Pangolin Diamonds (PAN-V) has recovered its first diamond from Jwaneng South in southeastern Botswana. The gem turned up in a soil sample, like the several gems that it found on its Malatswae project, several hundred kilometres to the northeast in east-central Botswana. The Jwaneng South diamond, a white stone about one millimetre long, is a fragment of what was a larger gem.
Dr. Daniels, president and chief executive officer, and Mr. Warren, chief financial officer, say that indications suggest that the diamond was found close to its bedrock source -- those indications being the presence of a fragile inclusion on the broken surface of the diamond, and the ilmenite indicator grains, with little sign of wear caused by tumbling across the desert sands, that also appeared in the sample. Further, ground magnetic surveying over the area yielded an anomaly that could be the source. (These are encouraging signs, but it is far too early for hats and horns: Pangolin's diamond finds at Malatswae exhibited similar indications, but it has yet to find any source for its gems.)
As its name suggests, Pangolin's Jwaneng South property is south of the rich and prolific Jwaneng mine. The headframes of profitable mines have always cast huge shadows on Howe Street, and Dr. Daniels and his crew are pushing the limit. ("Way South of Jwaneng" would offer greater geographical precision, as the mine is about 100 kilometres north of Pangolin's property.) Nevertheless, it is a promotable connection, as Jwaneng, known as the "Prince of Mines," is probably the richest diamond mine in the world. The huge open pit mine began production in the early 1980s and the pit is now over 600 metres deep. (Current projections suggest there is enough ore to last to 2035.) Jwaneng, which has been producing over 10 million carats at grades topping one carat per tonne for many years, regularly contributes roughly two-thirds of the annual revenue for Debswana, the mining arm of De Beers and the Botswanan government.
Dr. Daniels and Mr. Warren are undoubtedly pleased with their little sliver of diamond, but they have not yet said what the next plan is for Jwaneng South. They did lay out a plan -- or at least a plan for a plan -- at Malatswae in January, when Pangolin said it was planning a drill program at Malatswae and at Moenyenana, another Botswanan diamond project. At the time, Pangolin promised drill results by the end of June, but there has not been a peep about it since. |
