16 Jul 2008 07:00
Firestone Diamonds plc
Placing raises £5 million
LONDON: 16 July 2008
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces that it has placed 5,882,353 new ordinary shares of £0.2 each in the Company with institutional and other investors at a price of £0.85 per ordinary share to raise £5 million before expenses (the "Placing"). These new ordinary shares will rank pari passu in all respects with the existing ordinary shares in the Company. Application will be made for the new ordinary shares to be admitted to trading on AIM, and it is expected that trading will commence at 8:00 am on 22 July 2008. The proceeds of the Placing will be used to accelerate evaluation work at the Company's BK11, BK16 and Tsabong projects in Botswana.
BK11 and BK16 (Orapa)
As stated in the Company's announcement of 26 June 2008, bulk sampling results from BK11 have been very positive and the Company now intends to significantly increase the speed of its evaluation work on BK11. The Company plans to carry out approximately 4,500 metres of percussion, core and large diameter drilling on BK11 and to recover and process approximately 1,000 tonnes of kimberlite, from which between 100-150 carats is expected to be recovered.
The Company recently entered into an agreement under which it can earn an 87.5% interest in the BK16 kimberlite, which is located 20 kilometres from BK11. The Company believes that BK16 has similar economic potential to BK11. The Company intends to carry out a similar programme to that planned for BK11, with approximately 4,000 metres of percussion, core and large diameter drilling to be carried out and approximately 1,000 tonnes of kimberlite to be recovered and processed.
The work planned on BK11 and BK16 is expected to enable an Inferred Resource to be defined on both kimberlites.
Tsabong
The Company intends to accelerate evaluation work at its Tsabong project, where it has identified 14 high interest kimberlites for bulk sampling by large diameter drilling. The pace of work will increase significantly in the second half of 2008, with large diameter drilling on all 14 high interest kimberlites expected to be completed and samples processed by the end of the year. Results from sampling on MK1 and a number of the other high interest kimberlites are expected to be released in Q3 2008.
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
Leesa Peters, Conduit PR +44 20 7429 6600/ +44 7812 159 885
Mike Jones/Ryan Gaffney, Canaccord Adams (Joint Broker) +44 20 7050 6500
Jerry Keen, Blue Oar (Joint Broker) +44 20 7448 4492/+44 777 069 7358
Ken Fleming, Brewin Dolphin (Nominated Adviser) +44 141 221 7733/+44 7971 835 070
Note: The information in this statement has been reviewed by Mr. Tim Wilkes, B Sc, Pr Sci Nat, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer of Firestone Diamonds plc and has over 27 years experience in diamond exploration, mineral resource management and mining. Mr. Wilkes is a member of the sub-committee for diamonds of the South African Mineral Resource Committee (SAMREC).
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 and 16 are currently at bulk sampling stage. Firestone's mining operations in South Africa include a toll treatment operation in joint venture with De Beers at the Bonte Koe Mine.
Background information on Orapa:
The Orapa kimberlite field is located in northern Botswana and contains the Orapa, Letlhakane and Damtshaa mines. The Orapa Mine is the largest diamond mine in the world. With 8 economic kimberlites out of 75, the Orapa field has an economic ratio of more than 10%, one of the highest in the world. Access to the area is via tarred road from Gaborone and infrastructure in the area is very good.
Background information on Tsabong:
The Tsabong kimberlite field is located in south western Botswana, approximately 280 km south west of the Jwaneng Mine, which is the world's most profitable diamond mine. Tsabong is one of the largest diamondiferous kimberlite fields in the world, containing 85 known kimberlites, of which 18 have been proven to be diamondiferous. Tsabong is noted for the exceptionally large size of many of its kimberlites, in particular the 180 hectare MK1 kimberlite, which is one of the largest known diamondiferous kimberlites. The Tsabong field also contains 5 kimberlites larger than 50 hectares and 32 kimberlites between 20 and 50 hectares in size. Access to the area is via tarred road from Gaborone and infrastructure in the area is good.