Botswana Diamonds has obtained a mining permit for its Thorny River project in South Africa. Extensive geological explorations suggest promising comparisons to the Klipspringer mine. After placing the Marsfontein project on care and maintenance, the company plans to commence mining at Thorny River if market conditions improve. Share prices experienced volatility following this announcement, reflecting investor response.
Botswana Diamonds plc has successfully acquired a mining permit for its Thorny River project, situated in Limpopo province, South Africa. The site, adjacent to the exhausted Marsfontein diamond mine, has experienced detailed geological assessments including geophysics, drilling, and bulk sampling. These investigations reveal geological and grade characteristics similar to those previously observed at the Klipspringer mine to the west.
Previously, Botswana Diamonds managed the Marsfontein gravels and dumps project under a proof-of-concept initiative, which yielded a 15% revenue royalty. However, decreasing diamond prices coupled with permitting delays led the company to suspend operations at Marsfontein in October 2023 to prioritize care and maintenance.
With the newly obtained mining permit, Botswana Diamonds plans to initiate contractor mining operations at Thorny River, subject to favorable market conditions. If diamond prices recover, there exists the potential for the company to restart activities at Marsfontein while simultaneously increasing production levels at Thorny River.
Following this announcement, shares of Botswana Diamonds demonstrated an initial surge in early trading hours in London, although they subsequently experienced a decline of 2.6%, closing at £0.13. This fluctuation leaves the company with a market capitalization estimated at £1.5 million ($1.9 million).
Botswana Diamonds has secured a pivotal mining permit for its Thorny River project, which may lead to renewed production in the wake of previous operational halts at Marsfontein. The company’s advancements, based on promising geological findings, suggest potential for growth and recovery in the diamond market. Market conditions will be crucial in determining the timing of production commencement and further strategic decisions regarding both Thorny River and Marsfontein.
Original Source: www.mining.com
