Image credit: Botswana Diamonds
The company is revenue or cash-generating and it relies on raising capital from the public market.
Botswana Diamonds said it had net liabilities of £389, 107 in the year compared to £343, 746 in 2019.
"These conditions represent a material uncertainty that may cast doubt on the group's ability to continue as a going concern," it said.
Company chairperson John Teeling said despite the challenges faced in 2020 they made significant progress in Botswana, South Africa and Zimbabwe.
"In Botswana, we made what could be a transformative acquisition of Sekaka Diamonds. Sekaka not only has one of the largest diamond databases but also holds title to a significant diamond discovery, KX36 and two surrounding licences," he said.
He said the company believes that additional pipes lie hidden in the ground surrounding KX36. "Discovering these will be our primary focus," said Teeling.
"There is a fully functioning sampling plant on site which we have acquired. There are significant challenges where KX36 is located. Infrastructural costs are very high, particularly for power, fuel and logistics. Alternatives are being examined."
He said while their focus will be on KX36, they also have a database which contains extensive, geophysical, geochemical and drilling data with many potential targets already identified and can save participants in the Botswana diamond sector years of preliminary work.
In South Africa, recent drilling on Thorny River has discovered a 0.4-hectare blow.
"We do not yet know the diamond grade but the average on this dyke is 55cpht," said Teeling.
"… core drilling will take place in early 2021."
In Zimbabwe, the company is also looking at a project in an area known to contain kimberlite pipes.
"It is early stage. The current law demands 51% local ownership. We have no issues with a joint venture as long as there is sufficient financial incentive for Botswana Diamonds," he said.
The company also has an agreement with Vast Resources to assist them concerning a possible licence in the Marange area.
Botswana Diamonds has a 5% carried interest up to a certain expenditure.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
