Firestone Diamonds - Tsabong Evaluation Update


RNS Number:1474O
Firestone Diamonds PLC
18 February 2008


Firestone Diamonds plc


Tsabong evaluation programme update


LONDON: 18 February 2008


Firestone Diamonds plc, ('Firestone' or 'the Company'), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), is pleased to provide an
update 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 positive
results from work undertaken at Tsabong in 2007 and a very significant
evaluation programme under way, with 25-30 kimberlites expected to be sampled in
2008, we are increasingly confident about the potential for an economic
kimberlite discovery. The commissioning of the bulk sampling plant is a major
milestone for the Company, as it will enable us to process our own bulk samples
without the risk of delays from commercial laboratories or contractors.'


Evaluation programme progressing

The Tsabong advanced evaluation programme ('AEP') commenced in March 2007 with
the objective of evaluating the economic potential of the 83 kimberlites in the
project area, including the 180 hectare MK1 kimberlite, which is one of the
largest diamondiferous kimberlites in the world. The Tsabong field also contains
5 kimberlites larger than 50 hectares and 32 kimberlites between 20 and 50
hectares in size. The AEP is now rapidly progressing, with bulk sampling of 14
priority 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 leading
diamond exploration and evaluation consultancies, has recently completed an
independent review of data from Tsabong. This included results of more than
4,200 geochemical analyses of kimberlite indicator minerals, all macrodiamond
and microdiamond recoveries and other data from work carried out at Tsabong by
Firestone and other companies. The results of this review confirm that the
Tsabong field is located in a similar geological setting to the major Jwaneng
Mine and that it has the potential to contain economic kimberlite deposits. A
written opinion on the project from Dr JJ Gurney, Chairman of Mineral Services,
concludes:


'The current exploration project in the vicinity of Tsabong by Firestone
Diamonds has been well thought through and has real chances of discovering an
economic large sized diamondiferous kimberlite.

There is a real possibility that the current exploration programme will
identify:-

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 kimberlites
on which drilling was carried out in 2007, including MK1. These samples have
been submitted to independent laboratories for microdiamond recovery. Modelling
of the size/frequency distribution of the microdiamonds recovered will be used
to generate an initial grade estimate for each kimberlite and to prioritise
Large Diameter Drill ('LDD') bulk sampling work. The first results from this
work are expected to be available shortly.


Bulk sampling

Commissioning of the Company's bulk sampling plant ('BSP') has been successfully
completed on schedule at Tsabong, and the plant is currently awaiting delivery
of material from the LDD drilling programme. The first material scheduled to be
processed will be from the BK11 kimberlite in the Orapa area, which is expected
to arrive at the plant shortly. Following this, the BSP will be used to treat
the 25-30 mini bulk samples from Tsabong that are planned for 2008. If bulk
sampling results indicate that significant mineralization is present in any of
these kimberlites, a second phase of more intensive LDD and core drilling will
be undertaken with the objective of developing a resource.


Management appointment

The Company is also pleased to announce the appointment of Mr Polite Khutjwe as
Chief Geologist at Firestone Diamonds Botswana. Mr Khutjwe has over 16 years'
experience in diamond mining and exploration, and was most recently Chief
Geologist and Mineral Resources Manager at Debswana's Orapa and Letlhakane Mines
- the world's largest diamond mining operation. He has also worked for De Beers
Exploration in Botswana and for De Beers in South Africa, where he was Resident
Geologist 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, approximately
280 km south west of the Jwaneng Mine, which is the world's biggest diamond
mine. Tsabong is one of the largest diamondiferous kimberlite fields in the
world, containing 83 known kimberlites, of which 13 have been proven to be
diamondiferous. Tsabong is noted for the exceptionally large size of many of its
kimberlites, in particular the 180 hectare MK1 kimberlite, which is one of the
largest known diamondiferous kimberlites. The Tsabong field also contains 5
kimberlites larger than 50 hectares and 32 kimberlites between 20 and 50
hectares in size. A kimberlite in Tsabong with a moderate grade of 20 cpht and
average 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 Gaborone
and infrastructure in the area is good.


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 21,000 square kilometres around the major
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
92 kimberlites in its portfolio, of which 23 have been proven to be
diamondiferous and 15 are currently being advanced to bulk sampling. Firestone's
mining operations in South Africa include a toll treatment operation in joint
venture with De Beers at the Bonte Koe Mine


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 25 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

END
MSCSFFFMISASELE