African Diamonds (LON:AFD), the Botswana based mineral group run by Irish resources entrepreneur John Teeling, has announced plans to expand its exploration activities in the areas surrounding the promising AK6 diamond mine in Orapa, with production there due to begin in the third quarter of 2011. The news was enough to send the shares 3% higher to 31.25p.

The latest developments at AK6 follow a protracted period of delays in progressing the mine largely because of disputes between the previous operator DeBeers and the Botswana Government. Last November, DeBeers sold its stake to Lucara, an associate of Canadian group Lundin, in a move that triggered a great deal more optimism about the future of the project and gave African Diamonds the chance to raise its stake to 40%. Board approval is now expected at the end of June for the final AK6 feasibility studies.

Meanwhile, African Diamonds is ramping up exploration on its other 100% owned Botswana exploration licences. The focus here will be on three Orapa kimberlites each with the potential to be stand alone or feeder mines to the AK6 mine. Following a detailed review of earlier work done on kimberlites AK8, AK9 and BK5, an 800 reverse circulation drill hole programme will begin in the coming weeks at a cost of approximately $1m. The purpose of the drilling is to accurately delineate the size of each kimberlite and to estimate microdiamond and heavy mineral grades. The results should enable African Diamonds to move to engineering and financial studies on whether or not the kimberlites can be developed as open pit mines on a stand alone basis or as feeder mines to the AK6 mine.

John Teeling, African Diamonds’ chairman, said: “The focus of the past two years has been on AK6. It is now time to evaluate our other assets in the Orapa region. African Diamonds holds 100% of some of the very best diamond ground in Botswana, containing over 20 known kimberlites. During the past six years extensive exploration has been undertaken on this ground at a cost of millions of dollars. Three discoveries in Orapa, the AK8, AK9 and BK5 kimberlites, contain diamonds and may, in part or as a whole, become commercial mines. We have spent the past three months re-assessing the prospecting and drilling data on AK8, AK9 and BK5. We will shortly begin…

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