Botswana Metals Limited (BML) announced that its joint venture partner BCL Limited has opted to proceed to a Bankable Feasibility Study (BFS) with the view of applying for a mining licence to mine Maibele North initially as an open pit and to continue further exploration and drilling to evaluate the potential for underground mining.
BML told the ASX that the JV aims to complete the BFS and lodge a mining licence and an Environmental Impact Assessment (EIA) study by early 2017.
The company was informed by BCL that it has surpassed the JV requirements to fund $4 million of exploration and has elected to continue with the JV.
“BCL will formally notify BML of its intentions of funding a BFS to earn 70% interest in three prospecting licence (PL 110/94, PL 111/94 and PL54/98), which are the assets of the JV,” reads the ASX release.
“BCL has now earned an initial 40% interest in the three PLs and by electing to fund the BFS will take management rights over the project development and earn 70% interest in the PLs after completing the BFS.”
According to Botswana Metals, the BFS will determine the optimum route to mining where the pre-feasibility study, which was prepared by WorleyParsons, showed that an initial open pit at Maibele North would be the quickest and most cost effective route when compared to other option. The BFS will also evaluate the viability of underground mining.
“Subject to favourable result from the BFS it is expected that mining could commence as early as 2017,” it says in the ASX release.
“The Board is pleased and excited with BCL’s decision to continue to a BFS which will place the company one step closer to mining the Maibele deposit.”