Update on Tsabong project
April 16 2007 - 3:02AM
UK Regulatory
RNS Number:8686U
Firestone Diamonds PLC
16 April 2007
Firestone Diamonds plc
Update on Tsabong project, Botswana
LONDON: 16 April, 2007
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 evaluation and exploration work at its Tsabong kimberlite project in
Botswana.
HIGHLIGHTS
* Ranking of top 10 diamondiferous kimberlites completed
* Core drilling programme increased from 6,000 to 12,000 metres
- Drilling commenced in March 2007
- First drill hole on 180 hectare MK1 kimberlite under way
- Results expected in H2 2007
* Four new kimberlites discovered
- MK78 - 5 hectares
- MK79 - 12 hectares
- MK80 - 18 hectares
- MK81 - 18 hectares
* 11 kimberlites discovered from 14 exploration holes since November
2006
* Number of kimberlites in licence area increased to 78
Kimberlite ranking
The evaluation programme at Tsabong is initially being focused on the 17 known
diamondiferous kimberlites in the project area. The first phase of the programme
was the selection of the top 10 of these kimberlites based on diamond content,
kimberlite indicator mineral ("KIM") chemistry and size. This review was carried
out by the Company in conjunction with Mineral Services (Pty) Limited of Cape
Town, which is one of the industry's leading diamond exploration and evaluation
consultancies. Details of the kimberlites selected for evaluation are:
Kimberlite Estimated size Depth of overburden (m) Kimberlite type
(Hectares)
MK1 (See note) 180 82 Crater
MK51 10 82 Diatreme
MK38 20 81 Diatreme
MK45 25 58 Diatreme
MK39 20 79 Diatreme
MK65 10 49 Diatreme
MK4 20 78 Diatreme
MK52 15 79 Diatreme
MK31 75 76 Crater
MK42 20 73 Crater/diatreme
Note: Kimberlite MK1 was formerly known as M1
Evaluation programme
The company has substantially increased its planned core drilling programme from
6,000 to 12,000 metres. A 500 metre vertical hole will be drilled into each
kimberlite to obtain fresh, undiluted material for detailed microdiamond, KIM
chemistry and petrographic analyses. This work will allow more accurate
assessments of the economic potential of the kimberlites to be made. The results
of these analyses will be used to select the most prospective kimberlites for
follow-up work. The follow-up work will comprise additional vertical and angled
core drilling to identify the different geological phases in the kimberlites and
to allow preliminary 3D geological models of the kimberlites to be constructed.
Core drilling commenced on schedule at MK1 in March 2007. A second core rig is
currently being mobilised and is expected to start drilling by the end of April
2007. Subject to the from the core drilling, which are expected in H2 2007, bulk
samples will be taken from selected kimberlites by large diameter drilling to
provide an initial indication of grade and diamond value.
New kimberlites discovered
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.
A further four kimberlites have been discovered since those reported in January
2007. This brings the number of kimberlites discovered since November 2006 to
11, and the total number of known kimberlites in the Tsabong project area to 78.
Details of the discovery holes, all of which terminated in kimberlite, are
listed below:
Kimberlite Estimated Hole depth Kimberlite Depth of Kimberlite
size (m) intersection (m) overburden (m) type
(Hectares)
MK78 5 137 47 90 Crater/
diatreme
MK79 12 167 34 133 Crater/
diatreme
MK80 18 169 64 105 Crater/
diatreme
MK81 18 134 71 63 Crater
Drill chip samples are being sent to laboratories in South Africa for KIM
chemistry and petrographic analysis and to Canada for microdiamond analysis.
Philip Kenny, CEO of Firestone Diamonds, commented: "Our technical team has
continued to make excellent progress at Tsabong. Having produced very positive
results from exploration, with 11 kimberlites discovered from our first 14 holes
drilled, our focus is now shifting to evaluation work. The 10 kimberlites we
have selected for core drilling have all been proven to contain diamonds and
have good indicator mineral chemistry. We look forward to the results of this
evaluation work, and continue to believe that Tsabong has the potential to
produce a major economic discovery."
For further information:
Philip Kenny, Firestone Diamonds +44 20 8834 1028 / +44 7831 324 645
Leesa Peters/Jos Simson, Conduit PR +44 20 7429 6600 / +44 7812 159 885
Jamie Cumming, Bell Lawrie +44 141 314 8103 / +44 7768 044 620
Ken Fleming, Bell Lawrie +44 141 221 7733 / +44 7971 835 070
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 81 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 MK1 kimberlite, which is one of the
largest known diamondiferous kimberlites. The Tsabong field also contains 5
kimberlites larger than 50 hectares and 32 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 Botswana, the Namaqualand region of South Africa, 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 advanced.
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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