Botswana Diamonds awarded rights for ‘high potential’ prospect

Botswana Diamonds has been granted rights to explore a piece of land close to a mine operated by diamond exploration giant De Beers which delivers around 40 per cent of South Africa's annual diamond production.

The Irish-based company believes past explorers “systematically under-estimated” the grade and diamond quality of the 2.5 hectare Mooikloof kimberlite pipe concession. Botswana now plans to deploy exploration techniques to reassess the prospect.

"We are pleased to finally be awarded the Mooikloof concession. This was discovered and explored in the 1980s by De Beers who went on to develop the Oaks mine next door. The pipe is historically estimated at 2.5 hectares in size and contains diamonds. Using recently developed exploration techniques we will re-assess this high potential pipe," said John Teeling, chairman of Botswana Diamonds.

In a trading update issued to the market on Wednesday, the London-listed exploration company said drilling at another prospect, Ontevreden, showed the kimberlite pipe to be smaller than previously indicated. As a result, the company is abandoning that prospect.