A presentation entitled: "Diamond exploration, mining, financing and driving entrepreneurial behaviour". to the Antwerp World Diamond Council and Gordon Institute of Business ('GIBS') global seminar entitled "From Mine to Finger. A deep dive into the world of diamonds". 7 February 2024 at GIBS. Most of the participants are either entrepreneurs in the diamond downstream space or academics from both institutions.

1. AWDC/GIBS 2024
Diamond Mining & Exploration
James AH Campbell
Managing Director, Botswana Diamonds plc
AWDC & GIBS
7 February 2024

2. From Mine to Finger. A deep dive into the world of diamonds
2
AWDC/GIBS 2024
Diamond Mining & Exploration
Outline
⧫ Exploration: examples from Marsfontein &
Thorny River
⧫ Mining & Processing
⧫ Money: financing
⧫ People: what does it take to be a
mining/exploration entrepreneur?
⧫ AK6/Karowe case study: bringing it all together
⧫ Separate presentation
Photos: Lucara Diamond, Rockwell Diamonds

3. 3
Exploration
AWDC/GIBS 2024

4. AWDC/GIBS 2024
Sources of diamonds
⧫ Kimberlite is the primary source of
diamonds (lamproite is another)
⧫ Diamonds are made of pure
carbon. Diamond and graphite
are “allotropes” of carbon
⧫ Diamonds formed in the upper
mantle, under particular
conditions of temperature and
pressure (“Diamond Stability
Field”)
⧫ Kimberlite magmas (the vehicle)
transported diamonds from the
DSF to/near surface
⧫ Erosion of kimberlites has created
secondary deposits
(alluvial/eluvial and marine)
4

5. AWDC/GIBS 2024
Kimberlites
5
Reference: De Beers, Robey, Apter

6. AWDC/GIBS 2024
Kimberlites
6
Reference: De Beers, Robey, Apter

7. AWDC/GIBS 2024
Distribution of diamond deposits
7
Reference: mining.com

8. AWDC/GIBS 2024
Project development: investing in risk reduction
8
Core drilling or
trenching
(100’s kg)
Initial bulk
sampling
(10-100’s t)
Infill drilling; bulk
sampling
(1000’s t)
Inferred
Resource
Indicated
Resource
Diamond potential;
surface size estimate
Preliminary grade
estimate; prelim.
geological model
Global grade;
preliminary value
estimate
Geological, density,
volume, grade,
revenue models
Technical
Economic
Evaluation
Pre-Feasibility
Study
Bankable
Feasibility Study
Mineralisation
Target /
Anomaly
Activity
Outcomes
Mineral
Resource
Economic
Studies
Duration: months
Cost: USD 1,000’s
Duration: years
Cost: USD 1,000,000’s
INCREASING COSTS and TIMEFRAMES
DECREASING UNCERTAINTY and RISK
⧫ Investors’ appetite grows with
confidence, as do costs and time
frames
⧫ Compressing timeframes without
compromising on quality
⧫ Maximising optionality: phased
approach
⧫ Reliable resource models
⧫ Deep expertise and technology are
key differentiators
⧫ Extract value or cut losses early
Mapping,
sampling,
geophysics

9. AWDC/GIBS 2024
Soil Sampling
⧫ Soil (loam) sampling a
good first pass
reconnaissance and
follow-up exploration
tool.
⧫ Abundant kimberlitic
minerals: garnet,
spinel and chromium
diopside proximal to
the kimberlite.
⧫ Strong halo effect:
coarse grains don’t
tend to travel far.
9
Reference: Scott, 2005
Eclogitic and peridotitic garnets,
chromium diopside and spinel

10. AWDC/GIBS 2024
Ground Geophysics - Magnetics
⧫ Magnetics tend to
chiefly outline the
dolerite and not
kimberlite dykes as the
latter are only weakly
magnetic.
⧫ Magnetic susceptibility
readings from drill core
show that on average,
the kimberlite has a
susceptibility of 0.47SI
with a maximum of 1.3SI
⧫ Quick and relatively
cheap technique.
10
Reference: Geofocus, 2020

11. AWDC/GIBS 2024
Ground geophysics - Gravity
⧫ Gravity is used where
we believe there is a
kimberlite blow.
⧫ Blows tend to produce
gravity lows.
⧫ It is a more time
consuming and
complex technique
and thus more costly
so is restricted to
specific targets.
11
Reference: Geofocus, 2020

12. AWDC/GIBS 2024
Drone Surveys
⧫ Detailed drone surveys
undertaken over much of
the property.
⧫ The aim of these surveys
was to:
⧫ Provide accurate
georeferences for
groundwork, such as drilling
and geological mapping.
⧫ Assess vegetation
anomalies.
⧫ The tool was also helpful in
the production of videos
for public relations
purposes.
12
Reference: Shelton, 2018

13. AWDC/GIBS 2024
Precision Structural Mapping
⧫ Subterrane of the UK uses a
combination of precision field
structural geological
measurements in combination with
detailed ground geophysics to
identify targets.
⧫ Targets are defined as buried or
partially buried (potential) blows.
⧫ This is still very much work in
progress and has been
considerably delayed due to
Covid related travel restrictions.
13
Reference: Subterrane, 2018

14. AWDC/GIBS 2024
Spectral analysis
⧫ Terramodelling Services of Canada used
machine and deep learning to delineate
spectral anomalies from European Space
Agency Sentinel 1 / 2 and ASTER data.
⧫ The following were assessed:
⧫ Structure
⧫ Topography
⧫ Elevation and displacement
⧫ Hydrothermal alteration
⧫ Epidote and chlorite alteration
⧫ Radon affected vegetation
⧫ Ferrous and ferric oxide spectra
⧫ ASTER mica and serpentine spectra
⧫ Satellite and UAV spectral analysis, combined
with machine and deep learning, has
fundamentally changed the remote sensing
landscape in the last 5-years.
14
Reference: Terramodelling, 2020

15. AWDC/GIBS 2024
Drilling – RC Percussion
⧫ Reverse Circulation (‘RC’) drilling
follows positive sampling and
ground geophysical work.
⧫ Both angle and vertical holes
were drilled.
⧫ The diameter of the holes was
140mm and a continuous 1m
sample was taken and bagged.
⧫ Portions of these samples were
washed and geologically logged.
⧫ Kimberlitic indicators and
diamonds were recovered from
select samples down to +0.3mm
following screening, separation
using Tetrabromoethane (TBE’)
and hand sorting.
15
Percussion drill chips from
various rock types
Reference: Georoc, 2020

16. AWDC/GIBS 2024
Drilling - Core
⧫ Core drilling was carried
out where there was a
requirement for more
detailed geological
data.
⧫ The core was subjected
to detailed independent
petrographic work.
⧫ Samples from the core
were also taken for
microdiamond analyses.
16
Reference: Georoc, 2017

17. AWDC/GIBS 2024
Bulk Sampling
⧫ Bulk sampling was undertaken in an
area where the kimberlite dyke swelled.
⧫ The purpose of the bulk sampling was to
produce sufficient macro diamonds for
preliminary grade and valuation
models.
⧫ The samples were processed at an
independent bulk sampling plant which
included crushing, scrubbing, screening,
dense media separation (‘DMS’), X-Ray
and grease recovery.
⧫ The area was fully rehabilitated on
conclusion of the exercise.
17
Reference: Vutomi, 2017

18. AWDC/GIBS 2024
Mineral Chemistry
⧫ Around 54% of garnets fall into the G9/G5 category (garnets
that originate from lherzolites and websterites).
⧫ 19% fall in the G10 field (garnets originating from harzburgites)
and 7% garnets in the G10D (diamond inclusion) field.
⧫ The G10D garnets, plotting within the diamond inclusion field,
indicate the possibility of peridotitic diamonds sampled by the
kimberlite from which this sample has been taken.
⧫ 20% of the garnets (with Cr2O3 less than 2%) fall in the G3 and
G4 (eclogitic and megacrystic garnet) fields.
⧫ There is a population of eclogitic Group 1 garnets which
suggests the source may also contain diamonds of eclogitic
origin.
⧫ Recent work by Tappe suggests that the kimberlite could be
a hybrid Group 1 / 2 variety.
18
References: Marshall & Campbell, 2018, Tappe 2021

19. AWDC/GIBS 2024
Petrography
⧫ All kimberlite samples are Group 2 variety, coherent
hypabyssal kimberlites with mineralogies dominated
by calcite and phlogopite but with accessory apatite
and in some samples monticellite, clinopyroxene and
richterite amphibole. Fine grained perovskite and
opaques are also present.
⧫ All kimberlite samples can be classified as apatite-
bearing calcite phlogopite kimberlites.
⧫ For comparison, the Marsfontein pipe has two
kimberlite phases – a monticellite phlogopite phase
and a phlogopite monticellite phase.
⧫ Where the dyke gets wider variable mineralogy is
seen, with the crystallization of accessory
clinopyroxene, amphibole richterite and monticellite.
19
References: Robey, Mishra, 2017

20. AWDC/GIBS 2024
Diamonds: Macro & Micro
⧫ Select core samples were
taken for microdiamond
work and processed at an
independent laboratory.
⧫ A trench was excavated
for the recovery of
macrodiamonds and
processed at an
independent bulk sample
processing facility.
⧫ Micro-macrodiamond
modelling was performed
to derive a Total Content
Curve.
⧫ The macro diamonds were
described and valued.
20
-8
-6
-4
-2
0
2
4
6
8
10
12
14
-16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8
Grade
Ln(Spht/ui)
Size Ln(Carats)
Total Diamond Content Model
Micro diamondscombined
Modeluses taggedMacroand Micro classes
All Micros
Modified Base BSP
Model
Used SPHTUI
Klip Production1
Log. (All Micros)
Raw Sample Grade
Model CPht+3 Sieve
ModelCpht+1 Sieve
50
79
58
References: Coward, Ferraris, 2017
+9 Diamond Sieve

21. AWDC/GIBS 2024
Geological Modelling
⧫ Detailed ground geophysical work
supplemented by drilling results has
enabled kimberlite modelling using
Inversion and Forward Modelling
Techniques.
⧫ Estimated volume so far of 72,000m3.
⧫ This work is being expanded to cover
both the River and River Extension
blows.
⧫ This technique has significant
advantages over just using the drill data
especially due to the complexity of the
kimberlite root zone structures and uses
all available data.
21
Model of the River blow
References: CGS (Khoza), 2021

22. AWDC/GIBS 2024
Competent Persons Report (‘CPR’)
⧫ Published in February 2018.
⧫ “Based on the exploration results to date, exploration
targets have been highlighted with the following potential:
⧫ The undiluted raw in-situ grade of the kimberlite dyke sample is
estimated between 46-74 cpht (1mm bcos). By contrast, the
micro macro models return a range of total content model
grade that falls between 54 to 88 cpht at bottom cut off size of
+3 DTC diamond sieve (1mm).
⧫ Wide range of modelled diamond values at USD120-220/ct (at
1mm bcos).
⧫ Potential volumes of some 450,000 – 470,000m3. Using the
estimated 2.6g/cm3 density calculated by Vutomi, this may
reflect target tonnages of over some 1.2MT to 100m depth.”
⧫ Considerable work has been done post this report.
22
Reference: Marshall & Campbell, 2018

23. 23
Mining
AWDC / GIBS 2024

24. AWDC/GIBS 2024
Diamond Mining
KIMBERLITE
⧫ High set up costs
⧫ Open pit and/or underground
operations
⧫ Grade, diamond distribution can be
constrained with sampling and
modelling
⧫ In the past crushers broke the larger
stones
⧫ High resource confidence can mitigate
uncertainty
ALLUVIAL DEPOSITS
⧫ Lower start-up costs
⧫ Low grade, high variability
⧫ High uncertainty
⧫ High-volume, low-cost approach
⧫ Generally, less large (high-value)
diamonds
⧫ Volumes are key
⧫ Metallurgy and diamond value
management
⧫ Primary and secondary diamond
deposits can become economic
mines.
⧫ Perception that alluvials are more
suited to smaller operators (juniors)
and kimberlites to larger ones (mid-
tier and majors).
⧫ Majority of juniors own kimberlite
operations.
⧫ Majors like De Beers & Alrosa have
been running large-scale alluvial
operations.
⧫ Offshore marine deposits along
Namibian coast formed by
redistribution of alluvial diamonds by
longshore currents
24

25. AWDC/GIBS 2024
Diamond Processing
References: Diavik Diamond Mine, NWT, Canada, Dellas 2021
25

26. AWDC/GIBS 2024
Diamond Processing
Reference: Dellas 2021
26

27. AWDC/GIBS 2024
Diamond Mining – global production (carats)
⧫ 2017/2018 were peak
production years.
⧫ 2005 also produced
150mcts (MIBA was in
production then).
⧫ Sales vary due to
market conditions and
demand.
⧫ Different producer
strategies dictate
whether to hold stock
or not.
⧫ Argyle now closed.
⧫ Question mark over
RTD future productions.
Source: Bain & Co
27

28. AWDC/GIBS 2024
Diamond Mining – global production ($)
⧫ 2017/2018 were peak
production years.
⧫ COVID-19 drop off in
production and values.
⧫ Market recovery took
place post COVID.
⧫ Volatility is the “new
normal”.
Source: Bain & Co
28

29. AWDC/GIBS 2024
Diamonds in Russia
⧫ Diamonds first discovered in 1950s.
⧫ Russia is world’s no.1 producer (by cts) – circa
30% of global production.
⧫ Alrosa produces 90% of Russia’s diamonds –
approx. 34/35mcts p.a.
⧫ Its mines are in Russia’s Far East (Sakha
Republic/Yakutia).
⧫ Since 2009, Alrosa sells independently.
⧫ Partially state-owned, partially listed on
Moscow Stock Exchange; access to
Gohkran.
⧫ Extreme climate.
⧫ Major employer in Yakutia (31,000
employees) and important social
contribution.
⧫ Crystals; high volume of smalls (incl -3).
⧫ Grib (Arkhangel) – separate producer
(52mcts in reserves).
⧫ Despite sanctions Alrosa is still selling.
⧫ 2024 sees new measures to thwart Russian
entering the market.
⧫ Uncertain how successful they will be.
29

30. AWDC/GIBS 2024
Diamonds in Botswana
⧫ A huge success story in the
Kalahari desert.
⧫ Shining example of diamonds
bringing sustainable
prosperity.
⧫ Significant mines: Jwaneng,
Orapa, Karowe.
⧫ Diamonds account for 40% of
Botswana’s GDP and 90% of
exports
⧫ 2nd largest producer (carats)
but no.1 by value.
⧫ De Beers moved entire sales
operation to Botswana in
2013.
⧫ Industry-leading beneficiation
model.
30

31. AWDC/GIBS 2024
Diamonds in Angola
⧫ A major producer, with huge potential to develop and
expand further.
⧫ Current production around $1.6bn.
⧫ State-owned mining company (ENDIAMA).
⧫ Single channel marketing (SODIAM).
⧫ Catoca Mine (govt 59%; Alrosa 41%) – 4th biggest diamond
mine in the world; produces circa. 7mcts p.a.
⧫ Luaxe – new deposit (30kms form Catoca) – has 650mcts in
reserves and is expected to produce up to 10mcts p.a.
⧫ Multiple projects on the horizon.
⧫ Significant artisanal diggings.
⧫ Govt. wants to beneficiate like Botswana.
⧫ Production due to increase from 10mcts to almost 15mcts in
2024.
⧫ Potentially up to $2.5bn p.a.
31

32. AWDC/GIBS 2024
Diamonds in Namibia
⧫ Diamonds first discovered in in Luderitz on
the beach.
⧫ Diamonds came via the Orange River
(80M years ago).
⧫ Originally mined by the German Diamond
Corporation).
⧫ After World War 1, South Africa and then
De Beers took over.
⧫ In the 1990s, Debmarine was formed
(50/50 owned by DB/GRN).
⧫ Land and marine mining.
⧫ Offshore mining technology
⧫ High-quality diamonds around $600/ct.
⧫ Rounded features due to journey down
Orange River.
⧫ New ship has increased production
significantly.
⧫ Namibia should produce around $1bn of
diamonds annually.
32

33. AWDC/GIBS 2024
Diamonds in Canada
⧫ Newest major diamond
producing source, but declining
now.
⧫ Diamonds discovered in 1989.
⧫ High-cost mines due to location
and climate.
⧫ Winter Ice Road.
⧫ Fly-in Fly-out.
⧫ Flagship mines now in decline.
⧫ Diavik, Ekati, Gahcho Kue,
Renard.
⧫ Victor & Snap Lake closed.
⧫ Distinct diamonds: crystals,
octahendrons; black coateds.
⧫ Un-developed projects exist.
⧫ Beneficiation never really
worked in NWT.
33

34. AWDC/GIBS 2024
Diamonds in DRC
⧫ Huge country with vast mineral wealth.
⧫ Hampered by political instability and
corruption.
⧫ Diamonds first discovered in 1907.
⧫ By 1970s Zaire was one of the top
producers.
⧫ Produced/exported 15mcts in 2014.
⧫ MIBA mine – currently closed.
⧫ Large artisanal circa 700,000.
⧫ 80% industrial quality.
⧫ Occasional massive type-IIa stones.
⧫ Origin of the Millenium Star.
34

35. AWDC/GIBS 2024
Diamonds in South Africa
⧫ Where it all began…..
⧫ Multiple producers.
⧫ Multiple sources of diamonds.
⧫ De Beers only has Venetia Mine in SA.
⧫ Petra absorbed disposed DB mines.
⧫ Cullinan mine – no.1 source of blues.
⧫ Largest gem diamond ever recorded – Cullinan.
Diamond (3,106.75cts) in 1905 .
⧫ Cutting industry was supported by
De Beers in the past….now in terminal decline.
35

36. AWDC/GIBS 2024
Diamonds in Australia
⧫ Argyle Mine – disruptor of the cartel.
⧫ Huge deposit – low value, low quality,
high volume.
⧫ Remote location (FI-FO operation).
⧫ Produced 40mcts p.a.in its heyday
(865mcts in its operating lifetime).
⧫ Predominately browns and smalls (+5).
⧫ World’s top producer of red/pinks.
⧫ Argyle Tender – marketing effort to
promote these stones worked.
⧫ Mine closed after 37 years in 2020.
⧫ Small other deposits (Merlin & Ellendale
[yellows]).
⧫ Limited exploration work underway.
36

37. AWDC/GIBS 2024
Diamond Mining – other producing countries
Country Details Comment
Brazil Brauna Mine; alluvials Long history in diamonds back to 1700s;
around 1850 ceased market
dominance
Central African Republic Alluvials
Guinea Aredor; artisanal digging Aredor closed
Ivory Coast Alluvials
Lesotho Letseng; Kao; Liqhobong; Mothae Type IIa; small, landlocked kingdom
Liberia Alluvials (Mano River) V small production
Sierra Leone Koidu Mine; Tongo-Tonguma; artisanal
diggings (Kenema, Bo, Kono)
High quality smalls, coated; occasional
huge stone
Tanzania Williamson Mine (Petra; govt) Population of pinks
Venezuela Alluvials only Fancy colours?
Zimbabwe Marange; Murowa Huge potential
37

38. AWDC/GIBS 2024
The Future
⧫ Metallurgical, squeezing more life out of
current operations, advances in:
⧫ Liberation: milling, inter-particle crushing.
⧫ Recovery: XRT sorting.
⧫ Exploration, finding new deposits:
⧫ Use finer grain-sizes to locate Group 2 and
Ilmenite-poor Group 1 kimberlites.
⧫ Advances in precision geophysics.
⧫ Large, multi-dimensional, integrated data sets.
⧫ Machine learning & Artificial Intelligence.
⧫ Business:
⧫ Strong focus on ESG (‘social license to operate’).
⧫ Carbon neutral, net zero.
⧫ Being a role model: ‘diamonds for good’.
⧫ Funding & Innovation
38
References: De Wit, 2017; BOD internet site; Petra Diamonds, 2015
Composite of geophysical and heavy
mineral sampling results in the Kalahari

39. 39
Financing
AWDC/GIBS 2024

40. Stakeholder expectations
40
AWDC/GIBS 2024

41. 41
⧫ Diamond
prospectivity.
⧫ Track record of
economic
production.
⧫ Security of tenure.
⧫ Transparent mining
regulation.
⧫ Tax incentives for
mining (e.g. SA).
Craton map modified after Campbell, 2003
Illustration of the tax incentive structure
recently introduced to promote venture
capital investments in South Africa
What diamond explorers look for?
AWDC/GIBS 2024

42. 42
⧫ Prospectivity and then:
⧫ Stable democracy.
⧫ Continued political stability.
⧫ Good governance.
⧫ Prudent economic and natural resource.
management
⧫ High credit rating.
⧫ Consistent economic growth rates.
⧫ Security of investment.
⧫ Incentives for local investors (e.g. Canadian flow-
through options).
What investors look for?
Country risk map adapted from: Euler Hermes 2017
AWDC/GIBS 2024

43. 43
⧫ Revenue.
⧫ Job creation.
⧫ Community
development.
⧫ Beneficiation.
⧫ Procurement.
⧫ Sustainability.
What governments look for?
Source: UNDP
Total contribution to
governments by
mining companies
Source: PWC
AWDC/GIBS 2024

44. AWDC/GIBS 2024 44
Government incentives to exploration
Canada (1,600 juniors) Australia (600 juniors) South Africa (12 juniors)
The Flow-Through Share (‘FTS’) regime is
a tax-based financing incentive
whereby a company agrees to incur
eligible exploration and development
expenses which are “renounced” to the
shareholders who claim an income tax
deduction. It was introduced in 1958.
The Junior Mineral Exploration Incentive
(‘JMEI’) allows eligible companies to
give up a portion of their losses from
greenfields exploration expenditure to
generate tax credits in favour of
Australian resident shareholders who
buy newly issued shares.
Target to attract 5%of global
exploration dollars. How?
JSE’s Junior Mining Accelerator
Programme codirected by Mincosa.
Lacking the well-established, well-
entrenched venture capital mindsets of
Canada and Australia.
⧫ FTS has enabled juniors to raise equity
at a premium to their share price,
attracting capital to the riskiest stage
of the mining/exploration cycle.
⧫ The FTS regime turned Canadian
capital markets into the destination of
choice for mining companies.
⧫ FTS financings play a counter-cyclical
role during exploration downturns.
⧫ Explorers have limited time to apply,
raise capital and spend the money,
for investors to be eligible for capped
exploration credits.
⧫ Additional incentives exist, e.g.
Exploration Incentive Scheme (‘EIS’) in
Western Australia and Accelerated
Discovery Fund (‘ADF’) in South
Australia.
⧫ Section 12J, modelled on the UK
Venture Capital Trust regime to boost
exploration funding in South Africa,
was abolished in February 2021,
having failed to deliver the
anticipated benefits to exploration.
⧫ Flow-through share model first
mooted 10 years ago; presented to
National Treasury in 2020; now being
re-considered.
Sources: PwC 2015; PDAC 2015, 2019; Engineering News; Mining weekly; Mincosa;
Mining review; Australia Investing News; Australian Mining; Lexology

45. Perceived risk: a deterrent to investors
45
Source: Fraser Survey, 2023
South Africa ranks among the 10 least attractive investment jurisdictions globally, both from an
investment attractiveness and a policy perception perspective. Botswana is in the top 10 of both
AWDC/GIBS 2024
[…] […]
44.76
29.65
97.79
82,75

46. Economic competitiveness analysis: fiscal regimes
A hypothetical primary ‘junior’ diamond resource was tested against five Southern African
diamond mining fiscal regimes: South Africa, Botswana (Kalahari and non-Kalahari),
Zimbabwe, eSwatini (Swaziland) and Lesotho
46
(12 000)
(10 000)
(8 000)
(6 000)
(4 000)
(2 000)
0
SA Bots Bots Kalahari Zim Swaziland Lesotho
NPV
18.8%
4.5%
-11.2%
5.51%
7.68%
5.29%
NPV and IRR
⧫ SA ranked best of the five in terms of
IRR (and NPV), mainly due to lower
royalties.
⧫ A Canadian scenario could not be
included, due to the high local
$/tonne operating costs.
⧫ For reference: Karowe’s opex is
$31/tonne (Botswana), compared to
Gahcho Kue’s $101/tonne
(Canada).
Source: author’s own research, Lucara Diamond website, Mountain Province website
AWDC/GIBS 2024

47. AWDC/GIBS 2024
Onerous regulatory and ESG compliance
47
⧫ Relevance and transparency of regulatory reporting is critical to
attracting junior funding, yet onerous.
⧫ Investors increasingly value a company’s ability to manage
environmental, social and governance (ESG) factors.
⧫ Carbon neutrality is high on ESG agenda.
⧫ ESG factors even more prominent since the start of the war in Ukraine
(ethically sourced diamonds/traceability).
⧫ Mineral reporting requirements vary across jurisdictions.
⧫ Reporting frequency is quarterly on TSX, six-monthly on AIM and ASX.
⧫ Minimum standards for public reporting by Competent Persons
(‘CPs’) are set by professional Codes of Practice.
⧫ Most standards share common codes and guidelines, e.g. CIM,
JORC, SAMREC.
Sources: PWC, Stock Exchanges, Mining Journal, Mining Association of Canada

48. Value extraction and funding
48
Source: Wesizwe, Global Diamond Network
TRADITIONAL SOURCES OF FUNDING
⧫ Different types of
investor for different
project stages.
⧫ Early stage typically
friends and family.
⧫ Some private and
public equity funds
focus on resources.
⧫ Debt financing is
only accessible post
Bankable Feasibility
Study.
AWDC/GIBS 2024

49. AWDC/GIBS 2024
⧫ Peak for diamond exploration
spend was 2007-8.
⧫ Fluctuations in exploration
spend typically mirror the ups
and downs in the markets.
⧫ Value of exploration for long-
term growth is well-accepted.
⧫ However, exploration spend is
regarded as discretionary in
the short term.
⧫ Majors have pulled back in
recent years.
⧫ Juniors’ exploration spend
constrained by tougher
funding climate.
Diamond Exploration – investment decline
49

50. AWDC/GIBS 2024
Traditional sources of funding
50
Chart modified after PwC, 2013
⧫ Public equity was once the chief source of
funding for mining deals.
⧫ Many of today’s majors were established
through capital market funding.
⧫ Poor confidence in exploration and
competition from new investment
categories have changed the landscape.
⧫ Capital markets are not “junior-friendly”.
⧫ Private equity funds have less onerous
requirements, but money is more expensive.
⧫ Debt financing only becomes accessible at
advanced development or mining stage.
⧫ Junior and mid-tier operators need investors
with risk appetite and flexible processes.

51. AWDC/GIBS 2024 51
Exploration capital markets key facts
TSX / TSXV ASX LSE / AIM BSE / JSE
⧫ 1,157 mining companies;
32 diamond companies.
⧫ CAD 7,7 billion mining
capital raised in 2022.
⧫ 1,121 mining financings.
⧫ CAD 521 billion mining
market cap.
⧫ Notable diamond stocks:
Lucara Diamond,
Mountain Province, Star,
Diamcor, Tsodilo,
Pangolin.
⧫ 901 mining companies
listed.
⧫ MT50 (mid-tier) had
AUD 150 billion market
cap as of September
2022.
⧫ Ability to attract capital
from the Far East.
⧫ Notable diamond
stocks: Lucapa
Diamond, Newfield
Resources, Burgundy
Diamond Mines.
⧫ 369 mining companies
listed.
⧫ GBP 700 billion combined
market cap.
⧫ British banks and finance
houses known to
understand the African
jurisdictions.
⧫ Notable diamond stocks:
Petra, Gem Diamonds,
Botswana Diamonds.
⧫ Anglo, Lucara Diamond
and Botswana Diamonds
have secondary listing on
BSE.
⧫ No diamond listings on
JSE.
⧫ Negligible exploration
capital raised.
⧫ Exploration funded from
offshore.
Sources: TSX; LSE; JSE; PwC; PDAC; Mining weekly

52. AWDC/GIBS 2024 52
⧫ Royalty and stream arrangements are seldom
negotiated at early-stage exploration.
⧫ Crowdfunding has gained limited traction in mining.
⧫ Crypto financing is active in Canada and Australia,
albeit at small volumes.
⧫ Attracting a broader investor base to the minerals
sector.
⧫ Regulation of crypto financing has increased
following the "ICO bubble burst” in early 2018.
⧫ Tokens based on intrinsic value of asset, issued via
blockchain technology.
⧫ Vetting by an exchange and compliance with
securities framework provide comfort to investors.
Alternative sources of funding
Production-
based
financing
Online
financing
Royalties
(incl. NPI, NSR)
Streams
Crowdfunding
Crypto / Digital
Token Offerings
Sources: PwC; McKinsey; White & Case

53. AWDC/GIBS 2024 53
The important role of mining incubators
Common traits
⧫ Entrepreneurial, skilled, risk takers.
⧫ Able to recognise and develop potential.
⧫ Flexibility to advance a portfolio of projects.
⧫ Fewer constraints than junior explorers.
Different guises
⧫ Expert funders, e.g. HDI, 162 Group, Lundin
Group.
⧫ Project generators, e.g. Altus, Greenfields
Exploration.
⧫ Project incubators, e.g. EHR Resources.
⧫ Project marketplaces, e.g. PCF’s Minesonline
⧫ Startup crowdfunding portals, e.g. Vested
Technology.
Source: Greenfields Exploration

54. 54
What does it take to run a junior?
(ie. be a mining/exploration
entrepreneur)
AWDC/GIBS 2024

55. Juniors & Majors ?
Some common traits of JUNIORS Some common traits of MAJORS
⧫ Discoverers & developers of new economic deposits.
⧫ The ‘exploration division’ of the mining industry.
⧫ Typically small-cap companies.
⧫ Exploration spend is there lifeblood.
⧫ No/little production cash flow to fund exploration activities.
⧫ Funding derived from share issues & management.
⧫ No dividends paid - shareholders rewarded by share price
increase.
⧫ Results attract high degree of public scrutiny and assurance.
⧫ Subject to full extent of regulatory & reporting obligations.
⧫ Technical management teams with deep practical
experience.
⧫ Innovative, agile & fast.
⧫ Owners of mining operations.
⧫ Typically more than one mine.
⧫ Publicly traded, well capitalised companies.
⧫ Exploration activities internally funded by production cash
flow.
⧫ Exploration spend is discretionary.
⧫ Steady, predictable cash flow.
⧫ Large corporate structures.
⧫ Structured career paths.
⧫ Complex decision processes.
⧫ Internal assurance processes.
⧫ Able to adjust production to changing market conditions.
⧫ Large technical & non-technical management.
Departments.
⧫ In-house training programmes.
⧫ Can be bureaucratic and slow moving.
55
AWDC/GIBS 2024

56. Knowledge shared through mentorship, guidance, collaboration
and networking.
Formal training is a luxury
56
Discussing geology with two young Rockwell geologists The Rockwell team who presented to the 2014 Kimberley Diamond Conference
AWDC/GIBS 2024

57. Personal exposure
Social presence puts personal reputation on the line. There is no ‘Public
Relations Department’ to manage reputational risks and hide behind!
57
AWDC/GIBS 2024

58. ◆ Many have an idea of what makes a good
geologist.
◆ No general job description for an explorationist.
◆ Generalist with deep technical background.
◆ Commercially astute.
◆ Curious, resourceful, optimistic, resilient.
◆ Physically fit.
◆ Keeping at the edge of many technical
disciplines.
◆ Able to work with minimal support in remote
areas.
What makes an explorationist ?
Explorationist = an entrepreneurial geologist who deals with the
unknown
58
A young Vutomi geologist looking to the future
AWDC/GIBS 2024

59. Minimum Requirements (example):
◆ B.Sc Honours in Geology.
◆ At least 5 years’ experience in exploration geology.
◆ Accreditation with SACNASP and membership of GSSA & SAIMM.
◆ Skills such as coaching, leadership, management, business acumen,
performance management, financial management, analytical, planning
& organisational skills.
◆ Technical knowledge must include geological sampling, mapping and
modelling, geohydrology, environmental impact studies and
rehabilitation, proficiency in MS Office & specialised applications
especially GIS.
◆ Should also have a broad understanding of mineral economics,
metallurgy & mining engineering.
◆ Valid code B driver’s licence.
In addition to:
◆ HR, logistics, first aid, security, mechanics, electrical, plumbing, cooking …
Jack of all trades…
59
AWDC/GIBS 2024
Studying old archives in the Kimberley
Museum
Drilling for kimberlite on
Vutomi’s Thorny River project

60. AI demands technophiles
Proficiency in an ever-growing range of technologies and
applications is expected.
60
“GoldSpot is a technology company that leverages artificial intelligence to
reduce capital risk while working to increase efficiencies and success rates in
resource exploration and investment.”
The Vutomi FD multi-tasking as a drone pilot
Young graduates undertaking a geophysical survey on
Vutomi’s Thorny River property
AWDC/GIBS 2024

61. What if connectivity fails ?
Are you still
able to use
‘low-tech’?
Or are you
over-reliant on
technology?
61
Preparing for the night at BOD’s Maibwe project in the Central Kalahari
AWDC/GIBS 2024

62. Problem solver & handyman
Can you think strategically
and solve geological
riddles, whilst keeping the
camp running &
stakeholders happy?
Do you have the right
tools for the job?
62
Accommodation in the Central Kalahari Viewing the AK6/Karowe Mine diamonds
Discussing AK6/Karowe Mine drill core A typical road in Central Botswana
AWDC/GIBS 2024

63. Servant leader & diplomat
Inspiring trust and confidence in your team. Getting your hands dirty whilst
ensuring that your company has a sound reputation.
63
The concepts
of ‘Cultural
Intelligence’ &
‘Leadership
beyond
Authority’ are
key.
Long service awards at Rockwell With Shefa Gem’s CEO in Israel
AWDC/GIBS 2024

64. Socially responsible risk taker
You may take risks to achieve your goals, but you won’t
put others at risk with your actions.
64
The Rockwell management soccer team
Annual Christmas party at Barkly West’s
orphanage, sponsored by Rockwell
AWDC/GIBS 2024

65. Communicator
Investors want to know and understand what is happening within the
company and if you cannot articulate that, you are at a significant
disadvantage.
Can you
articulate on
multiple
platforms what
you and the
company
represent, are
currently doing
and the future
goals?
Botswana Resource Sector Conference
Junior Indaba, Joburg Junior Indaba, Joburg
Mining Review interview
Africa Mining Summit
Mining Show interview
65
AWDC/GIBS 2024

66. Career paths – Majors
◆ Clearly defined hierarchical levels.
◆ Incremental career progression.
◆ Fairly predictable promotions.
◆ Compensation linked to grade.
◆ Often pay in the + 80th percentile.
◆ Ongoing training & development.
◆ Often ‘divorced’ from the business.
66
AWDC/GIBS 2024

67. Career paths – Juniors
◆ Flat structures, few levels: ‘chief cook
& bottle washer’.
◆ Salaries may reflect share
performance.
◆ Often pay in the - 20th percentile .
◆ On-the-job growth (‘sink or swim’).
◆ No room for mediocrity.
◆ Business skills alongside technical
mastery.
◆ Direct link between work, company
performance & shareholders.
◆ Fundraising ability is the ultimate test.
◆ But … an exciting career.
67
Can good geologists from major companies
succeed in the junior world?
Can one transfer from being a mine or research
geologist to the junior world?
AWDC/GIBS 2024

68. 68
AK6/Karowe Case Study
(see next presentation)
AWDC/GIBS 2024