FDI Firestone Diamonds Plc

RNS Number:2423Q
Firestone Diamonds PLC
29 January 2007

                             Firestone Diamonds plc

               Kimberlite discovery at Tsabong project, Botswana





LONDON: 29 January, 2007



HIGHLIGHTS



*  Four large kimberlites discovered at Tsabong

   -  MK74 - 8 hectares

   -  MK75 - 28 hectares

   -  MK76 - 12 hectares

   -  MK77 - 8 hectares


*  Increases number of kimberlites discovered since exploration
   commenced in November 2006 to 7



*  Increases number of kimberlites in licence area to 74



*  Kimberlite evaluation programme to commence on schedule in Q1 2007

   -  focus on 17 known diamondiferous kimberlites

   -  6,000 metres of core drilling planned on highest ranked kimberlites

   -  deep core drilling to be undertaken on 180 hectare M1 kimberlite



Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), is pleased to provide an
update on exploration and evaluation work at its Tsabong kimberlite project in
Botswana.



Exploration Results

In November 2006 the Company commenced a 10,000 metre exploration drilling
programme at Tsabong.  This programme is targeting approximately 80 well defined
geophysical anomalies that have been identified by interpretation of
aeromagnetic survey data over the area.  In December 2006 the Company announced
that it had discovered three kimberlites, with estimated sizes of 22, 18 and 15
hectares.



A further four new kimberlites have since been discovered.  Modeling of these
kimberlites based on airborne and ground geophysical data indicates that they
are large, with estimated sizes ranging from 8 to 28 hectares.  Drill chip
samples are currently being prepared for dispatch to laboratories in South
Africa and Canada for microdiamond, mineral chemistry and petrographic analysis.
These discoveries bring the total number of kimberlites in the Tsabong project
area to 74.



Details of the discovery holes, all of which were terminated in kimberlite, are
listed below:


  Kimberlite      Estimated   Hole depth    Kimberlite        Depth of          Kimberlite type
                    size         (m)     intersection (m)  overburden (m)
                 (Hectares)

     MK74             8          119            99               20        Diatreme/hypabyssal
     MK75            28          149            52               97        Diatreme
     MK76            12          107            72               35        Crater
     MK77             8          113            79               34        Crater



Philip Kenny, CEO of Firestone Diamonds, commented: "The discovery of seven
large kimberlites in our first two months of exploration at Tsabong is a very
significant achievement.  We are still an early stage of our exploration
programme, and with many more targets remaining, we believe that there is good
potential for the discovery of new, large-tonnage diamondiferous kimberlites.
With 74 kimberlites in our licence area and the prospects of more discoveries
being made, we believe that Tsabong has the potential to produce a major
economic discovery."



Evaluation Programme

A detailed evaluation programme is planned for the kimberlites in the Tsabong
project area, none of which have been evaluated on an adequate scale or with
modern techniques.  Planning for this programme, which will be carried out in
parallel with the current exploration programme, is at an advanced stage and
work is expected to commence on schedule in Q1 2007.



Approximately 6,000 metres of core drilling is planned on the highest ranked of
the 17 known diamondiferous kimberlites.  Work will also be carried out on a
number of large kimberlites that have not produced microdiamonds but have only
been sampled by a single discovery hole, and on any new discoveries that show
positive microdiamond counts or geochemistry.  A separate evaluation programme
will be carried out on the 180 hectare M1 kimberlite, which is the only
kimberlite in the Tsabong field to have been previously sampled for
macrodiamonds.



Core holes will be drilled to depths of up to 500 metres in order to identify
the various geological phases in the kimberlites at depth and to allow
preliminary 3D geological models of the kimberlites to be constructed.  Detailed
microdiamond, mineral chemistry and petrographic analyses will be carried out on
samples from the core.  This work will allow more accurate assessments of the
economic potential of the kimberlites to be made.



Subject to the results of the evaluation programme, the next stage of work at
Tsabong will be to take bulk samples from selected kimberlites by large diameter
drilling to test for the presence of macrodiamonds.





For further information:

Philip Kenny, Firestone Diamonds        +44 20 8834 1028 / +44 7831 324 645

Laurence Read/Jos Simson, Conduit PR    +44 20 7429 6605 / +44 7979 955 923

Jamie Cumming, Bell Lawrie              +44 141 314 8103 / +44 7768 044 620



                           www.firestonediamonds.com


Background information on Tsabong:

The Tsabong kimberlite field is located in south western Botswana, approximately
280 km south west of the Jwaneng Mine, which is the world's biggest diamond
mine.  Tsabong is one of the largest diamondiferous kimberlite fields in the
world, containing 77 known kimberlites, of which 17 have been proven to be
diamondiferous.  Tsabong is noted for the exceptionally large size of many of
its kimberlites, in particular the 180 hectare M1 kimberlite, which is one of
the largest known diamondiferous kimberlites.  The Tsabong field also contains 5
kimberlites larger than 50 hectares and 30 kimberlites between 20 and 50
hectares in size.



With rough diamond prices estimated to have tripled since the Tsabong field was
discovered in the early 1980's, the threshold for economic viability in the area
has been reduced substantially.  A kimberlite in Tsabong with a moderate grade
of 20 cpht and average quality diamonds of $100 per carat would support a
large-scale, profitable mining operation.



Access to the area is via tarred road from Gaborone and infrastructure in the
area is good.



Background information on Firestone Diamonds:

Firestone Diamonds plc is an international diamond mining and exploration
company with operations in the Namaqualand region of South Africa, Botswana and
the United States.



Firestone has extensive 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.  Botswana is considered to be one of the best countries
in the world to explore for kimberlite - the primary source rock for diamonds.
Firestone's Mopipi, Orapa and Jwaneng projects are located close to the major
Orapa and Jwaneng mines and are all being explored by De Beers in joint venture
with Firestone.  Firestone is also exploring for kimberlite in the US on the
Laurentia craton, which extends into Canada, where it hosts a number of
diamondiferous kimberlite deposits.



Namaqualand, which is located on the west coast of South Africa, has been one of
the world's largest alluvial diamond producing regions for the past 60 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, of which the Groen
River Valley project, which is being explored by De Beers in joint venture with
Firestone, is the most important.



Firestone has a highly qualified management team with extensive experience in
the exploration, evaluation and development of diamond projects.  Firestone is
quoted on the Alternative Investment Market (AIM) of the London Stock Exchange
and trades under the symbol FDI.L.



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 25 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).


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

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