Botswana Diamonds jumps on prospecting licence expansion

Shares in London-listed Botswana Diamonds (LON:BOD) climbed Monday to close 9.6% higher at 1.89p after it announced it had been granted a prospecting licence over an additional 1,000 hectares at its Vutomi joint venture in South Africa.

Area is immediately east of and contiguous to the company’s Frischgewaagt project.

Geophysics studies undertaken in the area, which is immediately east of and contiguous to the company’s Frischgewaagt project, indicate that the kimberlite dyke/pipe system being studied extended into the adjacent property, the firm said.

The combined area of the two properties covers over 2,700 hectares, Botswana Diamonds said.

The news follow Friday’s announcementbotswana-diamonds-jumps-on-prospecting-licence-expansion that had identified a group 2 kimberlite pipe at the Ontevreden licence, also in South Africa, in an area known by its high-grade diamonds.

Botswana, which was overtaken by Russia as the world’s top diamond producing country in 2014, is grappling with aging mines, as well as power and water shortages.

Besides diamonds, the nation also produces nickel, copper, coal and iron ore.