Tsodilo Resources Limited · TSXV:TSD

Tsodilo Resources — Technical Presentation (September 2017)

44 slides from Tsodilo Resources's technical presentation, Sep 18, 2017

  1. Slide 1: Prospecting History leading to the discovery of Botswana's diamond mines

    Prospecting History leading to the discovery of Botswana’s diamond mines: from artefacts to Lesedi La Rona Mike de Wit Tsodilo Resources Ltd University of Pretoria 18th September 2017

  2. Slide 2: Three exploration/mining phases in Bechuanaland/Botswana

    Three exploration/mining phases in Bechuanaland/Botswana • Pre-historic • Artifacts factory sites: Earliest ESA (3.4 – 1.7Ma), ESA (1.7Ma – 280Ka), MSA (280Ka – 50Ka) and LSA (50 – 20Ka) stone age • Mining for minerals used as pigment for rock paintings, decorative purposes (c. 2,000 BP). • Iron (AD

  3. Slide 3: Pre-historic mining (3.4 Ma – AD 1200+)

    Archaeological sites around the Makgadikgadi A. Pre-historic mining Basin  Earliest ESA (3.4 - 1.7 Ma) - 995 m (3.4 Ma – AD 1200 +)  ESA (1.7 - 0.3 Ma) - 945 m  MSA (300 – 50 Ka) - below 945 m  LSA (50 – 20 Ka) - < 920 m Successive older stone age artifacts are concentrated at progressive higher

  4. Slide 4: Pre-historic mines in Botswana: AD 800 – 1,200

    Pre-historic mines in Pre-historic Dukwe Copper mines: Botswana: Malokojwe AD 800 – 1,200 15m deep pre-historic stope • Iron (AD 800 – 1,000) • Copper (AD 1,000 – 1,700) • Gold (AD 1,200 +) Orapa  Charcoal from fire-setting was collected for dating – 13th - 14th century.  The blocky nature is wher

  5. Slide 5: Prehistoric mining at Tsodilo Hills for specularite-hematite used for pigment

    Prehistoric mining at Tsodilo Hills for specularite-hematite used for pigment

  6. Slide 6: Historic mines (1860 – 1950)

    B. Historic mines  1866 gold was discovered in the Tati area. (1860 – 1950)  1885 southern Bechuanaland became a British Protectorate; in 1890 northern Bechuanaland (incl. Ngamiland, Chobe) was added.  1895, the Bathoen I, Sebele and Khama III went to England to plead for Bechuanaland to remain a

  7. Slide 7: British West Charterland Ltd Expedition 1896 – 1899

    1896 – 1899 British West Charterland Ltd Expedition • Led by Siegfried Passarge. • To explore Ngamiland for gold and diamonds. • From Palapye to Kwebe Hills – 3 months = 420 km. • Several members perished mainly by malaria and lion.

  8. Slide 8: Passarge and termites

    Passarge and termites  A medical doctor by training; ended up as Professor in geography.  Was a naturalist with a great interest in termites for instance. • Was not permitted to report on the results. • But no diamonds or gold was found.

  9. Slide 9: The 1930s: The influential person No. 1: Alex L du Toit

    The 1930s: The influential person No. 1: Alex L du Toit  1903 – 1920: Geological Commission, Cape Town  1920 – 1927: Union Irrigation Department as Hydrogeologist (spent 1925 in northern Botswana)  1927 – 1941: Chief Consulting Geologist to De Beers  Prospecting of parts of Botswana 1932 – 1938

  10. Slide 10: Bamangwato Reserve: 1932 – 1938

    Bamangwato • 1887: Khama III signed an agreement to prospect for precious stones and minerals over Bamangwato with Northern Gold Fields Exploration Syndicate. Reserve: 1932 - 1938 • 1893: British South African Company (BSAC - Cecil John Rhodes) took over the concession. • 1925 – 1932: After lengthy

  11. Slide 11: Modern mining (1959 onwards)

    C. Modern mining Tshekedi Khama (1905- 1959)  In 1925, Tshekedi, second son of Khama III, became (1959 onwards) Guardian to the Bamangwato tribe, because Khama’s oldest son had also died. The son of Khama’s oldest son, Seretse, was then only 4 yrs old.  Tshekedi had long resisted mining companies

  12. Slide 12: Consolidated African Selection Trust (J Willis) 1960

    1960 Consolidated African Selection Trust (J Willis)  Stream (60 L) and bulk alluvial samples (42 m³) of – 4 +1.5 mm  Covered 111,000 km²  Found 3 diamonds: the first in the modern era  No other kimberlitic minerals  Conclusions:  Diamonds probably derived from Karoo 0.27 ct 0.14 ct  Diamonds

  13. Slide 13: The 1960s: The influential person No. 2: Gavin Lamont

    The 1960s: The influential person No.2: Gavin Lamont Gavin and Manfred studying termite activity (photo Lamont)  1947: PhD at UCT. External examiner Having read Eugene Marais’ ‘the soul of the white Dr AL du Toit ant ‘(1925), I suggest that bioturbation by termites  1948: Geological Survey of Sout

  14. Slide 14: Early 1960s

    Early 1960s Lamont’s scoop (every 12 to 15 paces) and soil splitter method that, as Manfred Marx would say ‘this helped us to win the west’ A cyclometer on a bicycle wheel was used to measure distance – developed in Northern Rhodesia by ‘Joe’ Bancroft in 1926. Photo Marx Bicycle wheelman – Eleven Ma

  15. Slide 15: The 1960s sampling traverse method

    3x Base Traverse lines The 1960s 5 miles lines 10’ of longitude Lamont’s (De Beers) Sampling ±10 miles machines TN 1 mile • Each sampler carries a soil splitter • Scoop every 12 to 15 paces • At 0.2 mile the wheel pusher blows his police whistle: 2 bags Sampling are ½full: one full bag (8 – 9 lbs) t

  16. Slide 16: Lamont changed the De Beers concentrating method

    1960 Lamont changed the De Beers concentrating method from gold panning to hand gravitation 16 Photo Marx Photo Liddle

  17. Slide 17: CAST Results / De Beers Results

    CAST Results 1959  2 diamonds (0.50 and 2.40 1962 De Beers cts) in approx the same De Beers repeats CAST’s results places of CAST but…. Results 1962  ….also recovered garnet, ilmenite and CD Renewal report for Bamangwato Crown Grant No. 42 (1961 -1966) (G Lamont, 1967) In 1964 Lamont already advis

  18. Slide 18: Sampling higher level terraces along the Molopo River

    1962 Sampling higher level terraces along the Molopo River  Sampling gravels and drainages on major drainages using 6-foot rotary pans.  At Phitsane in early 1962 De Beers found the first diamond in the modern prospecting era – 0.31 ct (Lamont 1980). Photos Tony Cessford

  19. Slide 19: March 1966

    March 1966  De Beers discovered first (para-) kimberlites K1 and K2 near Mochudi  By soil sampling - ilmenites  Dismissed by EMW Skinner as lamprophyres Maps supplied by AAC/DB

  20. Slide 20: The 1970s: The influential person No. 3: Chris Jennings

     1957 – 1970 The 1970s:  Botswana Geological Survey, 2 yrs The influential person No.3: after Gavin Lamont  Mainly in ground water – extensive Chris Jennings use of geophysics  Obtained PhD: ‘The hydrogeology of Botswana’ in 1974  1971 – 1981  Joined Falconbridge  In 1975 Proposed to Falconbr

  21. Slide 21: May 1966

    May 1966 Electrical resistivity depth probe • Jennings was asked by Lamont in May 1966 to experiment with geophysics (magnetics) over the Mochudi bodies. Conclusion by Jennings (1966) after the Mochudi work: • Then in 1968 Jennings was asked again by Lamont to so some magnetic lines over AK01 1. Mag

  22. Slide 22: July 1966

    Orapa Sua Pan July 1966  Gibson and Lamont went out on a crude road soil- sampling program south Motloutse of the Makgadikgadi drainage pans.  They collected 17 bulk scoop samples on sheets 2125 A and B in 5 days covering approx. 6,000 km².  12 of their 17 scoop samples were positive with ilmenit

  23. Slide 23: 30 Sept 1966

    30 Sept 1966 1967 Botswana independence Mineral rights in Territories Bill Agreement between Tribal Chiefs and Government to surrender all mineral rights of tribal lands to nation Seretse Khama: ‘let us share any wealth we find underground with the whole nation; irrespective of where it is found’.

  24. Slide 24: March 1967 Discovery BK01 near Orapa

    26th April 2017: Manfred Marx, back March 1967 at BK01, still holding on to that kimberlite Discovery BK01 near Orapa: Botswana’s 1st kimberlite 1st March 1967: Manfred Marx, the discoverer, with a piece of BK01 kimberlite This was followed in the same year by:  BK02 – 17th March  AK01 – 25th Apri

  25. Slide 25: 21st April 1967

    21st April 1967 First positive sample over AK01 The mineral count of the concentrate was:  +3000 picro-ilmenites  +1000 pyrope-garnets  50 chrome-diopsides Goodboy Setkekia Molefe Wasanena Gravitator Team Ramakatse Rexon Leader Jacob Saranyana Letsolo Ramorwa Driver Team Photo Marx Lab Sup Leader

  26. Slide 26: 25th April 1967 Discovery of AK01

    25th April 1967 Discovery of AK01 After M Field Gavin with his senior team: Jim Gibson (left) and Manfred Marx (right) at the discovery pit on AK01 Aerial photograph (c. 1957) of the Orapa cluster prior to discovery  AK01 found in 1967  Mine commissioned in 1971  Produced some 343 mcts

  27. Slide 27: Aug-Sept 1967

    1967: Initial 9ft x 9 ft 20ft deep pits The first 8 diamonds recovered from AK01 Aug-Sept 1967 First evaluation BK01 and AK01  The 6-foot rotary pan brought from Kimberley (Eben Venter and Spud Murphy) set up at BK01.  First BK01 diamonds – Thursday 1st June.  The first AK01 diamonds – Friday 23r

  28. Slide 28: 1st Airborne geophysical survey over the Orapa field

    1968 1st Airborne geophysical survey over the Orapa field Airborne magnetic and INPUT electromagnetic system on Catalina. The 1st ever airborne geophysical survey for kimberlites. Photos Frere

  29. Slide 29: Sampling around Jwaneng

    1969 – 1971 Sampling around Jwaneng 1962 Gibson sampled either side of the Lobatse – Ghanzi road and passed 20 km south of Jwaneng but no KIM positive samples. Lock 1985  1969 Reconnaissance sampling produced first ilmenites.  1970 Detailed soil sampling yielded five positive areas over Jwaneng. 

  30. Slide 30: March 1972 Discovery of Jwaneng

    Lock 1985 March 1972 Discovery of Jwaneng Stuart Vercoe (left), the discoverer and  Malan1 (DK1) the First Jwaneng Kimberlite senior geologist, assisted by Norman Lock to be drilled (March)  Whateley’s Wish (DK2) was re-drilled in Tractor mounted Vole Drill on December and two holes to 46 m and 56

  31. Slide 31: Early 1970s Jwaneng evaluation

    Location of the exploration Early 1970s and evaluation drill holes Jwaneng evaluation Jwaneng into production in 1982 Van Zyl 1989 Lock 1985 • Jwaneng 1st to use LDD (500mm) - Cable Tool • It was fine to produce the 1st 8,000 cts – but slow and ……diamond breakage 26%. • Later replaced by Rotary Perc

  32. Slide 32: Gold, Base Metals and Diamonds in Botswana

    1976 Gold, Base Metals and Diamonds in Botswana by JW Baldock, JV Hepworth and BS Marengwa (All Botswana Geological Survey) Economic Geology, vol 71, 139 - 156. On the diamond side the paper highlighted:  The two economic diamond occurrences.  Areas covered by soil sampling (all by De Beers) and a

  33. Slide 33: Falconbridge made use of airborne geophysics and helicopter supported soil sampling

    1977 Falconbridge made use of airborne geophysics and helicopter supported soil sampling  1977 Falconbridge flew an airborne magnetic survey over the Kokong and Tshabong. Lee et al. 2009  1978 discovery of:  Kokong kimberlites (KN70 with a reputed grade of 10 cpht)  M1 in Tshabong (Jumper drilli

  34. Slide 34: The Falconbridge team in Tsabong

    Hugo John Dummett Roger Chris Nick de 1978 Lee Billington Jennings Bever The Falconbridge team in Tsabong Dave Lee et al. 2009 Mike Richard Debbie Andy John Ash John Fielding Waldman Flynn Caskey Moore Blaine Clark Gurney Photo Lee

  35. Slide 35: Falconbridge helicopter sampling in the CKGR and Gope 25 (Ghaghoo)

    1980 Falconbridge used helicopter supported sampling program in the CKGR and found Gope 25 (Ghaghoo) Photo Moore  They covered 78 500 km²  Some 470 samples, on a 13 x 13 km grid (1SS/165km²) Lee et al. 2009  20 kg unscreened: Screened in the camp at 0.42 and 0.25 mm  Gope anomaly expressed on on

  36. Slide 36: Discovery of Lerala (Martin's Drift) kimberlites

    1991 Discovery of Lerala (Martin’s Drift) kimberlites  Two Kim groups: K2-6 & K1,7,8 K2-6 K1,7,8  K2-6 – Garnet dominated  K1,7,8 – Contain some ilmenite  Thin residual soil  Reconnaissance sampling  Equivalent to 1 km²  Very restricted Kim anomalies  K2-6 Garnet only (some spinel)  K1,7,8

  37. Slide 37: Discovery KX36

    Detailed sampling over ground magnetic results 2007 Discovery KX36 Gope Rogers et al. 2013 2007 Excalibur Airborne Mag – 100 m line spacing Kukama Fact sheet: 5 ha 30-40 cpht 78 m of Kalahari cover Khutse-Kikao 1990 heavy mineral sample results Davidson 2017 37

  38. Slide 38: Reassessment of known kimberlites such as AK06

    2000s Reassessment of known kimberlites such as AK06 NI 43-101 report 2010 Discovered in 1969 Size Estimated grade Initial assessment early 1970s 3.3 ha 3.5 cpht Revisited in 2003 9.5 ha 25 cpht (based on 97t) Other kimberlites include: AK08, AK 09, AK11, BK2, BK5, BK11, BK16

  39. Slide 39: 2012 onwards: Karowe Mine

    2012 onwards Metallurgical developments of Karowe Mine Mined since late 2012 Approaching 2 mcts 3242 stones > 10.8 ct 9.46 ct 145 diamonds > US$1m 51 diamonds between 100 – 199 ct 342 ct 17 diamonds between 200 – 299 ct 5 diamonds > 300 ct

  40. Slide 40: Ghaghoo fact sheet

    Fact sheet: 10.4 ha 2014 27 cpht 80 m of Kalahari cover Opening of Ghaghoo mine Brief history 1981 Discovered by Falconbridge as Gope25 2007 Acquired by GEM Diamonds Ltd 2014 Official opening as 1st underground mine in Botswana 2017 Put on Care & Maintenance

  41. Slide 41: Discovery of Botswana kimberlites per year

    Discovery of Botswana kimberlites per year Ilm Ga Geoph Kang 1990 – Nxau Nxau Mochudi Jwaneng Tsabong 1 Gope 1996 Tsabong 2 Nxau Kukama Nxau Molopo Orapa 2 Kgalagadi Martins - 1967 – 1970 Khutse 2004 -2005 drift Sikwane KX36 Orapa 1 Middlepits Kikao Orapa 3 Okwa Kimberlites discovered per year in Bo

  42. Slide 42: Botswana production up to and incl. 2016

    Botswana production up to and incl. 2016 Botswana production Mct 40.000 754 Mct or 39 bUS$ Damtshaa Karowe 35.000 30.000 Ghaghoo 25.000 Orapa Letlhakane Jwaneng 20.000 15.000 10.000 GDP per GDP per capita capita US$ 84 US$ 6788 5.000 0.000 197019711972197319741975197619771978197919801981198219831984

  43. Slide 43: Summary of historical facts

    A summary of some of the historical facts relating to this talk: Prospecting History leading to the discovery of Botswana’s diamond mines: from artefacts to  1896: Diamond exploration started Lesedi La Rona  1938: 1st diamond found  1966: 1st Kimberlite-like intrusion found The people largely res

  44. Slide 44: Ke a leboga

    So where from here? 1. Sampling Use finer grain-sizes to locate Group 2 and Ilmenite-poor Group 1 kimberlites. 2. Geophysics Integrated datasets Airborne gravity/EM/QUID 3. Drilling Capacity to drill at lower cost; sample Kalahari-bedrock interface But above all:  Innovative thinking  Trying new t

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