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

I sincerely hope you're right Andy.

queen1,

So do I!

Bonte koe profits virtually underpin the current SP, particularly at these low levels, but are often forgotten as the bigger picture has so much potential.

Nice rise today !.

Andy, queen1,

At last something to be cheerful about. Nursing some substantial loss at recent level, I doubled

Required field,

Yes, let's hope this is the start of the climb back to a more appropriate price for an existing producer with another project nearing a production decision, and some large kimberlites to explore at the best address on the planet for diamondiferous kimberlites.

Volume was OKish, so maybe FDI has turned the corner?

Ray A,

Yes this last couple of months were painful, and I have added near the bottom too, let's hope our confidence and faith are suitably rewarded in due course!

Up again....!.

I didn't have any spare cash to add so these need to go some way yet for me chaps!

Andy, queen1,

Somehow, my post yesterday was cut short! Was saying I doubled up yesterday morning but size was limited and went in twice at 129 and 131p. Lets hope there is a positive update coming with the finals and at long last the promised sampling results from MK1, after all the problems FDI experienced. Still believe in this company!

Andy, queen1,

Very quiet here recently, attended AGM yesterday and feel much more encouraged, it is the market getting it wrong IMO!

PK gave corporate overview, after H1 08 record highs, rough diamond prices fallen back about 40%, however, polished prices holding well. Expect supply gap over next decade. Focus for FDI now on cash and raising cash flow, top priority Orapa BK11 prod 2010. Restrict investment on mine to 'fit for purpose', no bells or whistles. If needed, banks in SA keen to lend since little affected by credit crunch Toxic as.

TW (football better performance than SP!) said BK11 kimberlite cheap to process, softer than brick, gives up diamonds easily unlike some which are hard as flint. Next priority will be to take BK16 to production using BK11 cash flow. (Subsequent to meeting, believe can expect BK11 phase 2 results around mid Feb - I hope!)

Tsabong will be put on ice after initial MK1 bulk sample results announced - soon. FDI well ahead with government investment required and content with this approach in current climate. Looking for a JV but at the right price. All the early sampling problems have been solved and a lot learnt in the process for the future.

All othere explorations will be driven by availability of cash flow and suspended at present.

I asked about Bonte Koe and concern that De B may want to pull out, PK responded that in a win win situation since there is a penalty clause of around 2.5m and FDI get to keep all the plant so he personally would favour this since it would put cash in pocket!

PK said FDI will be a survivor, will look after every 1 as though it were the last.

I came away encouraged that business remains sound and current SP awaits a fair market valuation. I forgot to ask who was selling the big chunks recently but the price blip before Xmas though to have originated in SA from those who can see the activity. Maybe, should tuck a few more away at current SP!

Andy, see ADVN interest in AGM, pass this on if you wish.

The 13,000 transaction this morning marked 'unknown' was my purchase. Got a mid-range price of 17.5p so clearly more to off-load still? Feel comfortable with a 17.5p purchase.

Ray A,

Many thanks for a superb write up, much appreciated!

I will post on ADVFN as it will be more widely read there.

Seems the market is wary of junior diamond explorers/producers at the moment, hence another markdown today.

Both

I think the current SP is totally unjustified and a travesty for the company and its shareholders. It has to head on a sustained run north. Doesn't it?!

queen1,

Agreed but we may have to be patient. I hope my expectation (recent AGM) of a positive RNS in near future materialises to start the climb up again! Have been adding at these price levels and agree current SP unjustified. Have you seen:

Diamond Industry Suffering
"Credit for diamonds has virtually disappeared," Philip Kenny, chief executive of Firestone Diamonds told CNBC. He discusses why the diamond industry is suffering and how much longer the pain will last.

http://www.cnbc.com/id/15840232?video=1021254342

Realistic but encouraging!

Thanks Ray A

All systems go at BK11 now!


RNS Number : 9691M
Firestone Diamonds PLC
09 February 2009



Firestone Diamonds plc

Buffels River Toll Treatment Update




LONDON: 9 February, 2009




Firestone Diamonds plc, ("Firestone" or "the Company"), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces that the toll treatment agreement at the Company's Bonte Koe Mine on the Buffels River has been terminated by De Beers Consolidated Mines ("De Beers"). De Beers has made a payment of approximately 2.5 million to the Company as compensation for early termination.




Firestone has been notified by De Beers that it has completed a review of its Namaqualand Mines operations in South Africa, which include the toll treatment joint venture with Firestone at its Bonte Koe Mine on the Buffels River. While Firestone has achieved all of the required throughput and operational targets since commencement of operations in 2006, a decrease in revenue received by De Beers from diamonds recovered and an increase in mining costs have resulted in De Beers deciding to suspend its Buffels River operations indefinitely. Under the terms of the toll treatment agreement De Beers has made a payment to Firestone of approximately 2.5 million as compensation for early termination. Firestone retains ownership of the toll treatment plant under the agreement.




Firestone's operations at Bonte Koe have now been suspended. The Bonte Koe plant, which has a capacity of approximately 1.5 million tonnes per annum, would be suitable for use at the Company's BK11 kimberlite project in Botswana. This would substantially reduce the time and cost to develop a new mining operation at BK11 and also significantly improve the economics of the project. The Company is currently making provisional plans to relocate the Bonte Koe plant and infrastructure to BK11, subject to results from bulk sampling which are expected to be available later this quarter.




Philip Kenny, Chief Executive of Firestone Diamonds commented: "While we would like to have been able to continue with what was a very successful toll treatment operation at Bonte Koe, in current market conditions the 2.5 million termination payment that we have received strengthens the Company's financial position. We are continuing to pursue a number of significant new toll treatment opportunities and with our experience working for De Beers at Bonte Koe having proven that we have the capability to design, build and operate efficient, cost effective mining operations to a high standard, we are confident that we can continue to develop our toll treatment business."




For further information, visit the Company's web site at www.firestonediamonds.com, or contact:




Philip Kenny, Firestone Diamonds
+44 20 8834 1028/+44 7831 324 645

Gareth Tredway, Jos Simson, Conduit PR
+44 20 7429 6603/+44 7899 870 450

Mike Jones/Ryan Gaffney, Canaccord Adams (Joint Broker)
+44 020 7050 6500

Jerry Keen, Blue Oar (Joint Broker)
+44 20 7448 4492/+44 777 069 7358

Alexander Dewar, Brewin Dolphin

(Nominated Adviser)
+44 131 529 0276

Andy,

Too true! Little did I know when I spoke with PK after AGM (post 616: " I asked about Bonte Koe and concern that De B may want to pull out, PK responded that it is a win win situation since there is a penalty clause of around 2.5m and FDI get to keep all the plant so he personally would favour this since it would put cash in pocket!") how prohetic this would be and in so short a time frame. Certainly, excellent news since all essential gear for BK11 now free courtesy of De B plus 2.5m pocket money to spend wisely. Just hope the punters appreciate this.

Ray A,

After the early markdown at what they interpreted as bad news, I see the MM's then marked the stock up to end positive on the day.

New article, click HERE

Interesting development!


This can only be described as exceedingly positive IMO, and IF BK11 comes into production around the same time, should see FDI producing healthy profits in 2011 - 2012.


RNS Number : 5556N
Firestone Diamonds PLC
19 February 2009



Firestone Diamonds plc

Selected by Debswana as preferred bidder for Jwaneng Modular Tailings Treatment Project



LONDON: 19 February 2009



HIGHLIGHTS:
•
Firestone Diamonds and ADP Projects selected as preferred bidders for a modular tailings dump treatment plant at the Jwaneng Mine in Botswana, the world's largest diamond mine by value



•
Initial production of 2 million tonnes per annum targeted to commence in 2011



•
Tailings resource at Jwaneng estimated at over 30 million tonnes



•
Firestone responsible for financing and operation, ADP to design and construct plant



•
Plant to serve as pilot facility with potential for deployment to other Debswana mines



•
Contract negotiations on toll treatment agreement expected to be concluded by Q3 2009



•
Strategic alliance with ADP Projects formed to jointly design, build and operate modular diamond tailings processing plants






Firestone Diamonds plc, ('Firestone' or 'the Company'), the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), today announces that Firestone and ADP Projects ('ADP') have been selected by Debswana Diamond Company ('Debswana') as the preferred bidders to design, supply, construct and operate a modular tailings dump treatment plant at the Jwaneng Mine in Botswana on a toll treatment basis. Debswana is a joint venture between the Government of the Republic of Botswana and De Beers and is the world's leading diamond producer by value.



The Company also announces that that it has entered into a strategic alliance with ADP to jointly develop diamond tailings processing plant technology and to pursue other new diamond tailings resource projects.



Philip Kenny, CEO of Firestone Diamonds, commented: 'Being selected by Debswana, the world's leading diamond producer, for the Jwaneng Tailings Project is a reflection of the significant operating capability that Firestone has developed and represents an excellent opportunity for the Company to substantially expand cash flow from our toll treatment operations. This project will give us an opportunity to significantly expand our operations in Botswana, which currently include the BK11, BK16 and Tsabong projects, amongst others. We are also very excited about the potential of our strategic alliance with ADP, with whom we have already worked closely on a number of projects.'



Jwaneng Modular Tailings Treatment Project

Following the submission of tenders by a number of suppliers, Firestone and ADP have been selected by Debswana as the preferred bidders to design, supply, construct and operate a modular tailings re-treatment plant at the Jwaneng Mine in Botswana. Jwaneng is the largest diamond mine in the world by value and in 2008 produced approximately 13 million carats.



The objective of the Jwaneng Tailings Project is the recovery of diamonds from the tailings resource at Jwaneng, which is estimated to be in excess of 30 million tonnes. Initial production of over two million tonnes per annum is targeted to commence in 2011. Firestone will be responsible for financing and operating the plant while ADP will be responsible for plant design and construction.



The Jwaneng based plant will serve as a pilot facility to demonstrate the economics and capability of the modular plant concept and could potentially lead to the deployment by Firestone and ADP of similar plants to exploit additional tailings resources at other Debswana mines.



Firestone and ADP have commenced contract negotiations with Debswana which are expected to be concluded and signed in Q3 2009.



Strategic alliance with ADP Projects

ADP is the leading supplier of modular processing plants to the diamond mining industry, having supplied diamond plant and equipment to De Beers, Debswana, Trans Hex, Gem Diamonds and Petra Diamonds, amongst others. Firestone and ADP have worked together for over five years on a number of projects. Firestone and ADP have developed a new approach to exploiting tailings resources and have agreed to enter into an exclusive strategic alliance to jointly design, build and operate modular diamond tailings processing plants.



Under the terms of the agreement, Firestone and ADP will collaborate on the development of new technology and processes to lower the capital and operating costs and reduce the deployment time of plants for processing diamond tailings resources. Firestone and ADP are currently jointly pursuing a number of new diamond tailings project opportunities.