FDI Firestone Diamonds Plc

RNS Number:9436S
Firestone Diamonds PLC
14 March 2002


For Immediate Release



                             Firestone Diamonds plc



      Record prices obtained from diamond sales from Firestone's Oena Mine



         •        Development of high-grade Sandberg deposit under way


LONDON:  14 March 2002

Firestone Diamonds plc (the "Company") today announces that record prices have
been obtained from production from its Oena Mine in South Africa, placing Oena
in the top echelon of diamond mines worldwide in terms of diamond value.  At the
most recent sale of Oena diamonds, a parcel of 208 carats was sold for an
average price of $1,080 per carat, an increase of 49% on the last reported
average sale price of $723 per carat.  The highest value stones from this parcel
were recovered from the new high-grade Sandberg deposit at the Oena mine, the
development of which continues to be a top priority for the Company.



Included in the parcel recently sold was a fancy yellow diamond weighing 30.14
carats that sold for $104,200, or $3,460 per carat, and a 12.57 carat diamond
that sold for $30,180, or $2,400 per carat.  With worldwide rough diamond prices
averaging approximately $60 per carat, these excellent results confirm Oena's
exceptional potential.



A very significant potential high-grade deposit was discovered at Sandberg in
2001 and is estimated to contain more than 1 million tonnes of diamondiferous
Proto gravels.  Proto gravel deposits of this type on the lower Orange River
have produced average grades up to 5 carats/100 tonnes, with flash grades
reported of up to 70 carats/100 tonnes.  On this basis, the Sandberg deposit is
expected to contain up to 70,000 carats, with a gross value of approximately $60
million at an average expected price of $880 per carat.



Planning for the development of the Sandberg deposit has been under way since
the end of 2001.  As overburden depths are substantial at Sandberg, overburden
stripping will be carried out by contractors.  The Company also announces today
that a contract has been awarded to Bradis Contract Mining for the development
of the Sandberg deposit.  Overburden stripping commenced this week, and the
first gravel is expected to be available for processing by June.  Gravel
processing capacity at the mine is also being increased to handle the additional
gravel produced from Sandberg.  A new mobile gravel treatment plant has been
acquired and is in the process of being commissioned.



Philip Kenny, CEO of Firestone Diamonds, commented today, "The results from
recent sales of Oena production were extremely good, and confirm Oena's
exceptional potential, particularly for the new mining area at Sandberg.  The
priority for our work at Oena over the coming months will be the development of
the high-grade Sandberg deposit, which is already under way, and from which we
expect to see significant increases in production."




Background information on the Oena Mine

The Oena Mine is located on the lower Orange River in South Africa, in a well
established diamond producing area which produces diamonds comparable to the
best in the world, typically selling at prices between $700-$900 per carat.  The
Oena Mine covers 22,000 acres, and extends in a 4.8 kilometre wide strip along
15 kilometres of the Orange River.  The Oena Mine is located upstream of the
Auchas Mine, operated by De Beers, and the Baken Mine, operated by Trans Hex,
South Africa's second largest diamond producer.  Total historical production at
Oena is over 30,000 carats, with an average stone size of approximately 2
carats, the largest stone recovered being 70 carats.  Firestone owns an 87.5%
interest in the Oena Mine.



Detailed mapping, drilling and bulk sampling have been carried out at Oena and a
resource of more than 40 million tonnes of diamondiferous gravels has been
identified.  The gravels contain an estimated resource of 270,000 carats.  With
an estimated diamond value of $880 per carat, the in situ value of the deposits
is approximately $237 million.




For further information:

Philip Kenny, Firestone Diamonds                 020 7370 6452 / 07831 324 645
Leesa Peters/Cindy Dennis, Capital PR            020 7618 7887  / 07816 617 959
Jamie Cumming, Bell Lawrie White                 0141 314 8103 / 0776 8044 620



Website: www.firestonediamonds.com



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