FDI Firestone Diamonds Plc

RNS Number:3398A
Firestone Diamonds PLC
5 November 1999


Firestone discovers diamonds at Groen River Valley

Reports good progress on exploration programme

LONDON: 5 November 1999 - Firestone Diamonds plc, (FDI.L) ("Firestone" or "the
Company") reports results from the second phase of the systematic exploration
and evaluation programme being carried out at its Groen River Valley project,
in Namaqualand, South Africa. This programme is being carried out over a
74,000 acre area in one of the world's most important alluvial diamond mining
regions which includes the Eiland Punt Noord property, for which prospecting
rights were acquired earlier in the year.  

Highlights of the results include a new diamond discovery and the
identification of more than 17 kilometres of ancient river channels from known
diamond-bearing river systems.  A total of 24 diamonds with a weight of 3.74
carats, with the largest stone weighing 0.51 carats, were recovered from small
scale sampling.  The third phase of the programme of drilling and sampling of
potential diamond-bearing areas is already underway and is expected to be
completed by the end of the year. Following this the Company expects to be
able to select areas with the best potential for supporting commercial mining
operations.

The second phase of the exploration programme, which commenced in early 1999,
was carried out over a total area of approximately 15,000 acres and consisted
of detailed aerial photo analysis, high resolution electrical resistivity
surveying and ground mapping to identify potential buried ancient marine
terraces and river channels.  This work resulted in the identification of over
17 kilometres of palaeo, or ancient, river channels belonging to known
diamond-bearing river systems. 

An extensive programme of percussion and reverse circulation drilling was
carried out, with 256 holes drilled for a total 3,835 metres.  This drilling
confirmed the presence of gravels in two of the three palaeo channels drilled
and on marine terraces close to the coast.  More than 2 kilometres of channel
have been delineated by drilling to date.  The palaeo channels identified by
the latest phase of exploration lie in valleys up to 500 metres in width, with
the active part of the channels, where diamond grades are typically highest,
being between 30 and 50 metres wide.  Overburden depths range between 5 and 20
metres.

Treatment of gravel excavated from a small area of palaeo channel close to the
coast produced 24 diamonds with a total weight of 3.74 carats, with the
largest stone weighing 0.51 carats.  All but one of the diamonds were very
good quality white gemstones, and most of them were well shaped whole stones
(dodecahedrons and octahedrons), which typically command the highest prices
per carat.  This discovery represents the second diamond-bearing palaeo
channel identified by Firestone in the area in the past year and confirms the
area's diamond producing potential.

The exploration programme in the Groen River Valley has now moved on to its
third phase, which is expected to be completed by the end of year.  This phase
will consist of additional delineation drilling on the palaeo channels
identified to date and excavation and testing of gravels at another location
in the project area.  Previous work at this location resulted in the recovery
of 18 gem quality diamonds weighing a total of 10.47 carats from a very
limited sample, with the largest stones weighing 3.63 and 2.54 carats.  When
this phase of the programme is completed the Company expects to be able to
select areas with the best potential for supporting commercial mining
operations in the Groen River Valley project area.

Philip Kenny, Chief Executive of Firestone said:

"We are pleased with the recent discovery and the continued progress of our
exploration programme on the Groen River Valley project.  The discovery of
diamonds on the Eiland Punt property marks a significant step forward.  The
potential of this project has also been enhanced by the recent price increases
for large, high quality stones, such as those known to occur in the Groen
River area, and the fact that overall diamond sales and prices continue to be
extremely strong. We remain confident about the diamond producing potential of
the area."

For further information:

Philip Kenny, Firestone Diamonds plc              0171-370-6452 / 0831-324-645

Keith Irons, Bankside Consultants              0171-220-7477 / 0585-356-639

www.firestonediamonds.com 

END

MSCCCPCPFDDKPDK

Firestone Diamonds (LSE:FDI)
Historical Stock Chart
From Jun 2024 to Jul 2024

Firestone Diamonds (LSE:FDI)
Historical Stock Chart
From Jul 2023 to Jul 2024