Firestone Diamonds [AIM : FDI] issued a positive update on the evaluation of it’s 100% owned Tsabong kimberlite field in Botswana, Southern Africa.
FDI are now undertaking advanced evaluation of 14 kimberlites, including the 180 hectare M1, and 75 Hectare MK31 kimberlites. Encouraging core samples have been found on five of the kimberlites tested thus far, and micro diamond and indicator mineral analysis is under way on these.
Firestone has purchased a £500,000 bulk sampling plant, which is due to be commissioned in Tsabong Town, in November, and commence operations in January 2008. Infrastructure is already in place for the 10 ton per hour plant to operate efficiently. Between 20kg and 30kg bulk samples are planned to be processed during 2008.
Philip Kenny, CEO of Firestone Diamonds, commented: "With 81 kimberlites discovered to date in Tsabong, of which 14 are diamondiferous, the objective for Firestone is to identify and evaluate the kimberlites with economic potential as rapidly as possible. We have made excellent progress in the six months since we commenced our evaluation programme and we now have a much better understanding of the geology of the area and the kimberlites in our portfolio".
This news was well received by the market, with FDI up 1.33%, albeit on low volumes.