Dual-listed Botswana Diamonds' (BOD’s) acquisition of Sekaka Diamonds has been completed.
Sekaka was Petra’s exploration vehicle in Botswana and holds three prospecting licences in the Central Kalahari Game Reserve in Botswana − PL169/2019, PL058/2007 and PL224/2007, which includes the high-grade KX36 kimberlite pipe.
The acquisition also includes an extensive database, built up over 15 years of exploration.
“We are delighted that this acquisition has now closed. This paves the way to explore commercial development options for KX36 and begin to evaluate the extensive database in conjunction with ours to discover more kimberlites in prime diamond real estate,” says BOD chairperson John Teeling.
KX36 is a 3.5 aa kimberlite pipe, discovered by Sekaka, in the Kalahari. Sekaka has undertaken extensive exploration work on KX36, including extensive core and large diameter drilling.
There is an historic South African Mineral Reporting Codes-compliant indicated resource of 17.9-million tonnes at 35 carats per hundred tonnes (cpht) and an inferred resource of 6.7-million tonnes at 36 cpht, estimated for the pipe by Z-Star in 2016.
BOD has not independently verified the historic resource estimate. Modelling these grade estimates suggests overall grades of between 57 cpht and 76 cpht, it states.
Sekaka also holds a recently constructed, fit-for-purpose bulk sampling plant on site. The sampling plant includes crushing, scrubbing, dense media separation circuits and X-ray recovery modules within a secured area.
Sekaka’s extensive diamond exploration database contains the results of work undertaken since 2005. The data include data in respect of airborne (including the Falcon survey) and ground magnetics (including gravity and electromagnetics), in addition to heavy mineral sampling.
BOD believes the information contained in the database will provide substantial support to its future kimberlite exploration activities in Botswana.
The first deferred consideration cash payment of $150 000 will be payable on November 27, 2021, being the first anniversary of completion of the acquisition.