Firestone
Diamonds plc
Selected by Debswana as preferred bidder for
Jwaneng Modular Tailings Treatment Project
LONDON: 19 February 2009
HIGHLIGHTS:
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Firestone Diamonds and ADP Projects selected as
preferred bidders for a modular tailings dump treatment plant at the Jwaneng
Mine in Botswana, the world's largest diamond mine by value
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Initial production of 2 million tonnes per annum
targeted to commence in 2011
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Tailings resource at Jwaneng estimated at over 30
million tonnes
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Firestone responsible for financing and operation,
ADP to design and construct plant
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Plant to serve as pilot facility with potential
for deployment to other Debswana mines
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Contract negotiations on toll treatment agreement
expected to be concluded by Q3 2009
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Strategic alliance with ADP Projects formed to
jointly design, build and operate modular diamond tailings
processing plants
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Firestone Diamonds plc, ("Firestone" or
"the Company"), the AIM-quoted diamond mining and exploration company
(ticker: AIM:FDI), today announces that Firestone and
ADP Projects ("ADP") have been selected by Debswana
Diamond Company ("Debswana") as the preferred bidders to design,
supply, construct and operate
a modular tailings dump treatment plant at the Jwaneng
Mine in Botswana on a toll treatment basis. Debswana is
a joint venture between the Government of
the Republic of Botswana and De Beers and is the
world's leading diamond producer by value.
The Company also announces that that it has entered
into a strategic alliance with ADP to jointly
develop diamond tailings processing plant technology and to pursue
other new diamond tailings resource projects.
Philip Kenny, CEO of Firestone Diamonds, commented:
"Being selected by Debswana, the world's leading diamond producer, for the
Jwaneng Tailings Project is a reflection of the significant operating
capability that Firestone has developed and represents an excellent opportunity
for the Company to substantially expand cash flow
from our toll treatment operations. This project will give us
an opportunity to significantly expand our operations in Botswana, which
currently include the BK11, BK16 and Tsabong projects, amongst others. We
are also very excited about the potential of our strategic
alliance with ADP, with whom we have already worked closely on a
number of projects."
Jwaneng Modular Tailings Treatment Project
Following the submission of tenders by a number of
suppliers, Firestone and ADP have been selected by Debswana
as the preferred bidders to design, supply, construct and operate a
modular tailings re-treatment plant at the Jwaneng Mine
in Botswana. Jwaneng is the largest diamond mine in the
world by value and in 2008
produced approximately 13 million carats.
The objective of the Jwaneng Tailings
Project is the recovery of diamonds from the tailings resource at
Jwaneng, which is estimated to be in excess of 30 million tonnes. Initial
production of over two million
tonnes per annum is targeted to commence in 2011.
Firestone will be responsible for financing and operating the
plant while ADP will be responsible for plant design and
construction.
The Jwaneng based plant will serve
as a pilot facility to demonstrate the economics and capability
of the modular plant concept and could potentially lead to the
deployment by Firestone and ADP of similar plants to
exploit additional tailings resources at other Debswana mines.
Firestone and ADP have
commenced contract negotiations with
Debswana which are expected to be concluded and signed
in Q3 2009.
Strategic alliance with ADP Projects
ADP is the leading supplier of modular processing plants to the diamond mining industry,
having supplied diamond plant and equipment to De
Beers, Debswana, Trans Hex, Gem Diamonds and Petra
Diamonds, amongst others. Firestone and
ADP have worked together for over five years on a number of projects. Firestone
and ADP have developed a new approach to exploiting tailings resources
and have agreed to enter into
an exclusive strategic alliance to jointly design, build and operate
modular diamond tailings processing plants.
Under the terms of the agreement, Firestone and
ADP will collaborate on the development of new technology and processes to
lower the capital and operating costs and reduce the deployment time of plants
for processing diamond tailings resources. Firestone and ADP are currently
jointly pursuing a number of new diamond tailings project
opportunities.
For further information, visit the Company's web
site at www.firestonediamonds.com, or contact:
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Philip Kenny, Firestone Diamonds
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+44 20 8834 1028/+44 7831 324 645
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Gareth Tredway, Jos Simson, Conduit PR
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+44 20 7429 6603/+44 7899 870 450
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Mike Jones/Ryan Gaffney, Canaccord Adams (Joint
Broker)
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+44 020 7050 6500
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Jerry Keen, Blue Oar (Joint Broker)
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+44 20 7448 4492/+44 777 069 7358
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Alexander Dewar, Brewin Dolphin
(Nominated Adviser)
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+44 131 529 0276
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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.
This information is provided by RNS
The company news service from
the London Stock Exchange
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