Paragon Diamonds new Prospecting Licence

RNS Number : 0861S

Obtala Resources Limited

04 November 2013

 

4 November 2013

Obtala Resources Limited

("Obtala" or the "Company")

(AIM: OBT)

Paragon Diamonds awarded new Prospecting Licence in Botswana

The Board of Obtala Resources Limited, the natural resources investment and development company, announces the following RNS made by Paragon Diamonds Limited this morning:

Obtala Resources Francesco Scolaro - Chairman Simon Rollason - Managing Director www.obtalaresources.com	[phone]
Macquarie Capital (Europe) Limited (Nomad and Broker)
Steve Baldwin	[phone]
Nicholas Harland

4 November 2013

Paragon Diamonds Limited

("Paragon" or the "Company")

(AIM: PRG)

Award of new Prospecting Licence in Botswana

·     Large licence area of 442 km² in Botswana;

·     Located in the Tsabong Kimberlite Field, host to many world-class size kimberlites and a recent 200 ha "super-kimberlite" discovery;

·     Positive kimberlite indicator mineral results including a diamond from previous results; and

·     A number of as-yet untested magnetic anomalies.

Paragon Diamonds is pleased to announce that its wholly-owned Motswana subsidiary, Kopje (Pty) Ltd, has been issued with the Prospecting Licence 203/ 2013 for precious stones which covers an area of 442 km2 in the Kgalagadi District, southern Botswana, centred 20 km north of the town of Tsabong. The Licence was issued with effect from 1 October 2013 with the full title document received on 31 October 2013, and is valid until 30 September 2016. It can be renewed twice for further periods two years provided 50% of the area is relinquished at each renewal, giving a total validity of seven years.

The Licence area is on the northern flank of the Tsabong Kimberlite Field, with the closest kimberlite pipe approximately 8 km south of the Licence. Recently Pangolin Diamonds have announced the discovery of new kimberlites which extend the known field to the northwest. Although the diamond potential of these new kimberlites is to be tested, it is evident that at least one of the bodies found is very large, perhaps greater than 200 ha.

The Tsabong Kimberlite Field is remarkable in that it includes many large diatremes, including M1, which at 180 ha is one of the largest kimberlite bodies in the world. The Field includes upwards of 60 known kimberlite bodies. The tectonic setting of the Tsabong kimberlites is the same as for the Orapa Field, which hosts several major kimberlite mines.

Historical work in the early 1990's on the western portion of the new Kopje licence area (the "T2" area) recovered kimberlite indicator minerals including G9 & G10 garnets, ilmenites, and also a 0.5mm diamond. This work was completed at a very broad reconnaissance level, and there is considerable scope to follow up these results. In addition, aeromagnetic surveying has identified 10 targets that have not yet been drilled.

Access into Prospecting Licence 203/2013 is good, via the tarred road leading north from Tsabong to Gaborone, which passes from Tsabong to the Kalahari Trans-Frontier National Park. Within the area there are many graded sand and gravel roads and tracks suitable for four-wheel drive vehicles. The terrain and weather allow exploration work to continue year round.

Work will commence with a thorough review of historical results and existing data, including extensive geophysical and mineralogical results on open file with the Geological Survey of Botswana.

Executive Chairman, Martin Doyle commented:

"The award of this licence will complement our holdings of historical kimberlite discoveries. I am very familiar with this area and the era of work having been part of the team that discovered the Lekgudu kimberlites to the south west in the 1970's. The recovery of a diamond in widely spaced soil sampling, less than 5 kilometers from undrilled magnetic anomalies and on the margin of the extensive Tshabong Kimberlite field is highly significant. Securing this licence is a continuation of Paragon Diamonds' strategy of applying modern-day sampling protocols to historical discoveries to correctly assess grade and diamond values, a strategy we continue to focus on in Lesotho at our flagship Lemphane Kimberlite, at the Kaplamp Lamproite Field in Zambia and now at Tsabong in Botswana."

Managing Director, Stephen Grimmer, commented:

"With the recent successful award of a Mining Lease on the Lesotho Lemphane Kimberlite to our 85% owned subsidiary Meso Diamonds, and the imminent development of that project into a mining operation, the award of this Prospecting Licence in the highly prospective Tsabong Area is very timely and further adds to Paragon Diamonds' pipeline of projects at every stage of development."

In accordance with the AIM Rules, the information in this announcement has been reviewed by Stephen Grimmer PhD., MSc., a qualified geologist with over 25 years' diamond exploration experience.

For further information:

Paragon Diamonds Limited Martin Doyle - Chairman Simon Retter - Finance Director	[phone]
Sanlam Securities UK (Nominated Adviser & Broker) Lindsay Mair Catherine Miles	[phone]

 

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