Botswana Diamonds Enters Option Agreement With Morminas

Botswana Diamonds entered into an option agreement with a Mozambican company, Morminas, a subsidiary of EIP Group of Portugal to evaluate two license blocks on the Save River in Mozambique, close to the border with Zimbabwe.

Morminas holds a 100 percent interest in both blocks. The Save River runs southeast and drains into an area of Zimbabwe, which contains the Marange diamond fields. Botswana Diamonds' objective is to explore the potential for alluvial and eluvial deposits, which may have washed down from Marange.

The agreement stipulates a six month exclusivity period during which Botswana Diamonds will review the available data on the licenses and undertake preliminary exploration. Should the analysis prove positive Botswana Diamonds will negotiate a long term agreement, the company stated.John Teeling, the chairman of Botswana Diamonds, said, "This agreement represents another step forward in the development of our diamond interests and gives us access to a prospective play close to the Marange diamond fields in Zimbabwe.

The experience and knowledge gained in Zimbabwe will be valuable in identifying diamond prospects in the Save region. Our geologists will review all available data, and given the right results, Botswana Diamonds will negotiate a long term agreement."