FDI Firestone Diamonds Plc

RNS No 1687r
FIRESTONE DIAMONDS PLC
9 July 1999

Firestone on trail of new diamond field in Botswana

Recovery of diamond and indicator minerals point to potential new discovery

Firestone Diamonds plc, ("Firestone" or "the Company"), the UK-based diamond
mining and exploration company, announces results of the latest stage of
exploration on its Mopipi joint venture project, located 50 kilometres west of
De Beers' major Orapa mine in Botswana.

Following a detailed analysis of aerial photography, a soil sampling programme
covering the 21,000 acre project area has been completed.  More than 200 soil
samples were taken, analysis of which identified a number of highly
significant kimberlitic indicator mineral anomalies indicating that kimberlite
- the primary host rock for diamonds - is present in the area and that the
kimberlite is likely to be diamondiferous.  This conclusion is further
supported by the recovery of a macro diamond from a follow-up soil sample in
an area which had produced strong indicator mineral anomalies.

Aeromagnetic data has been acquired over the project area and a number of
ground magnetic and gravity surveys have recently  been carried out. 
Preliminary results from analysis of the data from these surveys indicate a
number of potential kimberlite targets whose locations coincide with
significant indicator mineral anomalies.  Analysis of the data and correlation
with the results of the soil sampling programme will be completed within the
next two months and will be used to identify and prioritise targets for
drilling later in the year.

Commenting on the news, Philip Kenny, chief executive of Firestone, said: "The
results obtained are highly significant, as they confirm the likelihood of
diamondiferous kimberlite being present in the project area.  As kimberlites
almost always occur in clusters - sometimes as many as 40/50 together - and no
kimberlite has been discovered west of Orapa to date, we believe that we may
be on the verge of discovering a new kimberlite field.  The indications for an
important diamond discovery are good and we believe that the Mopipi project
has significant potential."

Soil sampling programme
Substantial quantities of kimberlitic pyrope garnet were recovered from the
soil samples, and a number of target areas which produced consistently high
pyrope counts, of up to 65 grains per sample, have been identified.  Electron
microprobe analysis of small samples of pyropes selected from the target areas
has identified 21 pyropes as G10 garnets, indicating that the kimberlites from
which they are derived are diamondiferous.

A clear, white macro diamond weighing 0.02 carats has been recovered from
follow up soil sampling in one of the target areas.  As the recovery of
diamonds from soil samples is very rare, this provides further evidence that
the kimberlite source from which the indicator minerals are derived is
diamondiferous.

The soil samples have also been examined for chrome diopside, another
kimberlitic indicator mineral.  Chrome diopside is a very fragile mineral
which is quickly broken down when exposed on the surface, and is typically
only found within hundreds of metres from its source.  Chrome diopside was
recovered from 8 samples in the target areas. These samples also produced
strong pyrope anomalies, the best three of which yielded 33, 22 and 16 grains
of pyrope respectively. 

Geophysical surveys
Data from an aeromagnetic survey of the region flown at a 200 metre line
spacing has been acquired and analysed, resulting in the identification of 24
magnetic anomalies representing possible kimberlite targets, several of which
are located in the target areas identified by the soil sampling programme and
the aerial photo analysis.  

Follow up ground magnetic and gravity surveys have recently been carried out
in the target areas.  Preliminary results from analysis of the data from these
surveys also indicate a number of potential kimberlite targets which coincide
with the indicator mineral anomalies.  

Analysis of all the geophysical data and correlation with the results of the
soil sampling programme will be completed within the next two months and will
be used to identify and prioritise targets for drilling later in the year.

Background information
Botswana is the largest diamond producer in the world, with annual production
of over 20 million carats, worth over $1.6 billion, which accounts for over
23% of worldwide production.  The Orapa Mine has been in production since 1971
and is the second biggest mine in Botswana, currently producing more than 6
million carats per annum, worth over $400 million.  An expansion to the mine,
due for completion in 2000, will double capacity at Orapa to 12 million carats
per annum.

Firestone is in the process of earning a 75 per cent interest in the Mopipi
joint venture project.  Firestone is also active in South Africa where its
principal assets are an alluvial diamond mine at Hondeklip Bay which produces
high quality gem stones and extensive exploration properties in Namaqualand in
the Northern Cape Province, one of the most prospective areas in the world for
alluvial diamonds.  

Firestone is quoted on the London Stock Exchange's Alternative Investment
Market (AIM). 


For further information:

Philip Kenny, Firestone Diamonds plc          0171-370-6452 / 0831-324-645

Keith Irons, Bankside Consultants     0171-220-7477 / 0585-356-639


END


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