16th Apr 2007 07:01
Firestone Diamonds PLC16 April 2007 Firestone Diamonds plc Update on Tsabong project, Botswana LONDON: 16 April, 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 and exploration work at its Tsabong kimberlite project inBotswana. HIGHLIGHTS * Ranking of top 10 diamondiferous kimberlites completed * Core drilling programme increased from 6,000 to 12,000 metres - Drilling commenced in March 2007 - First drill hole on 180 hectare MK1 kimberlite under way - Results expected in H2 2007 * Four new kimberlites discovered - MK78 - 5 hectares - MK79 - 12 hectares - MK80 - 18 hectares - MK81 - 18 hectares * 11 kimberlites discovered from 14 exploration holes since November2006 * Number of kimberlites in licence area increased to 78 Kimberlite ranking The evaluation programme at Tsabong is initially being focused on the 17 knowndiamondiferous kimberlites in the project area. The first phase of the programmewas the selection of the top 10 of these kimberlites based on diamond content,kimberlite indicator mineral ("KIM") chemistry and size. This review was carriedout by the Company in conjunction with Mineral Services (Pty) Limited of CapeTown, which is one of the industry's leading diamond exploration and evaluationconsultancies. Details of the kimberlites selected for evaluation are: Kimberlite Estimated size Depth of overburden (m) Kimberlite type (Hectares)MK1 (See note) 180 82 Crater MK51 10 82 Diatreme MK38 20 81 Diatreme MK45 25 58 Diatreme MK39 20 79 Diatreme MK65 10 49 Diatreme MK4 20 78 Diatreme MK52 15 79 Diatreme MK31 75 76 Crater MK42 20 73 Crater/diatreme Note: Kimberlite MK1 was formerly known as M1 Evaluation programme The company has substantially increased its planned core drilling programme from6,000 to 12,000 metres. A 500 metre vertical hole will be drilled into eachkimberlite to obtain fresh, undiluted material for detailed microdiamond, KIMchemistry and petrographic analyses. This work will allow more accurateassessments of the economic potential of the kimberlites to be made. The resultsof these analyses will be used to select the most prospective kimberlites forfollow-up work. The follow-up work will comprise additional vertical and angledcore drilling to identify the different geological phases in the kimberlites andto allow preliminary 3D geological models of the kimberlites to be constructed. Core drilling commenced on schedule at MK1 in March 2007. A second core rig iscurrently being mobilised and is expected to start drilling by the end of April2007. Subject to the from the core drilling, which are expected in H2 2007, bulksamples will be taken from selected kimberlites by large diameter drilling toprovide an initial indication of grade and diamond value. New kimberlites discovered In November 2006 the Company commenced a 10,000 metre exploration drillingprogramme at Tsabong. This programme is targeting approximately 80 well definedgeophysical anomalies that have been identified by interpretation ofaeromagnetic survey data over the area. A further four kimberlites have been discovered since those reported in January2007. This brings the number of kimberlites discovered since November 2006 to11, and the total number of known kimberlites in the Tsabong project area to 78. Details of the discovery holes, all of which terminated in kimberlite, arelisted below: Kimberlite Estimated Hole depth Kimberlite Depth of Kimberlite size (m) intersection (m) overburden (m) type (Hectares) MK78 5 137 47 90 Crater/ diatreme MK79 12 167 34 133 Crater/ diatreme MK80 18 169 64 105 Crater/ diatreme MK81 18 134 71 63 Crater Drill chip samples are being sent to laboratories in South Africa for KIMchemistry and petrographic analysis and to Canada for microdiamond analysis. Philip Kenny, CEO of Firestone Diamonds, commented: "Our technical team hascontinued to make excellent progress at Tsabong. Having produced very positiveresults from exploration, with 11 kimberlites discovered from our first 14 holesdrilled, our focus is now shifting to evaluation work. The 10 kimberlites wehave selected for core drilling have all been proven to contain diamonds andhave good indicator mineral chemistry. We look forward to the results of thisevaluation work, and continue to believe that Tsabong has the potential toproduce a major economic discovery." For further information:Philip Kenny, Firestone Diamonds +44 20 8834 1028 / +44 7831 324 645Leesa Peters/Jos Simson, Conduit PR +44 20 7429 6600 / +44 7812 159 885Jamie Cumming, Bell Lawrie +44 141 314 8103 / +44 7768 044 620Ken Fleming, Bell Lawrie +44 141 221 7733 / +44 7971 835 070 www.firestonediamonds.com 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 road from Gaborone and infrastructure in thearea is good. Background information on Firestone Diamonds: Firestone Diamonds plc is an international diamond mining and explorationcompany with operations in Botswana, the Namaqualand region of South Africa, andthe United States. Firestone has extensive interests in Botswana, which is the world's largestproducer of diamonds, with annual production of approximately 30 million caratsworth over $2.5 billion. Botswana is considered to be one of the best countriesin the world to explore for kimberlite - the primary source rock for diamonds.Firestone's Mopipi, Orapa and Jwaneng projects are located close to the majorOrapa and Jwaneng mines and are all being explored by De Beers in joint venturewith Firestone. Firestone is also exploring for kimberlite in the US on theLaurentia craton, which extends into Canada, where it hosts a number ofdiamondiferous kimberlite deposits. Namaqualand, which is located on the west coast of South Africa, has been one ofthe world's largest alluvial diamond producing regions for the past 60 years,with total production to date estimated to be worth more than $3 billion.Firestone's mining operations in Namaqualand include the Bonte Koe, Avontuur andOena Mines, all of which produce high quality alluvial diamonds, and a growingportfolio of early stage and advanced exploration projects, of which the GroenRiver Valley project, which is being explored by De Beers in joint venture withFirestone, is the most advanced. Firestone has a highly qualified management team with extensive experience inthe exploration, evaluation and development of diamond projects. Firestone isquoted on the Alternative Investment Market (AIM) of the London Stock Exchangeand 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). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
FDI.L