UK-listed Botswana Diamonds said it had high hopes its Thorny River prospect in South Africa will become its first operating mine following conclusion of a mining contract which sees the company hand over control to the contractor.
In return, Botswana Diamonds – through its partner Vutomi – will receive a 12% net royalty revenue and a further 8% to cover state mineral royalties, sales and security expenses. The balance of the project will be owned by operator, Palaeo Minerals. Indicated net royalties could be between $2m and $7m annually.
A processing target of up to 30,000 tons of kimberlite per month has been planned and diamonds will be recovered using a processing facility at a nearby diamond mine. Drilling on the project is set to begin in 2019.