News

November 18, 2009

Firestone Diamonds Stands On Threshold Of Primary Kimberlite Production In Botswana

By Charles Wyatt

Decisions likely to be made in the next three to four months look set to determine the future of Firestone Diamonds as a producer of diamonds from kimberlite sources. Kimberlite is a type of volcanic rock known sometimes for containing diamonds in grades and values economic to mine. Note the word ‘sometimes’, as a lot of kimberlite pipes do not contain enough of either, and it can be an expensive process going through all the exploration work that’s required to come to this conclusion. That’s why some companies go for the alluvial stones that lie on the gravel beds of ancient rivers, where they have been transported by weathering, often many miles from their origin. Such diamonds are easy enough to mine, but the grades per tonne are rarely consistent, and it is difficult to estimate a resource with any accuracy. Philip Kenny, chief executive of Firestone, admits that this lesson has been learned by his company, though the money generated in the good times has been more than useful.

At the turn of last year De Beers withdrew from participation in Firestone’s Bonte Koe toll treatment alluvial project in South Africa, even as diamond prices sank. The best things can happen at the worst of times, as Firestone was paid £2.3 million in compensation and the plant, which had originally been assembled years earlier at its Avontuur mine, came back into its hands. And it’s the addition of this plant to the pilot plant already operating at the BK11 kimberlite in Botswana that should...