29th Oct 2007 07:01
Firestone Diamonds PLC29 October 2007 Firestone Diamonds plc Update on Tsabong evaluation programme, Botswana LONDON: 29 October 2007 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 100%-owned Tsabong kimberlite project inBotswana. HIGHLIGHTS * Advanced evaluation programme extended to cover 14 kimberlites - includes diamondiferous 75 hectare MK31 kimberlite * Encouraging results from core drilling on 5 kimberlites - microdiamond and indicator mineral analysis under way * Bulk sampling plant to be commissioned in November 2007 - up to 30 bulk samples to be processed by end 2008 Philip Kenny, CEO of Firestone Diamonds, commented: "With 81 kimberlitesdiscovered to date in Tsabong, of which 14 are diamondiferous, the objective forFirestone is to identify and evaluate the kimberlites with economic potential asrapidly as possible. We have made excellent progress in the six months since wecommenced our evaluation programme and we now have a much better understandingof the geology of the area and the kimberlites in our portfolio. Initial resultsfrom core drilling are very encouraging and we look forward to results from theextensive bulk sampling that we plan to undertake in 2008." Advanced Evaluation Programme The Tsabong advanced evaluation programme ("AEP") commenced in March 2007 withthe objective of evaluating the economic potential of the high interestkimberlites in the project area. Ten kimberlites were initially selected forevaluation based on diamond content, kimberlite indicator mineral ("KIM")chemistry and size. Core drilling is being undertaken on these kimberlites inorder to carry out further microdiamond, KIM chemistry and petrographicanalyses, the results of which will be used to prioritise kimberlites for bulksampling by large diameter drilling. Regional geochemical modeling completed An extensive database has been compiled comprising results of more than 4,200KIM geochemical analyses, all macrodiamond and microdiamond recoveries and otherdata from historical work carried out in the Tsabong kimberlite field. Thisdatabase significantly improves the Company's ability to identify and prioritiseclusters of kimberlites and individual kimberlites within the Tsabong field withthe best economic potential. Four additional diamondiferous kimberlites withhigh interest KIM geochemistry have been identified using this database and theAEP has been expanded from 10 to 14 to include these kimberlites. MK31 is themost significant of these as it has good KIM geochemistry, is proven to containmicrodiamonds and is 75 hectares in size. MK31 will be the next kimberlitedrilled as part of the AEP. Fourteen kimberlites to be evaluated Further details of the fourteen kimberlites selected for the AEP are provided inthe following table: Kimberlite Area (ha) Macrodiamond recovery Microdiamond Other comments recoveryMK 1 180 Y Y Very large size; 13% G10 garnetsMK 31 75 NS Y Large sizeMK 45 25 NS N 4% G10 garnets; best KIM chemistryMK 4 20 NS Y 10% G10 garnetsMK 42 20 NS YMK 39 20 NS YMK 38 20 NS Y 24% G10 garnets; best KIM chemistryMK 7 20 NS N Group 1 eclogitic garnetsMK 34 20 NS YMK 52 15 NS YMK 51 10 NS Y 17% G10 garnetsMK 84 10 NS N 10% G10 garnets; best KIM chemistryMK 65 10 NS Y Best diamond resultsMK 48 10 NS Y Notes: 1. NS = not sampled yet 2. G10 garnets and Group 1 eclogitic garnets are kimberlite indicatorminerals that have been formed within the diamond stability field, and theirpresence in a kimberlite provides a good indication that the kimberlite fromwhich they have been recovered is likely to be diamondiferous. It has beenproven that the higher the count of indicator minerals from the diamondstability field, the higher the possibility of the kimberlite hosting economicgrades. Core drilling advancing Core drilling commenced in March 2007 and approximately 2,000 metres of drillinghas been carried out to date on six kimberlites, with very encouraging results.A 508 metre hole has been completed on the 180 hectare MK1 kimberlite, which isthe deepest core hole completed to date in the entire Tsabong kimberlite field.A summary of core drilling progress to date is provided in the following table. Kimberlite Area (ha) Core recovery (metres depth) MK 1 180 82 to 508MK 51 10 82 to 298MK 4 20 79 to 251MK 39 20 79 to 410MK 45 25 58 to 251MK 38 20 In Progress Initial logging of core from MK1, MK45 and MK51 has identified the presence ofhigh interest coarse-grained crater and fresh magmatic facies rock types.Samples from these kimberlites have been submitted for priority microdiamond andKIM geochemistry analysis and first results from these analyses are expected tobe available shortly. Logging of core from MK38 and MK39 is currently ongoing.Core drilling of the 8 remaining kimberlites that are part of the AEP isexpected to be completed in the first half of 2007. Selected kimberlites will be chosen for bulk sampling based on results of corelogging, geological modeling and laboratory analysis. It is expected thatinitial 100 tonne mini bulk samples will be taken by large diameter drill rigfrom these kimberlites. Bulk sampling plant to be commissioned in November The Company is in the process of establishing its own 10 tonne per hour bulksampling plant in Botswana in order to support its projects in the Tsabong,Orapa and Jwaneng areas. Manufacturing of the plant has recently been completedin South Africa at a cost of approximately £500,000 and it will be transportedto Botswana at the end of October 2007. The plant will be erected in theindustrial area of Tsabong town, where power is available from the national gridand water from the municipal supply. It is expected that commissioning of theplant will be completed in November prior to annual shut down in December andthat it will be ready to commence processing bulk sample material in early 2008.The first material to be bulk sampled will be from the Company's BK11 kimberlitein the Orapa kimberlite field, which will be trucked to the plant by road,following which the Tsabong samples will be processed. The new plant will be the only bulk sampling plant in Botswana outside De Beersand will be a key asset for the Company, as material will be processed much morequickly and without the risk of delays from commercial laboratories orcontractors. The Company expects to be able to process between twenty and thirty100 tonne mini bulk samples by the end of 2008. 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 81 known kimberlites, of which 17 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. With rough diamond prices estimated to have tripled since the Tsabong field wasdiscovered in the early 1980's, the threshold for economic viability in the areahas been reduced substantially. A kimberlite in Tsabong with a moderate grade of20 cpht and average quality diamonds of $100 per carat would support alarge-scale, profitable mining operation. Access to the area is via tarred roadfrom Gaborone and infrastructure in the area is good. Background information on Firestone Diamonds: Firestone Diamonds plc is an international diamond mining and explorationcompany with operations in Botswana and South Africa. Botswana is the world'slargest 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 inthe 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 has86 kimberlites in its portfolio, of which 18 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 Firestone is quoted on the Alternative Investment Market (AIM) of the LondonStock Exchange and trades under the symbol FDI.L. 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). For further information: Visit the Company's web site at www.firestonediamonds.com. 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) +44 020 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 835 070 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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