FDI Firestone Diamonds Plc

RNS Number:0894G
Firestone Diamonds PLC
07 December 2004

                             Firestone Diamonds plc

 Two new joint ventures signed with De Beers over Orapa and Jwaneng exploration
                                    projects

  Significant progress by De Beers on Mopipi joint venture exploration project



LONDON:  7 December, 2004

Firestone Diamonds plc ("Firestone" or the "Company") announces that it has
signed two new joint venture agreements with De Beers covering the Company's
Orapa and Jwaneng kimberlite exploration projects in Botswana.

The Orapa and Jwaneng prospecting licences cover an area of approximately 5,000
square kilometers and are considered to be highly prospective for hosting
diamondiferous kimberlite as they are located close to the Orapa and Jwaneng
diamond mines.  Orapa and Jwaneng are the two richest diamond mines in the
world, producing approximately 29 million carats per annum with a value of over
$2.5 billion.  Much of the area covered by the Orapa and Jwaneng prospecting
licences has never been fully explored using modern geophysical exploration
techniques, and is considered to be highly prospective for the discovery of new
diamondiferous kimberlites.

Under the terms of the new Orapa and Jwaneng joint venture agreements, De Beers
will finance and carry out all exploration and evaluation work on the Orapa and
Jwaneng projects, up to and including the completion of bankable feasibility
studies on any kimberlites discovered in each project area, in return for a 61%
interest in each project.

The Company also announces that significant progress has been made in
exploration work carried out by De Beers on the Mopipi joint venture project in
Botswana, which covers an area of approximately 3,600 square kilometers.  A
total of 51,408 line kilometres of high-resolution geophysical surveys,
comprising airborne magnetics, airborne gravity gradiometry, ground magnetics
and ground gravity, have been conducted, covering approximately 95% of the
Mopipi project area.  Interpretation of data from the geophysical surveys is
currently under way.  To date, 118 targets have been selected for further
investigation.  These targets are currently being verified on the ground in
preparation for drilling in early 2005.  The economic potential of kimberlites
BK31 and BK35, previously discovered by De Beers, and located close to the
Letlhakane diamond mine, is also being re-evaluated

Philip Kenny, CEO of Firestone Diamonds, commented:  "Firestone currently
controls the largest portfolio of diamond exploration rights around the two
richest diamond mines in the world.  The signing of these two new joint ventures
with De Beers indicates that they also believe that the potential for the
discovery of new diamondiferous kimberlites in these areas is very good.  With
the intensive exploration programme currently under way and the technical
expertise and financial resources that will be applied to these projects by De
Beers, we believe that we will make significant progress towards realising the
exciting potential of the projects in the coming year."

Bill McKechnie, Director of Global Exploration for De Beers, also commented:  "
De Beers is very pleased to have concluded these additional joint venture
agreements with Firestone Diamonds for areas in Botswana that we regard as being
highly prospective."



Orapa Joint Venture

Firestone's Orapa prospecting licences cover an area of approximately 1,300
square kilometers.  The project area adjoins the western boundary of the Orapa
Mine, and the southern and eastern boundaries of the nearby Letlhakane Mine,
which together produce approximately 17 million carats per annum with a value of
about $1.3 billion.

Under the terms of the new Orapa joint venture agreement, De Beers will carry
out an intensive exploration and evaluation programme in the Orapa project area,
similar to that being carried out on Firestone's Mopipi project to the west of
Orapa, which is currently being explored by De Beers in joint venture with
Firestone.

High-resolution geophysical surveys, including airborne magnetics, ground
gravity and ground magnetics, will be conducted over the entire project area.
When data from these surveys has been processed and interpreted, it will be
reviewed along with data from previous kimberlite indicator mineral sampling in
order to select and prioritise potential kimberlite drilling targets.  This work
has already commenced, and the initial geophysical work programme is expected to
be completed in the first quarter of 2005.  A total of 62 targets have already
been identified.  Drilling of selected targets will be carried out when target
identification has been completed, which should be during the second quarter of
2005.


Jwaneng Joint Venture

Firestone's Jwaneng prospecting licences cover an area of approximately 3,700
square kilometers.  The project area is located at a distance of between 25 and
75 kilometres from the Jwaneng Mine, which produces approximately 12 million
carats per annum with a value of over $1.5 billion.

Substantial exploration work has already been carried out by De Beers in the
Jwaneng region, and airborne magnetic data is available for the Jwaneng project
area from surveys carried out by the Botswana Geological Survey.  Under the
terms of the new Jwaneng joint venture agreement, this data will be used in
conjunction with data from past kimberlite indicator mineral sampling to
identify target areas for follow-up work on the ground.  High resolution ground
gravity and magnetic surveys will be conducted on selected target areas to
identify potential kimberlite drilling targets.  This work is expected to
commence in early 2005.


Mopipi Joint Venture progress report

Firestone's Mopipi prospecting licences cover an area of approximately 3,650
square kilometers and are located close to the Orapa and Letlhakane diamond
mines.  Firestone has carried out a substantial amount of exploration at Mopipi
over the past 8 years, the results of which strongly suggest the presence of a
new diamondiferous kimberlite source in the area.  In June 2004, Firestone
entered into a joint venture with De Beers over the Mopipi project.  Since then
substantial work has been carried out by De Beers on the project since then.
Extensive geophysical surveys have been conducted, comprising:



*  48,846 line kilometres of high-resolution airborne magnetic surveys,covering 
   3,264 square kilometres, which is equivalent to approximately 95% of
   the project area

*  1,350 line kilometres of airborne gravity gradiometry surveys, covering
   212 square kilometres

*  1,130 line kilometres of ground magnetic surveys over selected target areas, 
   covering a total of 143 square kilometres

*  82 line kilometres of ground gravity surveys over known kimberlites and
   selected target areas, covering a total of 7 square kilometres

Processing of the data from the magnetic surveys has been completed, and
interpretation and target selection is currently under way.  To date, 118
targets have been selected for further investigation.  These targets are
currently being verified on the ground in preparation for drilling. A drilling
rig has been mobilised to the Orapa area, and drilling is expected to commence
in early 2005.

The economic potential of kimberlites BK31 and BK35, previously discovered by De
Beers, and located in the Mopipi project area close to the Letlhakane diamond
mine, is being re-evaluated.  As a first step, modeling of high-resolution
ground geophysics is being undertaken in order to establish accurate size
estimates for the bodies.  Ground gravity surveys have already been conducted
over BK31, and will be conducted over BK35 in the first quarter of next year.
This information will be used to determine drilling positions for sampling of
the kimberlites to assess their economic potential.


Orapa and Jwaneng Joint Venture Terms

The terms of the Orapa and Jwaneng joint venture agreements are similar to those
of the Mopipi joint venture, and are as follows:



*   De Beers will finance and carry out all exploration and evaluation
work, up to and including the completion of bankable feasibility studies on any
kimberlites discovered in the joint venture project area.  Each joint venture
will initially be held 51% by De Beers and 49% by Firestone.

*   On completion of the first bankable feasibility study in the project
area, De Beers' interest in the respective joint venture will rise to 61%.

*   Following completion of a bankable feasibility study, Firestone will
have an option to call on De Beers to provide loan finance to Firestone for its
share of mine construction costs, in return for an additional 4% interest in the
project.

*   De Beers will be the operator for any mines developed by the joint
venture, although mines for which annual production is projected to be below an
agreed threshold will be operated by Firestone, with Firestone receiving a
higher share of the profits from such mines.




For further information:
Philip Kenny, Firestone Diamonds:           +44 20 7370 6452 /  +44 7831 324 645
Leesa Peters, Conduit PR:                   +44 20 7618 8707/   +44 7812 159 885
Jamie Cumming, Bell Lawrie White:           +44 141 314 8103/   +44 776 8044 620


                       Website: www.firestonediamonds.com

Background information:
Mopipi, Botswana

Botswana is the world's largest producer of diamonds, with annual production of
approximately 30 million carats, worth over $2.5 billion and accounting for over
25% of worldwide production by value.  Botswana hosts Debswana's Orapa,
Letlhakane and Jwaneng mines and is considered to be one of the best countries
in the world to explore for kimberlite - the primary source rock for diamonds.
Debswana is owned in equal shares by the Botswana Government and De Beers.


Firestone Diamonds
Firestone is also active in the Namaqualand region of South Africa, one of the
most prolific alluvial diamond producing areas in the world, where the Company
operates the Bonte Koe, Avontuur and Oena mines.  The Company has extensive
exploration properties in Namaqualand, including the Groen River Valley
exploration project, and is also engaged in kimberlite exploration in the United
States.  Firestone is quoted on the London Stock Exchange's Alternative
Investment Market (AIM).


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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