Vast Resources PLC (LON:VAST) and Botswana Diamonds PLC (LON:BOD) are to push ahead with their plans to develop the Heritage concession in the Marange diamond fields of Zimbabwe.
The decision comes after the pair received a geological assessment of Heritage, which showed the property contains several targets for modern alluvial diamond placer deposits.
READ: Vast and Botswana Diamonds ink Marange deal
Grades from nearby deposits typically range from 100-200 carats per hundred tons (cpht), although the AIM-quoted explorer reckons there is potential for grades to reach as high as 3,000 cpht.
Vast entered into a joint venture agreement with Red Mercury, a community share ownership trust, back in August before it brought Botswana Diamonds on board earlier this month.
“The promising results from site visits, the competent person's geological report and work with Botswana Diamonds gives the company great confidence in moving forward with the next phase of operations on the ground,” said Vast chief executive Andrew Prelea.
“The company has assembled and mobilised a team of geologists and engineers to begin work on the ground and we are looking forward to updating the market with progress of the field work.”
Next steps
Once lawyers formally sign off on the full JV agreement, Vast, Botswana and Red Mercury will carry out follow-up fieldwork to investigate the potential of modern alluvial diamond placer deposits and the possibility of the higher-grade basal Umkondo unit on the Heritage Concession.
Should the initial work return positive results, the explorers will follow it up with pitting, drilling and bulk sampling which will form part of pre-feasibility studies.
Vast shares slipped 1.4% to 0.62p early on Wednesday morning.