Firestone selected as preferred bidder
February 19 2009 - 2:00AM
UK Regulatory
TIDMFDI
RNS Number : 5556N
Firestone Diamonds PLC
19 February 2009
Firestone Diamonds plc
Selected by Debswana as preferred bidder for Jwaneng Modular Tailings Treatment
Project
LONDON: 19 February 2009
HIGHLIGHTS:
+-----+------------------------------------------------------------------+
| - | Firestone Diamonds and ADP Projects selected as preferred |
| | bidders for a modular tailings dump treatment plant at the |
| | Jwaneng Mine in Botswana, the world's largest diamond mine by |
| | value |
| | |
+-----+------------------------------------------------------------------+
| - | Initial production of 2 million tonnes per annum targeted to |
| | commence in 2011 |
| | |
+-----+------------------------------------------------------------------+
| - | Tailings resource at Jwaneng estimated at over 30 million tonnes |
| | |
+-----+------------------------------------------------------------------+
| - | Firestone responsible for financing and operation, ADP to design |
| | and construct plant |
| | |
+-----+------------------------------------------------------------------+
| - | Plant to serve as pilot facility with potential for deployment |
| | to other Debswana mines |
| | |
+-----+------------------------------------------------------------------+
| - | Contract negotiations on toll treatment agreement expected to be |
| | concluded by Q3 2009 |
| | |
+-----+------------------------------------------------------------------+
| - | Strategic alliance with ADP Projects formed to jointly design, |
| | build and operate modular diamond tailings processing plants |
| | |
+-----+------------------------------------------------------------------+
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), today announces that Firestone
and ADP Projects ("ADP") have been selected by Debswana Diamond Company
("Debswana") as the preferred bidders to design, supply, construct and operate a
modular tailings dump treatment plant at the Jwaneng Mine in Botswana on a toll
treatment basis.Debswana is a joint venture between the Government of the
Republic of Botswana and De Beers and is the world's leading diamond producer by
value.
The Company also announces that that it has entered into a strategic alliance
with ADP to jointly develop diamond tailings processing plant technology and to
pursue other new diamond tailings resource projects.
Philip Kenny, CEO of Firestone Diamonds, commented: "Being selected by Debswana,
the world's leading diamond producer, for the Jwaneng Tailings Project is a
reflection of the significant operating capability that Firestone has developed
and represents an excellent opportunity for the Company to substantially expand
cash flow from our toll treatment operations. This project will give us an
opportunity to significantly expand our operations in Botswana, which currently
include the BK11, BK16 and Tsabong projects, amongst others. We are also very
excited about the potential of our strategic alliance with ADP, with whom we
have already worked closely on a number of projects."
Jwaneng Modular Tailings Treatment Project
Following the submission of tenders by a number of suppliers, Firestone and ADP
have been selected by Debswana as the preferred bidders to design, supply,
construct and operate a modular tailings re-treatment plant at the Jwaneng Mine
in Botswana.Jwaneng is the largest diamond mine in the world by value and in
2008 produced approximately 13 million carats.
The objective of the Jwaneng Tailings Project is the recovery of diamonds from
the tailings resource at Jwaneng, which is estimated to be in excess of 30
million tonnes. Initial production of over two million tonnes per annum is
targeted to commence in 2011. Firestone will be responsible for financing and
operating the plant while ADP will be responsible for plant design and
construction.
The Jwaneng based plant will serve as a pilot facility to demonstrate the
economics and capability of the modular plant concept and could potentially lead
to the deployment by Firestone and ADP of similar plants to exploit additional
tailings resources at other Debswana mines.
Firestone and ADP have commenced contract negotiations with Debswana which are
expected to be concluded and signed in Q3 2009.
Strategic alliance with ADP Projects
ADP is the leading supplier of modular processing plants to the diamond mining
industry, having supplied diamond plant and equipment to De Beers, Debswana,
Trans Hex, Gem Diamonds and Petra Diamonds, amongst others. Firestone and ADP
have worked together for over five years on a number of projects. Firestone and
ADP have developed a new approach to exploiting tailings resources and have
agreed to enter into an exclusive strategic alliance to jointly design, build
and operate modular diamond tailings processing plants.
Under the terms of the agreement, Firestone and ADP will collaborate on the
development of new technology and processes to lower the capital and operating
costs and reduce the deployment time of plants for processing diamond tailings
resources. Firestone and ADP are currently jointly pursuing a number of
new diamond tailings project opportunities.
For further information, visit the Company's web site at
www.firestonediamonds.com, or contact:
+-------------------------------------+----------------------------------+
| Philip Kenny, Firestone Diamonds | +44 20 8834 1028/+44 7831 324 |
| | 645 |
+-------------------------------------+----------------------------------+
| Gareth Tredway, Jos Simson, Conduit | +44 20 7429 6603/+44 7899 870 |
| PR | 450 |
+-------------------------------------+----------------------------------+
| Mike Jones/Ryan Gaffney, Canaccord | +44 020 7050 6500 |
| Adams (Joint Broker) | |
+-------------------------------------+----------------------------------+
| Jerry Keen, Blue Oar (Joint Broker) | +44 20 7448 4492/+44 777 069 |
| | 7358 |
+-------------------------------------+----------------------------------+
| Alexander Dewar, Brewin Dolphin | +44 131 529 0276 |
| (Nominated Adviser) | |
+-------------------------------------+----------------------------------+
Background information on Firestone Diamonds:
AIM quoted Firestone Diamonds plc ("FDI.L") is an international diamond mining
and exploration company with operations in Botswana and South Africa. Botswana
is the world's largest and lowest cost producer of diamonds, with annual
production worth over $2.5 billion, and is considered to be one of the most
prospective countries in the world to explore for diamonds.
Firestone is the largest holder of mineral rights in Botswana's diamondiferous
kimberlite fields, controlling over 29,000 square kilometres around the major
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
95 kimberlites in its portfolio, of which 24 have been proven to be
diamondiferous. Sixteen of Firestone's kimberlites are at the bulk sampling
stage, of which BK11 is the most advanced.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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