FDI.L Regulatory News (FDI)

27 Mar 2009 07:00



Firestone Diamonds plc

Tsabong project update

LONDON: 27 March 2009

Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces results from bulk sampling at its Tsabong kimberlite project in Botswana. The Tsabong kimberlite field contains 85 kimberlites, including the 180 hectare MK1 kimberlite, which is one of the largest diamondiferous kimberlites in the world.

HIGHLIGHTS:

Of the fourteen high interest kimberlites that have been identified at Tsabong, six were sampled using a large diameter drill ("LDD") rig in 2008. Processing of these samples has been completed, and results are encouraging, with macrodiamonds being recovered from five kimberlites.

With eight more high interest kimberlites awaiting bulk sampling, a further 71 kimberlites to evaluate and the likelihood of new discoveries being made with over 80 known geophysical drill targets, the Company continues to believe that the Tsabong kimberlite field has significant economic potential.

In December 2008 the Company announced that it intended to focus its resources on more advanced projects that were closer to cash flow, such as BK11, and that it would consider the introduction of a joint venture partner to finance further work on Tsabong. Interest in the project has been high and negotiations are currently underway with a number of potential joint venture partners.

Philip Kenny, CEO of Firestone Diamonds, commented: "We consider Tsabong to be one of the most attractive large scale diamond exploration and evaluation projects in the market. The results of the work that we have carried out are encouraging and we believe that the project has the potential to contain significant economic deposits. The project has attracted substantial interest from potential joint venture partners despite the recent downturn in the rough diamond market, and we look forward to continuing work on Tsabong with a new partner later in 2009."

MK1

MK1 produced the best results, yielding 21 macrodiamonds, all clear, white gemstones. Nineteen of these diamonds came from the deeper of the two LDD holes drilled. When combined with the recovery of 252 microdiamonds from core drilling in 2008, from which a macrodiamond grade estimate of 25 carats per hundred tonnes ("cpht") was made, and recent analyses of indicator mineral chemistry, these results support the Company's belief that MK1 has significant economic potential and that further evaluation work is warranted.

MK38

Two LDD holes were drilled on MK38, but both were terminated at a depth of 150m due to difficult drilling conditions being encountered. The high interest zone in MK38 was not sampled as a result. The recovery of six macrodiamonds from the small amount of shallow material that was sampled is considered very encouraging. Previous analysis of the size frequency distribution of microdiamonds recovered from MK38 indicated a potential macrodiamond grade of 25 to 30 cpht. Deeper LDD holes will be drilled on MK38 when work at Tsabong resumes. 

MK51, MK52 and MK84

Two diamonds were recovered from MK51 and one from each of MK52 and MK84. While it does not appear that these kimberlites have economic potential, these results prove that diamond mineralisation occurs across multiple kimberlites in the Tsabong field. 

MK45

MK45 did not produce any diamonds despite the very abundant presence of kimberlitic indicator minerals in the material sampled, which are typically correlated with diamond mineralisation. Further analysis is required to determine whether more LDD drilling is warranted on MK45.

LDD results

Results from processing of each of the LDD holes drilled are provided below:

For further information, visit the Company's web site at www.firestonediamonds.com, or contact:

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. 

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).