Teeling firm eyes diamond haul in South Africa

Botswana Diamonds, the John Teeling-chaired mineral exploration company, has indicated a potential significant diamond discovery in South Africa.

The Dublin-based prospector, which has its shares listed in London, said that geophysical work carried out on its Thorny River prospect in South Africa may have identified five diamond targets. These, it said, are "likely" to be kimberlites; the igneous rock which can contain diamonds.

The site is close to the high grade Marsfontein mine owned by diamond giant DeBeers.

Botswana has a 40% stake in Thorny River's ultimate holding company Vutomi, but has the option to up that holding to 72%.

Botswana and its partners could drill at Thorny River some time next year. In the meantime, the company will spend the next eight weeks or so narrowing the target area.

"We are working to better define where to drill. The targets are shallow, so will not be expensive to drill," Mr Teeling said.

"It has long been held that there should be high grade kimberlite pipes other than the Marsfontein mine in the Thorny River area," he said.