Firestone Diamonds Plc
Monday, July 30th, 2007
Firestone Diamonds announces an update at its BK11 kimberlite field, Botswana
– Ground gravity and ground magnetic surveys completed
– Estimated size of kimberlite increased from 6.5 to 8.0 hectares
– Core drilling under way
– Approximately 1,800m of drilling completed
– Geological modeling in progress
– Bulk sampling results expected in Q4 2007
– 100 tonne large diameter drill sample planned
In March 2007 Firestone’s 80% owned Botswana subsidiary, Monak Venture (Pty) Limited, was awarded a prospecting licence for the BK11 kimberlite. BK11 is located approximately 20 kilometres south east of De Beers’ Orapa Mine and 7 kilometres north west of De Beers’ Letlhakane Mine. Previous work on BK11 has produced grades of up to 16 carats per hundred tonnes. The Company commenced a detailed evaluation programme on BK11 in April 2007.
Philip Kenny, CEO of Firestone Diamonds, commented: “We have made excellent progress in the four months since being awarded the licence for BK11, which we consider to be a very prospective kimberlite. We expect to continue to make rapid progress with our evaluation programme, and look forward to results from our first bulk sample, which are expected to be available in Q4 2007.”
High resolution ground gravity and magnetic surveys were conducted over BK11 during Q2 2007. Interpretation of data from these surveys indicates that the surface area is likely to increase to 8 hectares, compared to the Company’s initial estimate of 6.5 hectares. This would significantly increase the near-surface tonnage available on BK11. More detailed geophysical surveys, delineation drilling and geological modelling will be required to confirm the size estimate, and this work is currently under way.
Following the completion of geophysical surveys, a programme of 2,500 metres of vertical and angled core drilling commenced. Core logging and geological interpretation are being carried out by the Company’s geological personnel and reviewed by independent consultants. Approximately 1,800 metres of drilling have been completed to date, and logging of these holes has shown that crater sediments are present overlying the diatreme kimberlite, which provides further evidence that the kimberlite is larger than originally estimated.
Samples of the core are being submitted for kimberlite indicator mineral (“KIM”) and petrographic analysis at Mineral Services’ laboratories in Cape Town and for microdiamond analysis at MSA laboratories in Johannesburg. Results from these analyses will be combined with logging of the core holes to develop a detailed 3D geological model of the kimberlite.
The Company plans to carry out large diameter drill (“LDD”) bulk sampling on BK11 in order to establish a representative grade for the kimberlite and to recover sufficient macro diamonds to provide an estimate of the diamond value. A specialised LDD rig which is capable of drilling 24 inch diameter holes to a depth of 500 metres will be used. An initial 100 tonne LDD mini bulk sample will be carried out, results of which are expected to be available in Q4 2007. Subject to the results of this work, additional LDD sampling and resource delineation work will be undertaken in 2008.