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 worth more than $3 billion. Botswana is the world's largest producer of diamonds by value, with annual production of over 20 million carats worth over $1.6 billion.

Firestones strategy has been to build a portfolio comprising advanced development and production projects to provide sustainable cash flow to fund ongoing exploration programmes and to provide an early return on investment, together with large scale exploration projects which have the potential to yield significant reserves of gem quality diamonds.

The company operates the Avontuur Mine and the Oena Mine of Namaqualand, which produces high quality alluvial diamonds, and has a growing portfolio of advanced and early stage exploration projects in known diamond producing areas in Namaqualand and Botswana.



Since 1996 the company has increased reserves and resources more than thirty two times from 34,000 carats to over 1.1 million carats at present, with an estimated gross value of approximately 260 million. Firestone is debt free and well funded and has a highly qualified management team with extensive experience in the financing and development of diamond and other natural resource projects. Firestone is quoted on the Alternative Investment Market (AIM) of the London Stock Exchange and trades under the symbol FDI.L.

Firestone also has an exploration project in the USA.



Main Mining Pit, Avontuur Mine, Namaqualand, South Africa.






For FDI Corporate information : http://www.firestonediamonds.com/frcorporate.htm

For FDI homepage : http://www.firestonediamonds.com/index.htm

Firestone Dimaonds shares in issue: 65m 20p Ords

Firestone Diamonds PLC - Major Shareholders

Major Shareholders ---- Amount --- % Holding
Elfin Trust Company Ltd 7,200,000 16.68
Aurora Investment Trust 7,200,000 16.68
Gartmore Investment Mgt 5,418,116 12.56

FDI,EPD and AFD all closed up today.

Nice little rise today - downtrend broken as predicted Andy?

queen1,

Looking at the chart, it would appear so, IMHO!

Watch the FT on Monday, it may contain a diamond suplement, and maybe a feature on FDI! Not guaranteed, but it has been suggested that this may be so.



Aldwick,

yes a good day for diamond junior holders!

Thanks, I'll look out for that. Have a good weekend.

Queen1,

Please note the FT diamond feature is on TUESDAY, not tomorrow as I previously stated!

Hope you read this before you buy the paper!

Thanks Andy. Another good start to today.

Well I shouldn't have said that - back to square one.

queen1,

Well we finished +2p, which is fine by me!

There were quite a few private investor size buys in the first hour, which suggests to me that some people were expecting news, or maybe a tipsheet has just tipped FDI?

I feel news must be close, let's hope it's this week, as the momentum that has built up.

Personally, I would take 2p per week for the rest of the year now!

Firestone Diamonds PLC
28 June 2005


Firestone Diamonds plc

Joint venture with De Beers Consolidated Mines Limited on Groen River Valley
project


LONDON: 28th June 2005

HIGHLIGHTS


Establishes joint venture with De Beers Consolidated Mines Limited ('
DBCM') on Groen River Valley exploration project in South Africa

DBCM to earn 61% interest for financing project to completion of
bankable feasibility study

Firestone has option to have DBCM fund mine construction for additional
9% interest

DBCM to contribute minerals rights in the Groen River area to the joint
venture

Two new exploration targets identified

Bulk sampling of HL deposit to be accelerated


Firestone Diamonds plc ('Firestone' or the 'Company') today announces that it
has entered into a joint venture with DBCM over the Company's Groen River Valley
exploration project in South Africa.



The Groen River Valley project is Firestone's most important exploration project
in South Africa. This is due to the fact that the Groen River is the last
major unexplored ancient river system on the west coast of South Africa and that
mining by DBCM and others has proven the presence of diamonds of large size and
exceptional quality in the area. Diamonds from the Groen River Valley are
considered to be similar to or better in quality than those recovered from the
Orange River. Diamonds recovered downstream from the joint venture area at the
mouth of the Groen River have recorded values up to and exceeding $1,000 per
carat. Firestone controls all of the most prospective ground in the lower
reaches of the Groen River, covering an area of approximately 500 square
kilometres.



Joint Venture Terms

Under the terms of the joint venture agreement, DBCM can earn a 61% interest in
the project by financing and carrying out all exploration and evaluation work,
up to completion of bankable feasibility studies on any deposits identified by
exploration in the project area.



Following completion of a bankable feasibility study on any deposit, Firestone
and DBCM will each bear their pro-rata share of mine construction costs,
although Firestone will have the option to call on DBCM to provide loan finance
for Firestone's share of these costs. If Firestone elects to exercise this
option, DBCM will earn an additional 9% interest in the joint venture. DBCM
will also contribute mineral rights that it holds in the Groen River Valley
region to the joint venture, covering an area of approximately 90 square
kilometres. DBCM will retain the right to market any diamonds recovered through
the activities of the joint venture.



Exploration Results

Firestone has carried out a substantial amount of exploration in the Groen River
Valley area over the past ten years, including aerial photography and satellite
imagery interpretation, ground geological mapping, extensive drilling and
sampling of diamondiferous gravels. This work has resulted in the
identification of the palaeo river systems that were responsible for
transporting the diamonds that have been mined near the mouth of the Groen River
by DBCM and others.



DBCM has conducted a comprehensive geological due diligence review on the
results of Firestone's exploration, including the following:

review and interpretation of material recovered from drilling in the
area

geological interpretation of drilling logs and profiles

review of the location and value of diamonds recovered by exploration
in the area, and the grade of the deposits from which the diamonds were
recovered

review of Firestone's palaeo-drainage interpretation for the area



DBCM has also carried out a significant amount of exploration in the Groen River
Valley in recent years, including a Spectrem high resolution airborne
electromagnetic (EM) survey that has been used to generate a detailed 3D model
of the bedrock topography in the area. Based on this model, DBCM has
independently developed its own palaeo-drainage interpretation. This
interpretation is consistent with Firestone's interpretation and confirms that
the area contains a very large resource of potentially diamondiferous alluvial
deposits that may have significant economic potential.



Exploration Plans

DBCM has assumed responsibility for managing exploration and evaluation work and
intends to significantly increase the pace of work on the project. Since the
end of 2004, Firestone has been carrying out exploration drilling on targets
identified by previous exploration and this work will be continued by DBCM.
Data from exploration carried out by Firestone will be combined with DBCM's EM
and other data to produce an integrated geological model of the project area.
DBCM's 3D bedrock topography model will allow the most attractive exploration
targets to be rapidly identified. This work is at an advanced stage and has
already identified two new targets for further exploration drilling.



Evaluation of HL Deposit

The DBCM due diligence review also focused on the very large HL gravel deposit,
which was discovered by Firestone in 2003. The HL deposit is 7 kilometres long
and up to 700 metres wide. Analysis of EM data for the area where the HL
deposit is located and of material recovered from drilling indicates that the
deposit is similar in age and geological setting to the 'Megalodon' deposit
recently discovered by DBCM, which is the largest alluvial diamond deposit
discovered to date in Namaqualand.



As evaluation of the HL deposit will be a high priority for the joint venture,
plans for bulk sampling during the second half of the year are being
accelerated. Results of this work will provide an indication of the grade of
the HL deposit and the value of the diamonds it contains and will allow an
initial evaluation of the economic potential of the deposit to be made. Bulk
sampling will be carried out by using a Bauer specialised large diameter auger
drill, extensively used by DBCM's Namaqualand Mines for sampling of alluvial
deposits. It is expected that by the time the HL bulk sampling programme is
completed, exploration drilling will have identified other deposits for bulk
sampling.



Philip Kenny, CEO of Firestone Diamonds, commented: 'We have believed for many
years that the Groen River has the potential to become a major new alluvial
diamond producing region, and DBCM's interest in the project indicates that they
also recognize the potential for a new, large-scale source of high quality
diamonds. The introduction of DBCM's capability and expertise, and its more
than seventy years' experience in diamond exploration and mining in Namaqualand,
will allow us to accelerate the exploitation of that potential. We are very
pleased to have signed our fourth joint venture with DBCM in the past twelve
months, and we look forward to continuing to develop the growing relationship
between our companies.'



Kerwin Rana, Head of New Business for DBCM , also commented: 'We are pleased to
have concluded yet another value creating partnership with Firestone Diamonds, a
company whose skills and ability we have grown to respect. We look forward to
collaborating on our expertise and technologies to realize the economic
potential of this project.'



The Company expects to be able to update shareholders on progress at its other
projects in Botswana and South Africa and other developments shortly.



For further information:



Philip Kenny, Firestone Diamonds +44 20 7370 6452 / +44 7831 324 645
Leesa Peters, Conduit PR +44 20 7618 8760 / +44 7812 159 885
Jamie Cumming, Bell Lawrie White +44 141 314 8103 / +44 7768 044 620
Website:
www.firestonediamonds.com

Aldwick,

Thanks, and IMHO a really positive and interesting RNS!

A FOURTH JV with De Beers for Firestone, and this time an alluvial one in Namaqualand, S.Africa. Terrific news IMO, and yet the market soaked it up like a sponge, and there was hardly any price movement by the end of the session, merely a 0.5p rise.

I am astonished there is no reaction on this BB, if AFD or NML had issued this they would have overloaded the server with posts!

That's an interesting point Andy. We three intrepid FDI followers seem to be the only one's interested. As an example, I know that you're pretty bullish on Sterling Energy, and I'm a holder, but they've been a dead market for a year now. Yet that BB is full to the rafters with posters every day. Very odd.

Aldwickk,

I have also pasted this on the other BB.


I think the pertinent points of the RNS were these;


DBCM will also contribute mineral rights that it holds in the Groen River Valley region to the joint venture, covering an area of approximately 90 square
kilometres.


Based on this model, DBCM has independently developed its own palaeo-drainage interpretation. This interpretation is consistent with Firestone's interpretation and confirms that the area contains a very large resource of potentially diamondiferous alluvial deposits that may have significant economic potential.


DBCM has assumed responsibility for managing exploration and evaluation work and intends to significantly increase the pace of work on the project.


This work is at an advanced stage and has already identified two new targets for further exploration drilling.


Analysis of EM data for the area where the HL deposit is located and of material recovered from drilling indicates that the deposit is similar in age and geological setting to the 'Megalodon' deposit recently discovered by DBCM, which is the largest alluvial diamond deposit discovered to date in Namaqualand.


Plans for bulk sampling during the second half of the year are being ccelerated.


Kerwin Rana, Head of New Business for DBCM , also commented: 'We are pleased to have concluded yet another value creating partnership with Firestone Diamonds, a company whose skills and ability we have grown to respect.

We look forward to collaborating on our expertise and technologies to realize the economic otential of this project.'

I have been following this thread for a while now as I have held a decent block of shares in this company for quite some time. It seems on this BB that unless the share price is under 30p then ignorance is bliss.

Firestone has to be one of the safest speculation stocks going with very clever management team imho. Real cashflow (and profit!) together with a recognised giant in De Beers now in tow makes for a mouth-watering future.

I think that the footnote to the press release should not be overlooked ..............
"The Company expects to be able to update shareholders on progress at its other
projects in Botswana and South Africa and other developments shortly."

Happy prospecting.

Well said hobbst!

Date: June 30, 2005

De Beers Deal With Firestone Diamonds At Groen River Pinpoints Effectiveness Of Firestones Geological Model.

Firestone Diamonds has announced a joint venture with De Beers at the Groen River Valley exploration project in South Africa. De Beers can earn a 61 per cent interest in the project by financing and carrying out all exploration and evaluation work, up to completion of bankable feasibility studies on any deposits identified by exploration in the project area.

Completion of a bankable feasibility study on any deposit, will incur pro-rata mine construction costs by each party, although Firestone will have the option to call on De Beers to provide loan finance for Firestone's share of these costs. If Firestone elects to exercise this option, De Beers will earn an additional 9 per cent interest in the joint venture. De Beers may also contribute some 90 sq kms of mineral rights in the Groen River Valley region that it already holds to the joint venture.

Over the past 10 years substantial exploration by both parties has resulted in the identification of the palaeo river systems. This included a review and interpretation of material recovered from drilling in the area and carrying out a Spectrem high resolution airborne electromagnetic survey to generate a detailed 3D model of the bedrock topography in the area. The interpretation is consistent from both parties and confirms that the area contains a very large resource of potentially diamondiferous alluvial deposits that may have significant economic potential.

The due diligence review by De Beers also focused on the very large HL gravel deposit, discovered by Firestone in 2003 which is 7kms long and 700 metres wide. As evaluation of the HL deposit will be a high priority for the joint venture, plans for bulk sampling during the second half of the year are being accelerated.

The research department of Ambrian stockbrokers say that Firestone believes it has an intellectual property advantage in the Groen River owing to their long serving and highly reputed geologist Hugh Jenner-Clarke. The brokers think that the proposal that the Groen River could present greater prospectivity than its higher profile northern counterpart the Orange River now has greater credibility following this deal.

They point out that any deal with de Beers necessitates protracted and deeply analytical geological assessment due diligence. It seems that De Beers are not only encouraged by the prospectivity of Firestone's land, but they are very impressed with how well Firestone's geological model matched theirs, incorporating far less sophisticated techniques.

Ambrian welcomes the simplicity of the deal and 'carry' allowing Firestone to proceed at greater speed in the current diamond market. The arrival of a Bauer rig will allow faster resource measurement and makes the brokers comfortable with progress to bankable feasibility in the last half of 2006 on two or three different sites including HL.

In this resource market, diamonds still enjoy the greatest level of positive sentiment along with uranium, copper and oil. Ambrian concludes that with a proven ability to build and operate alluvial projects in Namaqualand, Firestone's attractive cash flow and blue sky balance is now being exploited.



Ambrian is owned by AIM listed Golden Prospect PLC which has a 25 per cent interest in Minesite.






Minesite Archive

Bobbst,

Absolutely agree with you.


Aldwick,

Many thanks for the post.

Mention in today's Independent that:

"brokers tipped Firestone Diamonds to release bullish news about all four of its joint ventures with the industry giant De Beers over the next few months."

Firestone looking good sorry I sold out a while back now. anyone into River diamonds--RVD? can't find a thread for it.

last entry was on 30/1/05 all it had on was the web site
address for river diamondshttp://www.river diamonds.com

This item has appeared on Bloomberg this morning .......

Firestone to Start Mining at Groen River Fron 2007, CEO Says

By Danielle Rossingh
June 30 [Bloomberg} -- Firestone Diamonds Plc, which this week signed a joint venture with De Beers to explore South Africa's Groen River Valley, said it may start mining gemstones there from 2007.
The Groen Valley could be "the jewel in the crown," for Firestone, Philip Kenny, the Leeds, U.K.-based company's chief executive officer, said at a presentation in London today.
The company may begin a bankable feasibility study on the project "towards the end of 2006," Kenny said. The study will take between three and six months. "We can get a mine up there by 2007 at the earliest," Kenny said.
Prices for uncut diamonds may climb 30 percent by 2012 as demand grows faster than producers can mine them, James Picton, an analyst at W.H. Ireland Ltd. who has followed the industry for almost 35 years, said on May 26.
Demand may outstrip supply by as much as $7 billion by 2012, Picton said. The shortfall is more than twice the $3 billion predicted by De Beers, the world's biggest diamond miner.
The imbalance has left Johannesburg-based De Beers, which controls 60 percent of the world's rough diamonds, scrambling to find new deposits. The company, led by managing director Gary Ralfe, said May 10 it will spend C$626 million ($496 million) to build the Snap Lake mine in Canada, its first outside Africa.
The outlook for diamonds is 'remarkably robust," Kenny said. "The challenge now is to find the diamonds,"
The Groen Valley is an unexplored ancient river system on the west coast of South Africa. Diamonds from the valley have exceeded $1,000 a carat, Kenny said. De Beers will be able to earn a 61 percent interest in the project.
Firestone Diamonds shared fell 3.5 pence, or 2.3 percent, to 151 pence as of 1:33p.m. in Londonb, valuing it at 69 million pounds ($124 million). They have risen more than 35 percent this year.

--Editor: A. Brown