DIAMOND PAGE — Botswana finances African projects — Water Fissure program near completion

Funds from a warrant offering are allowing Botswana Diamondfields (BWD-V) to continue exploring several of its diamond projects in Botswana and South Africa.

The company raised $9.6 million through the exercise of 3.2 million warrants. A further 790,000 warrants remain outstanding and are exercisable until June 6, 1998; they are priced at $3.50 per warrant.

Proceeds from the deal will go towards funding exploration of the Mopipi and Tswapong properties in Botswana and the Water Fissure and Rovic properties in South Africa, as well as future projects on several other properties held in both countries.

At Mopipi, the company is carrying out a soil survey to test several concentrations of garnet indicator minerals, which were previously identified by reconnaissance work. While this continues, the company is proceeding with a reconnaissance soil-sampling survey at its Tswapong project.

Meanwhile, at the Water Fissure property, the company is nearing completion of a bulk-sampling program on a diamond-bearing kimberlite. A total of 10 separate, 1,000-Tonne samples will be taken in the program. Samples will be processed on site, following the successful commissioning of a Sortex recovery plant.

As well, drilling and geotechnical testing are continuing at the suspended Rovic mine. The program is determining the strength and stability of the host rocks surrounding the No. 3 kimberlite pipe. Once completed, the company will begin to determine the feasibility of resuming mine operations.

Operations at the mine were suspended late last year, after a heavy rainfall caused a mud flow into old underground workings. The disaster resulted in the deaths of 19 employees and 1 contract worker.

At other projects, future work will consist of a bulk-sampling program at the 0.65-ha Bellsbank kimberlite pipe in South Africa and grassroots exploration at three Botswana properties.

The bulk-sampling program is scheduled to begin before September.