John Teelings Botswana Diamonds stocks shot up nearly 5 percent Tuesday after the company reported a discovery of four high quality diamonds from drill samples on its Thorny River project in South Africa.
Bunnies in London’s AIM-listed Botswana Diamonds rose from an opening of 106p to a high of 125p each on Tuesday before closing again at 110p each.
Activity in the market came after the company announced that the four high quality diamonds and the abundant kimberlite indicators were recovered from drill samples at the recently discovered river kimberlite extension at Thorny River in Limpopo Province, South Africa.
The find contained four diamonds of good color and clarity, the exploration company said.
Drill samples have exposed numerous diamond indicators, including G10, G9 and eclogitic grenades, it said.
A new drill program is scheduled to begin in late August.
Botswana Diamond chairman John Teeling said the extraction of high quality diamonds and so many diamond indicators is very rare.
“The diamonds are of good quality. It is uncommon to extract diamonds from a small sample of narrow reverse circulation holes, which is a good indication of the potential of the Thorny River Project. Even more encouraging is the size of the kimberlite from which the diamonds recovered is expanding by itself, ”he said.
Serial entrepreneur John Teeling founded African Diamonds, creating Pan Andean Resources, Minco, African Gold, Persian Gold and West African Diamonds.
He is also the owner of the Great Northern Distillery in County Louth and is probably best known to many as the founder of Cooley Distillery, which was sold to American bourbon whiskey giant Beam for € 73 million.
In January of this year, Botswana Diamonds arranged a stock placement with existing and new investors to raise £ 363,000 (€ 440,000) by issuing 60,500,000 new common shares at 0.6p per share placed.
The proceeds should fund ongoing diamond exploration in South Africa and Botswana and provide working capital.
Last July, Botswana Diamonds purchased an exploration site and diamond processing facility in the African nation for a total of $ 300,000 in deferred payments.
Cash is deferred with $ 150,000 payable on November 27th of this year and the balance by the same date in 2022.