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HOME > PROJECTS > BOTETI JOINT VENTURE

Boteti Joint Venture

Summary:  

• Boteti Joint Venture formed 2004. The AK6 discovery was in October 2004
• Share 49/51. AFD/ DB changing to 30/70 on completion of the first Bankable Feasibility Study (BFS).
• De Beers pay 100 % of all costs until bankable feasibility thereafter each side pays its way.
• All diamond production contracted to the Diamond Trading Company (DTC).
• Mines with annual revenue of less than $70m will be operated by African Diamonds who will receive 70% of the gross profit.  Diamonds still go to the DTC.  

To date:

• c.500 holes totalling c.50 kms have been drilled
• 1 significant economic discovery made
• 1 kimberlite is being evaluated
• 6 kimberlites are being bulk sampled
• c.100 anomalies remain to be assessed

African Diamonds (AIM: AFD) and De Beers have signed an agreement to establish a joint venture company to explore for, and if successful, develop new diamond mines in Botswana. There are 29 known kimberlites on these licences of which 21 are located within the African Diamonds licence area. De Beers has an extensive database relating to the geology of the Orapa area, as well as specific information relating to the kimberlites and recent geophysical work suggests that certain of these may be larger than previously thought. This information will be made available to the joint venture company and a detailed intensive work programme managed by De Beers will commence immediately.

The initial focus of the work will be on specific highest potential targets among the kimberlite pipes on the licences around Orapa. Work on the 1,000 sq km licence north of the Orapa mine will commence in 2004 by airborne and ground geophysics and by the use of exploration techniques exclusive to De Beers. A similar programme is planned for the Serowe licence currently held by African Diamonds, 120 km south east of Orapa. Work done to date by African Diamonds has indicated the possibility that new undiscovered kimberlites may exist at Serowe. Advancing this project to kimberlite discovery is the focus of exploration efforts in 2004.

Ownership of the joint venture will initially be 49% African Diamonds and 51% De Beers with De Beers funding the joint venture through to bankable feasibility study. De Beers' shareholding will rise to 70% upon completion of the first bankable feasibility study. The size of any mine resulting from the joint venture will decide whether it is managed by De Beers or African Diamonds with larger mines operated by De Beers and those below an agreed threshold operated by African Diamonds, who will receive a preferential profit share in those operations of Newco.