Firestone Diamonds - Update on Tsabong evaluation
RNS Number:4905G
Firestone Diamonds PLC
29 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 diam ond
mining and exploration company (ticker: AIM:FDI), is pleased to provide an
update on evaluation work at its 100%-owned Tsabong kimberlite project in
Botswana.
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 kimberlites
discovered to date in Tsabong, of which 14 are diamondiferous, the objectiv e for
Firestone is to identify and evaluate the kimberlites with economic potenti al as
rapidly as possible. We have made excellent progress in the six months sinc e we
commenced our evaluation programme and we now have a much better understand ing
of the geology of the area and the kimberlites in our portfolio. Initial re sults
from core drilling are very encouraging and we look forward to results from the
extensive bulk sampling that we plan to undertake in 2008.'
Advanced Evaluation Programme
The Tsabong advanced evaluation programme ('AEP') commenced in March 2007 w ith
the objective of evaluating the economic potential of the high interest
kimberlites in the project area. Ten kimberlites were initially selected fo r
evaluation based on
Diamond content, kimberlite indicator mineral ('KIM')
chemistry and size. Core drilling is being undertaken on these kimberlites in
order to carry out further microdiamond, KIM chemistry and petrographic
analyses, the results of which will be used to prioritise kimberlites for b ulk
sampling by large diameter drilling.
Regional geochemical modeling completed
An extensive database has been compiled comprising results of more than 4,2 00
KIM geochemical analyses, all macrodiamond and microdiamond recoveries and other
data from historical work carried out in the Tsabong kimberlite field. This
database significantly improves the Company's ability to identify and prior itise
clusters of kimberlites and individual kimberlites within the Tsabong field with
the best economic potential. Four additional diamondiferous kimberlites wit h
high interest KIM geochemistry have been identified using this database and the
AEP has been expanded from 10 to 14 to include these kimberlites. MK31 is t he
most significant of these as it has good KIM geochemistry, is proven to con tain
microdiamonds and is 75 hectares in size. MK31 will be the next kimberlite
drilled as part of the AEP.
Fourteen kimberlites to be evaluated
Further details of the fourteen kimberlites selected for the AEP are provid ed in
the following table:
Kimberlite Area (ha) Macrodiamond recovery Microdiamond Other comments
recovery
MK 1 180 Y Y Very large size ; 13%
G10 garnets
MK 31 75 NS Y Large size
MK 45 25 NS N 4% G10 garnets; best
KIM chemistry
MK 4 20 NS Y 10% G10 garnets
MK 42 20 NS Y
MK 39 20 NS Y
MK 38 20 NS Y 24% G10 garnets ;
best KIM chemis try
MK 7 20 NS N Group 1 eclogit ic
garnets
MK 34 20 NS Y
MK 52 15 NS Y
MK 51 10 NS Y 17% G10 garnets
MK 84 10 NS N 10% G10 garnets ;
best KIM chemis try
MK 65 10 NS Y Best
Diamond re sults
MK 48 10 NS Y
Notes:
1. NS = not sampled yet
2. G10 garnets and Group 1 eclogitic garnets are kimberlite indicator
minerals that have been formed within the
Diamond stability field, and thei r
presence in a kimberlite provides a good indication that the kimberlite fro m
which they have been recovered is likely to be diamondiferous. It has been
proven that the higher the count of indicator minerals from the
Diamondstability field, the higher the possibility of the kimberlite hosting econo mic
grades.
Core drilling advancing
Core drilling commenced in March 2007 and approximately 2,000 metres of dri lling
has been carried out to date on six kimberlites, with very encouraging resu lts.
A 508 metre hole has been completed on the 180 hectare MK1 kimberlite, whic h is
the deepest core hole completed to date in the entire Tsabong kimberlite fi eld.
A summary of core drilling progress to date is provided in the following ta ble.
Kimberlite Area (ha) Core recovery (metres depth)
MK 1 180 82 to 508
MK 51 10 82 to 298
MK 4 20 79 to 251
MK 39 20 79 to 410
MK 45 25 58 to 251
MK 38 20 In Progress
Initial logging of core from MK1, MK45 and MK51 has identified the presence of
high interest coarse-grained crater and fresh magmatic facies rock types.
Samples from these kimberlites have been submitted for priority microdiamon d and
KIM geochemistry analysis and first results from these analyses are expecte d to
be available shortly. Logging of core from MK38 and MK39 is currently ongoi ng.
Core drilling of the 8 remaining kimberlites that are part of the AEP is
expected to be completed in the first half of 2007.
Selected kimberlites will be chosen for bulk sampling based on results of c ore
logging, geological modeling and laboratory analysis. It is expected that
initial 100 tonne mini bulk samples will be taken by large diameter drill r ig
from these kimberlites.
Bulk sampling plant to be commissioned in November
The Company is in the process of establishing its own 10 tonne per hour bul k
sampling plant in Botswana in order to support its projects in the Tsabong,
Orapa and Jwaneng areas. Manufacturing of the plant has recently been compl eted
in South Africa at a cost of approximately �500,000 and it will be transp orted
to Botswana at the end of October 2007. The plant will be erected in the
industrial area of Tsabong town, where power is available from the national grid
and water from the municipal supply. It is expected that commissioning of t he
plant will be completed in November prior to annual shut down in December a nd
that 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 kimbe rlite
in 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 B eers
and will be a key asset for the Company, as material will be processed much more
quickly and without the risk of delays from commercial laboratories or
contractors. The Company expects to be able to process between twenty and t hirty
100 tonne mini bulk samples by the end of 2008.
Background information on Tsabong:
The Tsabong kimberlite field is located in south western Botswana, approxim ately
280 km south west of the Jwaneng Mine, which is the world's biggest
Diamondmine. Tsabong is one of the largest diamondiferous kimberlite fields in the
world, containing 81 known kimberlites, of which 17 have been proven to be
diamondiferous. Tsabong is noted for the exceptionally large size of many o f 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.
With rough
Diamond prices estimated to have tripled since the Tsabong field was
discovered in the early 1980's, the threshold for economic viability in the area
has been reduced substantially. A kimberlite in Tsabong with a moderate gra de of
20 cpht and average quality diamonds of $100 per carat would 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:
Firestone Diamonds plc 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 diamondifer ous
kimberlite fields, controlling over 21,000 square kilometres around the maj or
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
86 kimberlites in its portfolio, of which 18 have been proven to be
diamondiferous and 15 are currently being advanced to bulk sampling. Firest one's
mining operations in South Africa include a toll treatment operation in joi nt
venture with De Beers at the Bonte Koe Mine
Firestone is quoted on the Alternative Investment Market (AIM) of the Londo n
Stock Exchange and trades under the symbol FDI.L.
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 Guida nce
Note for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Offic er of
Firestone Diamonds plc and has over 25 years experience in
Diamond explorat ion,
mineral resource management and mining. Mr. Wilkes is a member of the
sub-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 32 4 645
Leesa Peters/Jos Simson, Conduit PR +44 20 7429 6600/+44 7812 15 9 885
Mike Jones/Ryan Gaffney, Canaccord Adams (Joint Broker) +44 020 7050 6500
Jamie Cumming, Brewin Dolphin (Joint Broker) +44 141 314 8103/+44 7768 04 4 620
Ken Fleming, Brewin Dolphin (Nominated Adviser)+44 141 221 7733/+44 7971 83 5 070
This information is provided by RNS
The company news service from the London Stock Exchange
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