Tsodilo Resources LTD (CVE:TSD) holds diamond and metal licenses in Botswana and South Africa.
Famous Diamond district
The company has a prospecting licence over the BK16 kimberlite, a prospect located within the famous Orapa kimberlite cluster, one of the most prolific diamond-producing areas in the world.
BK16 is 37 kilometres south of Orapa itself, 25 kilometres south of the Damshtaa mine, and 13 kilometres north-northeast of the Letlhakane mine, all operated by the jointly-owned Botswana—De Beers local champion Debswana.
In addition, Lucara’s Karowe mine is 28 kilometres east-northeast.
Diamond parcels show strong carat values
The recent evaluation of diamond parcels from BK16 showed an average value of US$197 per carat. Two parcels containing 224 diamonds were evaluated as part of Tsodilo’s wider investigations of the potential of BK16. The stones were extracted from large diameter drilling work that took place earlier this year. What’s more, most of the stones were gem-quality.
Dense Media Separation Plant
The company's 10 tonnes per hour mobile Dense Medium Separation (DMS) plant is being used to accelerate a bulk sampling programme. The DMS plant has a scrubber with a trommel screen of 16 mm, a primary jaw crusher that has a closed size setting of ~25 mm and a secondary cone crusher that has a closed size setting of 10 mm.
This adds considerably to the company’s in-country capabilities, and has already delivered significant samples.
Around US$4.5mln was allocated to the initial sampling programme, now complete. Further work is likely to continue for the next couple of years, to the point where a NI43-101 can be prepared.
Metals exploration portfolio adds further value
Tsodilo also has a 100% stake in its Gcwihaba project area consisting of seven metal prospecting licenses all located in the North-West district of Botswana. These consist of base metals, precious metals, and rare earths.
Additionally, Tsodilo has a 70% stake in Idada Trading 361 (Pty) Limited which holds the gold and silver exploration license in the Barberton area of South Africa.
Strong backing from experienced mining investors
Key names on the Tsodilo register include JP Morgan, First Quantum Minerals, Lucara Diamond Corp, and the IFC. This is a pretty blue-chip list and should provide investors with comfort that several rounds of due diligence by high profile organisations has been completed.