Huge iron ore deposits discovered in Shakawe

Brian Benza
Staff Writer | Tuesday July 3, 2012 00:00

 

Botswana's economic diversification strategy to reduce dependence on diamond income and diversify the mining sector got a major boost this week with news of the first significant find of iron ore deposits in the Ngamiland.While Botswana has been trying to diversify its economy away from mining, she has also pursued a strategy of diversifying within the mining sector to drive investors towards other minerals such as coal, uranium, copper and silver.

At a Botswana Resource Sector Conference held in Gaborone this week, mineral explorers said they have discovered what they believe to be significant deposits of iron ore in Shakawe, bolstering the economic lustre of the northwest region where another base metal mine, Boseto Copper Mine, was recently opened.Speaking at the conference, an explorer with Tsodilo Resources, a Toronto Stock Exchange-listed company exploring for iron ore, copper and diamonds in the Ngamiland, said they discovered a belt stretching 35 kilometers in length and five kilometres in width south of Shakawe, whose ore contains as much as 68 percent iron.

'Initially, we were looking for diamonds in that area, but we discovered a huge belt in the region which could run into billions of tonnes in terms of resource. Although there are deposits of copper and micro diamonds in the area as well, we have now shifted our focus to the significant iron ore deposit. The on-going studies should tell us more about the economic feasibility of the resource,' said managing director, James Bruchs in an interview with Mmegi.The discovery, although still at a preliminary exploration stage, could unearth a resource that runs into billions of tonnes providing a catalyst for the establishment of a steel manufacturing industry in Botswana.

Iron ore, together with coal, which Botswana is also abundantly endowed with, is the key ingredient in the manufacturing of steel.The company, which has spent about P75 million ($10million) in exploration activities in the area, says to date over 20 boreholes have been drilled in the northern part of the Xaudum Ironstones with assay results showing encouraging levels of deposits.'The true thickness of the magnetite intercept is not the same as the down-hole thickness and this has not yet been accurately determined.

'The company will continue drilling the Xaudum Ironstones to outline the extent of this deposit with its two wholly owned rigs over the next four months,' said Michael de Wit, the president of Tsodilo in an interview with Mmegi.According to de Wit, the company is currently focused on a detailed drilling program on the Xaudum Magnetite BIF Ironstone prospect. The company holds 18 prospecting licences for base and precious, platinum group metals, and rare earth elements covering an area of approximately 12,118 square kilometres, as well as eight prospecting licences for radioactive minerals covering approximately 7,000 square kilometres in the northwest.

Tsodilo, which is solely focused on Botswana, says it is the first and only company in the country actively exploring iron ore. The discovery adds to the list of other recently unearthed base metal and radioactive minerals in the country. The company was formerly known as Trans Hex International Ltd. and changed its name to Tsodilo Resources Limited in April 2002. Tsodilo Resources Limited was founded in 1995 and is headquartered in Toronto, Canada.