8 Oct 2012 07:00
8th October 2012
Firestone Diamonds plc
Trading Update
The Board of Firestone Diamonds plc, ("Firestone" or the "Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM: FDI), is pleased to announce a trading update for the third quarter of 2012.
HIGHLIGHTS
Liqhobong Mine, Lesotho
·; Good progress made in improving the quality and value of diamonds recovered following plant shut down in July 2012;
·; Three yellow stones weighing 27, 17 and 15 carats and three white stones weighing 12.4, 9.2 and 9.1 carats recovered during the last quarter. Further improvements expected in the short term as the K5 higher grade rock is exposed and processed;
·; The next dual tender to be held in mid-October 2012 in Gaborone and Antwerp;
·; Definitive Feasibility Study ('DFS') for the Main Treatment Plant at Liqhobong due by the end of October 2012.
Tim Wilkes, CEO of Firestone Diamonds, commented: "We are happy with the progress that we have made at the Pilot Plant in September which has continued into October, after overcoming technical and weather challenges in July and August. The change in the amount of whiter stones recovered is also encouraging which should continue on an upward trend as the mine plan calls for more of the higher grade, larger stone bearing areas of the pit to be mined during the remainder of the year. In addition, significant progress has been made with regard to the DFS, the results of which will be announced by the end of October."
Mining Update
As previously announced, the pilot plant at Liqhobong in Lesotho was shut down for 14 shifts in July to be fitted with equipment necessary to reduce diamond breakage of the larger stones. Firestone had previously recovered fragments of what appears to be five stones of over 100 carats each. The retrofitting was successful although returning the plant to steady state of production took longer than anticipated. The situation was further exacerbated by the extreme cold weather and heavy snowfalls experienced in Lesotho during August which further delayed progress. As a result, the plant only returned to steady state conditions during mid-September 2012. Since mid-September, the Company has seen a marked increase in the recovery of higher quality white and undamaged stones and the higher run rate has continued into early October.
Higher Value Stones
Amongst the biggest stones recovered in August and September were three yellow stones weighing 27, 17 and 15 carats and three white stones weighing 12.4, 9.2 and 9.1 carats. The feed for the pilot plant is expected to improve in grade and quality over the coming weeks as more of the K5 higher grade rock that historically carries the bigger stones will be exposed in the open pit.
Upcoming Tender
The Company's next dual tender will be held in mid-October 2012 in Gaborone and Antwerp.
Definitive Feasibility Study
The Definitive Feasibility Study remains on track for release to the market at the end of October 2012.
For more information contact:
Tim Wilkes, Firestone Diamonds +267 713 77686/+44 20 8741 7810
Rory Scott, Mirabaud Securities (Broker) +44 20 7878 3360
Robert Beenstock, N+1 Brewin (Nominated Adviser) +44 20 3201 3170
Jos Simson / Emily Fenton, Tavistock Communications +44 20 9203 150/+44 7899 870 450
Background information on Firestone Diamonds:
Firestone Diamonds plc is an international diamond mining and exploration company with operations focused on Lesotho and Botswana. Firestone currently operates the Liqhobong Mine in Lesotho and is also one of the largest holder of mineral rights in Botswana's diamondiferous kimberlite fields, controlling approximately 5,000 square kilometres including prospecting licenses around the major Orapa mine, as well as the entire Kokong and Tsabong kimberlite fields. In addition to Liqhobong and BK11, Firestone has 108 kimberlites in its portfolio, of which 30 have been proven to be diamondiferous to date.
Lesotho is emerging as one of Africa's significant new diamond producers, and hosts Gem Diamonds' Letseng Mine, Firestone's Liqhobong Mine as well as Namakwa Diamonds' Kao Mine and the Mothae development project.