Botswana Diamonds (BOD), the AIM and BSE listed diamond explorer, said it the acquisition of Sekaka Diamonds Pty Ltd (‘Sekaka’), as previously announced on 20th July 2020, has now been completed. Sekaka was Petra’s exploration vehicle in Botswana and holds three Prospecting Licences in the Central Kalahari Game Reserve (“Kalahari”) in Botswana, PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe. The acquisition also includes an extensive database, built up over 15 years of exploration.
BOD chairman, John Teeling said his company is delighted that this acquisition has now closed. “This now paves the way to explore commercial development options for KX36 and begin to evaluate the extensive database in conjunction with ours to discover more kimberlites in prime diamond real estate,” Teeling said in an update to shareholders.
KX36 is a 3.5Ha kimberlite pipe, discovered by Sekaka, in the Kalahari. The kimberlite is situated approximately 70 km from Gem Diamonds’ Ghaghoo Mine, and 260 km north-west of Botswana’s capital Gaborone. Sekaka has undertaken extensive exploration work on KX36, including extensive core and Large Diameter Drilling (‘LDD’).
There is a historic SAMREC compliant Indicated Resource of 17.9 million tonnes at 35 cpht, and an Inferred Resource of 6.7 million tonnes at 36 cpht, estimated for the pipe by Z-Star in 2016. As Sekaka owns 100% of KX36, gross and net resources are the same. Sekaka is the operator of KX36. BOD has not independently verified the historic resource estimate. Modelling these grade estimates suggests overall grades of between 57 cpht and 76 cpht. The estimated diamond value from the LDD is $65/ct, with an upside range of between $97/ct and $107/ct, all assuming a +1.15mm Bottom Cut-Off (‘BCOS’) or +3 DTC diamond sieve.
Sekaka also holds a recently constructed, fit-for-purpose bulk sampling plant on site. The sampling plant includes crushing, scrubbing, dense media separation circuits and x-ray recovery modules within a secured area.
Sekaka’s extensive diamond exploration database contains the results of work undertaken since 2005. The data include data in respect of airborne (including the Falcon survey) and ground magnetics (including gravity and electromagnetics), in addition to heavy mineral sampling. BOD believes that the information contained in the database will provide substantial support to its future kimberlite exploration activities in Botswana.
The first deferred consideration cash payment of US$150,000 will be payable on 27th November 2021, being the first anniversary of completion of the acquisition.