FDI.L Regulatory News (FDI)

30 Jul 2007 07:01

Firestone Diamonds PLC30 July 2007 Firestone Diamonds plc BK11 Evaluation Programme Update LONDON: 30 July 2007 Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamondmining and exploration company (ticker: AIM:FDI), today announces an update onwork at its BK11 kimberlite in Botswana. HIGHLIGHTS * Ground gravity and ground magnetic surveys completed * Estimated size of kimberlite increased from 6.5 to 8.0 hectares * Core drilling under way * Approximately 1,800m of drilling completed * Geological modeling in progress * Bulk sampling results expected in Q4 2007 * 100 tonne large diameter drill sample planned In March 2007 Firestone's 80% owned Botswana subsidiary, Monak Venture (Pty)Limited, was awarded a prospecting licence for the BK11 kimberlite. BK11 islocated approximately 20 kilometres south east of De Beers' Orapa Mine and 7kilometres north west of De Beers' Letlhakane Mine. Previous work on BK11 hasproduced grades of up to 16 carats per hundred tonnes. The Company commenced adetailed evaluation programme on BK11 in April 2007. Philip Kenny, CEO of Firestone Diamonds, commented: "We have made excellentprogress in the four months since being awarded the licence for BK11, which weconsider to be a very prospective kimberlite. We expect to continue to makerapid progress with our evaluation programme, and look forward to results fromour first bulk sample, which are expected to be available in Q4 2007." Ground Geophysics High resolution ground gravity and magnetic surveys were conducted over BK11during Q2 2007. Interpretation of data from these surveys indicates that thesurface area is likely to increase to 8 hectares, compared to the Company'sinitial estimate of 6.5 hectares. This would significantly increase thenear-surface tonnage available on BK11. More detailed geophysical surveys,delineation drilling and geological modelling will be required to confirm thesize estimate, and this work is currently under way. Core drilling Following the completion of geophysical surveys, a programme of 2,500 metres ofvertical and angled core drilling commenced. Core logging and geologicalinterpretation are being carried out by the Company's geological personnel andreviewed by independent consultants. Approximately 1,800 metres of drilling havebeen completed to date, and logging of these holes has shown that cratersediments are present overlying the diatreme kimberlite, which provides furtherevidence that the kimberlite is larger than originally estimated. Samples of the core are being submitted for kimberlite indicator mineral ("KIM")and petrographic analysis at Mineral Services' laboratories in Cape Town and formicrodiamond analysis at MSA laboratories in Johannesburg. Results from theseanalyses will be combined with logging of the core holes to develop a detailed3D geological model of the kimberlite. Bulk Sampling The Company plans to carry out large diameter drill ("LDD") bulk sampling onBK11 in order to establish a representative grade for the kimberlite and torecover sufficient macro diamonds to provide an estimate of the diamond value. Aspecialised LDD rig which is capable of drilling 24 inch diameter holes to adepth of 500 metres will be used. An initial 100 tonne LDD mini bulk sample willbe carried out, results of which are expected to be available in Q4 2007.Subject to the results of this work, additional LDD sampling and resourcedelineation work will be undertaken in 2008. For further information: 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 Jamie Cumming, Bell Lawrie +44 141 314 8103 / +44 7768 044 620 Ken Fleming, Bell Lawrie +44 141 221 7733 / +44 7971 835 070 www.firestonediamonds.com Background information on Firestone Diamonds: Firestone Diamonds plc is an international diamond mining and explorationcompany with operations in Botswana, the Namaqualand region of South Africa, andthe United States. Firestone has extensive interests in Botswana, which is the world's largestproducer of diamonds, with annual production of approximately 30 million caratsworth over $2.5 billion. Botswana is considered to be one of the best countriesin the world to explore for kimberlite - the primary source rock for diamonds.Firestone's Mopipi, Orapa and Jwaneng projects are located close to the majorOrapa and Jwaneng mines and are all being explored by De Beers in joint venturewith Firestone. Firestone is also exploring for kimberlite in the US on theLaurentia craton, which extends into Canada, where it hosts a number ofdiamondiferous kimberlite deposits. Namaqualand, which is located on the west coast of South Africa, has been one ofthe world's largest alluvial diamond producing regions for the past 60 years,with total production to date estimated to be worth more than $3 billion.Firestone's mining operations in Namaqualand include the Bonte Koe, Avontuur andOena Mines, all of which produce high quality alluvial diamonds, and a growingportfolio of early stage and advanced exploration projects, of which the GroenRiver Valley project, which is being explored by De Beers in joint venture withFirestone, is the most advanced. Firestone has a highly qualified management team with extensive experience inthe exploration, evaluation and development of diamond projects. Firestone isquoted on the Alternative Investment Market (AIM) of the London Stock Exchangeand trades under the symbol FDI.L. Note: The information in this statement has been reviewed by Mr. Tim Wilkes, BSc, Pr Sci Nat, who is a qualified person for the purposes of the AIM GuidanceNote for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer ofFirestone Diamonds plc and has over 25 years experience in diamond exploration,mineral resource management and mining. Mr. Wilkes is a member of thesub-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