Market Update - BCL Joint Venture
Released
Released
Announcement PDF
ACN 122 995 073
TO:
DATE:
COMPANY ANNOUNCEMENTS OFFICE
ASX LIMITED
ASX Code: BML
7 DECEMBER 2015
MARKET UPDATE – BCL JOINT VENTURE
The Board of Botswana Metals Limited (ASX: BML) advises that it will apply to the Department
of Mines in Botswana (“DOM”) to extend PL 110/94, PL 111/94 and PL 54/98 (“the three PLs”)
ahead of the licence expiry date of 31 March 2016.
The three PLs are currently subject to a Farm-in Joint Venture Agreement with BCL Limited.
WorleyParsons Limited (ASX: WOR) have been appointed by the Joint Venture and are in the
process of completing a Pre-Feasibility Study ahead of a decision to proceed to a Technical
Study and an Environmental Impact Assessment, as required by the DOM, to support a Mining
Licence application.
The Pre-Feasibility Study is now expected to be completed in the first quarter of 2016.
Accordingly BCL and BML have agreed that BML will apply for an extension of the three PLs
pursuant to the Mines and Minerals Act 1999 of Botswana (as amended) to allow sufficient time
to complete the necessary detailed reports required to support a Mining Licence (or Retention
Licence) application should the Pre-Feasibility Study justify BCL approving such an application.
It is expected that the WorleyParsons Pre-Feasibility Study report will also reassess the current
JORC-compliant inferred resource estimate at Maibele North that was calculated in early 2015.
The new estimate will incorporate the results from the 2015 drilling program undertaken at
PL 110/94 that has been ongoing since the release of the initial JORC resource estimate (over
10,000m has been drilled in 2015).
The objective is to reclassify the resource to a JORC category required to submit a Mining
Licence application (indicated and/or measured) and determine if the additional drilling in 2015
supports a potential material increase in the resource tonnage.
It is expected that BCL will meet their expenditure commitment in 2016 and earn a 40% interest
in the three PLs as per the terms of the Farm-in Joint Venture Agreement.
The market will be kept informed as to progress.
Pat Volpe
Chairman
Botswana Metals Limited
REGISTERED OFFICE
Suite 506, Level 5, 1 Princess Street Kew Vic Australia 3101
P: +61 3 9855 1885; F: +61 3 9855 2885
Email info@botswanametals.com.au
www.botswanametals.com.au
ACN 122 995 073
About the BCL Farm-In Joint Venture on PL 110/94, PL 111/94 and PL 54/98
BCL Investments (Pty) Limited (“BCL”), a wholly owned subsidiary of BCL Limited, under the
Farm-in Joint Venture Agreement, can spend an initial AUD$4 million on a drilling program to
earn 40% of the three PLs. BCL has the option to continue to fund the projects to the
completion of a Bankable Feasibility Study (“BFS”) to earn a 70% interest.
The Company will retain a 30% interest after the BFS is completed, at which time the
management of the projects will be transferred to BCL.
BCL Limited is 100% owned by the Government of Botswana.
About WorleyParsons Limited
WorleyParsons delivers projects, provides expertise in engineering, procurement and
construction and offers a wide range of consulting and advisory services. The company covers
the full lifecycle, from creating new assets to sustaining and enhancing operating assets, in the
hydrocarbons, mineral, metals, chemicals and infrastructure sectors. WorleyParsons is listed
on the ASX – ticker symbol WOR.
Botswana Metals Limited
REGISTERED OFFICE
Suite 506, Level 5, 1 Princess Street Kew Vic Australia 3101
P: +61 3 9855 1885; F: +61 3 9855 2885
Email info@botswanametals.com.au
www.botswanametals.com.au
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