FDI.L Regulatory News (FDI)

13 Dec 2006 07:00

Firestone Diamonds PLC13 December 2006 Firestone Diamonds plc Kimberlite discovery at Tsabong project, Botswana LONDON: 13 December 2006 HIGHLIGHTS • Three large kimberlites discovered • MK71 - 15 hectares • MK72 - 22 hectares • MK73 - 18 hectares • Kimberlite discovery comes in first month of exploration at Tsabong • Total number of kimberlites in licence area increased to 70 • Samples being prepared for microdiamond, mineral chemistry and petrographic analysis in Q1 2007 • Exploration drilling to recommence in January 2007 Firestone Diamonds plc ("Firestone" or "the Company"), the AIM-quoted diamondmining and exploration company, today announces the discovery of three largekimberlites at its Tsabong kimberlite project in Botswana. Exploration at Tsabong commenced in November 2006, and is targetingapproximately 80 well defined geophysical anomalies that were identified fromaeromagnetic survey data. Geophysical and drilling crews were mobilised to thearea at the beginning of November and high resolution ground magnetic surveysare being carried out on all kimberlite targets to select locations for drillholes. Drilling to the end of November has resulted in the discovery of 3 kimberlites,known as MK71, MK72 and MK73. Modeling of the airborne and ground magnetic dataindicates that all 3 kimberlites are large, with estimated surface areas ofapproximately 15, 22 and 18 hectares, respectively. Drill chip samples arecurrently being prepared for dispatch to laboratories in South Africa and Canadafor microdiamond, mineral chemistry and petrographic analysis in Q1 2007. MK73is located under only 16 metres of overburden, which will facilitate furtherdrilling and bulk s2ampling, should that be warranted by the results of theinitial evaluation. Exploration drilling will recommence in January 2007. Philip Kenny, CEO of Firestone Diamonds, commented today: "The discovery of 3large kimberlites within weeks of starting exploration is very encouraging.This brings the total number of kimberlites in our project area to 70, and withmany more targets to drill we expect to continue to make new discoveries whendrilling resumes in 2007." Details of the discovery holes, all of which were terminated in kimberlite, arelisted below: Kimberlite Estimated Hole depth Kimberlite Depth of overburden Kimberlite type size (m) intersection (m) (m) (Hectares) MK71 15 149 101 48 Crater/diatreme MK72 22 215 124 91 Crater/diatreme MK73 18 107 91 16 Diatreme/hypabyssal Background information on Tsabong: The Tsabong kimberlite field is one of the largest diamondiferous kimberlitefields in the world. It contains 70 known kimberlites, of which 17 have beenproven to be diamondiferous, including the 180 hectare M1 kimberlite, which isone of the largest known diamondiferous kimberlites. Firestone plans to carry out approximately 10,000 metres of exploration drillingin Tsabong on selected kimberlite targets in 2007. As none of the known Tsabongkimberlites have been evaluated on an adequate scale or using modern techniques,a detailed evaluation programme will be undertaken concurrently with the plannedexploration programme. Approximately 6,000 metres of 80 mm diameter coredrilling is planned on the 7 highest priority diamondiferous kimberlites during2007. 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