Botswana Diamonds Interim Loss Narrows to $365K

Botswana DiamondsInterim results from Botswana Diamonds recorded no revenue for the six months that ended on December 31 and a loss of $365,000 (GPB 230,000) or 21 pence per share. During the company’s first reporting period, which spanned three quarters from September 2010 to June 2011, Botswana Diamonds recorded a loss of $1.1 million (GBP 711,000). Since closing this most recent period though, the company completed a $2.4 million (GBP 1.5 million) share placement, which will cover exploration expenses for at least one year, according to the statement.

The company’s chairman, John Teeling, provided an update of projects underway today, calling Botswana the ”best place to find a mine.” The newest mine, Karowe, was discovered by the principals of Botswana Diamonds and was sold to Lucara Diamond, but Teeling’s center of activity resides in the Orapa cluster of kimberlites. Botswana Diamonds expects to be awarded a new license near the Letlhakane mine, with the principal focus on an agreement with an international resources company to apply new thinking and new technology in the expectation of identifying previously undiscovered kimberlites, Teeling explained.

”Sand and salt up to 80 meters thick cover much of northeastern Botswana. This has made diamond exploration difficult. Our partner believes that using conventional exploration data, which they reprocess and reinterpret, they can identify anomalies which are likely to be kimberlites. Furthermore, they believe that they can pinpoint areas likely to be diamondiferous. Botswana Diamonds is actively providing data to our partner. This will take some months,” he said.

If and when targets are identified, the partners will form a 50/50 joint venture to lodge license applications and to undertake fieldwork.

Botswana Diamonds holds a concession in Zimbabwe, about 50 kilometers northeast of the Marange, in an area called Chimanimani. Teeling said, ”It has proven difficult to get a license so we have agreed with local interests to allow them to own the concession while Botswana Diamonds would build and operate. This is similar to arrangements made on oil concessions in the Middle East. Progress is being made in this area and we are hopeful of an agreement.”

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