BK11 update
June 30 2010 - 2:00AM
UK Regulatory
TIDMFDI
RNS Number : 4730O
Firestone Diamonds PLC
30 June 2010
Firestone Diamonds plc
BK11 update
LONDON: 30 June, 2010
Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker: AIM:FDI), is pleased to announce an
update on development work and production plans at its BK11 kimberlite in
Botswana.
HIGHLIGHTS
+---+-+------------------------------------------------------+
| - | Mine development decision made in December 2009 |
+---+--------------------------------------------------------+
| | | |
+---+-+------------------------------------------------------+
| - | Construction of production plant on schedule |
+---+--------------------------------------------------------+
| | -| Phase 1 complete and ready to commence production as |
| | | soon as mining licence is issued |
+---+-+------------------------------------------------------+
| | -| Phase 2 on schedule for completion in Q3 2010 |
+---+-+------------------------------------------------------+
| | | |
+---+-+------------------------------------------------------+
| - | Mining licence application submitted in Q1 2010 |
+---+--------------------------------------------------------+
| | -| All additional information requested by Department |
| | | of Mines has been submitted |
+---+-+------------------------------------------------------+
| | -| Mining licence expected to be issued imminently |
+---+-+------------------------------------------------------+
Philip Kenny, CEO of Firestone Diamonds, commented: "We have made significant
progress at BK11 since April. The imminent expected commencement of production
at BK11 is a major milestone for the Company as is it will make Firestone one of
only three kimberlite producers worldwide outside of the major mining companies.
The combination of cash flow from production at BK11, an extensive portfolio of
kimberlites in the Orapa and Tsabong kimberlite fields and exciting toll
treatment opportunities positions Firestone very well for significant growth in
Botswana and with the substantial shortfall in rough diamond supply projected in
the coming years we are confident about Firestone's future prospects. We look
forward to further updating our shareholders very soon once the mining licence
has been granted and production has commenced."
Background
Development work has been under way at BK11 since the successful completion of
the final phase of evaluation work in December 2009. A mining licence
application was completed and submitted to the Ministry of Minerals, Energy &
Water Resources (the "Ministry") during Q1 2010 and in April 2010 the Company
raised GBP9.45 million, of which approximately GBP4.5 million was to cover the
final capital costs relating to the BK11 production plant and for pre-stripping
of near-surface low grade kimberlite.
Production plant
Work on Phase 1 of the production plant, which has a capacity of approximately
650,000 tonnes per annum, has been completed and the plant is ready to commence
production as soon as the mining licence is issued. Work on Phase 2 of the
production plant, which will increase production capacity to 1,500,000 tonnes
per annum, is on target for completion as originally scheduled in Q3 2010.
Mining licence
Since April 2010 the Company has been in discussions with the Department of
Mines ("DoM"), which is the part of the Ministry that is responsible for
assessing mining licence applications. The Company has provided additional
information requested by the DoM and there are no further matters outstanding
from the Company in relation to the BK11 mine development plan and mining
licence application. The Company expects the mining licence to be issued
imminently.
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 / Neil McDonald, | +44 131 529 0276 |
| Brewin Dolphin Corporate | |
| Advisory & Broking | |
| (Nominated Adviser) | |
| | |
+----------------------------------+--------------------------+
| Emily Fenton / Leesa Peters, | +44 20 7429 6608/+44 |
| Conduit PR | 77885 54035 |
| | |
+----------------------------------+--------------------------+
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 about to commence production,
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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