THE DIAMOND PAGE –Junior seeks gems in southwestern Africa

Botswana Diamondfields (BWD-V) reports it is close to securing a half interest in, and operatorship of, two diamond concessions in Angola.

Before the protracted civil war, which began in 1975, substantial production occurred at one of the concessions, known as Project A.

As soon as it concludes an agreement with a potential Angolan partner, Botswana Diamondfields expects to implement a bulk-sampling program to confirm the grade and value of diamonds in the main kimberlite pipe. It will then commission a feasibility study for mine development.

The company is in negotiations with another potential Angolan partner for the second concession, Project B, which is reported to contain indicated and inferred alluvial diamond reserves which can be quickly brought to production. Indicator minerals and diamonds have also been found in a drainage basin separate from known diamond-bearing kimberlite occurrences.

It is anticipated that negotiations will be completed by June 30, 1997, after which the company will immediately begin planning for airborne geophysical and sampling surveys, as well as the exploitation of the known alluvial deposits.

To aid in securing this concession, the company recently advanced a refundable, fully-secured deposit of US$400,000. Should it fail to complete negotiations to acquire the concession on commercially acceptable terms, this deposit will be returned in full, together with interest at a rate of 12% per annum, subject to a notice period of 46 days. Security has been provided by way of personal and corporate guarantees, and by way of an assignment of shares of a private company.

Meanwhile, Botswana Diamondfields reports that drilling at the Bellsbank pipe in South Africa has been completed.

Of the 12 holes drilled, eight intersected kimberlite, while four intersected dolomite wallrock. The presence of a single kimberlite pipe, having a surface area of about 0.65 ha, has been confirmed. Based on these results, the company is preparing the next phase of the evaluation program, which will include the treatment of a bulk sample in order to establish the commercial viability of the deposit.