Botswana Diamonds PLC said Monday that an analysis of its property in South Africa showed that there is potential for an open pit mine and for operational positive cash flow even at low levels of diamond recovery.
The AIM-listed diamond company said the conceptual open pit valuation for the Thorny River site showed that, even at low revenue factors, the kimberlite--a rock that sometimes contains diamonds--was "potentially commercial when applying current industry standard mining and processing costs."
Assuming mid-range diamond values of $170 per carat, a 10% discount rate, a recovered grade of 40 carats per hundred tons, or cpht, and 1.7 million tons of kimberlite mined, showed that the mine was likely to be commercial, it said.
"We will continue to work on the project including determining the capital cost. We anticipate that drilling in the coming months will extend mineable kimberlite volume," the company said.
By: Anthony O. Goriainoff (Market Watch).
Image: Africa Business Communities.
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