Botswana Diamonds has secured a mining permit for the Thorny River project in Limpopo, South Africa. This project is near the defunct Marsfontein mine and shows promising geology similar to the closed Klipspringer mine. The company plans to begin contractor mining at Thorny River, depending on market conditions, with potential plans to revive Marsfontein if diamond prices improve.
Botswana Diamonds, listed on the London Stock Exchange as BOD, has successfully acquired a mining permit for its Thorny River project located in South Africa’s Limpopo province. This significant development enables the company to move closer to initiating diamond production at the site.
Situated in proximity to the exhausted Marsfontein diamond mine, the Thorny River project has undergone comprehensive geological assessments, which included geophysical studies, drilling operations, and bulk sampling. Preliminary results indicate that the geological characteristics and diamond grades at Thorny River bear similarities to those previously observed at the now-closed Klipspringer mine.
Prior to this, Botswana Diamonds managed the Marsfontein gravel and dumps project as a proof-of-concept trial mine, resulting in a revenue royalty of 15% from the operation. However, operating difficulties, including declining diamond prices and permitting challenges, led the company to place Marsfontein under care and maintenance beginning October 2023.
With the newly acquired mining permit, Botswana Diamonds plans to commence contractor mining at Thorny River, dependent upon market conditions. If diamond prices recover, there exists potential for the company to resume operations at Marsfontein, alongside efforts to increase diamond production at Thorny River.
Following the announcement of the mining permit, shares in Botswana Diamonds initially experienced a rise during early trading in London. Nevertheless, they subsequently decreased by 2.6% to 0.13 pence in the afternoon session, establishing the company’s market capitalization at approximately £1.5 million, or $1.9 million.
In conclusion, Botswana Diamonds has secured a pivotal mining permit for the Thorny River project, facilitating potential production in South Africa. Despite past challenges faced at the Marsfontein mine, the company now aims to capitalize on market conditions to enhance diamond extraction at both sites. This strategic move could significantly impact the company’s operational landscape and financial performance going forward.
Original Source: www.mining.com
