RNS14 Apr 2016 08:50
14 April 2016
Firestone Diamonds plc
("Firestone", the "Group" or the "Company") (AIM: FDI)
Liqhobong Diamond Mine Update
Firestone Diamonds plc, the AIM-quoted diamond development company, is pleased to announce an update for the Liqhobong Diamond Mine ("Liqhobong" or the "Project"), which is owned 75% by Firestone and 25% by the Government of Lesotho.
Highlights
· Construction 72% complete as at the end of March 2016
· Project remains on track for initial production in Q4 2016
· Number of Project items now complete or over 98% complete include
o Residues Storage Facility ("RSF") starter wall
o Design and Engineering
o Procurement
o Earthworks
o Structural Steel Fabrication
· Revised capital budget of ZAR2.1 billion, remains within the original project budget of US$185.4 million
· Zero lost time injury record maintained, with approximately 2.2 million man hours worked as at the end of March 2016
Stuart Brown, Chief Executive Officer, commented:
"Firestone has achieved another strong quarter of progress at Liqhobong, which, as at 31 March 2016, was 72% complete and on track for initial production in Q4 2016.
The last quarter saw favourable weather conditions at site and the granting of a number of work permits by the Government of Lesotho, our 25% partner in the Project, contributing towards completing a number of key project components.
Firestone remains fully funded to completion of the Project, production ramp up and the first sale of its Liqhobong diamonds and I look forward to providing further updates as we move towards project commissioning in Q4."
Project Update
Construction at Liqhobong continued in earnest during the quarter ending 31 March 2016. Activities were helped by the granting of further work permits by the Government of Lesotho and the favourable weather conditions experienced at site in recent months.
The Company continues its water storage activities and now has in excess of 500,000 cubic metres of water on site, sufficient for the first year of production, thus de-risking the Project further by mitigating one of the critical early start-up risks.
As previously announced all significant civils and earthworks have now been completed and in December 2015, the site was handed over to the Structural, Mechanical, Plate and Pipework contractors for the erection of the main plant. As a result, during this quarter, a number of Project areas have been completed or are over 98% complete including the RSF starter wall, the design, engineering and procurement elements alongside the structural steel fabrication. As expected the detailed mine planning continues to be refined and reviewed as the Project progresses towards production. Operational readiness, led by the Project team, is well underway and the team's main focus during this quarter w
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