Botswana Diamonds announced yesterday that its associate Vutomi (BOD interest 40%) has been granted Environmental Authorisation to commence mining of a substantial portion of the residual diamond-bearing gravels produced from the very high grade Marsfontein mine. The project is contiguous to BOD’s own Thorny River operation.

The company said that this was a critical step towards obtaining a Mining Permit, which it expect to receive shortly.  A Mining Permit covers an area of 5 Hectares and has a lifespan of 2-years, which is renewable.

John Teeling, Chairman, said "We believe that the mine gravels and unprocessed stockpiles around the Marsfontein mine contain commercial grades of diamonds. To secure the Mining Permit we need certain approvals.  Granting of the Environmental Authorisation is a critical step.  This facilitates the issuing of the Mining Permit necessary for BOD to recover and sell the diamonds. We plan to shortly commence royalty mining operations at no cost to the company."

The very high grade of the Marsfontein mine (172 carats per hundred tonne) distracted the original miners from the gravels - though these were confirmed to be diamond-bearing through subsequent sampling, the Company said.

BOD has identified potential partners to process the gravels and stockpiles. It said that it expects mobilisation to commence within six weeks.