BCL explores for diamonds in Gope
Brian Benza | Wednesday May 11, 2016 15:22
The Maibwe diamond project is 51 percent owned by BCL while exploration company, Botswana Diamonds (BOD) owns 15 percent of the project.
BCL exploration projects in the Gope area are estimated to have a potential value of over P20 billion. In a statement released this week, BOD chairman, John Teeling said a large diameter-drilling programme would commence shortly on an exploration licence, which is part of the Maibwe block of licences in the Gope region.
“We now know there are diamonds on the licence,” Teeling said. “The upcoming drilling is to establish the grade and quality.” The planned drilling for macro diamond evaluation, to be undertaken by Maibwe Diamonds, is to follow up on diamond drilling conducted in 2015 on the exploration licence, which found a number of diamondiferous kimberlites.
“The drilling is to confirm the 2015 results and gain a clearer understanding of the grade and size frequency distribution of diamonds,” he added. “Work on the other licences within the Maibwe block is also planned. The area is deemed highly prospective for diamond discoveries.”
In 2013, BOD signed a joint venture agreement with Brightstone Mining on the block. BCL subsequently took over the block in 2015 and created Maibwe Diamonds.
Teeling said the Maibwe project was completely separate from the Botswana Diamonds/Alrosa joint venture. There is currently only one operating mine in the Gope area, the Ghaghoo mine owned by Gem Diamonds. With copper reserves fast running out in Selibe-Phikwe, the future of the BCL group largely hinges on their Polaris 11 strategy, whose spinoffs the company is already enjoying. “By 2020 copper reserves would have almost run out and the future of the group would be anchored on the Polaris projects which involves diversifying into energy projects, iron ore, coal and diamonds,” BCL group managing director, Dan Mahupela recently told the media. According to Mahupela, the Maibwe project has a potential in situ value of $1.9 billion (P21 billion) Among some of the benefits Mahupela said they were deriving from the projects under Polaris include the Nkomati toll concentrate valued at P250 million per annum as well as the P216 million worth of concentrate from Tati Nickel Mine.
BCL is also developing the Molopo Iron ore project with a value of P970 million as well as the Moeng Manganese joint venture. Medium to long-term projects for BCL include Selkirk Nickel mine with a value of P1.4 billion over a 6-10 years lifespan and the Maibele Nickel prospect with an in situ value of P1.9 billion.
BCL has also roped in a joint venture partner for the Ikongwe Iron Ore project, which is valued at $9.2 million as well as the Iron from slag project with a revenue stream of $64 million (P700 million).