FDI Firestone Diamonds Plc

RNS Number:3732S
Firestone Diamonds PLC
06 March 2007

                             Firestone Diamonds plc

           Awarded prospecting license for new kimberlite in Botswana



LONDON: 6 March 2007



HIGHLIGHTS



*         New prospecting license granted for highly prospective BK11
          kimberlite in Botswana

*         Located 20 km from the Orapa Mine and 5 km from AK6 kimberlite

*         Historical grades of up to 17 carats per hundred tons; size
          estimated at 6.5 hectares

*         Bulk sampling planned for H2 2007



Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), today announces that it has
been awarded a prospecting licence for the BK11 kimberlite, which is located in
the Orapa kimberlite field.  BK11 is situated approximately 20 kilometres south
east of De Beers' Orapa Mine and 5 kilometres north east of the AK6 kimberlite,
on which De Beers and African Diamonds are developing a major new mine.
Previous work on BK11 has produced grades between 2 and 17 carats per hundred
tonnes ("cpht").  The Company intends to carry out a detailed evaluation
programme on BK11, with bulk sampling results expected to be available in the
second half of 2007.



Philip Kenny, CEO of Firestone Diamonds, commented: "It is a very positive
reflection on Firestone's technical capability that we have been awarded the
licence for BK11, which we believe to be a very prospective kimberlite.  With
the infrastructure already available in the Orapa area and a new mine being
developed 5 kilometres away at AK6, the grade required for BK11 to be
economically viable will be modest."



BK11 background

BK11 was discovered by De Beers in 1974, but limited evaluation was carried out
at the time.  In the early 1990's Debswana Diamond Company undertook a programme
of 12" diameter percussion drilling on BK11, which yielded a grade of
approximately 16 cpht.  It is significant to note that a similar programme
carried out at the same time on AK6 yielded a grade of approximately 17 cpht,
but that larger scale bulk sampling carried out on AK6 in 2005 by the De Beers/
African Diamonds joint venture yielded a substantially higher grade of 25 cpht.



The De Beers/African Diamonds joint venture carried out some evaluation work on
BK11 in 2005.  A single 24" diameter hole was drilled to 170 metres and yielded
a grade of 2.4 cpht.  However, a subsequent review of ground geophysical data
indicated that the bulk sample hole was sited on a small magnetic high on the
edge of BK11.  This feature, which represents about 10% of the surface area of
the kimberlite, is interpreted as being a separate intrusion from the rest of
the body, and the bulk sampling results may not therefore be representative of
the entire kimberlite.  The joint venture reported that that more work was
required.  However, it was not possible to carry out any further work as the
prospecting license under which BK11 was held expired.



The surface area of BK11 is estimated to be 6.5 hectares, and overburden is
shallow at less than 20 metres.



New prospecting licence

Applications for a new prospecting licence over BK11 were submitted in 2006 by
several companies.  Firestone submitted its application through Monak Ventures
(Pty) Limited ("Monak"), a Botswana company which is 80% owned by Firestone and
20% by Botswana nationals.  Following a review of the work programmes proposed
by the competing applicants, the Ministry of Minerals & Energy has awarded the
prospecting licence to Monak.



Evaluation programme

Firestone plans to carry out a detailed evaluation programme on BK11 to
establish a representative grade for the entire kimberlite and to recover
sufficient macro diamonds to provide an estimate of the diamond value.  This
programme will consist of follow-up ground geophysics, core drilling and large
diameter drill bulk sampling and will be carried out in parallel with the
evaluation programme which is underway on the Company's Tsabong project in
Botswana.  Drilling is expected to commence in Q2 2007, with bulk sampling
results available in H2 2007.  Subject to the results of this work, resource
delineation work would be undertaken in 2008.





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

Kenneth Fleming, Bell Lawrie                 +44 141 314 8114 / +44 7971 835070



                           www.firestonediamonds.com







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 controls the Tsabong kimberlite field 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.



Firestone's Orapa and Jwaneng projects are located close to the major Orapa and
Jwaneng mines and are being explored by De Beers in joint venture with
Firestone.



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
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