Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Shares in London-listed Botswana Diamonds (LON:BOD) jumped nearly 12% to 2.38p Tuesday following an encouraging exploration update for the company’s Orapa licence. The announcement seems to have broken the spell on the miner’s share price, which had steadily fallen from a peak of 7.25p in May 2011, after being listed at 6.25p in February that year.
The prospecting licence for the area, awarded earlier this year, covers almost 263 square kilometers and lies 70 kilometers to the southwest of a giant diamond mine owned by Debswana. The ground lies within the area generally considered to contain the Orapa kimberlite cluster.
The company said a detailed analysis has been completed on “available information involving high resolution aeromagnetic data, ground geophysics and mineral chemistry.”
Twelve targets have been identified of which five are top priority. Detailed ground magnetic and gravity surveys and a follow up percussion drilling programme will commence shortly. The entire programme is expected to be completed within six months. The licence is wholly owned by Botswana Diamonds and is separate to the ongoing joint venture with a major international resource company. Preliminary results from this joint venture are positive. A detailed report will be issued in the near future.
Botswana Diamonds chairman, John Teeling, said the new licence is proving to be as good as he hoped, adding that the ground work, modelling and drilling will be completed within six months.
