7th Nov 2018 11:37
LONDON (Alliance News) - Botswana Diamonds PLC said Wednesday it signed a contract with Palaeo Minerals Pty Ltd covering full-scale mining activity at its Thorny River project in South Africa.
The contract will enable the company to self-fund the project from bulk sampling through to mine development as indicated royalties could come in between USD2 million and USD7 million, based on current estimates, the miner said.
The drill programme targeting up to 30,000 tons of kimberlite per month is planned for 2019, as all the necessary regulatory approvals have been applied for.
Chairman John Teeling said: "We are confident that Thorny River could be the first diamond producing project for Botswana Diamonds.
"We anticipate the award of the necessary regulatory approvals in anticipation of revenue being generated during the course of 2019," Teeling added.
Palaeo is a contractor with several mining contracts in South Africa and Zimbabwe.
Botswana Diamonds shares were trading down 5.9% at 0.80 pence each.
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