Botswana Overview

DIAMONDS - BOTSWANA

In Botswana, which remains the world’s leading producer of gem diamonds, the Northwest corner of the country is rapidly developing into a very active diamond exploration play, reflected by a surge of exploration activity and new Prospecting Licenses.

The Tsau Kimberlite Project consists of a block of three contiguous Prospecting Licences (PL’s 66-68/2007), with a combined area of approximately 2,890 square km, adjacent to the Botswana- Namibia border, in the Ngamiland District of NW Botswana. It is a grassroots kimberlite exploration project being managed by Dr. Andy Moore, P.Geol., who oversees The Company’s diamond exploration program.

Download Technical Report: Tsau

The licences were awarded by the Ministry of Minerals, Energy and Water Resources to PAM Botswana (Pty) Ltd., a 99.93% owned subsidiary of the Company, for an initial period of three years, expiring on March 31, 2010. On expiry, application may be made to renew 50% of the combined area of the licences for a further two-year period. Thereafter, application can be made to renew 50% of the retained ground (i.e., 25% of the original Property area) for a further two year period (thus creating a total tenure of seven years). At the end of the seven year tenure, application may be made for mining leases, or the ground relinquished.

The area covered by the Tsau licenses is a flat plain at an average altitude close to 1,000 m, covered by Kalahari sand varying in thickness from approximately 0-100m. Vegetation is open woodland and grassland savanna. The climate is semi-arid, with an average annual rainfall of approximately 20 inches, falling mainly in the summer months (October - March). Access into the property is via a tarmac road, some 160km from Maun, which is the nearest large town and thereafter via an approximately 150km long sandy track. Travel within the property is by sandy tracks or cross country traverses using 4x4 vehicles. There are no towns or villages within the license area.