DIAMOND PAGE — Redaurum finds new partner

Toronto-based Redaurum (RRK-T) has signed Diamond Ventures Exploration (DVE), a wholly owned subsidiary of Australia-based Diamond Ventures, to a joint-venture agreement covering the Orapa North project in Botswana.

DVE can earn a 51% equity interest in Orapa North by spending A$1 million over three years. To explore the concession further, Redaurum can contribute, on a pro rata basis, once DVE has earned its 51% equity.

Alternatively, it can permit DVE to earn an additional 14% by spending a further A$1 million over an additional 2-year period. DVE will manage the joint venture.

Orapa North comprises 1000 sq. km in a portion of Botswana’s Orapa-Letlhakane diamondiferous kimberlite province. The concession area includes most of the northern limb of the Letlhakane River, which drains into the Magkadigkadi Pan.

Redaurum considers the terrace and channel gravels of the Letlhakane River and ancient shoreline gravel deposits of the Magkadigkadi Pan (formerly a large lake) to be highly prospective for economic diamond concentrations.

Work conducted by the company over the past year has identified several promising sites indicative of alluvial deposition.

Redaurum considers the Orapa North joint venture the first step in the reorganization of the company following its decision late last year to sell its producing assets and focus on diamond exploration.

The company recently announced the sale of its 80% interest in the Avontuur diamond mine in South Africa for $1.6 million. The sale includes the mine, diamond recovery plant and specific earthmoving equipment. Equipment not included in the sale will be transferred to Redaurum’s nearby Rooiberg Sout River exploration project.

The company plans to use a portion of the funds generated from the sale to develop its Rooiberg Sout River project.

Redaurum says numerous parties have expressed interest in its two remaining mines (Kelsey Lake and River Ranch in Zimbabwe). A final determination on which additional mines, if any, are to be sold is expected in the next few months.