Botswana Diamonds Secures Mining Permit for Thorny River Project

Botswana Diamonds has acquired a mining permit for the Thorny River project in Limpopo, South Africa. This development follows extensive geological exploration suggesting comparable grades to the past-producing Klipspringer mine. While the company previously operated Marsfontein, it has since placed the project under care due to market challenges. The new permit allows contractor mining to begin at Thorny River, potentially resuming Marsfontein operations should diamond prices improve.

Botswana Diamonds has successfully obtained a mining permit for its Thorny River project, situated in South Africa’s Limpopo province, which positions the company to initiate potential production activities. The project is in proximity to the now-exhausted Marsfontein diamond mine and has been the subject of significant geological exploration, including methods such as geophysics, drilling, and bulk sampling, yielding promising results. These findings indicate geological and grade characteristics similar to those of the historically productive Klipspringer mine located to the west.

Previously, Botswana Diamonds managed the Marsfontein gravels and dumps project, operating it as a proof-of-concept trial mine. This venture allowed the company to benefit from a 15% revenue royalty; however, due to declining diamond prices and delays in permitting processes, operations at Marsfontein were halted and placed under care and maintenance in October 2023. In light of the newly acquired permit, contractor mining at Thorny River is scheduled to commence, contingent upon market conditions. Furthermore, should there be a rebound in diamond prices, the company may consider resuming activities at Marsfontein concurrently with ramping up production at Thorny River.

Following the announcement of the mining permit, shares of Botswana Diamonds experienced an initial surge during early trading in London but subsequently declined by 2.6%, settling at 0.13p by afternoon. This fluctuation leaves the mine developer with a market capitalization of £1.5 million, equating to approximately $1.9 million.

In summary, Botswana Diamonds has secured a mining permit for its Thorny River project, potentially marking a new chapter in its diamond production efforts. The company’s past experiences with the Marsfontein mine, and the recent permit acquisition, present opportunities for future growth contingent upon market conditions. Stakeholder interest remains evident, though current stock performance reflects the volatility of the diamond market.

Original Source: www.mining.com