Drilling Report
10 Noviembre 2003 - 1:00AM
UK Regulatory
RNS Number:7950R
Firestone Diamonds PLC
10 November 2003
Firestone Diamonds plc
Progress update on Bonte Koe Mine
LONDON: 10 November, 2003
* Independent review of mine development and operating plans completed
* Mining operations projected to produce 158,000 carats over a four year
period, with gross revenue of US$31 million
* Construction of gravel treatment plant due to start in November
* Mining operations due to commence on schedule in first half of 2004
Firestone Diamonds plc ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company, is pleased to provide an update on development
plans for the Bonte Koe Mine in South Africa.
Substantial progress has been made since the announcement of Firestone's plans
to acquire and redevelop the Bonte Koe mine through its black empowerment joint
venture, African Star Minerals (Pty) Limited, earlier this year. Activity has
focused primarily on the completion of the mine development and operating plans.
Firestone's metallurgical consultants, Namaqualand Metallurgical Services,
have recently finalised specifications for the gravel treatment plant, and
following pre-qualification of treatment plant suppliers, a shortlist of
suppliers has been drawn up. A tender for the treatment plant will be issued
shortly and it is expected that plant construction will commence in November.
Ddraig Mineral Developments ("DMD"), a UK-based independent geological and
mining consultancy, was retained to carry out a review of the Bonte Koe project
and to make recommendations in respect of Firestone's proposed mine development
and operating plans. The DMD review covered all aspects of these plans,
including treatment plant design, metallurgical specifications, mining methods,
and mining, exploration and environmental management plans. The report also
included a review of capital and operating costs, diamond resources and cash
flow projections.
The DMD report has been completed and its conclusions and recommendations
support the proposed mine development and operating plans, which have now been
finalised. Based on these plans, a dense medium separation gravel treatment
plant with a capacity of 100 tonnes per hour will be erected at Bonte Koe. This
plant is expected to process approximately 1.5 million tonnes of gravel over a
four year period, producing approximately 158,000 carats, based on an estimated
average grade of approximately 10 carats per hundred tonnes. With an estimated
value for Bonte Koe production of $200 per carat, this implies a gross revenue
of over $31 million.
A detailed environmental management programme report covering rehabilitation of
both historical and planned mining operations has been completed and submitted
to the Department of Minerals & Energy for approval. Planning for the
refurbishment of accommodation, workshop and office facilities and the
re-establishment of power and water supply is also at an advanced stage.
Firestone intends to use an earthmoving contractor for mining operations at
Bonte Koe, and negotiations with contractors have already commenced and are
expected to be finalised in early 2004.
Mr. Philip Kenny, Chief Executive of Firestone, said today: "Bonte Koe
represents a key component of our development plans for African Star Minerals,
and we are very pleased with the progress that we have made over the past few
months. We believe that Bonte Koe has the potential to make a significant
contribution to Firestone's profits and look forward to commencing mining
operations at Bonte Koe in the first half of 2004, as previously indicated. We
also expect our new operations at Bonte Koe to allow us to secure and exploit
new opportunities in the Namaqualand region through African Star Minerals."
For further information:
Philip Kenny, Firestone Diamonds +44 20 7370 6452 /+44 7831 324 645
Leesa Peters, Conduit PR +44 20 7936 9095/+44 7812 159 885
Jamie Cumming, Bell Lawrie White +44 141 314 8103/+44 776 8044 620
Website: www.firestonediamonds.com
Background information
Firestone Diamonds plc is a UK-based international diamond mining and
exploration company with operations in the Namaqualand region of South Africa,
and Botswana. Namaqualand, which is located on the west coast of South Africa,
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 32 million carats,
with a current value of more than $3 billion. Firestone Diamonds operates the
Oena and Avontuur alluvial diamond mines in Namaqualand. Firestone Diamonds'
principal exploration projects are the Groen River Valley alluvial diamond
project in Namaqualand and the Mopipi kimberlite exploration project in
Botswana.
The Bonte Koe mine covers an area of approximately 2,500 hectares along the
Buffels River in the Namaqualand region of the Northern Cape Province of South
Africa, and lies immediately downstream of De Beers' Nuttabooi mine. The
Buffels River 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. Diamonds
recovered from the Buffels River are an average of 0.4 carats per stone, with 90
to 95% being of gem quality.
Previous operations at Bonte Koe produced approximately 180,000 carats from
proto gravel deposits, at an average grade of approximately 44 carats per
hundred tonnes. Firestone's new mining operations will exploit the substantial
resource of proto gravels remaining at Bonte Koe. Bonte Koe also contains a
substantial quantity of lower grade meso gravels, but as these have not yet been
properly evaluated, a resource estimate has not been made for them.
African Star Minerals was established as a strategic joint venture partnership
between Firestone Diamonds and African Star Investments (Pty) Limited, a leading
South African black empowerment group, to acquire and develop new diamond
exploration and mining projects in South Africa. Firestone Diamonds holds a 75%
interest in the joint venture and African Star Investments holds a 25% interest
and an option to purchase an additional 24% at market value.
Ddraig Mineral Developments is a UK-based specialist consultancy that offers
independent geological, mining and technical advice and assists with the
development and financing of minerals projects. The principals of Ddraig
Mineral Developments are accepted as authors of Competent Persons Reports for
various international stock exchanges.
This information is provided by RNS
The company news service from the London Stock Exchange
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