Firestone Diamonds plc (FDI) – Results
Firestone Diamonds plc, the AIM-quoted diamond mining and exploration company (FDI), today announces results from evaluation work on its BK11 kimberlite in Botswana. BK11 is situated approximately 20 kilometres south east of Debswana’s Orapa Mine and 5 kilometres north east of the AK6 kimberlite, on which De Beers and African Diamonds plan to develop a new mine.
HIGHLIGHTS:
- Inferred Resource of 12 million tonnes defined containing approximately 830,000 carats
- High grade and diamond values recovered on west side of BK11
– Sample grades of 9-15 cpht
– Diamond value of $175/carat
– Contains 7 million tonnes
- Grade and diamond values independently modelled
– Overall modelled value of $126/carat
– Modelled grades of 9-12 cpht and value of $130/carat on west side of BK11
- High value area identified
– Approximately 3 million tonnes at revenue of $16-20/t
– Operating costs of $6.50/t
– Potential revenue of up to $30M per annum at margins of 60-70%
- Evaluation and development plans
– Bulk sample trench planned to define mineable resource
– Mine development decision to be made based on trench results in Q3 2009
– Use of existing Bonte Koe plant would allow production to commence in mid 2010
– Substantial upside as diamond prices recover
Philip Kenny, CEO of Firestone Diamonds, commented: “It is a major achievement for us to have identified significant economic potential at BK11 despite current low rough diamond prices. If we make a mine development decision in Q3 2009, production could commence by the middle of 2010. We are also making progress in contract negotiations with Debswana in relation to the recently announced Jwaneng tailings project. If we achieve our targets for these projects we expect to start generating significant long term cash flow from both projects in 2010, and the Company will be well positioned to take advantage of opportunities that arise when the rough diamond market recovers.”