Botswana Diamonds has secured a mining permit for the Thorny River project in South Africa, preparing for future production opportunities. Extensive geological evaluations have indicated promising diamond grades comparable to the nearby Klipspringer mine. The company plans to begin contract mining while also monitoring market conditions for potential resumption of operations at the Marsfontein site, which is currently on care and maintenance.
Botswana Diamonds has obtained a mining permit for its Thorny River project, located in South Africa’s Limpopo province, which positions the company for potential future production. The project is situated near the abandoned Marsfontein diamond mine and has been the subject of extensive geological evaluations, including geophysical analysis, drilling, and bulk sampling. These efforts have indicated that the geological characteristics and diamond grades are comparable to those found at the previously operational Klipspringer mine to the west.
Previously, Botswana Diamonds managed a proof-of-concept trial at the Marsfontein gravels and dumps project, generating a 15% revenue royalty. However, due to declining diamond prices and delays in securing permits, operations at Marsfontein were suspended in October 2023, placing the project on care and maintenance status. The new permit for Thorny River allows the company to begin contractor mining, depending on market conditions, with potential plans to resume Marsfontein operations if diamond prices improve.
Following the announcement of the new mining permit, Botswana Diamonds’ shares initially experienced an uptick in early London trading; however, they later fell by 2.6% to 0.13p by the afternoon session. This fluctuation leaves the company’s market capitalization at £1.5 million (approximately $1.9 million).
Botswana Diamonds has secured a mining permit for its Thorny River project, enhancing its prospects for diamond production. The project is strategically located near the closed Marsfontein mine, and the geological studies suggest promising similarities with other successful sites. After the initial surge in stock value post-announcement, the company’s market cap remains modest, emphasizing the uncertainties in the diamond market.
Original Source: www.mining.com
