK16 diamonds.
The positive results from the Phase I programme justifies moving on to Phase II, which is to increase the number of carats significantly by processing a far larger sample which is expected to lead to an increase in the certainty of the grade and diamond value at BK16.
The Phase II programme will comprise surface bulk sampling to extract 20 000 t of kimberlite to obtain 800 ct to 1 600 ct of diamonds; to significantly improve the understanding of the grade of the deposit in carats per hundred tonnes; solidify further the accuracy of the high diamond value in dollars per carat; and further confirm the presence and quality of the Type IIa diamond population.
Further, it will be aimed at confirming the presence of larger diamonds and demonstrating that BK16 will be a significant producer of special diamonds weighing between 10.8 ct and 100 ct; defining an inferred resource; and further refining the accuracy of the economic fundamentals of the project to move towards detailed feasibility studies and, ultimately, mining.
Since the completion of the Phase I programme, Tsodilo has been developing the Phase II programme with third parties to ensure that sufficient carats are obtained in the most cost effective and viable manner.
Phase II will be optimised for size of sample over geographical dispersion.
To achieve this, the company has moved away from LDD bulk sampling to a surface bulk sample method to obtain the required volumes as efficiently as possible.
The company has determined that a surface bulk sample of a boxcut-style design will be the most economic and viable option for Phase II.
Tsodilo has held advanced discussions with Trollope Botswana for the purpose of undertaking the boxcut-style surface bulk sampling programme on behalf of the company.
Tsodilo is also exploring the possibility of including a continuous miner type technology for this project and is in discussions with Vermeer on the viability of this option.
Tsodilo is in the process of finalising the bulk sample design plans and these, along with a rehabilitation design, will be verified by an independent qualified mining engineer prior to final consultation with and approval by the DoM.
“Phase II is the next step in the development of this exciting prospect and represents a major step towards mining this kimberlite and developing a revenue generator for the company and jobs and revenue for the citizens of Botswana,” commented Tsodilo CEO and chairperson James Bruchs.