FDI Firestone Diamonds Plc

RNS Number:1594I
Firestone Diamonds PLC
03 February 2005

Firestone Diamonds discovers three new kimberlites at Orapa Project in Botswana

           Drilling programme under way at Orapa and Mopipi Projects
           Three kimberlites discovered on first four targets drilled
         Substantial new areas applied for near Orapa and Jwaneng mines



LONDON:  3 February, 2005

Firestone Diamonds plc ("Firestone" or the "Company") is pleased to announce the
discovery of three new kimberlites during drilling at its Orapa kimberlite
exploration project in Botswana.

Firestone's Orapa and Mopipi Projects cover a total area of approximately 4,900
square kilometers.  The two projects surround the Letlhakane Mine and adjoin the
southern and western boundaries of the Orapa Mine, which is the second largest
diamond mine in the world in terms of carat production, producing approximately
16 million carats per annum with a value of over $800 million.  Firestone
entered into two separate joint ventures with De Beers over the Orapa and Mopipi
Projects in 2004.

An intensive exploration and evaluation work programme is under way in the two
project areas and over 51,000 line kilometres of high-resolution airborne
magnetic, ground gravity and ground magnetic surveys have been conducted to
date.  Data from these surveys is currently being reviewed along with data from
previous exploration in the area, and by the end of 2004, 62 targets had already
been identified for drilling in the Orapa Project area and 118 targets in the
Mopipi Project area.

Kimberlite Discoveries

Drilling commenced at the end of 2004 and the first four exploration drill holes
have been completed, resulting in the discovery of three new kimberlites.
These kimberlites are located in the Orapa Project area, approximately 15
kilometres south of the Orapa Mine, and are the first new kimberlites discovered
in the Orapa region in the last seven years.  Although initial evaluation of
material recovered from drilling is still being carried out, two of the
kimberlites are located under only ten metres of overburden, which will
facilitate bulk sampling of the kimberlites, should that be warranted by the
results of the evaluation.

The discovery of three new kimberlites is very significant, particularly given
the fact that more than 10% of the 75 known kimberlites in the Orapa region are
economic.  With a further 176 targets still to be investigated, the Company
believes that it is likely that more kimberlites will be discovered as drilling
continues in the coming months, and that the prospects for new economic
discoveries have improved substantially as a result of the new discoveries.

All the material recovered from drilling of the kimberlites has been dispatched
to De Beers' laboratories in Johannesburg for processing to recover kimberlitic
indicator minerals and microdiamonds.  Microprobe analysis of the kimberlitic
indicator minerals and analysis of the size/distribution frequency of the
microdiamond populations will allow an initial evaluation of the economic
potential of the kimberlites to be made.  Petrographic studies will also be
carried out on core samples recovered from each kimberlite.  Detailed high
resolution ground geophysical surveys will also be conducted over the
kimberlites to provide an initial estimate of their size.  If the results of
this work are positive, bulk sampling will be carried out by large diameter
drilling in order to allow a preliminary estimate of grade and diamond value to
be made.

Philip Kenny, CEO of Firestone Diamonds, said today:  "Firestone's work in the
region over the past seven years had led us to believe that more kimberlites
would be discovered around Orapa, and that has now been proven to be the case.
These new discoveries are highly significant, and represent the breakthrough
that we have been waiting for in the area.  To identify three new kimberlites
with our first four exploration drill holes is an exceptional result by any
standard, and is testament to the technical expertise and financial resources
that are being applied to these projects by De Beers.  With many targets
remaining to be drilled, we are confident that we will discover more kimberlites
in the coming months.  As work continues, we believe that the Orapa and Mopipi
Projects have the potential to develop into some of the most exciting kimberlite
exploration projects in the world."

Details of the new kimberlite discoveries are as follows:

Kimberlite X765

Drill target X765 is located 15 kilometres south of the Orapa Mine.  Kimberlite
was encountered at a depth of 65 metres, beneath a cover of Kalahari sands,
Kalahari calcrete and Karoo basalt.  The hole was terminated in kimberlite at a
depth of 134 metres.

Kimberlite X777

Drill target X777 is located 2.5 kilometres south east of target X765.
Kimberlite was encountered at a depth of ten metres, beneath a cover of Kalahari
sands and Kalahari calcrete.  The hole remained in kimberlite to a depth of 152
metres, where it entered Karoo sandstone.  The hole was terminated in Karoo
sandstone at a depth of 162 metres.

Kimberlite X776

Drill target X776 is located 350 metres south east of target X777.  Kimberlite
was encountered at a depth of ten metres, beneath a cover of Kalahari sands and
Kalahari calcrete.  The hole remained in kimberlite to a depth of 129 metres,
where it entered Karoo sandstone.  The hole was terminated in Karoo sandstone at
a depth of 150 metres.

New Applications

Firestone is the largest holder of diamond exploration rights in the Orapa
region, and is the only significant holder of diamond exploration rights, other
than De Beers, in the Jwaneng region.  All of Firestone's current interests in
the Orapa and Jwaneng areas are being explored in joint venture with De Beers.
Much of the region around the Orapa and Jwaneng mines is still considered to be
highly prospective for the discovery of new diamondiferous kimberlites, as
modern geophysical and other exploration techniques have not been fully applied
in these areas.

On this basis, the Company has decided to significantly expand its licence
interests in these areas.  Applications have been submitted for areas covering
approximately 9,400 square kilometers in the Orapa region, and covering
approximately 2,900 square kilometers in the Jwaneng region.  If these
applications are successful, Firestone's prospecting licence interests will
increase to 14,300 and 6,600 square kilometers in the Orapa and Jwaneng regions,
respectively, giving the Company a very significant strategic land position in
these highly prospective areas.


For further information:

Philip Kenny, Firestone Diamonds: +44 20 7370 6452/+44 7831 324 645
Leesa Peters,Conduit PR:          +44 20 7618 8707/+44 7812 159 885
Jamie Cumming, Bell Lawrie White: +44 141 314 8103/+44 776 8044 620


                       Website: www.firestonediamonds.com



Background information:

Botswana
Botswana is the world's largest producer of diamonds, with annual production of
approximately 30 million carats, worth over $2.5 billion and accounting for over
25% of worldwide production by value.  Botswana hosts Debswana's Jwaneng, Orapa,
Letlhakane, and Damtshaa mines and is considered to be one of the best countries
in the world to explore for kimberlite - the primary source rock for diamonds.
Debswana is owned in equal shares by the Botswana Government and De Beers.

Firestone Diamonds
Firestone has extensive diamond exploration interests in Botswana, as follows:

* The Orapa Project covers an area of approximately 1,300 square
  kilometers and is located close to the Orapa and Letlhakane diamond mines.

* The Mopipi Project covers an area of approximately 3,600 square
  kilometers and is located close to the Orapa and Letlhakane diamond mines.

* The Jwaneng Project covers an area of approximately 3,700 square
  kilometers and is located close to the Jwaneng Mine.

Firestone entered into separate joint ventures with De Beers over all three of
these projects in 2004.  Under the terms of the joint venture agreements, De
Beers can earn a 61% interest in each project by financing and carrying out all
exploration and evaluation work, up to and including the completion of bankable
feasibility studies on any kimberlites discovered in the project area.

Firestone is also active in the Namaqualand region of South Africa, one of the
most prolific alluvial diamond producing regions in the world, where the
Company's Bonte Koe, Avontuur and Oena mines are located.  The Company has
extensive exploration properties in Namaqualand, including the Groen River
Valley exploration project.  Firestone also has a large scale kimberlite
exploration project in the United States, and in 2004 the Company entered into a
joint venture with American Diamonds, which is in the process of earning a 60%
interest in the project.

Firestone is quoted on the London Stock Exchange's Alternative Investment Market
(AIM).


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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