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 AIM; FDI
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Company Statement
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 and BK16 evaluation projects, and around the Jwaneng mine. 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 and is viewed as the leading project for the Company. Exploration carried out to date has identified 81 kimberlites, of which 17 have been proven to be diamondiferous. Tsabong is noted for the exceptionally large size of many of its kimberlites, in particular the 180 hectare MK1 kimberlite, which is one of the largest known diamondiferous kimberlites.
Firestone has a highly qualified management team with extensive experience in the exploration, evaluation and development of diamond projects. Firestone is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol FDI.L.
Current Operations
Botswana
BK11 Kimberlite, Orapa - Highlights
- Substantial progress made with bulk sampling
- 250,000 tonnes mined since July
- Mining target of 325,000 tonnes to be reached in October 2009
- Mining rate of 5,000 tones per day achieved - Pilot production plant fully operational
- Concentrate sorting and diamond recovery being undertaken in Gaborone
- Mine development decision expected to be made in Q4 2009
The Company expects to be in a position to make a decision to commence mine development based on the results of this work in Q4 2009, as planned, subject to which production is expected to commence in mid 2010.
BK16 Kimberlite, Orapa
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
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.
Orapa
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.
Jwaneng
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.
South Africa
The Bonte Koe Mine
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.
Firestone used its plant and infrastructure at Bonte Koe to process gravel mined by De Beers on a toll-treatment basis until the end of 2008. The plant and infrastructure are currently being refurbished for use at the company's BK11 kimberlite development project in Botswana.
Alluvial Mining and Exploration Projects
Alluvial Mining and Exploration Projects, South Africa
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.
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.
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.
Substantial progress made with bulk sampling - 250,000 tonnes mined since July - Mining target of 325,000 tonnes to be reached in October 2009 - Mining rate of 5,000 tones per day achieved
Geographical Spread
Botswana – kimberlites; South Africa - alluvial diamonds
Board of Directors and Key Management
| James F Kenny | Chairman |
| Philip Kenny | Chief Executive Officer |
| Tim Wilkes | Chief Operating Officer |
| Jan Louw | Director of Operations |
| Hugh Jenner-Clarke | Director |
| James Kenny | Director |
| Michael Hampton | Non-executive Director |
| William Douglas Baxter | Non-executive Director |
Company Address26-28 Hammersmith Grove
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Additional Address/Key ContactRegistered Address |
CapitalShares in issue: 97,605,674 |
Annual General MeetingJanuary | Year EndJune 30 |
Nominated BrokersEvolution Securities Limited | Nominated AdvisorsBrewin Dolphin Securities Limited |
Major Shareholders
| Shareholder Name | Amount | % Holding |
| Blenheim Trust Company Limited | 7,450,000 | 13.36 |
| Aurora International Investments Limited | 7,200,000 | 12.91 |
| AXA S.A | 5,781,018 | 10.37 |
| JP Morgan Asset Management | 9,824,536 | 10.07 |
| Gartmore Investment Management Plc, Gartmore Investment Limited and Gartmore Fund Managers Limited | 6,835,549 | 7.00 |
| Artemis Investment Management Limited | 1,805,000 | 2.93 |
Related News
15/03/10 - Firestone Diamonds Is Just A Few Months Away From Generating Its First Cashflow From Kimberlite Mining18/11/09 - Firestone Diamonds Stands On Threshold Of Primary Kimberlite Production In Botswana
14/07/09 - Firestone Diamonds Swaps One Discount For Another, But Is Now Fully Funded To Production From The BK11 Kimberlite Pipe
03/03/09 - Firestone Diamonds Is Just A Signature Or Two Away From Locking Down Hundreds Of Millions Of Dollars In Future Revenues
21/08/08 - On The Ground In Botswana With Firestone Diamonds And DiamonEx: Good Progress, But De Beers Casts A Long Shadow
14/04/08 - A Rollercoaster Ride Or A Long And Winding Road? The Shape Of The Future For Firestone Diamonds Hangs On The MK1 Kimberlite
Most Recent Statement
15/03/10 - Secondary listing on Botswana Stock Exchange12/03/10 - Selected by Namdeb for new toll treatment project
28/01/10 - Orapa joint venture update
14/01/10 - Employee Incentive Scheme Share Issue
12/01/10 - Firestone Ventures Acquires Antelope Zinc-Lead-Silver Oxide Property, Nevada
21/12/09 - Botswana Joint Venture Agreement Signed