Firestone Diamonds
Firestone Diamonds plc is an international diamond mining and exploration company with operations in Botswana and South Africa, which are the world's largest and fourth largest producers of diamonds, respectively, and the lowest cost producers among major diamond producing countries. Firestone has extensive interests in Botswana, which produces over 34 million carats per annum, worth over $3.5 billion. Botswana is considered to be one of the top countries in the world to explore for kimberlite - the primary source rock for diamonds.
Firestone is the largest holder of exploration rights around the Orapa Mine, including the BK11 evaluation project, and around the Jwaneng mine. In addition, De Beers has entered into joint ventures with Firestone over some of Firestone's ground holdings in the Orapa and Jwaneng areas. The company also holds exploration rights over the entire Tsabong kimberlite field in south-west Botswana, which is one of the largest diamondiferous kimberlite fields in the world.
Firestone is also exploring for kimberlite in the US on the Laurentia craton, which extends into Canada, where it hosts a number of diamondiferous kimberlite deposits.
Firestone's mining operations include the Bonte Koe, Avontuur and Oena Mines, which are located on the west coast of South Africa, in Namaqualand. Namaqualand has been one of the world's largest alluvial diamond producing regions for the past 60 years, with total production to date estimated to be worth more than $3 billion. Firestone has entered into a mining joint venture with De Beers at the Bonte Koe Mine, which provides the company with guaranteed cash flow for processing gravel mined by De Beers in the area surrounding Bonte Koe.
Firestone Diamonds ploughs ahead with kimberlite evaluation programs
Firestone Diamonds, the diamond mining and exploration company announced significant progress in its evaluation work on the BK11, BK16 and Tsabong projects in Botswana.
At the BK11 kimberlite, which is located only 20 kilometres south-east of Debswana’s Orapa Mine and 5 kilometres north-east of African Diamonds, Firestone stated that additional drilling and bulk sampling is ahead schedule. The importance of BK11 has increased considerably to the company since encouraging results were released earlier this year suggesting the project could be economically viable.
Since July, Firestone has completed 14 of an 18 drill program for 1,700 metres of core. Some 1,000 tonnes of kimberlite will be recovered, including core from four large diameter drill (‘LDD’) holes, will then be sent to the company’s bulk sampling plant at Tsabong. The company has also built a diamond recovery facility at Gaborone which will process the diamond concentrate from BK11.
Results from the bulk sampling are expected before the end of the year, and Firestone added that subject to results, it would consider accelerating the development decision of BK11 to the first quarter of 2009, with first production as soon as 2010 at a projected rate of 1 million tonnes per annum.
“Significant progress has been made on the scoping study for the development of a new mining operation to exploit BK11 and other kimberlites in the Orapa area. The Company is now evaluating the feasibility, subject to the results of the next stage of bulk sampling, of accelerating a development decision,” the company said.
Additional results are also expected from the nearby BK16 kimberlite, with LDD drilling and bulk sampling beginning this month. Results are expected in the first quarter of 2009, and could add significantly to the development of BK11 as both pipes are within trucking distance of one another.
Meanwhile, at the company’s exploration ground at Tsabong, modification to the bulk sampling plant is now complete, and working its way through some 36 tonnes of material from the MK1 kimberlite.
Results are expected before year end. Also in the Tsabong Kimberlite Field, a 214 kilogram core sample taken from the MK38 pipe recovered 55 microdiamonds. Firestone stated that the preliminary estimate from the macrodiamond analysis suggested a potential grade of 25 to 30 carats per hundred tonnes, but required a larger sample to increase confidence. A further 60 tonnes of material is being processed, and additional LDD drilling is ‘planned’.
LDD drilling has also been completed on four other Tsabong kimberlites, with the concentrate awaiting sorting at Gaborone.
Philip Kenny, CEO of Firestone Diamonds, summarised, “We have made excellent progress in Botswana over the past three months. In particular, we continue to be excited about BK11, where we believe we are close to confirming its economic potential. Our primary focus in the coming months is to complete evaluation work on BK11 as soon as possible, with the objective of accelerating a mine development decision to early 2009. Work at Tsabong is progressing well and we continue to believe that the prospects for identifying economic kimberlites in the area are good.”
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Other Firestone Diamonds news
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28/01/10 Firestone Diamonds plans to evaluate kimberlites at Orapa in Botswana after historical data review
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21/01/10 Firestone Diamonds upbeat about BK11 diamond project in Botswana
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21/12/09 Firestone Diamonds acquires up to 85% interest in Orapa and Francistown kimberlite licenses in Botswana
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16/11/09 Evolution retains ‘buy’ rating for Firestone Diamonds, target price reduced due to Jwaneng delays
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13/11/09 Firestone Diamonds FY revenues rise 22%, talks over Jwaneng plant and kimberlites development in Orapa ongoing
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25/09/09 Firestone Diamond Makes Progress in Botswana, Key Developments Expected by Years End
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08/07/09 Firestone Diamonds raises £7.2 mln in placing, Botswana operations making progress
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31/03/09 Firestone Diamonds extends gains after interims report
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30/03/09 Firestone Diamonds indentifies higher grade diamond zone at BK11 kimberlite
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27/03/09 Investors push Firestone Diamonds higher on Tsabong Kimberlite Project update