Botswana Diamonds upbeat on future of Vutomi project

Botswana Diamonds updated the market on the Vutomi prospect at Frischgewaagt on Tuesday, explaining that following the inclusion of the results of the bulk sample and an update to the estimation analysis technique, a refined estimate for the grade at the FGT joint venture had been established.

The AIM-traded firm said ongoing work by Dr K Peterson indicated a medium grade of 78 cpht in a range of 64 to 110 cpht at a bottom cut off of +1 mm.

A geophysics programme had now been completed, and evaluation is ongoing.

Further details would be announced in due course, the company’s board said, but initial results indicated that the dyke system now covered 7.5km - up from 6km - and that three anomalies had been defined, which could be ‘blows’ on the dyke.

A ‘blow’ is where the dyke swells and may become a small pipe.

The drilling programme beginning in late July would focus on testing the anomalies, Botswana confirmed, with the intention of having an initial inferred resource by the end of the year.

Vutomi has a 28% BEE partner, and had all necessary permits for ongoing work, so was “well placed” to comply with the new mining charter, the board added.

“An estimated midpoint grade of 78 cpht at Frischgewaagt is very good news,” said chairman John Teeling.

“The former Marsfontein mine is close by on the same dyke system had better grades and this was a blow.

“Even better news is the identification of potential "blows" on the dyke. We will focus our upcoming drilling on these anomalies.”