Less than six months after joining forces with a world-class mining and smelting operation, Botswana Metals (ASX: BML) is on the road to production.

The company is more than just a base metals play, it has solidified its place in the future of Botswana nickel-copper mining and production is not a distant goal, it's a surefire reality.

The BML story began when the company made three major nickel, copper and platinum group metal discoveries in 2010 and 2011 at Maible North, Airstrip and Dibete.

In March, 2014, BML negotiated a deal with the Botswana government to extend the licences and in April, after a year of negotiations, shook hands with major nickel and copper miner and smelter owner BCL Ltd to spend $4 million to earn in a 40% interest in the three discovery areas.

BCL employs 5000 of township of Selebi Phikwe's 50,000 population, has been mining since 1960 and its smelter has operated since 1970.

But the partnership between Russian giant Norilsk Nickel and the Botswana gtovernment needs more material to continue its 50,000 tonnes nickel-copper matte annual production.

BCL has said the BML farm-in joint venture is one of its priority nickel projects.

"The longevity of the BCL mine and smelter depends on supplementary ore outside of its existing nickel resources being made available and BML is in a prime position to do this," BML executive chairman Pat Volpe told RESOURCESTOCKS.

BML is about to finish a drilling season that has seen 6000m drilled over 38 holes and has already intercepted sulphides up to 38m thick.

Exploration also began in October on six priority VTEM targets where drill targets are expected to be established form the initial program in March next year, after the wet season.

What this means for Bostwana Metals is a very fast movement towards production from its prospects in the east of the country, estimated to begin late 2015.

A JORC resource is expected early next year, followed by a scoping study and then mining licence.

"There is potential for cash flow from mining in 2016/17," Volpe said.

"We have had three rigs on site full time and by the time investors read this article, we should have assay and metallurgical results through."

The company's initial focus is on the Maibele North nickel-copper (plus PGM credits) prospect with first drilling done on time and on budget.

Maibele North is one of at least known mineralised areas within the joint venture prospecting licences, along with the Airstrip and Dibete copper-silver prospects.

Previous results from Maibele North returned intersections of nickel copper including 6.23m at 2.01% nickel, 0.57% copper.

And Airstrip previously returned grades of up to 22% copper with 1023gpt silver in narrow bornite veins (best 60% copper and 2833gpt silver over narrow widths).

Importantly, all of BML's prospecting licences are on the Limpopo Mobile Belt that extends into Botswana from Zimbabwe and contains anomalies which could host base and precious metal mineralisation.

This includes the Takane mineral province where 23 VTEM anomalies have been identified.

The virtually unexplored area covers 79 square kilometres and could to host both base and precious metal deposits.

"The joint venture partners believe that the discovery of significant mineralisation at any of these anomalies will potentially transform this part of the Limpopo Mobile Belt into a new and relatively underexplored mineral province within eastern Botswana," Volpe said.

But the JV ground covers only 185sq.km of the BML's 1000sq.km portfolio, so the company believes there is even more to discover.

BML is situated near successful neighbours: Selebi Phikwe nickel mine and just 80km north, the world class Norilsk-owned Tati nickel mine.

According to Volpe, the joint venture makes good sense for both parties.

"For BML, it de-risks the projects with funds invested by BCL for drilling and resource calculation up to the bankable feasibility study and provides access to BCL infrastructure that would have cost BML hundreds of millions," he explained.

"Therefore low operating costs and capital costs from BCL as JV partner and simple trucking of ore to plant, makes BML unique as a potential producer in JV with the biggest and world-class BCL mining and smelting operations in Botswana."

Importantly, the joint venture provides BML with funds to develop three discovery areas for potential production and cash flow.

The need for funds and capital raisings has been substantially reduced as BCL will make the expenditure up to a BFS in the selected joint venture ground. BCL is also well connected to market the end product internationally, while also providing local expertise and mining knowledge.

"The joint venture allows BML to focus on other untapped exploration opportunities in our portfolio that have the potential to make a world-class discovery in a new unexplored Limpopo belt where major discoveries have been made along the same belt in the neighbouring Zimbabwe," Volpe said.

Geographically and geologically distinct, the Limpopo Mobile Belt is a major Proterozoic deformation zone which forms the link between the Archaean aged Zimbabwe Craton and the Kaapvaal Craton.

Regionally, the Tati Schist Belt occurs as an isolated greenstone belt in the southwest corner of the Zimbabwe Craton.

The region contains established infrastructure, skilled workers and untapped potential. Botswana has been called the Switzerland of Africa.

The landlocked country is the most politically stable on the continent. Since gaining independence from its protectordate status in 1966, Botswana has enjoyed continuous peace, democracy and economic stability.

A World Economic Forum public institutions survey in 2006 rated Botswana as the number one country in Africa in terms of public governance.

In the 2005 Transparency International Corruptions Perception Index, Botswana ranks as one of the least corrupt countries in the world (32 out of 159), the least corrupt country in Africa.

The government has established an excellent infrastructure of sealed roads, grid power and piped water throughout much of the country. Education and health are also priorities for Government spending.



Altogether, with its virtually untapped base-metals mineral wealth, Botswana provides a very favourable environment in which to explore and mine.

*A version of this report, first published in the November/December 2014 edition of RESOURCESTOCKS magazine, was commissioned by Botswana Metals.