Modern Mining November 2017

MINING News

Botswana Diamonds ‘re-discovers’ eight kimberlites

Diamonds, anecdotal evidence indicates that very little, if any, modern exploration technology has been applied to this highly prospective area and this is supported by the landowners, whose families have been in occupation of the properties for a num- ber of generations. More detailed ground work has involved further field observations and the collection of samples from the relevant sites which have been subject to whole rock geochemistry tests by the Council for Geosciences. The results of these tests and obser- vations confirm the existence of eight Group 1 kimberlites. Extensive historical workings suggests that these kimberlites are diamondiferous. A detailed ground geophysical survey is currently taking place to assess the size of these kimberlites. “The best place to find a mine is where there is or was a mine,” comments John Teeling, Chairman of Botswana Diamonds. “The Free State area was the centre of world diamond mining over 100 years ago but has been neglected. New technology and new ideas offers opportu- nities. This approach is paying off for BOD with the re-discovery of eight kimberlites. Now we have to see what opportunities exist for BOD.”  measured resource was declared totalling 12,7 Mt and the overall indicated resource increased from 61,7 Mt to 73,2 Mt, a 19 % increase. “The exploration programme vindicates our decision to focus on a reduced area of the overall prospecting area with a view to a long-term project supplying the regional market and ultimately the seaborne ther- mal coal market,” he said. While average raw coal qualities for the project remained similar, inherent moisture was notably lower and the A Seam in the underground areas showed considerably improved qualities. Minergy says it will be the second pro- ducer of coal in Botswana, and is committed to being at the forefront of developing a vibrant coal industry in the country. “All our timelines for the project have now been met and we are confident of being in production in the third quarter of 2018,” concluded Bojé. 

Linesh Lutchmansingh, one of Botswana Diamonds’ geologists, at the site of one of the re-discovered kimberlites (photo: Botswana Diamonds).

Botswana Diamonds (BOD), listed on AIM, has reported the re-discovery of eight Group 1 kimberlites at its Free State project, part of its Vutomi project in South Africa. Active exploration has commenced on the Free State project which consists of four prospecting rights covering 50 000 hectares of ground within a kimberlite cluster, which has the iconic diamond mines of Jagersfontein and Koffiefontein at its eastern end and Kimberley and Finsch at its western extreme. The Free State project area was iden- tified by Vutomi using innovative means,

involving identification of anomalies using satellite imagery, and from evi- dence gathered from record archives in Kimberley and Bloemfontein along with ground work follow up. Using the identified anomalies as a base, research indicated that a number of other dia- mond mines existed in this area for some time prior to 1880 but that a significant economic recession at that time resulted in their permanent curtailment. Most records of these operations were destroyed in the course of the Anglo- Boer War in 1900. According to Botswana which listed on the BSE in April 2017 and plans to build an opencast coal mine at Masama with the potential to produce 2,4 Mt/a. The company will focus on deliv- ering high-quality coal to the regional market, including Botswana and South Africa, as well as to the export market. The Masama project, located in the south-western corner of Botswana’s Mmamabula coalfield, is near to exist- ing rail, road and water infrastructure and has significant distance advantages over existing competing suppliers to regional customers. The size of the resource also supports scalable production, presenting an oppor- tunity to provide export coal to traders who supply India, China, and other areas of Asia, as well as Europe, should international coal prices remain stable. Bojé stated that for the first time a

Significant increase in Masama coal reserves Minergy Limited, a coal mining and trading company which is listed on the Botswana Stock Exchange, reports that drilling and exploration conducted at its Masama coal project during 2017 has established a sig- nificant increase in the size of the coal reserves. The recent Competent Persons Report (CPR) further established that the quality of the coal was also better than pre- viously indicated.

“Comparing the 2016 and 2017 esti- mates, the total coal resource for the project area increased from 347,1 Mt to 389,9 Mt, an improvement of 12 %. Of this, the open- cast area has increased from 71,2 Mt to 82,3 Mt, which translates into 25 years of opencast operations,” said Minergy’s CEO, Andre Bojé, adding that management was exceptionally pleased with the revised CPR and especially the improved yields. This is good news for the company,

14  MODERN MINING  November 2017