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LONDON (Alliance News) - Botswana Diamonds PLC said on Tuesday results from kimberlite recovered from its Free State project have showed "high abundances" of diamond-indicating chemicals.
Shares were 13% higher on Tuesday at a price of 1.10 pence each.
Botswana sent off eight kimberlites, contained 3,100 garnets and spinels, for analyses, and it said the results show these kimberlites are now of interest due to potential diamond-bearing potential.
Results, it continued, show similar chemical signatures to results from the nearby "iconic" Jagersfontein and Koffiefontein diamond mines.
As a result of this, Botswana has now moved to a phased drill programme.
It also said Tuesday its Vutomi joint venture has been awarded prospecting rights across four portions of the Palmietgat farm in Limpopo province, 50 kilometres north of the Cullinan diamond mine.
Botswana said Trivalence Mining Corp used to mine the Palmietgat mine next door, extracting 63,379 carats of diamonds in 2003-2004 when its licence then expired. There are "substantial" tailings and residue dumps at the site, Botswana said.
Lastly, Botswana reported a land dispute, saying a group of South African businessman have said they have been awarded a mining permit of a part of Botswana's Mooikloof asset, over which it has a mining licence.
Botswana said a mining licence takes precedence over a permit, which is short-term and only allows small alluvial mining, and South African law does not allow overlapping rights. Botswana is confident, it said, it holds title over the area.
Chairman John Teeling said: "Vutomi, our associate company in South Africa, is very active. The final analyses of samples from the eight Free State kimberlites improves the prospects for the pipes containing diamonds. A drilling campaign will follow.
"Furthermore Vutomi has been awarded a prospecting licence close to the famous Cullinan mine over three kimberlite pipes known to contain diamonds. This is a valuable addition to our portfolio of exploration assets."
Teeling added: "Despite obtaining a fully notarised and registered prospecting right on Mooikloof from the South African Department of Mineral Resources a local company claims they have a mining permit over five hectares of the property. We believe our title is clear and will provide further updates regarding the claim as appropriate."
