Botswana Diamonds in a recent update on the Company's exploration projects in South Africa reported an overall positive picture. 

Drilling on eight kimberlites in the Free State project has been taken to the next stage after the Company received positive results from the analyses of mineral chemistry. The chemical analyses was conducted on a total of 3,100 garnets and spinels recovered from the eight kimberlites at its Free State project.  

“These analyses indicate high abundances of diamond inclusion type chemical compositions, thereby rating these kimberlites as being of high interest in terms of diamond bearing potential,” the Company stated.  “The results also indicate a preponderance of G9 and a few G10 garnets, similar to the chemical signatures present in the neighbouring iconic mines at Jagersfontein and at Koffiefontein. This result supports the conclusions from the previous whole rock geochemistry and from the geophysics. It justifies moving to a phased drilling programme.”

Botswana Diamonds also announced that Vutomi has been granted prospecting rights to Portions 1, 3, 5 and 7 of the farm Palmietgat, in the Limpopo Province, approximately 50 km North of Petra's Cullinan diamond mine. “The Palmietgat area comprises six diamondiferous kimberlite pipes of which three fall within the granted prospecting rights area which is contiguous to the Palmietgat Mine, formerly operated by Trivalence,” Botswana Diamonds explained.

Providing a background to the area, the Company said that Trivalence had extracted 63,379 cts of diamonds from Palmietgat during 2003-4 -- at which point their mining licence expired -- valued at US$ 60.68 per carat or worth US$3.846 million. Trivalence had reported resources of 3.5 million tonnes at an estimated grade of 44 cpht, to a depth of 110 metres for three of the kimberlites.  Moreover, there are substantial tailings and residue dumps on the property.

The Company also conducted a review of the award of the Mooikloof Prospecting rights to Vutomi by the South African Department of Mineral Resources.

This became necessary as a group of South African businessmen came forward claiming to hold a valid Mining Permit -- as opposed to a Mining License which permit greater rights of tenor -- over a portion of the Company's fully notarised and registered Prospecting Right area, Botswana Diamonds said.  “A Mining Permit is a short-term licence designed for small scale typically alluvial mining over very small areas up to 5 hectares,” the Company elaborated. “South African legislation does not allow for overlapping rights.  The Company engaged with the South African Department of Mineral Resources to review the processes which culminated in the alleged issue of this small permit. The Company, which followed all due processes in its application for its Prospecting Licence is confident it holds title.”

John Teeling, Chairman, commented, "Vutomi, our associate company in South Africa, is very active. The final analyses of samples from the 8 Free State kimberlites improves the prospects for the pipes containing diamonds.  A drilling campaign will follow.

“Furthermore Vutomi has been awarded a prospecting licence close to the famous Cullinan mine over 3 kimberlite pipes known to contain diamonds. This is a valuable addition to our portfolio of exploration assets.

“Despite obtaining a fully notarized and registered prospecting right on Mooikloof from the South African Department of Mineral Resources a local company claims they have a mining permit over 5 hectares of the property. We believe that our title is clear and will provide further updates regarding the claim as appropriate."