19 Feb 2009 07:00
Firestone Diamonds plc
Selected by Debswana as preferred bidder for Jwaneng Modular Tailings Treatment Project
LONDON: 19 February 2009
HIGHLIGHTS:
| • | Firestone Diamonds and ADP Projects selected as preferred bidders for a modular tailings dump treatment plant at the Jwaneng Mine in Botswana, the world's largest diamond mine by value |
| • | Initial production of 2 million tonnes per annum targeted to commence in 2011 |
| • | Tailings resource at Jwaneng estimated at over 30 million tonnes |
| • | Firestone responsible for financing and operation, ADP to design and construct plant |
| • | Plant to serve as pilot facility with potential for deployment to other Debswana mines |
| • | Contract negotiations on toll treatment agreement expected to be concluded by Q3 2009 |
| • | Strategic alliance with ADP Projects formed to jointly design, build and operate modular diamond tailings processing plants |
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces that Firestone and ADP Projects ("ADP") have been selected by Debswana Diamond Company ("Debswana") as the preferred bidders to design, supply, construct and operate a modular tailings dump treatment plant at the Jwaneng Mine in Botswana on a toll treatment basis. Debswana is a joint venture between the Government of the Republic of Botswana and De Beers and is the world's leading diamond producer by value.
The Company also announces that that it has entered into a strategic alliance with ADP to jointly develop diamond tailings processing plant technology and to pursue other new diamond tailings resource projects.
Philip Kenny, CEO of Firestone Diamonds, commented: "Being selected by Debswana, the world's leading diamond producer, for the Jwaneng Tailings Project is a reflection of the significant operating capability that Firestone has developed and represents an excellent opportunity for the Company to substantially expand cash flow from our toll treatment operations. This project will give us an opportunity to significantly expand our operations in Botswana, which currently include the BK11, BK16 and Tsabong projects, amongst others. We are also very excited about the potential of our strategic alliance with ADP, with whom we have already worked closely on a number of projects."
Jwaneng Modular Tailings Treatment Project
Following the submission of tenders by a number of suppliers, Firestone and ADP have been selected by Debswana as the preferred bidders to design, supply, construct and operate a modular tailings re-treatment plant at the Jwaneng Mine in Botswana. Jwaneng is the largest diamond mine in the world by value and in 2008 produced approximately 13 million carats.
The objective of the Jwaneng Tailings Project is the recovery of diamonds from the tailings resource at Jwaneng, which is estimated to be in excess of 30 million tonnes. Initial production of over two million tonnes per annum is targeted to commence in 2011. Firestone will be responsible for financing and operating the plant while ADP will be responsible for plant design and construction.
The Jwaneng based plant will serve as a pilot facility to demonstrate the economics and capability of the modular plant concept and could potentially lead to the deployment by Firestone and ADP of similar plants to exploit additional tailings resources at other Debswana mines.
Firestone and ADP have commenced contract negotiations with Debswana which are expected to be concluded and signed in Q3 2009.
Strategic alliance with ADP Projects
ADP is the leading supplier of modular processing plants to the diamond mining industry, having supplied diamond plant and equipment to De Beers, Debswana, Trans Hex, Gem Diamonds and Petra Diamonds, amongst others. Firestone and ADP have worked together for over five years on a number of projects. Firestone and ADP have developed a new approach to exploiting tailings resources and have agreed to enter into an exclusive strategic alliance to jointly design, build and operate modular diamond tailings processing plants.
Under the terms of the agreement, Firestone and ADP will collaborate on the development of new technology and processes to lower the capital and operating costs and reduce the deployment time of plants for processing diamond tailings resources. Firestone and ADP are currently jointly pursuing a number of new diamond tailings project opportunities.
For further information, visit the Company's web site at www.firestonediamonds.com, or contact:
| Philip Kenny, Firestone Diamonds | +44 20 8834 1028/+44 7831 324 645 |
| Gareth Tredway, Jos Simson, Conduit PR | +44 20 7429 6603/+44 7899 870 450 |
| Mike Jones/Ryan Gaffney, Canaccord Adams (Joint Broker) | +44 020 7050 6500 |
| Jerry Keen, Blue Oar (Joint Broker) | +44 20 7448 4492/+44 777 069 7358 |
| Alexander Dewar, Brewin Dolphin (Nominated Adviser) | +44 131 529 0276 |
Background information on Firestone Diamonds:
AIM quoted Firestone Diamonds plc ("FDI.L") is an international diamond mining and exploration company with operations in Botswana and South Africa. Botswana is the world's largest and lowest cost producer of diamonds, with annual production worth over $2.5 billion, and is considered to be one of the most prospective countries in the world to explore for diamonds.
Firestone is the largest holder of mineral rights in Botswana's diamondiferous kimberlite fields, controlling over 29,000 square kilometres around the major Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has 95 kimberlites in its portfolio, of which 24 have been proven to be diamondiferous. Sixteen of Firestone's kimberlites are at the bulk sampling stage, of which BK11 is the most advanced.