Botswana Diamonds Mining Review Africa January 2021

1. 56 MINING REVIEW AFRICA / Issue 1 | 2021
THE MINING VALUE CHAIN | STEP 1: EXPLORATION
Turn back the clock
Diamond
exploration
The COVID-19 pandemic has had a devastating
impact on the diamond industry, with demand for
these precious stones reduced as a result of a global
economic downturn. This, in turn, has cast doubt
on diamond exploration programmes. Botswana
Diamonds MD JAMES CAMPBELL believes however
that there is no better time to undertake exploration
than now. GERARD PETER reports.
A
s a veteran of 35 years in diamond
exploration and project development,
Campbell has experienced both
the highs and lows of the sector.
According to him, while the sector
is going through a rough patch, this is not new.
“The diamond market reflects world economic
situations, so this is hardly surprising. However, if
you are an explorer, you need to take a long-term
view, meaning now is a really good time to do deals
and get your work done,” he states.
To illustrate his point, Campbell points to the
global financial crisis of 2009. At the time, he was
MD of African Diamonds and a similar market
sentiment prevailed as it currently does. “There
was a lot of talk that no one was investing in
diamonds. However, we executed a financially
attractive deal with Lucara Diamond in Botswana
who bought us out and then went on to develop
the diamond-rich Karowe mine. This was a really
good deal for our shareholders who made a 25
times return on their investment.”
In a more recent example, in November 2020,
Botswana Diamonds acquired Sekaka Diamonds
for US$300 000 plus a 5% royalty. On the contrary,
according to Campbell, four years ago, it would
have cost the company about $8 million to acquire
30% of the company.
World markets aside, there has been talk that
there is very little exploration upside for diamonds
because most of the large discoveries have already
been made. However, Campbell explains that there
is still plenty of potential for diamond exploration.
This is predominately down to new technology and
a higher level of precision.
Turning back the exploration clock
Meanwhile, the advancement of technology has
also reopened up opportunities for diamond
exploration. Campbell explains that diamond
exploration traditionally comprises two aspects.
The first is heavy mineral sampling, which looks
for kimberlitic indicators that are ubiquitous to
kimberlites. This is used in combination with
geophysics such as electromagnetics, magnetics,
gravity, radar or a combination thereof.
Now, in a breakthrough for the sector, Botswana
Diamonds has added a third component to its
exploration process. The company has teamed up
with UK-based Subterrane to conduct a detailed
structural geology analysis. Campbell illustrates
the use of this three-pronged technological
approach by referring to activities at the company’s
Thorny River and Marsfontein project areas.
“When kimberlites push through the crust,
they naturally find their way through to the
surface or close to the surface using zones of
weakness which is a fracture or a fault. All of the
blows (small kimberlite pipes such as the highly
lucrative Marsfontein mine) in the area are on
an intersection of a fracture and a dolerite
dyke. This essentially means that the pipe has
emerged near surface using the fracture to
find a pathway to surface. So by using heavy
mineral sampling, doing the geophysics and the
structural geology, we have now embarked on a
phased drilling programme.”
When it comes to the argument that most of
diamond discoveries have already been found,
Campbell has a contrarian view, particularly when
it comes to Botswana. “To a large degree, I believe
Will we find
another
Orapa or
Jwaneng in
Botswana?
It’s unlikely
but will we
find another
Karowe?
The answer
is yes,
JAMES
CAMPBELL
Drilling on Thorny River
Drilling on Thorny River

2. THE MINING VALUE CHAIN | STEP 1: EXPLORATION
that the larger deposits may have been
found. Will we find another Orapa or
Jwaneng in Botswana? It’s unlikely but
will we find another Karowe? The answer
is yes.”
However, in order to discover new
diamond mines, the industry requires a
different technological approach which
may also be more costly. For example,
Campbell explains that most of the
kimberlites found in Botswana are Group
One kimberlites that contain ilmenite,
which makes them magnetic. As such,
a company can use to magnetics to
discover kimberlites.
On the other hand, there are also
Group Two kimberlites that do not
contain ilmenite and are therefore not
magnetic (or only weakly so). “As such,
you then have to consider the more
expensive techniques such as gravity or
electromagnetics, in combination with
sampling, to find these kimberlites,”
explains Campbell.
Campbell is highly optimistic that by
using the right technology new discoveries
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will be made, even in areas that have been
explored before. “There’s an old saying
that every time there is a breakthrough
in exploration technology, the exploration
clock actually starts again.
“So you’ve got to go back to those old
areas, whether they were discovered
100 years ago or whether they were
discovered 20 years ago, and apply your
mind through the lens of new technology
and new thinking. It may result in
something or it may not. But if you don’t
try, no one will discover anything in the
world ever again,” he concludes.
Geophysics on Thorny River