PERTH: EHR Resources Ltd announced the formal launch of the Botswana Exploration Alliance. The Exploration Alliance Agreement was formed with Diamond Exploration Strategies Ltd (DES), a privately-owned company focused on diamond exploration in Botswana.
Under the terms of the Alliance, EHR will provide funding of US$1.5 million over three years to finance exploration activities, earning 50% ownership of any discoveries made. The Alliance is initially over five areas that have existing prospecting licenses, but extends to cover other prospective areas of Botswana that may be identified.
Following a meeting of the Technical Advisory Committee of the Alliance, EHR has approved a work program and budget for the first twelve months. This program includes planned drilling in two prospective target areas within the next six months, as described later in this release. Permitting is underway, and drilling is planned to start in September or October this year, assuming current Covid-19 restrictions in Botswana have eased as currently expected.
Commenting on this work program, EHR’s Managing Director, Mr Peter Ravenscroft, said: “We are very excited to be commencing our diamond exploration program in Botswana. Since announcing our exploration alliance with our partner DES in June, we have locked in our financing and are now able quickly to progress work on the two initial exploration targets. Both of these would represent significant new kimberlite discoveries in Botswana if successful.
“DES has put together a great portfolio of project opportunities based on many years of experience and a deep knowledge of diamond exploration in Botswana. With other projects to be assessed in 2021 and some excellent ongoing work in new project generation, we are confident in being able to deliver significant value from the Alliance to EHR shareholders.
“The launch of exploration activities in Botswana represents a further step in the careful execution of our strategy. We continue to examine further investment opportunities in the diamond space and will be progressing some of these in coming months.”
Nata Project and Mmashoro Project represent the first steps of the three-year exploration program to be conducted by the Alliance. One project has potential for a significant discovery in a kimberlite new field, while the other is focused on unresolved opportunities in the prolific Orapa region of Botswana.