Operations Update (2581Y)
February 28 2012 - 5:59AM
UK Regulatory
TIDMFDI
RNS Number : 2581Y
Firestone Diamonds PLC
28 February 2012
Firestone Diamonds plc
Operations Update
LONDON: 28 February 2012
Firestone Diamonds plc ("Firestone" or the "Company"), the
AIM-quoted diamond mining and exploration company, announces that
further to the press release on 6 February 2012 regarding a
strategic review of the BK11 mine in Botswana, the Company has
today suspended operations and placed the mine on a temporary care
and maintenance programme. The decision was taken due to a
combination of operational challenges and current weakness in the
diamond market.
Care and maintenance programme:
-- A care and maintenance programme has been undertaken to keep
BK11 in sufficient condition to readily re-start operations;
-- The indicative monthly holding costs are approximately US $65,000.
The Company has concluded a consultative process with its
employees at the mine, to ensure a transparent and legitimate
process covering a number of options, which are in line with the
labour and mining acts within Botswana.
Tim Wilkes, CEO of Firestone Diamonds, commented; "We remain
committed to the operations in Botswana and the programme at BK11
is a temporary measure that has been designed to enable a rapid
re-start of operations when the technical and market challenges
have been resolved. The Company will now focus on the flagship
Liqhobong Mine in Lesotho which has proven large scale diamond
recoveries and remains on track to announce the Definitive
Feasibility Study in June 2012 and produce 1 million carats by
2014.
For further information, visit the Company's web site at
www.firestonediamonds.com or contact:
+27 78 457 6623 / +267
Tim Wilkes, CEO, Firestone Diamonds 713 77686
Rory Scott, Mirabaud Securities
(Broker) +44 20 7878 3360
Robert Beenstock, N+1 Brewin
(Nominated Adviser) +44 20 3201 3710
Jos Simson / Emily Fenton, Tavistock +44 20 7920 3150 / +44
Communications 7899 870 450
Background information on Firestone Diamonds:
Firestone Diamonds plc is an international diamond mining and
exploration company with operations focused on Lesotho and
Botswana. Firestone currently operates the Liqhobong Mine in
Lesotho and is also the largest holder of mineral rights in
Botswana's diamondiferous kimberlite fields, controlling
approximately 10,000 square kilometres around the major Orapa and
Jwaneng mines and the entire Tsabong kimberlite field. In addition
to Liqhobong and BK11, Firestone has 108 kimberlites in its
portfolio, of which 30 have been proven to be diamondiferous.
Lesotho is emerging as one of Africa's significant new diamond
producers, and hosts Gem Diamonds' Letseng Mine, Firestone's
Liqhobong Mine as well as the Kao and Mothae development projects.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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