Firestone is a UK-based diamond mining and development company with assets located in Botswana and Lesotho. Firestone commenced production at the BK11 Mine in Botswana in July 2010 and plans to recommence production at the Liqhobong Mine in Lesotho 2011. Firestone also controls a substantial portfolio of diamond exploration and development projects in the Orapa, Jwaneng and Tsabong regions of Botswana.
07/02/12
Operations Update01/02/12
Appointment of Nominated Adviser24/01/12
Holding(s) in Company17/01/12
Board Changes30/12/11
Directorate Change
19/09/11
In an interview with Proactive Investors, Firestone chairman Phillip Kenny stressed that the disappointing outcome of the August auction was merely a case of bad timing, rather than a return to the dark days of the 2008 financial crisis, in which the diamond market ground to a complete halt.
20/07/11
Firestone Diamonds (LON:FDI) attracted favourable broker comment today after it revealed it had recovered high quality diamonds from its Liqhobong mine in Lesotho. Northland, for one, believes the Firestone story is looking increasingly attractive.
05/07/11
Firestone Diamonds said today that recent diamond sales and grade findings underlined its belief that its Liqhobong mine was one of the "most attractive diamond kimberlites" being developed in the industry
09/03/11
Investors may need to look more closely at growth prospects at a company level rather than relying on the momentum of the sparkling diamond price rally. City firm Panmure Gordon reckons diamond prices are due a pause, so it's time to look out for company-specific drivers. Panmure's Alison Turner upgraded Gem Diamonds to 'buy' and here we take a forensic look at some of the market's other players in the diamond sector.
21/07/10
Firestone has emerged as a surprise bidder for rival Kopane. Kopane’s board has unanimously recommended the all-paper deal that values the shares at 17 pence each, or £51 million.
07/02/12
Firestone Diamonds says recent diamond sales confirm continued strong demand17/01/12
Firestone Diamonds chairman Philip Kenny resigns to pursue other business interests05/12/11
UPDATE: Firestone Diamonds chief pleased with fourth sale of the year which rakes in US$2.8 million05/12/11
Firestone Diamonds chief pleased with fourth sale of the year which rakes in US$2.8 million14/11/11
Firestone Diamonds steadily increasing production; on track for 1 mln carats/yr by 2014
06/06/2011
01/06/2011
27/08/2010
26/08/2010
08/09/2009
Firestone is a diamond mining and development company with assets located in Botswana and Lesotho.
Firestone's principal asset is the Liqhobong project in Lesotho, where a substantial resource of over 90 Mt at an average grade of 34.3cpht containing 31 million carats has been identified at the Main Pipe. Small scale production was carried out at the Satellite Pipe using up to December 2008, when mining operations were suspended due to the sharp fall in diamond prices at that time. Firestone's focus is on recommencing production on the Main Pipe using the existing plant at Liqhobong in 2011, and the completion of a definitive feasibility study ("DFS") for a major plant expansion.
Preliminary results from the DFS, which is now at an advanced stage, indicate that the Main Pipe is likely to support a substantial, long life mining operation. Liqhobong is the third largest undeveloped kimberlite resource as measured by contained carats (after the Gahcho Kue and Star kimberlites in Canada), and the fourth largest as measured by tonnes (after the Star and Orion South kimberlites in Canada and the Gope kimberlite in Botswana). With capital costs for Liqhobong expected to be significantly lower than for these other projects Liqhobong is considered by the company to be one of the most attractive undeveloped kimberlites in the world.
Firestone has assembled a substantial portfolio of diamond projects in Botswana and recently commenced production at its BK11 kimberlite in the Orapa region. Firestone's achievement in commencing production in just over three years from being granted a prospecting licence for BK11, and less than nine months after the decision was made in December 2009 to proceed with mine development, demonstrates Firestone's significant capabilities in evaluating and developing kimberlite projects.
Firestone has a further 107 kimberlites in its Botswana portfolio, of which 29 have been proven to contain diamonds to date. Firestone intends to use cash flow from BK11 to accelerate the evaluation of these kimberlites with the objective of identifying additional resources that can be developed and brought into production.
Map of Firestone Diamonds Current operations
Botswana Projects
BK11 Kimberlite, Orapa, Botswana
The BK11 kimberlite is located in the Orapa kimberlite field in northern Botswana. With eight economic kimberlites out of the 75 kimberlites discovered in the field to date and a new mine being developed by African Diamonds plc in joint venture with De Beers, the Orapa field has an economic ratio of more than 10%, which is significantly higher than the global average of 1%. The Orapa Mine produces approximately $1 billion in revenue and $800 million in operating profit per annum, and is one of the richest diamond mines in the world.
BK16 Kimberlite, Orapa, Botswana
In June 2008 the Company entered into an agreement with SouthernEra under which it can acquire an 87.5% interest in the BK16 kimberlite in return for carrying all costs to completion of bankable feasibility. It is situated approximately 22 kilometres north east of BK11 and 12 kilometres north of the Letlhakane Mine. It was discovered by De Beers in the 1970's and a grade of 15 cpht was reported from bulk sampling.
Tsabong, Botswana
The Tsabong kimberlite field is located in south western Botswana, approximately 280 kilometres south west of the Jwaneng Mine, which is the world's most profitable diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum. The Tsabong project extends over an area of approximately 7,400 square kilometres, and covers the entire Tsabong kimberlite field.
Aeromagnetic survey of the central Tsabong area
Image of the Tsabong town (Right Image) Image of Core drilling mk1 March 2007 (Left Image)
Orapa Exploration
Firestone controls prospecting licences over an area of approximately 10,000 square kilometres in the Orapa region. These licences contain eight known kimberlites, of which four have been proven to be diamondiferous. Firestone owns a 100% interest in these prospecting licences.
Right image of the Orapa Mine, Left Image of the Kimberlitic indicator minerals
Jwaneng, Botswana
Firestone holds prospecting licences over a total of approximately 6,000 square kilometres in the Jwaneng area. The Jwaneng Mine is the world's biggest diamond mine, producing over $2 billion revenue and over $1.8 billion operating profit per annum. The area covered by the Jwaneng prospecting licences has recently been surveyed for the first time using modern high resolution airborne and ground geophysical exploration techniques and is considered prospective for the discovery of new diamondiferous kimberlites. Firestone owns a 100% interest in these prospecting licences.
Right Image of the Jwaneng Mine, Left Image of the Zeppelin airship Jwaneng
South Africa Projects
The Bonte Koe Mine, South Africa
The Bonte Koe mine covers an area of approximately 25 square kilometres along the Buffels River in Namaqualand, a region that has been a significant diamond producing area for the past 40 years. Mining operations in the area have produced an estimated total of over 3 million carats, with an estimated current value of over $750 million. The Buffels River area produces diamonds with an average size of approximately 0.4 carats per stone and a value of over $200 per carat.
Right Image of the Bonte Koe Diamonds, Left Image of the Processing Plant
Groen River Valley
The Groen River Valley exploration project covers an area of approximately 500 square kilometres of the lower reaches of the Groen River in Namaqualand. A considerable amount of prospecting has been carried out by Firestone, resulting in the identification of the palaeo river systems which were responsible for transporting the diamonds of large size and high quality that have been mined near the mouth of the Groen River by De Beers and other operators. Firestone owns a 100% interest in the Groen River Valley project.
Right Image of the Groen River Valley diamonds, Left Image of the Groen River Valley drill samples
Alluvial Mining and Exploration Projects
Following the decision to focus the Company's exploration and development activities on its kimberlite projects in Botswana, the Company decided to seek expressions of interest in relation to the sale or joint venturing of its alluvial projects in South Africa. A number of discussions have been held with interested parties, but no agreements have been concluded yet.
Oena
The Oena Mine is located on the lower Orange River in a well established diamond producing area which produces diamonds comparable to the best in the world, typically selling at prices over $1,500 per carat. The Oena mining lease covers 89 square kilometres, and extends along 15 kilometres of the Orange River. Oena is located upstream of the Auchas Mine, operated by De Beers, and the Baken Mine, operated by Trans Hex, South Africa's second largest diamond producer.Firestone owns an 87.5% interest in the Oena Mine.
For More, in depth Information on Firstone Diamonds please click here
Directors and senior management
Firestone has a highly qualified management team with extensive experience in the exploration, evaluation and development of diamond projects.
Philip Kenny, B.E., M.B.A., Executive Chairman
Philip Kenny is a graduate in Mechanical Engineering from University College, Dublin, and holds postgraduate qualifications in Engineering from Trinity College, Dublin and a Master of Business Administration in Finance from Boston College, Massachusetts. He has twenty five years' experience in the mining and oil and gas sectors in Europe, Africa and the US, and has worked for more than twelve years in the diamond mining and exploration business.
Tim Wilkes, B.Sc., Chief Executive Officer
Tim Wilkes is a graduate in geology from Kingston University, England and has over 26 years experience on kimberlite and alluvial diamond exploration, evaluation and mining projects worldwide. He spent 18 years with De Beers, where he was General Manager - Mineral Resource Management with responsibility for the management of De Beer's mineral resource portfolio worldwide, and was the Competent Person responsible for the evaluation, classification and reporting of the company's mineral resources and reserves. He is a member of the sub-committee for diamonds of the South African Mineral Resource Committee (SAMREC).
Angus Ogilvie, BCompt, Finance Director
Angus Ogilvie is a graduate in Accounting Science from the University of South Africa. He has thirteen years' experience in the mining sector in Africa, including five years with Debswana and three years with Stellar Diamonds plc. Mr Ogilvie has worked as an accountant in Botswana for Debswana and Botswana Ash and in South Africa for Deloitte, Dunlop and Wilkinson Sword. He has also worked in the UK as a stockbroker for Edward Jones and in senior financial management roles for companies including Elsevier, Beko and Siemens.
James Kenny, B. Comm., M.B.S., Non-executive Director*
James Kenny holds a Bachelor of Commerce (Honours) and a Master's Degree in Finance from University College, Dublin. He has over 20 years' investment banking and corporate experience in the natural resources sector, He has worked in corporate finance in Natwest and is a former Director of ABN AMRO Corporate Finance and ABN AMRO Rothschild. He was the founder and former Chief Executive of Evolution Capital Limited, now part of Evolution Securities Plc and is currently Chief Executive of Frontier Rare Earths Limited.
Michael Hampton, B.A., Non-executive Director *
Mike Hampton holds a Bachelor of Arts degree from Harvard University. He has an extensive background in financing in the mining, commodities and shipping sectors. He spent 20 years at Chase Manhattan Bank and Swiss Bank in New York, Hong Kong, London and Chicago and has been involved in raising start-up and development capital for clients in the mining sector for over 15 years.
William Douglas Baxter, M.A., M.A.I., Non-executive Director
Doug Baxter holds a Masters degree in Engineering from Trinity College, Dublin, and is a Fellow of both the Institution of Civil Engineers of Ireland and of the Institution of Civil Engineers (UK). He has over 35 years experience with Ove Arup & Partners and other companies in major engineering projects in Europe, Asia, the Middle East and Africa.
Paul Sobie, B.Sc., P.Geo., Non-executive Director
Paul Sobie is a graduate of Laurentian University, Sudbury, Canada. He is an economic geologist specializing in the exploration and evaluation of diamond deposits, which included the initial economic evaluations of the Liqhobong kimberlites in Lesotho. He has over 20 years' professional experience, including extensive project development for clients in both the junior and senior mining sectors and with a particular focus on Southern Africa. He is currently President and Managing Partner of MPH Consulting Limited of Toronto, Canada, an international mineral exploration, geological and geophysical consultancy. He is a practising member of the Association of Professional Geoscientists of Ontario.
* - Member of the Remuneration Committee
For More Infomation on Firestone Diamonds Mangement please click here
Advisers & registrars details
Joint Nominated Brokers
Evolution Securities Limited
100 Wood Street
London EC2V 7AN
Mirabaud Securities LLP
21 St James's Square
London SW1Y 4JP
Nominated Adviser
Brewin Dolphin Securities Limited
48 St. Vincent Street
Glasgow G2 5TS
Registrars
Capita Registrars
Northern House
Woodsome Park, Fenay Bridge
Huddersfield
West Yorkshire HD8 0lA
Auditors
PKF (UK) LLP
Farringdon Place
20 Farringdon Road
London EC1M 3AP
Solicitors
LG
4 More London Riverside
London
SE1 2AU
PR Consultants
Conduit PR
76 Cannon Street
London EC4N 6AE
Company Secretary
Pinsent Masons Secretarial Limited
1 Park Row
Leeds LS1 5AB
Company contact details
UK Office:
Firestone Diamonds plc
The Triangle
5-17 Hammersmith Grove
London
W6 0LG
Tel: +44 (0)20 8741 7810
Fax: +44 (0)20 8748 3261
info@firestonediamonds.com
Botswana Office:
Postal Address:
PO Box ADD 615 Kgale Postnet, Gaborone
Physical Address:
Suite 212
The Atrium; Diamond Technology Park
Plot 67782
Block 8 Industrial Gaborone
Botswana
Tel: +267 (310) 5307
Fax: +267 (310) 5308
Registered Address:
Firestone Diamonds plc
1 Park Row
Leeds LS1 5AB
Registered Number
3589905
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