Firestone Diamonds Updates Definitive Feasibility Study In Lesotho

LONDON (Alliance News) - Firestone Diamonds PLC Tuesday said it has updated its definitive feasibility study for its 75% owned Liqhobong Diamond Mine in the Lesotho Highlands.

The AIM-quoted diamond development company, with operations in Lesotho, said that its base case updated DFS shows an increase in cash of USD107 per carat from USD100 per carat and a post tax internal rate of return at 30% from 40%.

The company said that if anticipated large stones are included in testing its cash increases to USD156 per carat and its post tax internal rate of return is up at 45% from 40%.

Firestone said the updated review comes after an internal study completed in October 2012 and the revised DFS reflects the basis upon which Firestone intends to proceed with the financing and construction of the Project.

The company said it is anticipated that construction and early works for the Main Treatment Plant will commence in early 2014 when funding for the project is finalised. Thereafter, the project is scheduled to take two years to construct and commission with full production scheduled to begin in early 2016.

Firestone Diamonds shares were down 2.6% to 3.78 pence Tuesday.

By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1

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