18th Feb 2008 07:00
Firestone Diamonds PLC18 February 2008 Firestone Diamonds plc Tsabong evaluation programme update LONDON: 18 February 2008 Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamondmining and exploration company (ticker: AIM:FDI), is pleased to provide anupdate on evaluation work at its Tsabong kimberlite project in Botswana. HIGHLIGHTS * Commissioning of bulk sampling plant completed on schedule * Evaluation programme progressing - Bulk sampling of 14 priority A kimberlites expected to commence shortly - Large diameter drill rig being mobilized to Tsabong * Independent data review completed by Mineral Services - Concludes that project has "real chances of discovering an economic large sized diamondiferous kimberlite" * Initial grade estimates from microdiamond analyses expected shortly * Mr Polite Khutjwe, formerly Chief Geologist at Orapa and Letlhakane Mines, appointed Chief Geologist at Firestone Diamonds Botswana Philip Kenny, CEO of Firestone Diamonds, commented: "With continuing positiveresults from work undertaken at Tsabong in 2007 and a very significantevaluation programme under way, with 25-30 kimberlites expected to be sampled in2008, we are increasingly confident about the potential for an economickimberlite discovery. The commissioning of the bulk sampling plant is a majormilestone for the Company, as it will enable us to process our own bulk sampleswithout the risk of delays from commercial laboratories or contractors." Evaluation programme progressing The Tsabong advanced evaluation programme ("AEP") commenced in March 2007 withthe objective of evaluating the economic potential of the 83 kimberlites in theproject area, including the 180 hectare MK1 kimberlite, which is one of thelargest diamondiferous kimberlites in the world. The Tsabong field also contains5 kimberlites larger than 50 hectares and 32 kimberlites between 20 and 50hectares in size. The AEP is now rapidly progressing, with bulk sampling of 14priority A kimberlites identified in the area expected to commence shortly. Independent data review Mineral Services (Pty) Limited of Cape Town, one of the industry's leadingdiamond exploration and evaluation consultancies, has recently completed anindependent review of data from Tsabong. This included results of more than4,200 geochemical analyses of kimberlite indicator minerals, all macrodiamondand microdiamond recoveries and other data from work carried out at Tsabong byFirestone and other companies. The results of this review confirm that theTsabong field is located in a similar geological setting to the major JwanengMine and that it has the potential to contain economic kimberlite deposits. Awritten opinion on the project from Dr JJ Gurney, Chairman of Mineral Services,concludes: "The current exploration project in the vicinity of Tsabong by FirestoneDiamonds has been well thought through and has real chances of discovering aneconomic large sized diamondiferous kimberlite. There is a real possibility that the current exploration programme willidentify:- a) that one or more of the known kimberlites has a mineable diamond resource at current mining costs and diamond revenues. Such a discovery would likely be a low to medium grade kimberlite with high average value diamonds. b) that a new discovery will be economic to mine, either for similar reasons to (a) above or because it has higher grade than other kimberlites in the project area. In the latter case the potential value could be very significant." Microdiamond grade estimates Samples of kimberlitic drill core were taken from six high interest kimberliteson which drilling was carried out in 2007, including MK1. These samples havebeen submitted to independent laboratories for microdiamond recovery. Modellingof the size/frequency distribution of the microdiamonds recovered will be usedto generate an initial grade estimate for each kimberlite and to prioritiseLarge Diameter Drill ("LDD") bulk sampling work. The first results from thiswork are expected to be available shortly. Bulk sampling Commissioning of the Company's bulk sampling plant ("BSP") has been successfullycompleted on schedule at Tsabong, and the plant is currently awaiting deliveryof material from the LDD drilling programme. The first material scheduled to beprocessed will be from the BK11 kimberlite in the Orapa area, which is expectedto arrive at the plant shortly. Following this, the BSP will be used to treatthe 25-30 mini bulk samples from Tsabong that are planned for 2008. If bulksampling results indicate that significant mineralization is present in any ofthese kimberlites, a second phase of more intensive LDD and core drilling willbe undertaken with the objective of developing a resource. Management appointment The Company is also pleased to announce the appointment of Mr Polite Khutjwe asChief Geologist at Firestone Diamonds Botswana. Mr Khutjwe has over 16 years'experience in diamond mining and exploration, and was most recently ChiefGeologist and Mineral Resources Manager at Debswana's Orapa and Letlhakane Mines- the world's largest diamond mining operation. He has also worked for De BeersExploration in Botswana and for De Beers in South Africa, where he was ResidentGeologist at the Finsch Mine. For further information: Visit the Company's web site at www.firestonediamonds.com, or contact: Philip Kenny, Firestone Diamonds +44 20 8834 1028/+44 7831 324 645 Leesa Peters/Jos Simson, Conduit PR +44 20 7429 6600/+44 7812 159 885 Mike Jones/Ryan Gaffney, Canaccord Adams (Joint Broker) +44 20 7050 6500 Jamie Cumming, Brewin Dolphin (Joint Broker) +44 141 314 8103/+44 7768 044 620 Ken Fleming, Brewin Dolphin (Nominated Adviser) +44 141 221 7733/+44 7971 835070 Background information on Tsabong: The Tsabong kimberlite field is located in south western Botswana, approximately280 km south west of the Jwaneng Mine, which is the world's biggest diamondmine. Tsabong is one of the largest diamondiferous kimberlite fields in theworld, containing 83 known kimberlites, of which 13 have been proven to bediamondiferous. Tsabong is noted for the exceptionally large size of many of itskimberlites, in particular the 180 hectare MK1 kimberlite, which is one of thelargest known diamondiferous kimberlites. The Tsabong field also contains 5kimberlites larger than 50 hectares and 32 kimberlites between 20 and 50hectares in size. A kimberlite in Tsabong with a moderate grade of 20 cpht andaverage quality diamonds of $100 per carat is likely to support a large-scale,profitable mining operation. Access to the area is via tarred road from Gaboroneand infrastructure in the area is good. Background information on Firestone Diamonds: AIM quoted Firestone Diamonds plc ("FDI.L") is an international diamond miningand exploration company with operations in Botswana and South Africa. Botswanais the world's largest and lowest cost producer of diamonds, with annualproduction worth over $2.5 billion, and is considered to be one of the mostprospective countries in the world to explore for diamonds. Firestone is the largest holder of mineral rights in Botswana's diamondiferouskimberlite fields, controlling over 21,000 square kilometres around the majorOrapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has92 kimberlites in its portfolio, of which 23 have been proven to bediamondiferous and 15 are currently being advanced to bulk sampling. Firestone'smining operations in South Africa include a toll treatment operation in jointventure with De Beers at the Bonte Koe Mine Note: 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 GuidanceNote for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer ofFirestone Diamonds plc and has over 25 years experience in diamond exploration,mineral resource management and mining. Mr. Wilkes is a member of thesub-committee for diamonds of the South African Mineral Resource Committee (SAMREC). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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