The Ghaghoo underground diamond mine is at an advanced stage of construction of phase one, with a total phase one resource estimated at 20.53 million carats and a production capacity of 720 000 tons per annum. Development of phase one was based on extensive exploration drilling and sampling conducted by De Beers. The Ghaghoo mine is forecasted to be fully operational by the fourth quarter of 2014.
"The Gem Diamonds Ghaghoo short term financing secures our participation in the longer term project financing in a low risk, politically stable region of Botswana, a country with mining as the main contributor to its national wealth. Botswana also offers unique business opportunities within this sector, especially diamonds, which has been the mainstay of its economy for over 48 years," says Nivaash Singh, head of Mining Finance - International at Nedbank Capital.
