Botswana Diamonds PLC Update on South African Exploration Projects (2116W)

TIDMBOD

RNS Number : 2116W

Botswana Diamonds PLC

31 July 2018

31(st) July 2018

Botswana Diamonds PLC

("Botswana Diamonds" or the "Company")

Update on South African Exploration Operations

The board of Botswana Diamonds (AIM: BOD) are pleased to provide an update on the Company's exploration projects in South Africa.

Headlines:

-- The results from the analysis of mineral chemistry on 8 kimberlites in the Free State project are positive. Drilling is the next stage.

-- Prospecting Rights have been awarded to Vutomi over 3 kimberlites north of the Cullinan mine cluster at Palmietgat.

-- A review of the award of the Mooikloof Prospecting rights to Vutomi by the South African Department of Mineral Resources has been requested by a local company. We believe that the award is in order.

Free State Kimberlites

The chemical analyses of 3,100 garnets and spinels recovered from the 8 kimberlites rediscovered by Vutomi within the Free State project area are complete and the results have been reviewed. These analyses indicate high abundances of diamond inclusion type chemical compositions, thereby rating these kimberlites as being of high interest in terms of diamond bearing potential. The results also indicate a preponderance of G9 and a few G10 garnets, similar to the chemical signatures present in the neighbouring iconic mines at Jagersfontein and at Koffiefontein. This result supports the conclusions from the previous whole rock geochemistry and from the geophysics. It justifies moving to a phased drilling programme.

Palmietgat Kimberlite Pipes

Botswana Diamonds is pleased to announce that Vutomi has been granted prospecting rights to Portions 1, 3, 5 and 7 of the farm Palmietgat, in the Limpopo Province, approximately 50km North of Petra's Cullinan diamond mine. The Palmietgat area comprises six diamondiferous kimberlite pipes of which three fall within the granted prospecting rights area which is contiguous to the Palmietgat Mine, formerly operated by Trivalence.

Trivalence extracted 63,379 cts of diamonds from Palmietgat during 2003-4 (at which time their mining licence expired), valued at US$60.68 per carat (US$3.846 million) and reported resources of 3.5 million tonnes at an estimated grade of 44 cpht (unknown bottom cut-off and resource classification), to a depth of 110 metres for three of the kimberlites. There are also substantial tailings and residue dumps on the property.

Mooikloof Kimberlite Pipe

A group of South African businessmen have emerged claiming to hold a valid Mining Permit (as opposed to a Mining License which permit greater rights of tenor) over a portion of the Company's fully notarised and registered Prospecting Right area. A Mining Permit is a short-term licence designed for small scale typically alluvial mining over very small areas up to 5 hectares. South African legislation does not allow for overlapping rights. The Company engaged with the South African Department of Mineral Resources to review the processes which culminated in the alleged issue of this small permit. The Company, which followed all due processes in its application for its Prospecting Licence is confident it holds title.

John Teeling, Chairman, commented, "Vutomi, our associate company in South Africa, is very active. The final analyses of samples from the 8 Free State kimberlites improves the prospects for the pipes containing diamonds. A drilling campaign will follow.

Furthermore Vutomi has been awarded a prospecting licence close to the famous Cullinan mine over 3 kimberlite pipes known to contain diamonds. This is a valuable addition to our portfolio of exploration assets.

Despite obtaining a fully notarized and registered prospecting right on Mooikloof from the South African Department of Mineral Resources a local company claims they have a mining permit over 5 hectares of the property. We believe that our title is clear and will provide further updates regarding the claim as appropriate."

This release has been approved by James Campbell, Managing Director of Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), a Fellow of the South African Institute of Mining and Metallurgy, a Fellow of the Institute of Materials, Minerals and Mining with over 32-years' experience in the diamond sector.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

ENDS

Enquiries:

 
            Botswana Diamonds PLC 
 John Teeling, Chairman                [phone] 
 James Campbell, Managing Director     [phone] 
 Jim Finn, Director 
 Northland Capital Partners Limited 
 David Hignell/Dugald J Carlean 
  (Corporate Finance)                  [phone] 
 Rob Rees/Isabella Pierre (Broking) 
 SVS Securities Plc                    [phone] 
 Tom Curran 
 Ben Tadd 
 Blytheweigh                           [phone] 
 Tim Blythe                            [phone] 
 Simon Woods                           [phone] 
 Teneo PSG 
 Luke Hogg                             [phone] 
 Alan Tyrrell                          [phone] 
 

www.botswanadiamonds.co.uk

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July 31, 2018 02:00 ET (06:00 GMT)