Botswana Diamonds drilling plans get environmental authorisation

(Sharecast News) - Botswana Diamonds announced on Wednesday that it has received environmental authorisation from Botswana's Ministry of Environment and Tourism to proceed with drilling two high-priority targets in the Kalahari region. The AIM-traded company said the targets, identified as gravity anomalies of 12 and six hectares, were located near its KX36 discovery, which it described as a promising 3.5-hectare kimberlite pipe.

It said the programme aimed to enhance the resource potential in the area, including the nearby Ghaghoo Mine, currently under care and maintenance.

The KX36 kimberlite pipe hosts an indicated resource of 17.9 million tonnes at a grade of 35 carats per hundred tonnes, and an inferred resource of 6.7 million tonnes at 36 carats per hundred tonnes, with estimated diamond values reaching up to $107 per carat.

The firm said it planned to start drilling during the Kalahari dry season, between April and October next year, subject to securing the required funding.

"The receipt of environmental authorisation, following submission and approval of our environmental impact assessment, in Botswana is significant," said chairman John Teeling.

"We believe that further diamond discoveries will be made in Botswana, and we believe that the Kalahari will be the next diamond province in Botswana."

Teeling noted that the company owns 100% of KX36 - a "significant diamond discovery" in the Kalahari, the sole kimberlite discovered in the area.

"But kimberlites come in clusters.

"Our work to date and ongoing analysis has identified anomalies in the vicinity of KX36 and the closed Ghaghoo mine 60 kilometres away. We now have the necessary approval to drill these targets."

At 1415 GMT, shares in Botswana Diamonds were down 11.11% at 0.2p.

Reporting by Josh White for Sharecast.com.