LONDON (Alliance News) - The Chairman of Botswana Diamonds Monday said the company knows there are diamonds lying within one of its licenses in the Gope region of the country, prompting the miner and its partner to launch another drilling programme.
Botswana Diamonds shares were up 25% to 2.40 pence per share on Monday afternoon.
A large diameter drilling programme will be carried out on licence PL 186, part of the Maibwe block of licenses in Botswana. The London-listed company holds a 15% stake in the the owner of the licence, Maibwe Diamonds, and is fully carried on costs up until a bankable feasibility study is completed.
Maibwe Diamonds is a privately-held company that is ultimately controlled by BCL, a state-owned copper and nickel producer.
The large diameter drilling programme will start imminently and will be following on from the diamond drilling conducted on the licence in 2015. The new programme will provide a clearer understanding of the diamonds that lie within the area that has already been drilled, but also includes other licences within the Maibwe block.
Botswana Diamonds initially entered into the block back in 2013 after signing a joint venture with Brightstone Mining. The state-owned company BCL then took over the block in question from Brightstone and created Maibwe Diamonds.
Chairman John Teeling said: "We now know there are diamonds on PL 186. The upcoming drilling is to establish the grade and quality."
The only other producing diamond mine that lies in the Gope region is the Ghagoo mine, which is owned by fellow London-listed Gem Diamonds Ltd.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Gem Diamonds Di (GEMD)
Botswana Diam (BOD)