UK-headquartered Botswana Diamonds which is currently engaged in exploration at multiple locations in Botswana in partnership with Alrosa, reported that its losses for the year ended June 30, 2014 had grown from £ 0.52 billion last year to £ 1.02 billion, which translated into a loss per share of 0.57p this year as against 0.36p last year.

After partnering with Alrosa two years ago, BOD conducted extensive fieldwork in the Orapa area and tested samples based on a four hole drilling programme in Block 117. The company reports that the results were “reasonable but not great”, and that it is “unlikely to drill further on that licence as the targets look small”.

John Teeling, Chairman, has however reassured investors that the partners will continue with the exploration strategy and the “coming year will be an important test.” Focus has now turned to the 5 licence block PL206 to PL210 covering 1,357 sq km of highly prospective ground, he noted, where “early evidence suggests that the technical analysis is identifying good drilling opportunities”. 

Striking a word of caution, the statement described the diamond mining industry as “an oligopoly with 4 companies controlling 80 per cent”. It concluded: “Political and economic uncertainty abounds in the world.  Commodity prices are soft and resource investment out of favour while junior explorers are ignored.  But diamond fundamentals are good.  We have the ground and the team.  Success, if achieved, will bring great rewards”.