Selected by Namdeb for new toll treatment project
March 12 2010 - 2:00AM
UK Regulatory
TIDMFDI
RNS Number : 4761I
Firestone Diamonds PLC
12 March 2010
Firestone Diamonds plc
Selected by Namdeb for new toll treatment project
LONDON: 12 March, 2010
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), is pleased to announce that it
has been selected by Namdeb Diamond Corporation ("Namdeb") as the preferred
supplier and operator for the Dredge and Floating Treatment Plant ("FTP")
project at Namdeb's diamond mining operations on the south west coast of
Namibia. Namdeb is a joint venture between the Government of the Republic of
Namibia and De Beers and is the world's 6th largest diamond producer by value.
HIGHLIGHTS
+-+-------------------------------------------------------+
| -| Firestone selected as preferred supplier and operator |
| | for Dredge and Floating Treatment Plant project by |
| | Namdeb |
| | |
+-+-------------------------------------------------------+
| -| Firestone and Namdeb jointly completing feasibility |
| | for review and approval by Namdeb board, following |
| | which contract negotiations will be finalised |
| | |
+-+-------------------------------------------------------+
| -| Plant to have a capacity of 11.5 million tonnes per |
| | annum and 15 year minimum life |
| | |
+-+-------------------------------------------------------+
| -| Firestone to construct the plant for Namdeb and |
| | operate on a toll treatment basis |
| | |
+-+-------------------------------------------------------+
| -| Production targeted to commence in 2012 |
| | |
+-+-------------------------------------------------------+
Philip Kenny, CEO of Firestone Diamonds, commented: "Being selected by Namdeb,
one of the world's leading diamond producers, for the Dredge and Floating
Treatment Plant project is a reflection of the significant operating capability
that Firestone has developed. This project follows the selection of Firestone
by Debswana in 2009 for a toll treatment tailings processing project at the
Jwaneng Mine in Botswana and represents a further opportunity for the Company to
supplement cash flow from our own mining operations at BK11 in Botswana with
cash flow from long term, low risk toll treatment projects."
Namdeb is currently evaluating a number of outsourcing alternatives that would
enable it to extend the life of its mining operations. One of these
alternatives is the FTP project. The FTP is an integrated production unit that
will remove overburden using a dredge and treat diamondiferous gravel using a
floating treatment plant in a single synchronous operation. This will result in
substantially lower operating costs than using conventional earth moving
equipment and fixed treatment plans located away from the mining area. The area
selected to be mined by the FTP is in Mining Area 1 close to the mouth of the
Orange River and extends from a bedrock elevation of five metres above to 15
metres below sea level. The FTP will have a target production capacity of 11.5
million tonnes per annum and will be designed for a minimum 15 year life.
Following the submission of tenders by a number of companies in 2008, Firestone
has been selected by Namdeb as the preferred supplier for building the FTP for
Namdeb and for operating it on a toll treatment basis. Firestone and the Namdeb
FTP project team have commenced work on revising Namdeb's feasibility study for
the project to reflect current capital costs and Firestone's projected operating
costs, with Firestone being paid an agreed price per tonne of material
processed. Once the feasibility study has been completed it will be presented
to the board of Namdeb for approval, subject to which Firestone and Namdeb will
conclude formal contract negotiations and the project would move into the
execution phase, with a target date for commencement of production of 2012. The
feasibility study is expected to be completed and presented to the Namdeb board
later in 2010.
For further information, visit the Company's web site or contact:
+----------------------------------+--------------------------+
| Philip Kenny, Firestone Diamonds | +44 20 8834 1028/+44 |
| | 7831 324 645 |
+----------------------------------+--------------------------+
| Simon Edwards / Tim Redfern, | +44 20 7071 4330 / 4312 |
| Evolution Securities (Joint | |
| Broker) | |
| | |
+----------------------------------+--------------------------+
| Rory Scott, Mirabaud Securities | +44 20 7878 3360 |
| (Joint Broker) | |
| | |
+----------------------------------+--------------------------+
| Alexander Dewar, Brewin Dolphin | +44 131 529 0276 |
| (Nominated Adviser) | |
| | |
+----------------------------------+--------------------------+
| Jos Simson / Leesa Peters, | +44 20 7429 6603/+44 |
| Conduit PR | 7899 870 450 |
| | |
+----------------------------------+--------------------------+
Background information on Firestone Diamonds:
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 25,000 square kilometres around the major
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. Firestone has
103 kimberlites in its portfolio, of which BK11 is due to commence production in
Q2 2010 and 29 others have been proven to be diamondiferous.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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