Mineral exploration company, the Kalahari Key, has just completed mineral exploration work at the Molopo Farms Complex (MFC), where it has confirmed the presence of nickel sulphate targets covering an area of 2 725 square kilometres.
The nickel exploration project is fully owned by Kalahari Key while Power Metal has an 18.26 per cent shareholding in the same project. Soon after the announcement of the presence of the nickel sulphate targets at the MFC, the share prices in Power Metal jumped steadily at the London Stock Exchange – AIM – by 19.33 per cent. “I remain fascinated by the Kalahari Key opportunity and intrigued as to what might lie beneath the drill locations,” Power Metal executive director, Paul Johnson said soon after the confirmation of the mineral.
“I am equally keen to work with the Kalahari Key team to determine and implement the project development pathway. We look forward to keeping shareholders updated in this regard,” he added. The nickel targets were identified from an interpretation of ground geophysics work, which started in late 2018 and was completed last August. The data generated from the ground geophysics programme was reviewed in South Africa in August 2019 and six priority drill targets have been identified from which it is expected that four key targets will be the focus of a Phase One drilling programme.
According to the exploration report, several discreet and highly conductive ore bodies were detected during the period. It said the identified conductors can possibly be massive nickel sulphides due to the spatial location, particular geological setting and associated magnetic response. In a report to shareholders soon after the announcement, Kalahari Key directors said they believed the report is extremely positive and the basis for further work.
“Kalahari is in the process of awarding a contract to a Botswana contractor, to carry out the necessary environment surveys including the statutory consultations with landowners and other stakeholders. Kalahari is in discussion with a number of drilling companies with a view to the drilling programme commencing around the end of 2019,” the directors said.
The primary activity of Kalahari Key is to explore for nickel, copper and platinum group metals in the southern part of Botswana. It was established in November 2014 by a group of geologists and geophysicists with over 130 years’ experience in the field. In 2014 Kalahari Key acquired two mineral exploration licences from the Government while a third licence was acquired in early 2018.
This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.
“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.
Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.
A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.
Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.
A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.
Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.
In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.
The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.
In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.
Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.
The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”
In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.
Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.
The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.