Botswana Diamonds secures Thorny River mining permit

Botswana Diamonds (LON: BOD) has secured a mining permit for its Thorny River project in South Africa’s Limpopo province, paving the way for potential production.

Located near the depleted Marsfontein diamond mine, Thorny River has undergone extensive geological exploration, including geophysics, drilling, and bulk sampling. The results suggest geology and grades comparable to those at the past-producing Klipspringer mine to the west.

Botswana Diamonds previously operated the Marsfontein gravels and dumps project as a proof-of-concept trial mine, collecting a 15% revenue royalty from the operation. Falling diamond prices and permitting delays prompted the company to place Marsfontein on care and maintenance in October 2023.

With the new mining permit in hand, Botswana Diamonds is set to commence contractor mining at Thorny River, contingent on market conditions. Should diamond prices recover, the company may also restart operations at Marsfontein while ramping up production at Thorny River.

Shares in Botswana Diamonds jumped on the news in early London trading, but fell 2.6% to 0.13p during the afternoon. This leaves the mine developer with a market capitalization of £1.5 million ($1.9 million).