Botswana Diamonds has secured a mining permit for its Thorny River project in South Africa, allowing potential production to begin. The site, which shows promising geological comparisons to the Klipspringer mine, follows the company’s decision to place the Marsfontein project on maintenance due to economic pressures. If market conditions improve, operations may resume at both Thorny River and Marsfontein.
Botswana Diamonds has successfully obtained a mining permit for its Thorny River project located in South Africa’s Limpopo province, thus enabling potential production to commence. This site is situated near the now-depleted Marsfontein diamond mine, which has undergone rigorous geological assessments, including drilling, geophysics, and bulk sampling. These evaluations have indicated that the geology and diamond grades at Thorny River are comparable to those found at the historically productive Klipspringer mine to the west.
Previously, Botswana Diamonds operated the Marsfontein gravels and dumps project as a trial mine focused on proof of concept, earning a revenue royalty of 15% from that operation. However, due to declining diamond prices and delays in permitting, the company placed Marsfontein on care and maintenance as of October 2023. With the new permit for Thorny River, Botswana Diamonds is poised to begin contractor mining efforts, which will depend on fluctuating market conditions.
If diamond prices show improvement, the company is also considering the possibility of resuming operations at Marsfontein while simultaneously increasing production at Thorny River. Following the announcement regarding the mining permit, shares of Botswana Diamonds experienced a rise early in London trading, but subsequently fell by 2.6% to 0.13p during the afternoon session. This fluctuation results in a market capitalization of approximately £1.5 million ($1.9 million) for the diamond developer.
In conclusion, Botswana Diamonds has secured a significant mining permit for the Thorny River project, enhancing its operational potential amidst challenging market conditions. The company plans to proceed with contractor mining while remaining focused on the future viability of the Marsfontein project, contingent on market recovery. Share price movements indicate market response to these developments, reflecting investor interest and confidence in the company’s strategic direction.
Original Source: www.mining.com
