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Ghaghoo sale falls through, but Botswana Diamonds remains hopeful of a future deal

11th May 2022

By: Donna Slater

Features Managing Editor and Chief Photographer

     

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Aim- and BSE-listed diamond explorer Botswana Diamonds reports that, despite intensive advanced and ongoing discussions with interested parties, its board has been unable to secure a new joint venture (JV) partner to acquire the Ghaghoo mine before the extended long-stop date of May 10.

The share sale agreement with Gem Diamonds for the sale of its wholly-owned subsidiary Gem Diamonds Botswana, which owns the Ghaghoo mine, has, therefore, lapsed.

However, Botswana Diamonds notes that Gem Diamonds has shown a willingness to re-engage on substantially the same terms as this past agreement if Botswana Diamonds and a partner can finalise an agreement.

Accordingly, Botswana Diamonds is continuing its discussions with potential JV partners.

The Ghaghoo mine – fully permitted to December 31, 2036 – is located about 300 km northwest of Gaborone and 160 km southwest of Orapa.

It comprises a 10.8 ha kimberlite pipe with a South African Mineral Reporting Codes-compliant indicated resource of 79.39-million tonnes with an average grade of 19.51 carats per hundred tonnes (cpht) and diamond value of $242/ct.

The mine has an inferred resource of 28.78-million tonnes with an average grade of 17.52 cpht and an average diamond value of $239/ct.

A treatment facility on site is capable of handling 60 000 t/m and 80 000 m3 of tailings suitable for reprocessing.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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