Botswana Diamonds gets environmental nod for Thorny River

Botswana Diamonds (LON: BOD) said on Friday that South Africa’s Department of Mineral Resources and Energy had approved the environmental authorization for one of its two mining permit applications tied to the Thorny River project.

The company said it expects the mining permit to be granted within the next six weeks, following further community consultations.

“We are delighted to see that this authorization has come through, and we anticipate that the mining permit will soon be granted,” chairman John Teeling said in a statement. “The Thorny River project is well-placed to restart and expand mining operations when prices recover.”

The asset, located in South Africa’s Limpopo province, comprises a kimberlite blow on a kimberlite dyke system. Botswana Diamonds conducted in 2022 a comprehensive exploration program, which included ground geophysics, drilling, bulk sampling, and a positive mine-planning assessment by an independent consultant.

The exploration efforts yielded multiple gemstones, including a 24.6-carat diamond, described as large but of low quality and value, as well as other high-value stones.

Based on preliminary evaluations, the mine is expected to yield about 1.7 million tonnes of kimberlite over its lifetime. This estimate assumes mid-range diamond values of $170 per carat, a recovered grade of 40 carats per hundred tonnes, and mid-range mining costs, with a discount rate of 10%.

Thorny River is strategically positioned six km (3.7 miles) from the Marsfontein mine, where Botswana Diamonds recently concluded a proof-of-concept operation. The proximity to Marsfontein, a historically productive site, increases the viability of restarting and expanding operations once market conditions improve, the company said.