Kalahari Diamond

completed

KDL is a recently incorporated private UK company and will conduct operations through Godi (Proprietary) Limited, its wholly owned Botswana subsidiary. KDL will undertake a major review of existing geological information for the 90 licenses with a view to prioritizing and ranking areas that are considered more prospective. BHPB’s proprietary airborne Falcon Technology will be utilized to conduct aerial surveys of these areas. If high priority target areas are identified, KDL will follow up with ground geophysics and sampling techniques. Confirmed anomalies will be drill tested to recover samples for assessment of diamond potential. Development Impact Botswana’s rapid and consistent economic development and high growth rate has been based on the re-investment of its mineral wealth in education, health, and sustainable economic development initiatives. Although Botswana has a stable and democratic government and policies consistent with private sector development, exploration expenditure in Botswana is inconsistent with its diamond mineral potential. In 2001, diamond exploration expenditure in Botswana was only $4.5 million, compared to $17 million in Australia, and $81 million in Canada. This is partly due to the extensive sand cover renders exploration difficult. Botswana’s ability to continue their impressive development performance will be facilitated by new mine developments. The formation of KDL and the introduction of the Falcon technology provide a step towards this objective. The use of the airborne Falcon gravity gradiometer system will enable KDL to rapidly, with minimal environmental impact, obtain enhanced geological information on Botswana, including geological detail below the Kalahari sand cover that blankest about 70% of Botswana. The data collected will provide an enhanced understanding of Botswana’s geological potential, and some of the data will be released to the Botswana Government as prospecting licenses are released. KDL is willing to make available any relevant data to the Botswana Government and IFC assistance has been requested to develop, in consultation with KDL and Government, appropriate mechanisms for dissemination and utilization of the Falcon data beyond its mineral application. IFC’s involvement will assist in making KDL a leader in sustainable mining development initiatives. IFC will have a positive role assisting mine development, facilitating community partnerships, local economic development, skills transfer, building environmental management capacity, and encouraging appropriate resource utilization and conservation practices (especially associated with game reserves).