Kalahari Diamonds

In September 2005, Petra acquired 100% of Kalahari Diamonds Limited and subsequently became the holder of a large land area under diamond prospecting licence in Botswana, all of which is "on craton".

Botswana offers an exceptional basis for exploration in that it ranks highly with regards to diamond prospectivity, yet it ranks very low with regards to operating costs. Petra has committed annual funding of US$500,000 to be applied to a scaled down but highly focused exploration campaign.

Kalahari vital statistics

Size of concession:

48,641.00 km²

Date acquired by
Petra Diamonds:

September 2005
 

Interest:

Petra Diamonds 100% (BHP Billiton has certain back in rights)

Operator:

Petra Diamonds

Status:

Early exploration

Location:

Refer map

Geology

Botswana is the world’s largest producer of diamonds by value, hosting several of the world’s major mines at Jwaneng, Orapa, Letlhakane and Damtshaa.

Due to Botswana’s large swathes of Kalahari sand cover, exploration techniques rely largely on geophysics. Karoo age flood basalts also cover large portions of Botswana, underlying the Kalahari sand. As a result, the basement geology of most of Botswana is poorly exposed and understood, and information is based on drilling and geophysical interpretation.

Review of progress

Despite the reduced funding directed to Petra's Botswana exploration programme in the 2009 financial year, the company has made significant progress. During the past year Petra has discovered three new kimberlites (BK1 South - Orapa field, Ki Sek 1- Kikao field, and Kx 36 - new field) which have been petrographically described as either having moderate or high diamond bearing potential. However, all three kimberlites are relatively small, having geophysically interpreted sizes of less than five hectares. All three kimberlites have returned promising mineral chemistry data whilst Kx 36 has also been proven to be diamondiferous.

In addition, mineral chemistry and micro-diamond investigation of the two kimberlites in Petra's Jwaneng project area have been received. Mineral chemistry analysis of the DK 6 kimberlite, which is geophysically estimated to be 1.5 hectares in size, indicates that it is diamondiferous. This has been supported by micro-diamond results, suggesting a grade of 16 cpht.

Outlook

Since Petra made the decision in January 2009 to redirect exploration expenditures, the latter half of the 2009 financial year was used by the Botswana division as a period of consolidation. As a result, large tracts of well explored ground have been relinquished and significant tracts of new ground have been applied for. During the first half of the 2010 financial year, this consolidation process will continue, but Petra is in a strong position having the advantage of our extensive geophysical database, integrated with our mineral chemistry database. Our considerable expertise and years of local knowledge and research also ensures that we are at the forefront of diamond exploration in Botswana.