Introduction & Strategy
The Company focuses on the Kaapvaal craton which straddles the Southern African countries of Botswana, South Africa, Zimbabwe, eSwatini and Lesotho. The craton hosts some of the oldest rocks on earth and is host to a long legacy of diamond production and is thus highly prospective for new discoveries.
Figure 1: The Kaapvaal Craton
The Company’s strategy has a primary focus on geology (‘prospectivity’) followed by political risk. In Botswana, the country remains highly prospective and has low political risk whilst in South Africa, which is also highly prospective, political risk has been higher in the past but is trending lower and thus diamond exploration is beginning to re-commence; this is evidenced by De Beers who are more active in South Africa than in recent years. Zimbabwe is also highly prospective and there are positive signs that the country is gradually opening for business.
Emergent opportunities are available in Southern Africa; the Company has a portfolio which comprises projects over the exploration continuum from early through to more advanced stages of evaluation. This portfolio, combined with a risk sharing model, gives both flexibility and optionality in choice of operating focus as well as the ability to leverage the benefit from exploration monies spent ie, maximise ‘bang for the buck’.
Figure 2: BOD project portfolio – evaluation continuum
A balanced portfolio of projects which span the evaluation continuum is desirable for a diamond exploration company. Our early stage projects generate news flow whilst the more advanced stage projects give the potential for commercial production. As projects progress along the continuum with increased confidence (i.e. Thorny River including Marsfontein), they become increasingly more resource intensive, and challenging to fund. The risk sharing approach mitigates this such that capital to fund development is reduced.
The company keeps abreast of exploration technology developments particularly those which are able to ‘see’ through both the deeper Kalahari (Botswana) and Karoo (South Africa) covers which have the potential to open up significant ‘new’ frontiers of exploration in addition to early or ‘lead’ indicators of diamond bearing kimberlites, particularly those which may host more desirable categories of diamonds.