AfriOre busy in Botswana

A series of writedowns on exploration properties pushed AfriOre (AFO-V) into the red in the past fiscal year.

The company’s loss for the 12 months ended Nov. 30, 1997, amounted to $7.3 million (or 46cents per share), compared with a loss of $1.2 million (12cents per share) in the previous fiscal year.

Writedowns totalled $5.6 million, including $4.2 million on acquisition costs and deferred exploration expenses at the Gope diamond property in Botswana. The Gope writedown stemmed from a decision by partner BHP Minerals International to withdraw from the project after failing to locate any kimberlite.

However, AfriOre still holds eight licences covering 4,900 sq. km on the property and intends to explore several untested magnetic anomalies. To do so, it will seek out a new partner. At year-end, AfriOre had $3.7 million in working capital and no debt.