Botswana Diamonds reported a preliminary loss of $1.61 million (GBP 1.02 million) for the fiscal year that ended on June 30, which was up from a loss of $813,440 one year earlier. Cash and cash equivalents at the close of the year rose to $659,359 compared with $61,997 in 2013. The company reported to revenue during the period.

Botswana Diamonds' chairman, John Teeling, told shareholders that the diamond industry is an "oligopoly with four companies controlling 80 percent of the industry," but that the challenge for all players is to find new sources of diamonds.

"How do we increase the chances of finding a commercial deposit? We do two things. We go where diamonds may be and we put together the best exploration team," he said. The company has been focusing on the Orapa area of Botswana where it holds extensive parcels to explore and it has partnered with ALROSA to identify select targets this year.

Botswana Diamonds and ALROSA conducted fieldwork programs, with a four-hole drilling program on Block 117 in the Orapa region, using proprietary technology from ALROSA. Two of the four holes intersected kimberlite veins, two found basalt, Teeling explained. "A reasonable, but not great result. Further work is being carried out on the drilling results but we are unlikely to drill further on that license as the targets look small."

The company the turned to a five-license block PL206 to PL210 covering 1,357 square kilometers, which ALROSA determined to be highly prospective. Fieldwork was carried out in September and October and substantial quantities of concentrated soil samples are being analyzed in St. Petersburg.

"ALROSA will identify a series of targets on the blocks. We will agree a budget for 2015, which will include, drilling and more fieldwork to better pinpoint drilling locations," Teeling said.

The company has an earn in agreement on 13 licenses in the Gope region of Botswana, where the firm identified targets across the Brightstone block and is actively speaking to parties regarding farm in arrangements. "While there has been some interest, there is no guarantee that any transaction will be completed," Teeling said.

While the program agreement with ALROSA is not finalized, Teeling said that he'd be surprised if it does not include a double-digit number of drill holes. "Our joint venture with ALROSA is a 50/50 heads-up, which means we pay our share. Funds raised in 2013 and 2014 funded all of the exploration to date, with cash remaining to cover some if not all of next year’s program.

"Political and economic uncertainty abounds in the world. Commodity prices are soft and resource investment out of favor, while junior explorers are ignored. But diamond fundamentals are good. We have the ground and the team. Success, if achieved, will bring great rewards," he concluded.