Botswana Diamonds signs mining contract with Palaeo Minerals

Botswana Diamonds has concluded a mining contract with Palaeo Minerals, covering both bulk sampling activities and future full-scale mining, at the Thorny River project, in South Africa.

Palaeo is an experienced mining contractor that operates in South Africa and Zimbabwe.

The contract will enable Botswana Diamonds to self-fund the Thorny River project from bulk sampling through to mine development, assuming positive results.

Indicated net royalties could be between $2-million and $7-million a year based on current estimates.

The necessary regulatory approvals have been applied for from the South African Department of Mineral Resources.

The drill programme is planned for 2019.

“We are confident that Thorny River could be the first diamond producing project for Botswana Diamonds,” Botswana Diamonds chairperson John Teeling commented in a release published on Wednesday.