DIAMOND PAGE — TNK prospect catches eye of De Beers

Management of TNK Resources (TNKR-C) is heartened that its exploration projects in Botswana have come to the attention of the world’s largest diamond producer.

The company has signed three joint-venture agreements with a subsidiary of De Beers Consolidated Mines (DBRS-N) relating to the Gope prospect. TNK also entered into an agreement that allows Monopros, De Beers’ Canadian subsidiary, to buy 800,000 units of TNK, consisting of one share and one share purchase warrant.

The agreements enable De Beers to earn varying interests in TNK’s Gope prospect, which comprises about 1 million acres in the centre of Africa’s Kaapvaal Craton. Since 1993, the junior has held a 100% exclusive licence to explore the prospects in central Botswana’s Kalahari Desert. This work has resulted in the discovery of four diamondiferous kimberlites.

“We’re thrilled with these agreements,” says TNK President Elizabeth Kirkwood. “We will continue to operate the exploration programs outside of the discovery licence. We believe this is the first time De Beers has made such an arrangement.”

The Gope prospect has been divided into three areas, the first being the licence covering the four previously discovered kimberlite pipes. De Beers will operate the Area 1 joint venture and can earn up to a 60% interest by funding all exploration and development costs. These costs pertain to bulk sampling, a feasibility study and, if warranted, construction of a mine.

Area 2 covers the western portion of the prospect, whereas Area 3 lies to the east, surrounding the Gope 25/136 pipe cluster operated jointly by De Beers and Falconbridge (FL-T). If discoveries are made by TNK, De Beers will have the option of proceeding to more advanced exploration. At this point, it will become operator and acquire the right to earn up to a 60% interest in the licences by funding work programs.

Kirkwood says De Beers has been making good progress at its own diamond projects in central Botswana, which may have something to do with its interest in TNK’s prospects.

“I’m convinced they know far more than we know,” she adds. “But we do know that we are in a good address for diamonds.”

Botswana is the world’s front-ranking diamond producer, in terms of dollar value. The country is said to account for 16.8 million carats annually from three mines.