Business
Advancements Towards Diamond Production
Advancements Towards Diamond Production.
About this update from Botswana Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 5354G Botswana Diamonds PLC 07 November 2018 \n\n \n7 November 2018\n\n \n\nBotswana Diamonds PLC \n(\"Botswana Diamonds\" or the \"Company\")\n \nBotswana Diamonds advances towards diamond production\n \nThe board of Botswana Diamonds (AIM: BOD) are pleased to provide an update on the Company's development plan for the Thorny River project in South Africa. \n \nHighlights\n \n· A mining contract has been concluded with Palaeo Minerals Pty Limited (\"Palaeo\") covering both bulk sampling activities and future full-scale mining (the \"Contract\").\n· The Contract will enable the Company to self-fund the Thorny River project from bulk sampling through to mine development, assuming positive results.\n· Indicated net royalties could be between US$2 to US$7 million annually based on current estimates.\n· The necessary regulatory approvals have been applied for.\n· Drill programme planned in 2019.\n \nFollowing the release of a Technical and Economic Evaluation Report on Thorny River in June 2018, the Company and its partner Vutomi have been considering a number of options to advance the property, concluding with the Company signing the Contract with Palaeo to provide bulk sampling and potentially mining services to the project. Palaeo is an experienced mining contractor which has several mining contracts in South Africa and Zimbabwe. \n \nThe key terms of the Contract are as follows:\n \n· A net revenue royalty of 12% will accrue to Vutomi. \n· 8% will accrue to Vutomi to cover State Mineral Royalties, sales and security expenses.\n· 80% will accrue to Palaeo to cover its mining and processing costs.\n· A processing target of up to 30,000 tons of kimberlite per month.\n· Diamonds will be recovered using a processing facility at a nearby diamond mine.\n \n \nModelled diamond grades and value ranges were reported in February 2018 (46-74 cpht and US$120- US$220 per carat respectively over the estimated volume of 1.2 to 2.1 million tonnes of kimberlite to a depth...