Firestone
Diamonds plc
Tsabong project update
LONDON: 27 March
2009
Firestone
Diamonds plc, ("Firestone" or "the Company"), the
AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces results from bulk sampling
at its Tsabong kimberlite project in
Botswana. The Tsabong kimberlite
field contains 85 kimberlites, including the 180
hectare MK1 kimberlite, which is one of the largest
diamondiferous kimberlites in the world.
HIGHLIGHTS:
Macrodiamonds recovered from 5 of 6 kimberlites sampled
- 21 macrodiamonds recovered
- good indicator mineral chemistry received
Encouraging results
from MK38
Joint
venture discussions at an advanced stage
Of
the fourteen high interest kimberlites that have been
identified at Tsabong, six were sampled using
a large diameter drill ("LDD") rig in 2008. Processing of
these samples has been completed, and results are encouraging,
with macrodiamonds being recovered from
five kimberlites.
With
eight more high interest kimberlites awaiting bulk
sampling, a further 71 kimberlites to evaluate
and the likelihood of new discoveries being made with over 80 known
geophysical drill targets, the Company continues to believe
that the Tsabong kimberlite
field has significant economic potential.
In
December 2008 the Company announced that it intended to focus its
resources on more advanced projects that were closer to cash flow, such
as BK11, and that it would consider the introduction
of a joint venture partner to finance further work on Tsabong.
Interest in the project has been high and negotiations are
currently underway with a number of potential joint venture partners.
Philip
Kenny, CEO of Firestone Diamonds, commented: "We consider Tsabong to be one of the most attractive large scale
diamond exploration and evaluation projects in the market. The
results of the work that we have carried out are encouraging and we believe
that the project has the potential to contain significant economic deposits.
The project has attracted substantial interest from potential
joint venture partners despite the recent downturn in the rough diamond
market, and we look forward to continuing work on Tsabong with a new partner later in 2009."
MK1
MK1
produced the best results, yielding 21 macrodiamonds, all clear,
white gemstones. Nineteen of these diamonds came from the deeper of the two LDD
holes drilled. When combined with the recovery of 252
microdiamonds from core drilling in 2008, from which a macrodiamond grade estimate of 25 carats per hundred tonnes ("cpht")
was made, and recent analyses of indicator
mineral chemistry, these results support the
Company's belief that MK1 has significant economic potential and that
further evaluation work is warranted.
MK38
Two
LDD holes were drilled on MK38, but both were terminated at a
depth of 150m due to difficult drilling conditions being encountered.
The high interest zone in MK38 was not sampled as a result. The recovery
of six macrodiamonds
from the small amount of shallow material that was
sampled is considered very encouraging. Previous analysis of the
size frequency distribution of microdiamonds recovered from MK38
indicated a potential macrodiamond grade of 25
to 30 cpht. Deeper LDD holes will be
drilled on MK38 when work at Tsabong
resumes.
MK51,
MK52 and MK84
Two
diamonds were recovered from MK51 and one from each
of MK52 and MK84. While it does not appear that these kimberlites have economic potential, these results prove
that diamond mineralisation occurs across
multiple kimberlites in the Tsabong field.
MK45
MK45
did not produce any diamonds despite the
very abundant presence of kimberlitic indicator minerals in the
material sampled, which are typically correlated with diamond mineralisation. Further analysis is required to
determine whether more LDD drilling is warranted on MK45.
LDD results
Results
from processing of each of the LDD holes drilled are
provided below:
Kimberlite
|
Hole ID
|
Depth sampled (m)
|
Sample size
(Tonnes)
|
Macrodiamonds recovered
|
|
|
From
|
To
|
|
|
MK1
|
MK1-301
|
184
|
404
|
142
|
2
|
MK1
|
MK1-302
|
125
|
515
|
251
|
19
|
MK38
|
MK38-301
|
99
|
137
|
27
|
5
|
MK38
|
MK38-302
|
90
|
150
|
43
|
1
|
MK45
|
MK45-301
|
68
|
312
|
160
|
0
|
MK51
|
MK51-301
|
75
|
252
|
114
|
2
|
MK52
|
MK52-301
|
84
|
344
|
167
|
1
|
MK84
|
MK84-301
|
30
|
315
|
183
|
1
|
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
|
Jos Simson/Gareth Tredway,
Conduit PR
|
+44 20 7429 6603/+44 7899 870 450
|
Mike
Jones/Ryan Gaffney, Canaccord Adams (Joint Broker)
|
+44 020 7050 6500
|
Jerry
Keen, Blue Oar (Joint Broker)
|
+44 20 7448 4492/+44 777 069 7358
|
Alexander
Dewar, Brewin Dolphin
(Nominated
Adviser)
|
+44 131 529 0276
|
Background
information on Firestone Diamonds:
AIM
quoted 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 29,000 square kilometres around the major Orapa
and Jwaneng mines and the entire Tsabong
kimberlite field. Firestone has 95 kimberlites in its portfolio, of which 24 have been proven
to be diamondiferous. Sixteen of Firestone's kimberlites
are at the bulk sampling stage, of which BK11 is the most advanced.
Note:
The
information in this statement has been reviewed by Mr. Tim Wilkes, B Sc, 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).
This information is provided by RNS
The company
news service from the London Stock Exchange
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