Layfield Resources in conjunction with their Joint Venture partners are poised for dramatic growth as they explore for diamonds in Botswana, Africa. The company is focused on the Molopo Project:
*1.7 million acres of exploration property in Botswana
* 55 kimberlite pipes discovered to date of which 13 area diamondiferous
* 3 large pipes potentially of economic grades including the largest kimberlite in the world - M1 pipe
* Numerous untested priority targets on the property
* Shares Outstanding 27,286,010 Fully Diluted 27,786,010
* Current share price Bid .13 Ask .14 Last .14
* Market Capitalization approx. $4,000,000.00
Molopo Diamond Project, Botswana, Africa
Layfield can earn a 75% interest in the approximately 7,000 square kilometer Molopo
Diamond Property in southwestern Botswana, under the terms of an option/joint venture
agreement with Southern Africa Minerals Corporation ("SAF").To earn it's interest,
Layfield must retum 500,000 SAF shares it currently holds to SAF, issue 1,000,000 shares
of Layfield to SAF and complete US$ 5,000,000 in exploration over a 5 year period.
The Molopo Diamond Property is felt to be highly prospective for an economic diamond
deposit. It is known to contain more than 60 kimberlite pipes, including the M-1 pipe
which is the largest known kimberlite pipe in the world. Limited sampling of the known
kimberlite pipes has shown 13 to be diamondiferous to date. It appears that many of the
pipes in the Molopo Kimberlite Field have undergone little erosion and have the entire
pipe, including the crater facies, intact. Mining of the crater facies, eg. at the Orapa
Mine, is a critical part of the Botswana diamond industry which generates an annual
revenue of close to US$2 billion from three kimberlite mines. The latter includes the
Jwaneng Mine, located to the east of, and possibly along the same crustal fracture zone
as Molopo and which is the richest diamond mine in the world.
Layfield has recently completed an 8 hole reverse circulation drill program on the property
to test priority airbome magnetic targets. This program has resulted in six confirmed new
kimberlite discoveries in the Molopo Kimberlite Field. Results of microdiamond analyses on
kimberlite material from this program are expected in January 1999. Layfield is extremely
encouraged by its kimberlite discovery success rate to date and by the indicated
substantial size (to 13 hectares) of several of the pipes. The Company plans to review
the results of the present program as a prelude to additional drilling at Molopo. This
drilling could take the form of follow-up core drilling on some of the better pipes and
continued RC testing of priority magnetic anomalies. In the latter regard, there are
numerous additional very good kimberlite targets to be tested at Molopo.
Layfield has also recently entered into a sub-option agreement with Contiki Resources
Ltd. This agreement concerns only the 836 square kilometer Prospecting Licence 139-93.
Contiki can earn a 60% interest in this licence by spending US$ 4.75 million over a five
year period, and issuing Layfield 1,000,000 of its shares in 5 tranches over the same five
year period. Layfield would retain a 15% interest in this licence with the remaining 25%
retained by Southern Africa Minerals Corporation. Contiki's expenditures on this licence
will count towards the US$ 5 million that Layfield must spend to earn its interest in the
whole project.
Layfield has been advised by Contiki Resources Ltd. that Contiki plans to commence
drilling on Molopo Licence 139 -93 on or about December 11.
Botswana - General Information
Botswana is a landlocked country with an area of 581,730 square kilometres
located in southern Africa. To the south and southeast, Botswana is
bordered by the Republic of South Africa with which it has close economic
ties, to the northeast by Zimbabwe, and by Namibia to the north and west.
Much of Botswana is characterized by flat savanna to semi-desert lands with
an average elevation of 950 m above sea level. Most of Botswana's
estimated 1.5 million inhabitants live in the southern and eastern portions of
the country, the more industrialized region. Gaborone, the capital has a
population of approximately 200,000 and is the main international point of
entry. Other major urban centers include Francistown, Lobatse, Maun and
Selebi-Phikwe. The road network is well developed along the eastern and
southeastern portions, but with relatively little infrastructure present in the
western half of the country.
Botswana is a multiparty democracy and has been peaceful and increasingly
prosperous since independence from England in 1966. The most recent
budget speech, delivered on the 9th of February,1998, highlighted 6.9%
economic growth for 1996-97, inflation of only 7.8%, a budget surplus of
P1302 million, and most impressively, foreign exchange reserves of $US 5.722
billion. The economic, political and social aspects to life in Botswana continue
to make it the model for the rest of Africa.
More information on Diamond exploration in Botswana.
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