The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I think we can all agree this share price is way behind the eight-ball.
People know news is incoming and are holding very tight to shares which are near impossible to trade at a bullish time. MCap of £10M is ridiculous when you dig into the assets and short-term potential. Remember this story is not new to JC as any African Diamonds shareholders will testify.
Moving on to Torny River
"The estimated kimberlite volume in the River area is considerably better than expected. Botswana Diamonds will now determine the mining potential. Let me put this in context. The two-million tonnes is almost twice the size of the nearby Marsfontein deposit."
This represents 1 Million ct from the bulk sample extrapolation at an estimated $180 per ct
$180 M just for starters.
This is the two blows and does not take account of the new finds or any of the dyke material.
BOD share of this at 15% would be $27M.
*** packet calculation
Not an answer to the revenue question but a good prequel to the excitement to come.
https://www.facebook.com/watch/?v=2351087761823958
It is a piece JC did at the time he was bringing experts in to assess the gravels around Marsfontain mine.
Where passion meets science: BOD is developing the iconic Marsfontein diamond mine dumps and gravels.
September 2019
After this bulk sampling was undertaken:-
"The Company announced on 24th February 2020 that kimberlite, identified by visual inspection, was intersected at shallow depth in two out of the three holes (30 to 33m and 36 to 39m) on Marsfontein. This kimberlite is believed to be associated with the high-grade Marsfontein M1 kimberlite pipe and has been identified as 'high-interest'. In response a bulk sampling campaign has commenced on site of the remnant kimberlite of the same type encountered in the drill samples. Treatment will be undertaken by Vutomi's mining contractor at a nearby diamond processing facility using two stage crushing, screening, pans, x-ray and grease recovery processes." in March 2020.
Results of these samples:-
The samples comprised 58 tons of fresh high-interest kimberlite and 62 tons of kimberlitic material from one of the residual stockpiles, known as 'Dump E'.
· 87 macro diamonds were recovered from the fresh kimberlite giving a modelled grade of 50cpht*.
· 24 macro diamonds were recovered from Dump E giving a modelled grade of 16cpht*.
"James Campbell, Managing Director commented "This bulk sampling campaign, which was carried out with the company's royalty mining contractor Eurafrican Diamond Corporation, had two objectives. The first was to test the grade of the fresh kimberlite and the second was to confirm the grades of one of the mine dumps. Both were achieved, and proof of the fresh kimberlite grade paves the way for further exploration work on Marsfontein to target potential blows. The kimberlite grade is aligned with those achieved at Klipspringer mine and Thorny River, which are both nearby, indicating the considerable extent of the kimberlite dyke system. "
The one bit of news we don't seem to have is the overall tonnage in these dykes. I think these to be river-like flows of kimberlite which were formed as the material flowed from the various hot spots or blows. I understand it is not the same but I visualise it as a lave flow stemming from an eruption.
The distance between blows conjures up the total amount of kimberlite to be massive and running near the surface.
I like the bit which says all kimberlite seems to correspond to the ore processed at Marsfontain. This seems similar also at the River Blows on Thorny River. Our next mine.
Just cannot control excitement for the next months and even years.
Let not forget that JC is not new to making big deals and lots of money for his shareholders.
“”African Diamonds CEO James Campbell told Miningmx: “We have received an unsolicited offer, in which the business rationale makes sense but the price does not. We are now in negotiations.’“”
"The supply of natural #diamonds is on the decline and as a result, there is support for a healthy price environment for natural diamonds.
Many large world-class diamond mines are near the end of life."
Wouldn't it be good the have Gahgoo and KX35 filling a gap in the declining world resource?
New players taking advantage of this decline whilst low production increases rough diamond price.
JC's latest tweet sees him at the Mining Indaba along with a host of Fund Managers.
Another interesting step?
https://twitter.com/JAHC1/status/1623211169057046528
This is for Q2 2023 we start to mine this area.
"The estimated kimberlite volume in the River area is considerably better than expected. Botswana Diamonds will now determine the mining potential. Let me put this in context. The 2 million tonnes is almost twice the size of the nearby Marsfontein deposit. We have identified other small potential blows which could further increase the kimberlite volume. This enhances the potential in developing a "hub and spoke" mining project".
1p is only the launch pad for a year of explosive announcements .
Ghaghoo and KX35 will be the catalyst to take the company to the next level. We all know JC can also pull a rabbit from left field.
Exciting times are ahead.
As we say at Oldham Athletic KTF (keep the faith)
“James Campbell, Managing Director, commented: "Working with our joint venture partner VAST, we have completed thorough due diligence on Ghaghoo. We believe there are significant opportunities to improve Ghaghoo's operating and financial performance through both the application of new and optimisation of existing technologies along with a strongly recovering diamond market. Gem Diamonds' advanced underground mine development and the surface infrastructure already in place, means a return to production is potentially possible with an overall objective to target a return to name plate capacity of 1.25 million tonnes yearly."
From what I remember JC stated that due to new technology the mining of this property would be done completely differently now. Was the main problem water in the mine?
As for money from this mine we are obviously talking £00’s of Millions.
Remember JC has the knowledge and has made multiple visits to the property over the last couple of years.
Had a couple of questions about the estimate on ADVFN board to the low estimate of throughput of kimberlite. My reasoning for this is:-
"Plant commissioning is well advanced following the installation of an in-field screen, two rotary pans, grease and x-ray recovery. Optimisation of the plant flow sheet is currently taking place and this will be followed by ramping-up to full production of 400-tons of pan feed per day".
This is from the initial sampling of the Dumps and Gravels at Marsfontain and a reason I used the 400Tons per day in calcs.
I agree it is probably low but with no data on plant being used I thought it a good place to start.