Botswana Diamonds Secures Mining Permit for Thorny River Project

Botswana Diamonds has secured a mining permit for its Thorny River project in Limpopo, South Africa, which may lead to future production. The project shows geological conditions similar to the Klipspringer mine. While previously operated Marsfontein is currently on care and maintenance, operations may restart alongside Thorny River, depending on diamond price recovery. Shares experienced initial gains but later fell slightly, leaving the company with a £1.5 million market cap.

Botswana Diamonds (LON: BOD) has obtained a mining permit for its Thorny River project, located in South Africa’s Limpopo province. This development may lead to production, as Thorny River is situated close to the now-depleted Marsfontein diamond mine. Extensive geological assessments, including geophysics, drilling, and bulk sampling, indicate that the geological conditions and quality are similar to those of the previously active Klipspringer mine to the west.

Previously, Botswana Diamonds operated the Marsfontein gravels and dumps project as a proof-of-concept trial mine, earning a 15% revenue royalty from mining activities. However, due to declining diamond prices and delays in permitting, Marsfontein was put on care and maintenance in October 2023. The new mining permit will allow for contractor mining at Thorny River, conditional on favorable market conditions.

Should diamond prices experience a resurgence, Botswana Diamonds may also consider resuming operations at Marsfontein while simultaneously increasing production at Thorny River. Following the announcement of the mining permit, shares for Botswana Diamonds surged initially in London trading but subsequently decreased by 2.6%, settling at 0.13p. The company currently holds a market capitalization of £1.5 million (approximately $1.9 million).

In summary, Botswana Diamonds has secured the Thorny River mining permit, enabling the potential launch of production activities. The favorable geological conditions at Thorny River and plans to resume Marsfontein operations contingent on market conditions position the company for future growth. Although the company’s shares have fluctuated, its market capitalization remains notable as it navigates the diamond market landscape.

Original Source: www.mining.com