Botswana Diamonds (LON: BOD) has successfully secured a mining permit for its Thorny River project in South Africa’s Limpopo province, marking a significant step toward potential diamond production.
Located near the depleted Marsfontein diamond mine, Thorny River has undergone extensive geological exploration, including geophysics, drilling, and bulk sampling.
Early results indicate that the geology and grades at Thorny River are comparable to those at the past-producing Klipspringer mine to the west.
Previously, Botswana Diamonds operated the Marsfontein gravels and dumps project as a proof-of-concept trial mine, generating a 15% revenue royalty.
However, falling diamond prices and permitting delays led the company to place Marsfontein on care and maintenance in October 2023.
With the new mining permit now in hand, Botswana Diamonds is ready to begin contractor mining at Thorny River, depending on market conditions.
Should diamond prices recover, the company plans to restart operations at Marsfontein while ramping up production at Thorny River.
Following the announcement, shares in Botswana Diamonds surged in early London trading but later fell 2.6% to 0.13p, leaving the company with a market capitalization of £1.5 million ($1.9 million).
