Bulk Sampling Programme

RNS Number : 9002A

Botswana Diamonds PLC

09 February 2011

 



Botswana Diamonds plc

("Botswana Diamonds")

9^th February 2011

Bulk Sampling Programme Commissioned for Botswana

·      11,000 ton sampling programme on three kimberlites in the Orapa region of Botswana  to begin in March and is expected to take nine months to complete

·      9,000 tonnes to be taken from BK5 and 1,000 tonnes each from AK8 and AK9

·      Objective is to establish grade and value per carat to evaluate economic viability

The board of Botswana Diamonds (AIM:BOD) announces the commissioning of an 11,000 tonne bulk sample on three kimberlites, BK5, AK8 and AK9 in the Orapa region of Botswana.  These kimberlites are known to contain diamonds and were the subject of a recently completed commercial scoping study.

A 9,000 ton sample will be taken from BK5, which has an estimated size of 7 hectares and a historical grade estimate of 7 carats per hundred tonnes (cpht).  Samples of 1,000 tonnes each will be taken from near surface, higher grade lobes of the AK8 and AK9 kimberlites.  This work is aimed at establishing the value of a ton of ore in the ground.  Development options include a small, stand alone low cost mine or becoming a satellite supplier to one of the existing diamond mines in Botswana.

The work, costing $1 million, will be undertaken on a turnkey basis by Gemcore Sampling of South Africa and is expected to take nine months to complete.  First results can be expected by June 2011.

John Teeling the chairman of Botswana Diamonds commented:

"While this is the first major project for Botswana Diamonds, we have been working on these Orapa kimberlites for some eight years. In recent months, we undertook a study to identify the minimum cash value per ton of ore necessary to sustain viable operations ranging from a quarrying and trucking project to a stand alone mine. This work will help to establish the potential revenue per ton by improving our grade estimates and by giving us sufficient diamonds to establish a reasonably accurate value per carat.

The focus will be on BK5 located near the Damtshaa diamond mine. This is the biggest known kimberlite in our portfolio, with historical grades of 7 cpht. Assuming this grade holds up then the value of each carat will be critical.  AK8 and AK9 are located close to the AK6 mine coming onstream later this year and within trucking distance of Lethlakane. 

Gemcore Sampling, the project manager, will be on the ground by March. Processing will take place in Botswana, so results should begin to flow in four months."

This release has been approved by Andre Fourie, Hons BSc (Geology), who is a registered professional geologist with the South African Council for Natural Scientific Professions. Mr Fourie is the Technical Director of Botswana Diamonds and has over 13 years of experience in diamond exploration and mineral resource management.

Botswana Diamonds PLC

John Teeling, Chairman                                  [phone]

Andre Fourie                                                 [phone]

FinnCap - Nominated Adviser & Broker

Matthew Robinson                                         [phone]

Henrik Persson

College Hill

Nick Elwes                                                     [phone]

 

END

 

 

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