28th Jan 2010 07:00
Firestone Diamonds plc
Orapa joint venture update
LONDON: 28 January, 2010
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), is pleased to announce that it has completed its planned review of historical data from the eight kimberlites in the Orapa kimberlite field in Botswana covered by the joint venture announced with Tawana Resources NL ("Tawana") in December 2009. Under the terms of this joint venture Firestone can earn up to an 85% interest in these kimberlites.
HIGHLIGHTS
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BK24 |
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In excess of 3 hectares in area |
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Grades of up to 5 carats per hundred tonnes from limited sampling |
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BK19-22 & BK25-26 |
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All proven to contain diamonds |
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Limited sampling and delineation work carried out |
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Planned evaluation programme |
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Large diameter drill sampling on BK24 |
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Geophysical surveys and core drilling on remaining kimberlites |
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Work to be carried out after commencement of production from BK11 in Q2 2010 |
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Philip Kenny, CEO of Firestone Diamonds, commented: "We are encouraged by the results of our review of Tawana's kimberlites in the Orapa area. Firestone's portfolio in the Orapa area now contains 18 kimberlites, 12 of which are proven to contain diamonds. With our ability to use the infrastructure at BK11 to develop and exploit the economic potential of these kimberlites, we are optimistic about the potential for significantly expanding our operations in the Orapa area."
The review carried out by Firestone covered historical work carried out by De Beers, Tawana and others on kimberlites BK19 to BK26, and identified a number of high interest kimberlites on which Firestone intends to carry out further evaluation work.
BK24
BK24 is located 12 kilometres from Debswana's Damtshaa Mine and 40 kilometres from Firestone's BK11 kimberlite, which is due to commence commercial production in Q2 2010. BK24 is the largest of the Tawana kimberlites, with an estimated area in excess of 3 hectares. Macrodiamonds have been recovered from pitting to a depth of 30 metres. As the top 25 to 30 metres of BK24 is comprised predominantly of basalt breccia and contains very little kimberlitic material, this result is considered significant, and further evaluation work is warranted on the undiluted kimberlite below the basalt breccia. Grades reported from the limited sampling carried out by De Beers were up to 5 carats per hundred tonnes.
BK19-22 & BK25-26
These kimberlites were also proven by De Beers to contain diamonds, but limited work was carried out to determine the sizes of the kimberlites or macrodiamond grade.
Evaluation Programme
Firestone intends to carry out large diameter drill ("LDD") sampling on BK24 and to carry out geophysical surveys and core drilling on the remaining kimberlites to determine whether any of them warrant LDD sampling. The Company intends to carry this work out after the commencement of production at BK11 in Q2 2010 and it is anticipated that the work will be funded through operating cash flows from BK11.
For further information, visit the Company's web site or contact:
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Philip Kenny, Firestone Diamonds |
+44 20 8834 1028/+44 7831 324 645 |
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Simon Edwards / Tim Redfern, Evolution Securities (Joint Broker) |
+44 20 7071 4330 / 4312 |
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Rory Scott, Mirabaud Securities (Joint Broker) |
+44 20 7878 3360 |
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Alexander Dewar, Brewin Dolphin (Nominated Adviser) |
+44 131 529 0276 |
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Jos Simson / Leesa Peters, Conduit PR |
+44 20 7429 6603/+44 7899 870 450 |
Background information on Firestone Diamonds:
Firestone Diamonds plc ("FDI.L") is an international diamond mining and exploration company with operations in Botswana and South Africa. Botswana is the world's largest and lowest cost producer of diamonds, with annual production worth over $2.5 billion, and is considered to be one of the most prospective countries in the world to explore for diamonds.
Firestone is the largest holder of mineral rights in Botswana's diamondiferous kimberlite fields, controlling over 25,000 square kilometres around the major Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has 103 kimberlites in its portfolio, of which 30 have been proven to be diamondiferous. Fifteen of Firestone's kimberlites are at the bulk sampling stage.
Notes:
1. The information in this statement has been reviewed by Mr. Tim Wilkes, BSc, Pr Sci Nat, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer of Firestone Diamonds plc and has over 27 years' experience in diamond exploration, mineral resource management and mining. Mr. Wilkes is a member of the sub-committee for diamonds of the South African Mineral Resource Committee (SAMREC).
Related Shares:
FDI.L