FDI Firestone Diamonds Plc

RNS Number:6533B
Firestone Diamonds PLC
29 November 1999



Firestone awarded new diamond prospecting licenses in Botswana
Mopipi project area increases to 2,000 square kilometres  

LONDON: November 30, 1999 - Firestone Diamonds plc, ("Firestone" or "the
Company"), (FDI.L) the UK-based diamond mining and exploration company, has
increased significantly the exploration area around the site in Botswana where
it discovered diamond indicator minerals earlier this year.

Firestone has been awarded two new prospecting licenses for diamonds in an
area adjoining its Mopipi joint venture project, located 50 kilometres west of
De Beers' Orapa mine in Botswana. Firestone recently reported positive results
from exploration at the Mopipi project which indicate that diamond bearing
kimberlite is likely to be present in the area. The new licenses increase the
area being explored by Firestone more than twenty-fold to approximately 2,000
square kilometres.  

A new prospecting license covering an area of approximately 1,000 square
kilometres adjoining the Mopipi project to the north was also recently granted
to De Beers. 

The new licenses awarded to Firestone, known as Mopipi South and Mopipi West,
cover an area of approximately 1,900 square kilometres, and adjoin the 85
square kilometre Mopipi joint venture project area where the Company has been
exploring for the past two years. 

The new license areas will be explored with the Company's existing Mopipi
joint venture partner, NM & BC Exploration Services ("NMBC"), with Firestone
and NMBC each holding a 50% interest in the licenses and contributing equally
to the costs of exploration and development work.  The first phase of the
joint venture's proposed work programme will consist of analysis of aerial
photography and satellite imagery and the acquisition and processing of
aeromagnetic data to identify potential kimberlite targets.  Soil sampling
will then be carried out around these targets to recover kimberlitic indicator
minerals.  


This work has already commenced in the Mopipi South area and is expected to be
completed in the first quarter of next year, following which suitable targets
will be selected for follow up work and, if justified, for drilling later in
the year.

Philip Kenny, chief executive of Firestone, said: "On the basis of the
encouraging results recently obtained from our Mopipi joint venture project,
we believe that there is significant merit in expanding our exploration work
in the region.  The Mopipi South and Mopipi West licenses give us control of a
substantially larger area and cover what we believe to be the most promising
exploration target areas in the region.

"The new interest in the Mopipi region from De Beers indicates that they also
believe that the area has good exploration potential."


Background information
Botswana is the largest diamond producer in the world, with annual production
of over 20 million carats, worth over $1.6 billion, which accounts for over
23% of worldwide production. The Orapa Mine has been in production since 1971
and is the second biggest mine in Botswana, currently producing more than 6
million carats per annum, worth over $400 million.  An expansion to the mine,
due for completion in 2000, will double capacity at Orapa to 12 million carats
per annum.

Firestone's recovery of a large number of indicator minerals points to the
presence of one or more potential kimberlite structures - the primary host
rock for diamonds -  in the Mopipi area and has raised expectations of a new
diamond field.  The indicator minerals were recovered, together with a white
macro diamond, in soil samples collected as part of an exploration programme
covering the area.  

Analysis of the indicator minerals confirm that they are derived from
diamond-bearing kimberlite and large quantities of these minerals have been
recovered in two "clusters", pointing to the possibility of several kimberlite
structures being present in the Mopipi area.  Diamond bearing kimberlites
typically occur in clusters - sometimes as many as 40/50 together and
Firestone  believes they are on the verge of discovering a new diamond field. 
No one has discovered any kimberlite west of Orapa to date and this is a big
step forward. 

Firestone is also active in the Namaqualand region of South Africa, one of the
most prolific alluvial diamond producing areas in the world, where the Company
operates the Avontuur Mine and has extensive exploration properties, including
the Groen River Valley exploration project.  Firestone is quoted on the London
Stock Exchange's Alternative Investment Market (AIM).  Website:
www.firestonediamonds.com

For further information:
Philip Kenny, Firestone Diamonds plc              0171-370-6452 / 0831-324-645
Keith Irons, Bankside Consultants                 0171-220-7477 / 0585-356-639 





Issued by Bankside Consultants Limited, St Mary Abchurch House, 123 Cannon
Street, London EC4N 5AU Tel: 0171 220 7477    Fax: 0171 220 7211   E-mail:
mail@bankside.co.uk    Web: www.bankside.com



END
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