Drilling Report in Botswana
July 15 2005 - 3:00AM
UK Regulatory
RNS Number:9128O
Firestone Diamonds PLC
15 July 2005
Orapa and Mopipi Joint Venture Projects in Botswana
Evaluation and exploration update
LONDON: 15 July 2005
HIGHLIGHTS
* Microdiamonds recovered from kimberlites AK21, AK22 and AK23 in
Orapa Project area
* Bulk sampling under way on AK21, AK22 and AK23 to test for
macrodiamonds
* Kimberlite discovered on two targets in Mopipi and Orapa Project
areas, bringing number of kimberlites in the project areas to six
Firestone Diamonds plc ("Firestone" or the "Company") is pleased to announce an
update on its Orapa and Mopipi kimberlite exploration projects in Botswana,
which are being explored by De Beers in joint venture with the Company.
Evaluation Results
In February 2005, the Company announced that three kimberlites had been
discovered in the Orapa Project area, approximately 15 kilometres south of
Debswana's Orapa Mine. Since then, detailed high resolution ground geophysical
surveys and drilling have been carried out on these kimberlites to provide an
initial estimate of their size. Samples of material recovered from drilling
have been processed at De Beers' laboratories in South Africa and all three
kimberlites have been proven to contain microdiamonds. Details of the results
from this initial work are as follows:
Kimberlite Estimated size Depth of Microdiamonds
(Hectares) overburden (m) recovered
AK21 (formerly known as X765) 3 65 3
AK22 (formerly known as X776) 3 (see note) 10 19
AK23 (formerly known as X777) 3.5 (see note) 10 197
Note: A drill hole between AK22 and AK23, which are 350 metres apart,
intersected kimberlite from a depth of 11 metres to 49 metres, indicating that
the two kimberlites coalesce close to surface. This provides a much larger area
of kimberlite close to surface, of approximately 9 hectares in size.
Proving the presence of sizeable new diamondiferous kimberlites close to the
Orapa Mine is a significant milestone for exploration in the area. On the basis
of these results, it has been decided to take bulk samples from all three
kimberlites to test for the presence of macrodiamonds. Four 12 inch diameter
holes will be drilled on each kimberlite to provide approximately 100 tonnes of
material for testing. In addition, a single 17 inch diameter hole will be
drilled to depth in the centre of each kimberlite. This material will be
processed at De Beers' macrodiamond laboratories in South Africa, and the
results will allow initial estimates of the macrodiamond grade and value for
each kimberlite to be made. Bulk sampling was recently completed on AK22 and is
in progress on AK23. Results of this work are expected to be available by the
end of the year.
Exploration Results
Thirty four new geophysical targets have been drilled in the Orapa Project and
Mopipi Project areas this year, and kimberlite was intersected on two of these
targets.
One of the targets is a new kimberlite, known as BK53, which is located in the
Mopipi Project area, approximately 10 kilometres north of the Letlhakane Mine.
Kimberlite was encountered at a depth of twelve metres, beneath a cover of
Kalahari sands and Kalahari calcrete. The hole remained in kimberlite to a
depth of 92 metres, where it entered Karoo sandstone. The hole was terminated
in Karoo sandstone at a depth of 113 metres.
On the other target where kimberlite was intersected, kimberlite was encountered
at a depth of 36 metres, beneath a cover of Kalahari sands, Kalahari calcrete
and basalt. The hole remained in kimberlite to a depth of 169 metres, where the
hole was terminated. This kimberlite is now believed to be part of the AK21
kimberlite.
These discoveries bring the number of kimberlites in the Orapa Project and
Mopipi Project areas to a total of six. Material recovered from drilling has
been dispatched to De Beers' laboratories in South Africa for processing to
recover kimberlitic indicator minerals and microdiamonds.
Geophysical surveys and exploration drilling are continuing in both project
areas. A number of follow up ground and airborne geophysical surveys have been
conducted over the past six months, in order to provide higher resolution data
in selected target areas where the presence of basalt has affected the quality
of data acquired from previous geophysical surveys. Ten targets are currently
at a drill-ready stage, and final geophysical interpretation and evaluation are
being carried out on an additional 32 targets.
Philip Kenny, CEO of Firestone Diamonds, commented today: "We are very pleased
with the progress that De Beers has made with the Mopipi and Orapa joint venture
projects over the past twelve months. Given the fact that more than 10% of the
75 known kimberlites in the Orapa region are economic, we continue to believe
that the potential for new economic discoveries in the Orapa area is very good,
and look forward to further results from ongoing exploration and evaluation work
in the area over the coming months."
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
Firestone Diamonds plc is an international diamond mining and exploration
company with operations in South Africa, Botswana and the United States.
Firestone is quoted on the London Stock Exchange's Alternative Investment Market
(AIM), and trades under the symbol FDI.L.
Firestone has extensive diamond exploration interests in Botswana, which is the
world's largest producer of diamonds, with annual production of approximately 30
million carats, worth over $2.5 billion.
Firestone's interests in Botswana are as follows:
* The Orapa and Mopipi Projects, which cover an area of approximately
4,900 square kilometers, are located close to the Orapa and Letlhakane
diamond mines and are being explored by De Beers in joint venture with
the Company.
* The Jwaneng Project, which covers an area of approximately 3,700
square kilometers, is located close to the Jwaneng Mine and is being
explored by De Beers in joint venture with the Company.
* The Daly City joint venture project covers an area of approximately
380 square kilometers and is located close to the Orapa and Letlhakane
diamond mines. The Company is in the process of earning an 81%
interest in this project.
Firestone also has extensive diamond mining and exploration interests in
Namaqualand, which is located on the west coast of South Africa and has been one
of the world's largest alluvial diamond producing regions for the past seventy
years, with total production to date estimated to be worth more than $3 billion.
Firestone's mining operations in Namaqualand include the Bonte Koe, Avontuur and
Oena Mines, all of which produce high quality alluvial diamonds, and a growing
portfolio of early stage and advanced exploration projects. In June 2005, the
Company entered into a joint venture with De Beers over the Company's Groen
River Valley exploration project, under the terms of which De Beers can earn a
61% interest in the project by financing all work up to completion of bankable
feasibility studies on the project.
Firestone also has a large scale kimberlite exploration project in the United
States. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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