RESOURCES AND RESERVES

Mining

LETŠENG DIAMOND MINEGHAGHOO DIAMOND MINE

LETŠENG DIAMOND MINE

The Letšeng kimberlites are unique and have been a source of intrigue for geologists since their discovery. Not only are the diamond populations atypical, but the way the pipes were formed, and their emplacement history is unusual. Several features of the two Letšeng pipes (Main and Satellite) differentiate them from the Kimberly-type Pyroclastic Kimberlites and impact our understanding of the complex distribution of diamonds within the pipes.

GHAGHOO DIAMOND MINE

Since mid-2013, the geological team at Letšeng has been working with a team of leading kimberlite experts from Canada and South Africa to gain a deeper understanding of the relationships between the various kimberlite types within each pipe and to differentiate the higher grade varieties from those with high value (containing large and abundant Type II diamonds).

Since mid-2013, the geological team at Letšeng has been working with a team of leading kimberlite experts from Canada and South Africa to gain a deeper understanding of the relationships between the various kimberlite types within each pipe and to differentiate the higher grade varieties from those with high value (containing large and abundant Type II diamonds).

Although Letšeng demonstrates broad scale consistency year on year in terms of price and average stone size for each of the kimberlite domains, the objective of the resource development programme is to gather data on local variability within each domain to improve large stone predictability and calibrate expectations of what each domain and subdomain can reasonably be expected to yield in terms of grade, average stone size, number of +100 carat stones and average price.

No additional resources and reserves have been added since the last update carried out by Venmyn Deloitte in 2015. The priority of the geological team is to firm up on the existing resource base and make appropriate operational and infrastructural adjustments to extract maximum value.

A core drilling programme is currently underway at Letšeng and is scheduled to be completed towards the end of 2021. New 3D geological models will then be updated and a revised Resource and Reserve Statement with supporting technical report is scheduled to be issued in 2022.

Owing to the decline in prices for the Ghaghoo diamonds, it became apparent that the sustainability of the mine, in its current form, was not financially viable. No further resource evaluation work was carried out at Ghaghoo during the commissioning and ramp-up phases before the decision was taken to place the mine on care and maintenance. Consequently, there has been no update to the Resource and Reserve statement published by Venmyn Deloitte in 2014.