FDI.L Regulatory News (FDI)

8 Dec 2006 07:00

Firestone Diamonds PLC08 December 2006 Firestone Diamonds plc Exploration drilling under way at Tsabong kimberlite project, Botswana Exploration and evaluation plans finalised for 2007 LONDON: 8 December 2006 HIGHLIGHTS • Exploration drilling on Tsabong kimberlite field in Botswana commenced in November 2006 • Exploration and evaluation plans for 2007 finalised • Exploration programme - over 80 kimberlite targets identified by geophysics - 10,000 metres of percussion drilling planned on top 50 targets - additional high resolution geophysical surveys to be undertaken • Evaluation programme - focus on 17 known diamondiferous kimberlites - 6,000 metres of core drilling planned on highest ranked kimberlites - core drilling to commence in Q1 2007 - deep core drilling to be undertaken on M1 kimberlite Firestone Diamonds plc ("Firestone" or "the Company"), the AIM-quoted diamondmining and exploration company, today announces that it has commencedexploration drilling at its Tsabong kimberlite project in Botswana. The Company also announces that it has finalised its exploration and evaluationplans for the project up to the end of 2007. The Company plans to carry outexploration for new kimberlites in parallel with a detailed and systematicevaluation of all the known kimberlites in the field. Core drilling on thehighest ranked diamondiferous kimberlites is expected to commence in Q1 2007.These programmes will be financed out of the Company's current cash resources. Philip Kenny, CEO of Firestone Diamonds, commented today: "It is a significantachievement to have been able to mobilise staff and equipment and commenceexploration at Tsabong within 1 month of our permits being granted. Tsabong isone of Firestone's most exciting and important exploration projects, and weintend to move our exploration and evaluation programmes forward rapidly. Withthe large number of kimberlites that we have in the project area and with morekimberlites expected to be discovered, we believe that our objective ofdiscovering a 20 hectare kimberlite with a moderate grade of 20 cpht and averagequality diamonds of $100 per carat, which would support a large-scale,profitable mining operation, is achievable." The Tsabong kimberlite field is one of the largest diamondiferous kimberlitefields in the world. It contains 67 known kimberlites, of which 17 have beenproven to be diamondiferous, including the 180 hectare M1 kimberlite, which isone of the largest known diamondiferous kimberlites. Exploration Programme An extensive exploration programme is planned for the Tsabong project area.Analysis of the currently available aeromagnetic data has identified over 80well defined geophysical anomalies that have never been drilled. Theseanomalies are currently being ranked and prioritised for drilling. The Company plans to carry out approximately 10,000 metres of 140 mm diameterair percussion reverse circulation drilling on selected kimberlite targets in2007. With an average hole depth of 200 metres, this programme will allowapproximately 50 of the top ranked targets to be drilled. The Company believesthat the potential for the discovery of new, large diamondiferous kimberlites isgood. Drill chip samples will be taken from any kimberlites discovered formicrodiamond, mineral chemistry and petrographic analysis in order to allow apreliminary evaluation of the economic potential of the kimberlites to be made. The Company also plans to conduct a number of high resolution geophysicalsurveys in the Tsabong project area. These surveys are expected to identifyadditional targets for drilling. Evaluation Programme As none of the known Tsabong kimberlites have been evaluated on an adequatescale or using modern techniques, a detailed evaluation programme will beundertaken. This will be carried out concurrently with the planned explorationprogramme. The evaluation programme will primarily focus on the highest ranked of the 17known diamondiferous kimberlites. Work will also be carried out on a number oflarge kimberlites that have not produced microdiamonds but have only beensampled by a single discovery hole, and on any new discoveries that showpositive microdiamond counts or geochemistry. Approximately 6,000 metres of 50 mm diameter core drilling is planned on the 7highest priority diamondiferous kimberlites during 2007. The holes will bedrilled to depths of up to 500 metres to identify the various geological phasesin the kimberlites at depth and to allow preliminary 3D geological models of thekimberlites to be constructed. Detailed microdiamond, mineral chemistry andpetrographic analyses will be carried out on samples from the core. This workwill allow more accurate assessments of the economic potential of thekimberlites to be made. A separate evaluation programme will be carried out on the 180 hectare M1kimberlite, which is the only kimberlite in the Tsabong field to have beenpreviously sampled for macrodiamonds. As this sampling was carried out ondiluted crater facies material from the uppermost portion of the kimberlite, theprimary objective of the new programme will be to recover and test material fromthe deeper tuffaceous and intrusive facies. Subject to the results of the planned evaluation programme, the next stage ofwork at Tsabong will be to take bulk samples from selected kimberlites by largediameter drilling to test for the presence of macrodiamonds. For further information:Philip Kenny, Firestone Diamonds +44 20 8834 1028 / +44 7831 324 645Laurence Read/Joss Simson, Conduit PR +44 20 7429 6600 / +44 7979 955 923Jamie Cumming, Bell Lawrie +44 141 314 8103 / +44 7768 044 620 www.firestonediamonds.com Background information on Firestone Diamonds plc: Firestone Diamonds plc is an international diamond mining and explorationcompany with operations in the Namaqualand region of South Africa, Botswana 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 important. 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 Officerof Firestone Diamonds plc and has over 25 years experience in diamondexploration, mineral resource management and mining. Mr. Wilkes is a member ofthe sub-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