Irish diamond exploration company Botswana Diamonds has entered a new licence deal which could generate a 51 per cent return over the next three years.

The company signed a joint venture agreement with Siseko Minerals to become the licensed operator of more than 6,500 square kilometers in the Gope region of Botswana.

Botswana Diamonds said that under the agreement the company could earn up to 51 per cent interest over a three year period by investing up to $940,000.

A budget of $140,000 has been allocated for the first year of the project.

Analyses by the company’s staff have identified a series of target areas and ground work to identify the best drilling locations is expected to commence in the coming weeks.

Chairman of Botswana Diamonds, John Teeling, said that it’s a “very good time” for the country’s diamond industry.

“The emerging success of the new Karowe Mine, first discovered by the Botswana Diamond founders, is increasing interest in the country,” he said. “Karowe is producing big, beautiful, valuable diamonds”.

Mr Teeling added that another discovery by Petra Diamonds in the Gope area and the development of the Ghagoo mine, which is owned by Gem Mines, is shifting further attention toward the region.

“We are farming into the Brightstone 13 licence block because we are confident that we will find previously unknown kimberlites,” he said.

Executive director of Siseko Mineral, Thabang Mcambi, said that the company was “delighted” to reach an agreement with Botswana Diamonds and is confident that the exploration efforts “will yield positive results”.