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

Aldwick,

Thanks, but you missed one!

Firestone Diamonds PLC
15 July 2005

Orapa and Mopipi Joint Venture Projects in Botswana
Evaluation and exploration update


LONDON: 15 July 2005

HIGHLIGHTS

Microdiamonds recovered from kimberlites AK21, AK22 and AK23 in
Orapa Project area

Bulk sampling under way on AK21, AK22 and AK23 to test for
macrodiamonds

Kimberlite discovered on two targets in Mopipi and Orapa Project
areas, bringing number of kimberlites in the project areas to six

Firestone Diamonds plc ('Firestone' or the 'Company') is pleased to announce an
update on its Orapa and Mopipi kimberlite exploration projects in Botswana,
which are being explored by De Beers in joint venture with the Company.

Evaluation Results

In February 2005, the Company announced that three kimberlites had been
discovered in the Orapa Project area, approximately 15 kilometres south of
Debswana's Orapa Mine. Since then, detailed high resolution ground geophysical
surveys and drilling have been carried out on these kimberlites to provide an
initial estimate of their size. Samples of material recovered from drilling
have been processed at De Beers' laboratories in South Africa and all three
kimberlites have been proven to contain microdiamonds. Details of the results
from this initial work are as follows:


Kimberlite Estimated size Depth of Microdiamonds
(Hectares) overburden (m) recovered

AK21 (formerly known as X765) 3 65 3

AK22 (formerly known as X776) 3 (see note) 10 19

AK23 (formerly known as X777) 3.5 (see note) 10 197


Note: A drill hole between AK22 and AK23, which are 350 metres apart,
intersected kimberlite from a depth of 11 metres to 49 metres, indicating that
the two kimberlites coalesce close to surface. This provides a much larger area
of kimberlite close to surface, of approximately 9 hectares in size.

Proving the presence of sizeable new diamondiferous kimberlites close to the
Orapa Mine is a significant milestone for exploration in the area. On the basis
of these results, it has been decided to take bulk samples from all three
kimberlites to test for the presence of macrodiamonds. Four 12 inch diameter
holes will be drilled on each kimberlite to provide approximately 100 tonnes of
material for testing. In addition, a single 17 inch diameter hole will be
drilled to depth in the centre of each kimberlite. This material will be
processed at De Beers' macrodiamond laboratories in South Africa, and the
results will allow initial estimates of the macrodiamond grade and value for
each kimberlite to be made. Bulk sampling was recently completed on AK22 and is
in progress on AK23. Results of this work are expected to be available by the
end of the year.

Exploration Results

Thirty four new geophysical targets have been drilled in the Orapa Project and
Mopipi Project areas this year, and kimberlite was intersected on two of these
targets.

One of the targets is a new kimberlite, known as BK53, which is located in the
Mopipi Project area, approximately 10 kilometres north of the Letlhakane Mine.
Kimberlite was encountered at a depth of twelve metres, beneath a cover of
Kalahari sands and Kalahari calcrete. The hole remained in kimberlite to a
depth of 92 metres, where it entered Karoo sandstone. The hole was terminated
in Karoo sandstone at a depth of 113 metres.

On the other target where kimberlite was intersected, kimberlite was encountered
at a depth of 36 metres, beneath a cover of Kalahari sands, Kalahari calcrete
and basalt. The hole remained in kimberlite to a depth of 169 metres, where the
hole was terminated. This kimberlite is now believed to be part of the AK21
kimberlite.

These discoveries bring the number of kimberlites in the Orapa Project and
Mopipi Project areas to a total of six. Material recovered from drilling has
been dispatched to De Beers' laboratories in South Africa for processing to
recover kimberlitic indicator minerals and microdiamonds.

Geophysical surveys and exploration drilling are continuing in both project
areas. A number of follow up ground and airborne geophysical surveys have been
conducted over the past six months, in order to provide higher resolution data
in selected target areas where the presence of basalt has affected the quality
of data acquired from previous geophysical surveys. Ten targets are currently
at a drill-ready stage, and final geophysical interpretation and evaluation are
being carried out on an additional 32 targets.

Philip Kenny, CEO of Firestone Diamonds, commented today: 'We are very pleased
with the progress that De Beers has made with the Mopipi and Orapa joint venture
projects over the past twelve months. Given the fact that more than 10% of the
75 known kimberlites in the Orapa region are economic, we continue to believe
that the potential for new economic discoveries in the Orapa area is very good,
and look forward to further results from ongoing exploration and evaluation work
in the area over the coming months.'


For further information:

Philip Kenny, Firestone Diamonds: +44 20 7370 6452 / +44 7831 324 645
Leesa Peters, Conduit PR: +44 20 7618 8707/ +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 an international diamond mining and exploration
company with operations in South Africa, Botswana and the United States.
Firestone is quoted on the London Stock Exchange's Alternative Investment Market
(AIM), and trades under the symbol FDI.L.

Firestone has extensive diamond exploration interests in Botswana, which is the
world's largest producer of diamonds, with annual production of approximately 30
million carats, worth over $2.5 billion.

Firestone's interests in Botswana are as follows:

The Orapa and Mopipi Projects, which cover an area of approximately
4,900 square kilometers, are located close to the Orapa and Letlhakane
diamond mines and are being explored by De Beers in joint venture with
the Company.

The Jwaneng Project, which covers an area of approximately 3,700
square kilometers, is located close to the Jwaneng Mine and is being
explored by De Beers in joint venture with the Company.

The Daly City joint venture project covers an area of approximately
380 square kilometers and is located close to the Orapa and Letlhakane
diamond mines. The Company is in the process of earning an 81%
interest in this project.

Firestone also has extensive diamond mining and exploration interests in
Namaqualand, which is located on the west coast of South Africa and has been one
of the world's largest alluvial diamond producing regions for the past seventy
years, with total production to date estimated to be worth more than $3 billion.

Firestone's mining operations in Namaqualand include the Bonte Koe, Avontuur and
Oena Mines, all of which produce high quality alluvial diamonds, and a growing
portfolio of early stage and advanced exploration projects. In June 2005, the
Company entered into a joint venture with De Beers over the Company's Groen
River Valley exploration project, under the terms of which De Beers can earn a
61% interest in the project by financing all work up to completion of bankable
feasibility studies on the project.

Firestone also has a large scale kimberlite exploration project in the United
States. In 2004 the Company entered into a joint venture with American
Diamonds, which is in the process of earning a 60% interest in the project.


This information is provided by RNS
The company news service from the London Stock Exchange

Guys, this all sounds very promising and the sp has inched up today. Any views on where FDI maybe by the end of the year?

queen1,

the honest answer is higher than now, but I couldn't hazard a guess to how much higher, there are too many unknowns.

Many people on BB's pull figures out of the air, and multiply by as many as they like, I don't do that.

Today's new was, IMO, VERY positive, and it looks like FDI is building itself up to become a mid tier diamond producer in the mid term, and I think it will reward holders within the next one to three years.

The next key event is to put some numbers and grades to the Groen River, and the Botswanan kimberlite projects, then we may have a better idea.

The bankable feasability study for the Groen River is Q3 2006, so some time to wait before it's totally confirmed, but I feel we may here some preliminary numbers later this year.

The Botswanan kimberlite drilling is clearly continuing apace, and the discovery of microdiamonds is an excellent start, and they also slipped out that they now have SIX kimberlites, rather than the three they stated in the February RNS!

The Trans Hex deal looks exceptional, and the fact that the Avontuur mine can be utilised, giving economies of scale. I feel Avontuur is about to become a major mine, at least in revenue generating terms, and we cannot ignore the potential of this mine, especially as the marine gravels can give high carat yields.

The only slight negative was that Bonte Koe is currently not producing the grades and stones they were expecting, but I have confidence that they will improve, as alluvial mining is always tricky, and is at best hit and miss at times.

It does look as though 2006 will see a quantum leap in earnings, and FDI is rapidly becoming a larger and more serious company, and is the creme de la creme of the AIM diamond stocks IMHO.

What a great finish to the week!, good weekend all,

Andy.

Andy, thanks as always for your detailed and informative reply. Am looking forward to riding the FDI express with you!

Queen1,

All aboard!

Splendid!!!

queen1,

Interesting comment from today's Guardian!


-------------------------------

keep an eye on Aim-listed African Diamonds. Its shares eased 0.5p to 55.5p yesterday but market professionals believe disaffected shareholders, who control around 20% of the company, have approached rival Firestone Diamonds, 1p higher at 155.5p, with an offer to sell their shares.

African Diamonds and Firestone both have diamond projects in Botswana and also have joint ventures to develop their respective concessions with De Beers, the dominant player in the diamond industry.

Commenting on the rumours John Teeling, chairman of African Diamonds, said: "I have not been approached by Firestone but the speculation makes sense, given the value of our discoveries to date."


-------------------------------

Yes, very interesting. In your opinion Andy would this be a smart move should they act? I can see obvious reasons for making an approach but it could also be potentially detrimental in the short-term by creating a distraction from the very real day-to-day business of their existing operations.

queen1,

With regard to your comments made in the previous post, I agree with you completely, it WOULD (IMHO) be a distraction, and I would prefer to see FDI stay focussed on their core projects of Groen River and Botswana.

In addition, I cannot see John Teeling, who is shrewd, giving FDI any deal that would give value away, so I would prefer to see FDI continue to do what they do best, exploration.

Queen1,

This article has been posted today on Mineweb.com.
============================================

Decision on Firestones Groen River Valley next year
By: Gareth Tredway
Posted: '11-AUG-05 07:59' GMT Mineweb 1997-2004

GABORONE (Mineweb.com) -- Firestones Groen River Valley alluvial exploration project, which De Beers recently entered into as joint venture partner, could be at board decision level by next year.

Speaking at the Botswana Resource Conference on Wednesday, Firestones chief executive, Philip Kenny, says that once the exploration and drilling results yield a certain level of confidence, a decision will be made.

By the middle of next year, this is where we expect the project to be, and this is the stage where De Beers decides whether to build a mine or not, Kenny told delegates.

De Beers already mines extensively along the west coast of South Africa and Namibia, including at the mouth of the Groen River. But Kenny says Firestones large tenement inland is unexplored.

This is a multi-million carat, multi billion-dollar potential resource, said Kenny.

So far, with De Beers, 13 deposits have been identified in the area, while initial estimates are expected in the next couple of months on what is in the ground.

At this point we can say it is in the multi-100 million ton order of magnitude, says Kenny, say a 200-300 million ton resource.

We do think that, if we are right, there will be a number of mines in this area.

Firestone already operates the Avontuur and Oena Alluvial mines in Namaqualand, on the west coast of South Africa.

The company also has JV agreements with De Beers in Botswana, on the Orapa and Mopipi exploration projects.

There are also news reports out of London, that Firestone is in talks with large shareholders in African Diamonds, another Botswana diamond explorer, to buy its holdings in the company.

African Diamonds is also in a JV deal with De Beers in the Orapa area.

Queen1,

A brief mention in Shares today!

---------------------------------

Diamonds -

Miners just cant dig diamonds as quickly as the market wants and there is no sign that the production shortfall will disappear. Williams de Bro Tomlinson thinks that rough diamond prices could rise by 15% or more over the next 12 months.

The diamond business attracts plenty of companies the wise investor wouldnt entrust with a bent hapenny. But there are also several high-quality firms on the market, including Firestone Diamonds (FDI:AIM) which has excellent exploration projects in Botswana.

Andy, thanks for the posts. I must say, although it's finger-in-the-air stuff, the comment, This is a multi-million carat, multi billion-dollar potential resource, does sound wonderful! If only. Still, it sounds like it won't be too long (relatively speaking) until we'll have a better idea of the potential.

Quite a large fall today, apparently after a broking house issued a "sell" note, after the broker concerned stated that FDI were not including him in their news releases!

And holders sold based on that information?! Please. What is wrong with people....

Queen1,

A brief mention in yesterday's Sunday Times.


The Sunday Times

August 28, 2005

Teeling feels African heat from Petra - Ciaran Hancock

JOHN TEELING, the Clontarf-based entrepreneur, is facing another battle to retain control of African Diamonds, a listed company with potentially lucrative diamond mining licences in Botswana.

Petra Diamonds, a London-listed mining company with operations in Angola, South Africa and Sierra Leone, is believed to have approached Mark Scowcroft and Leon Daniels, two Africa-based shareholders who between them own 18% of African Diamonds shares.

Petra, which has a market capitalisation of 92m (134m) and is headed by Johan Dippenaar, is believed to be interested in acquiring Kalahari Diamonds, an unquoted diamond explorer in Botswana, with ground close to African Diamonds licences in the Orapa area.

BHP, a mining giant, is a key shareholder in Kalahari and is also Petras joint venture partner in Angola. African Diamonds would offer potential synergies for the company. De Beers, African Diamonds joint venture partner, is likely to block such a move, given Petras links with BHP, one of its biggest rivals.

Scowcroft resigned as a director of African Diamonds, which has a market cap of 33m, on August 23, fuelling speculation that he might sell his stake in the company. As a director, he would be obliged to inform the board of any approach from a third party. Leaving the board allows him to talk freely to any interested party, but he may be obliged to give first option to De Beers.

On the day Scowcroft resigned, De Beers said it had asked the board of African Diamonds to implement one of the terms of its joint venture deal, under which each director is granted rights of first refusal to the mining giant if they choose to sell their shareholding. Scowcroft, who had a public falling out with Teeling earlier this year, could be bound by this.

Petras interest follows a similar approach from Firestone Diamonds, a UK-quoted mining company headed by Irishman Philip Kenny. Firestone, which also has diamond licences in Botswana, is believed to have held talks with Scowcroft and Daniels with a view to using their equity to gain control of African Diamonds board.

Teeling said: I am aware of the interest of Firestone Diamonds and of Petra.

The resignation of Mark Scowcroft was unfortunate because he was a very good geologist. Replacement specialists will be appointed within a short time. I would be concerned that there are predators out there who would like a slice of the Orapa discovery and that they would use Mark Scowcroft as the entry point.

Thanks Andy. I'm a little disappointed (again) with the current sp. Any views?

queen1,

Me too, to be honest, I don't see any reason for the drift downwards. To the best of my knowledge there's no bad news around that, so maybe simply the absense of any news at all?

I personally think a deal with AFD would muddy the waters for FDI, so I would prefer to see FDI continue to do what they seem to do best, exploration.

Having said that, Phil Kenny is shrewd, so i'm sure of he does a deal, it will be value enhancing.

Andy,

Take a look at KYS, Vice chairman is Simon Cawkwell [ E K ] he holds at least 700,000 shares.

Zeppelin to be used to spy SAs diamonds

Johannesburg A German-built airship, or Zeppelin, arrived yesterday in South Africa, where it has been chartered by diamond producer De Beers for use as a platform for mineral exploration in southern Africa.

Astonished onlookers noticed the cigar-shaped vessel floating near Cape Towns Table Mountain after it was unloaded at the citys dock and took off for the Ysterplaat military base about 30km away. The prototype airship, one of only three of its kind in the world, was flown from the factory near Lake Constance to Amsterdam and shipped to South Africa.

De Beers spokesman Tom Tweedy said it would be fitted with measuring equipment to enable the study of geological formations indicating the presence of diamonds in SA, Namibia and Botswana. Sapa

Aldwick,

Ok will do, thanks.

Any particular reason for you liking them?