Operations Update

RNS Number : 5679N

Botswana Diamonds PLC

05 September 2011

 



5 September 2011

Botswana Diamonds plc

("Botswana Diamonds")

Operations Update

·     Cameroon:

-     A 430 sq km Exploration Licence has been awarded to Botswana Diamonds. This covers the area of paleo-placer conglomerate identified by the company.

-     A bulk sampling programme to examine diamond potential will be undertaken in the coming months.

·     Botswana: Orapa Region

-     PL04/2002 has been extended until 30 June 2012. This contains AK8, AK9, BK5.

-     Renewal of PL07/2004 remains under consideration and should be resolved in the coming weeks.

-     Bulk sampling on two kimberlites AK8 and BK5 has been completed.

-     The grade of AK8 at 1.25 cpht is not likely to be commercial. Previously reported grades at BK5 were not replicated in the bulk sampling, where no diamonds were discovered.

-     A review of all available data on AK9 is ongoing and a decision whether to bulk sample or not is imminent.

-     New prospecting licences applied for in the Orapa area.

·     Zimbabwe:

-     A small sampling programme will be carried out on seven claims held by Botswana Diamonds southeast of the Murowa area of Zimbabwe.

The Directors of Botswana Diamonds [AIM:BOD] are pleased to present an update on operations.

Cameroon

As a result of the initial reconnaissance on our 8,087 sq km Libongo licence, adjacent to the Mobilong diamond discovery, we applied for and obtained a 430 sq km Exploration Licence over a portion of the original Reconnaissance Licence.  The balance of the Reconnaissance Licence remains valid however and as work progresses, further portions can be converted to Exploration Licences. The new licence covers the ground where paleo-conglomerates were identified during the current exploration activities. This licence is valid for an initial 4 year period and is renewable for multiple periods of 4 years. An Exploration Licence ensures exclusive rights to prospect and also gives the holder priority for later converting to a Mining Concession.

Botswana Diamonds will undertake a bulk sample exercise towards the end of 2011, after the rainy season. This sampling programme is to determine whether the conglomerate occurrence on BOD's ground is also diamondiferous.

Botswana

Prospecting Licence no 04/2002 has been extended by the State for a period of twelve months. This licence contains AK8, AK9 and BK5.

Processing of samples from the AK8 and BK5 kimberlites is now complete.

AK8 - A total of 883 tons of kimberlite was processed from which 11.03 carats were recovered. This translates into an unmodelled grade of 1.25 cpht which is significantly below that reported from previous work by De Beers and African Diamonds. A total of 25 stones were recovered giving an average size of 0.44 carats per stone which is larger than previously found. The diamonds will be sent for valuation during September 2011. It is most unlikely that the diamond values will be high enough to make the kimberlite commercial at the current grade.

BK5 - A total of 547 tons of kimberlite material was treated from the historical stockpile material. A total of 772 tons of kimberlite was treated from trenches excavated by Botswana Diamonds. Processing of this material yielded no diamonds despite earlier sampling results showing their presence and a decision was made to stop further sampling. The discrepancies between the previous results and bulk sample results are being analysed.

AK9 - This kimberlite is overlaid by a thick, in places up to 90m, basalt breccia cap. We are relogging the core to better understand the geology of the kimberlite at depth. There are significant differences between micro diamond and macro diamond grade estimates. Prior to sampling, these differences need to be understood.

The application for renewal of PL07/2004 is under consideration by the Ministry and we hope to have this resolved in the coming weeks.  Work is planned on this licence for the latter part of 2011 to resolve anomalous kimberlite indicator mineral occurrences.  This ground lies directly south of De Beers' BK15 and BK17 kimberlites. The indicator anomaly is not explained by the presence of these kimberlites and if resolved may well lead to another kimberlite discovery.

Botswana Diamonds' team has also identified several areas of unexplained kimberlite indicator and geophysical anomalies in the general Orapa area. We have applied for ground over some of these and are in the process of applying for ground over the others.

Zimbabwe

Botswana Diamonds holds seven claims in the southeast of the country, through a local subsidiary, over an elongated 2.5ha kimberlite discovered in the mid 1990's.  Some early, limited, sampling suggests that a grade of 10-15 cpht was achieved.  The kimberlite is well delineated, but very little information is available about the quality of the diamonds. A small bulk sample is planned to test the grade and to obtain a parcel of diamonds for valuation.

John Teeling, Chairman, commented:

"Significant progress has been made. Positive results from our initial work in Cameroon led us to apply for an Exploration Licence over the area where we have found the paleo-placer conglomerates. We plan to bulk sample late 2011.

While we continue to apply for new ground in the Orapa area of Botswana the bulk sampling results on BK5 and AK8 were surprising and disappointing. Surprising in that we found no diamonds in BK5 and fewer, but bigger diamonds in AK8. We are re-examining the historical data and we are carrying out a thorough review of the AK9 kimberlite prior to a decision to bulk sample. Differences in results need an explanation.

We believe that more mines will be found in the Orapa region. We have conducted a detailed review of the Orapa area and have applied for certain prospecting licences.

In Zimbabwe, we are preparing to sample claims in the South East. The target is a hard rock kimberlite similar to the Murowa mine of Rio Tinto. We maintain a watching brief on the Marange area where we have a current application."

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.

Enquiries:

Botswana Diamonds PLC

John Teeling, Chairman                                  [phone]

Andre Fourie                                                   [phone]

Westhouse Securities Limited

Tim Feather                                                    [phone]

Richard Baty

College Hill

Nick Elwes                                                      [phone]

 

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