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

Firestone receive a brief positive mention in this article in today's Times;


http://business.timesonline.co.uk/article/0,,9072-1424514,00.html

Blow it, this has been posted all over other BB's, so might as well post it in full here.
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Sparkling effect from AIM-listed explorers
By Peter Klinger



LONDON-LISTED mineral explorers are stepping up the global hunt for new diamond sources, buoyed by a rapid increase in prices.

Aware that the worlds diamond supply cannot match growing demand, companies quoted on the Alternative Investment Market (AIM) have teamed up with some of the biggest mining houses in the hope of discovering new diamond deposits.

The partnerships suit all. Cash-strapped explorers receive funding from the big miners, whose large-scale focus normally precludes grassroots exploration. The spoils are shared by both.

Shares in Firestone Diamonds soared 180 per cent last year on encouraging production in South Africa and news that the diamond house De Beers would become a strategic partner in a Botswana project.

The De Beers sparkle has also rubbed off on African Diamonds, which last month said that its project in the Orapa region, Botswana, appeared to be similar to De Beerss big Letlhakane diamond mine. African Diamonds shares almost trebled in value last year.

Letlhakane produces one million carats a year. That would be a huge operation for a company as small as African Diamonds but is dwarfed by De Beerss giant Jwaneng mine in Botswana, which manages 12.8 million carats a year.

Petra Diamonds, whose share price has jumped 140 per cent over the past year, hopes to strike it lucky in Angola, where it has a joint venture with BHP Billiton. A 40-tonne earth sample from its flagship Alto Cuilo project recovered 23 big diamonds with a total weight of 18.7 carats, as well as a white gemstone weighing 9.6 carats.

James Picton, a mining analyst at WH Ireland, the stockbroker, has forecast a $3 billion increase in deman for rough diamonds by 2012. Thats the equivalent of almost another De Beers, he said. Mr Picton expects rough diamond prices to increase by 30 per cent in real terms by 2012.

De Beers, which for so long was the dominant force in the diamond world, is fuelling the boom times. Having drastically reduced its diamond stockpile,the group forced through a 13 per cent price rise for its rough diamonds.

The higher prices have ignited investor interest in exploration companies. However, the time for a significant diamond discovery to be turned into a commercial mine is five to ten years.

Finland is one of the latest countries to be targeted. Tertiary Minerals, a small Cheshire-based company led by Patrick Cheetham, has identified more than 50 drill targets at its Kuusamo prospect in northern Finland.

European Diamonds, whose focus is spread between exploration in Lesotho, southern Africa, and Scandinavia, is targeting areas in Finlands north-east that it believes are highly prospective for hard-rock diamond deposits

Just gone up 5p why ?

aldwick,

No idea, but not complaining!

Only 60,000 traded, unless there's a large buy not yet reported.

aldwick,

Well the 50,000 T trade was a buy (IMHO) which must have helped, as was the 15,000 earlier, so some volume to back up the rise.

Andy,

Do you thing the rise was down to the price of spot gold falling, as a few diamond shares went up about the same time [ apart from AFD ] at around 11.20am.

Aldwick,

I found this on Mineweb, may have something to do with companies in the sector doing well.

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De Beers to raise rough diamond prices 3 percent
By: Allan Seccombe
Posted: '07-JAN-05 13:00' GMT Mineweb 1997-2004



JOHANNESBURG (Mineweb.com) -- London-based Diamond Trading Company, the marketing arm for De Beers, said its rough diamond prices will be raised by an average of three percent when it sells the precious gems in January, a company spokeswoman said.

The DTC holds sights where 84 clients inspect the diamonds with a view to buying them.

The DTC hiked prices three times last year, with two increases of five percent each and one of three percent.

One of the reasons stated for the price increase was because of the weaker US dollar. The January sight will be held from January 10-14, the first of ten the DTC will hold this year.

De Beers is the worlds largest diamond producer. The unlisted company is 45 percent owned by resources company Anglo American and 40 percent held by the Oppenheimer family. The Botswana government holds 15 percent. Botswana accounts for about half the companys diamond production.


Source : http://www.mineweb.net/sections/gems/402491.htm

Aldwick,

And another rise again today, albeit on thin volume.

News coming maybe?

Let's hope so.....sparkling news perhaps?!

Slight drift backwards this morning, all the action is at EPD today.

AGM is coming, with the possibility of some news, so happy to sit and hold for now.

I attended the AGM on Monday, and was very impressed with the management, who came accross as being conservatively confident in their ability to produce value enhancing results from their prospects.

Due to time constraints, I am taking the liberty of pasting in Mikkydhu's record of the meeting posted on ADVFN, which I have read and found to be accurate to the best of my recollection.

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PK gave a very level, factual, and bullish presentation, starting with a detailed, graph-supported analysis of the diamond market. All the data predicts rising prices because of rising demand and falling supply. Even the great Russian Alrosa, No2 in the world, and which is surrounded in secrecy, now needs to go underground, but is unable to raise the capital, partly due to its secrecy. In 2003, De Beers' income was a little higher, but diamond prices were a lot higher, which means they produced fewer carats.

Drilling is underway at Mopipi and news will be reported as soon as available, which will be soon. PK said, "I think we will have discoveries in Botswana this year." De Beers have one drill working at present and will probably add a second. It takes one day to drill a hole and half a day to move on to the next, so call it one and a half days a hole. There are 118 targets at Mopipi and I think 62 at Orapa, ie 180 total= 270 days of drilling. Under the jv agreement DB have 2 years from the start of the jv to complete the drilling. No more than a further year from now. And they are, I believe ahead of schedule.

There are 3 jvs with DB in Botswana: Mopipi, Orapa and Jwaneng. The margins at the big Botswana mines are 80%, 90% in one case. Note that a much higher proportion of kimberlites in the Orapa area become profitable diamond mines: I think 10 out of 75. This is a much higher proportion than the world average, which I think is about one in a hundred. Remember also that kimberlites occur in clusters, so if one is found, whether it has diamonds or not, there is a good chance that others with profitable deposits will be found nearby. Bear in mind also that this whole operation is to find new kimberlites, not to see if existing ones are more economic than at first thought.

Drilling at the Jwaneng jv will be in Q3 or 4 2005.

GRV: drilling at the moment. The area is vast. 50km one way and more than 50km in the other dimension. talk of 5 or 6 mines to come there. Bulk sampling on the HL area this year, (7km x 700m), then a large diameter drill: 2m wide.

Bonte Koe: tweaking completed. I guess that means that the plant is now running at design capacity. 200$/carat. The plant is 5 times bigger than at their other mines. This will provide the cash. When asked about cash, PK said it wasn't a problem. Every answer was given with quiet and authoritative confidence.

Only the Oena terrace at the Oena mine is currently being mined. In due course a replacement contractor will be found for the Sandberg terrace, but they are too busy with all their other projects to deal with that just now. No wavering from the assertion that Sandberg has a good supply of special stones.

News from the US jv this year.

New jvs expected.

If profitable kimberlites are discovered at Mopipi and Orapa, it should be possible to bring them into production in about 3 years, which is much less than the typical minimum of 5 years or so. This is because roads, power and water are all available; there are few environmental issues and sparse population and a relaxed govt. Also, it could well be possible to use the facilities at Orapa.
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I personally left the meeting feeling confident that Firestone are going to increase shareholder value, and possibly quite substantially IMHO!

FDI have always been conservative in their presenations, but I detected some very strong confidence in their ability to deliver, which I think was a view shared amongst all the attendees.

I have reviewed my FDI holding and have decided to increase as a result of the presentation.

Seems like I chose a good time to increase my holding!

Price up 7.5p today now, so looks like someone liked what they heard at the AGM!

Andy - Thanks v much for the post. A very encouraging day!

Wow!

Price just shot up from 120p to 137.5p!

And here's why;

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Firestone Diamonds PLC
03 February 2005

Firestone Diamonds discovers three new kimberlites at Orapa Project in Botswana

Drilling programme under way at Orapa and Mopipi Projects
Three kimberlites discovered on first four targets drilled
Substantial new areas applied for near Orapa and Jwaneng mines



LONDON: 3 February, 2005

Firestone Diamonds plc ('Firestone' or the 'Company') is pleased to announce the
discovery of three new kimberlites during drilling at its Orapa kimberlite
exploration project in Botswana.

Firestone's Orapa and Mopipi Projects cover a total area of approximately 4,900
square kilometers. The two projects surround the Letlhakane Mine and adjoin the
southern and western boundaries of the Orapa Mine, which is the second largest
diamond mine in the world in terms of carat production, producing approximately
16 million carats per annum with a value of over $800 million. Firestone
entered into two separate joint ventures with De Beers over the Orapa and Mopipi
Projects in 2004.

An intensive exploration and evaluation work programme is under way in the two
project areas and over 51,000 line kilometres of high-resolution airborne
magnetic, ground gravity and ground magnetic surveys have been conducted to
date. Data from these surveys is currently being reviewed along with data from
previous exploration in the area, and by the end of 2004, 62 targets had already
been identified for drilling in the Orapa Project area and 118 targets in the
Mopipi Project area.

Kimberlite Discoveries

Drilling commenced at the end of 2004 and the first four exploration drill holes
have been completed, resulting in the discovery of three new kimberlites.
These kimberlites are located in the Orapa Project area, approximately 15
kilometres south of the Orapa Mine, and are the first new kimberlites discovered
in the Orapa region in the last seven years. Although initial evaluation of
material recovered from drilling is still being carried out, two of the
kimberlites are located under only ten metres of overburden, which will
facilitate bulk sampling of the kimberlites, should that be warranted by the
results of the evaluation.

The discovery of three new kimberlites is very significant, particularly given
the fact that more than 10% of the 75 known kimberlites in the Orapa region are
economic. With a further 176 targets still to be investigated, the Company
believes that it is likely that more kimberlites will be discovered as drilling
continues in the coming months, and that the prospects for new economic
discoveries have improved substantially as a result of the new discoveries.

All the material recovered from drilling of the kimberlites has been dispatched
to De Beers' laboratories in Johannesburg for processing to recover kimberlitic
indicator minerals and microdiamonds. Microprobe analysis of the kimberlitic
indicator minerals and analysis of the size/distribution frequency of the
microdiamond populations will allow an initial evaluation of the economic
potential of the kimberlites to be made. Petrographic studies will also be
carried out on core samples recovered from each kimberlite. Detailed high
resolution ground geophysical surveys will also be conducted over the
kimberlites to provide an initial estimate of their size. If the results of
this work are positive, bulk sampling will be carried out by large diameter
drilling in order to allow a preliminary estimate of grade and diamond value to
be made.

Philip Kenny, CEO of Firestone Diamonds, said today: 'Firestone's work in the
region over the past seven years had led us to believe that more kimberlites
would be discovered around Orapa, and that has now been proven to be the case.
These new discoveries are highly significant, and represent the breakthrough
that we have been waiting for in the area. To identify three new kimberlites
with our first four exploration drill holes is an exceptional result by any
standard, and is testament to the technical expertise and financial resources
that are being applied to these projects by De Beers. With many targets
remaining to be drilled, we are confident that we will discover more kimberlites
in the coming months. As work continues, we believe that the Orapa and Mopipi
Projects have the potential to develop into some of the most exciting kimberlite
exploration projects in the world.'

Details of the new kimberlite discoveries are as follows:

Kimberlite X765

Drill target X765 is located 15 kilometres south of the Orapa Mine. Kimberlite
was encountered at a depth of 65 metres, beneath a cover of Kalahari sands,
Kalahari calcrete and Karoo basalt. The hole was terminated in kimberlite at a
depth of 134 metres.

Kimberlite X777

Drill target X777 is located 2.5 kilometres south east of target X765.
Kimberlite was encountered at a depth of ten metres, beneath a cover of Kalahari
sands and Kalahari calcrete. The hole remained in kimberlite to a depth of 152
metres, where it entered Karoo sandstone. The hole was terminated in Karoo
sandstone at a depth of 162 metres.

Kimberlite X776

Drill target X776 is located 350 metres south east of target X777. Kimberlite
was encountered at a depth of ten metres, beneath a cover of Kalahari sands and
Kalahari calcrete. The hole remained in kimberlite to a depth of 129 metres,
where it entered Karoo sandstone. The hole was terminated in Karoo sandstone at
a depth of 150 metres.

New Applications

Firestone is the largest holder of diamond exploration rights in the Orapa
region, and is the only significant holder of diamond exploration rights, other
than De Beers, in the Jwaneng region. All of Firestone's current interests in
the Orapa and Jwaneng areas are being explored in joint venture with De Beers.
Much of the region around the Orapa and Jwaneng mines is still considered to be
highly prospective for the discovery of new diamondiferous kimberlites, as
modern geophysical and other exploration techniques have not been fully applied
in these areas.

On this basis, the Company has decided to significantly expand its licence
interests in these areas. Applications have been submitted for areas covering
approximately 9,400 square kilometers in the Orapa region, and covering
approximately 2,900 square kilometers in the Jwaneng region. If these
applications are successful, Firestone's prospecting licence interests will
increase to 14,300 and 6,600 square kilometers in the Orapa and Jwaneng regions,
respectively, giving the Company a very significant strategic land position in
these highly prospective areas.


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

Andy.

great timing, I am showing a 95% profit how far will they go? itching to lock in some profit, whats your view?

aldwick,

Thanks, personally I think they will go higher, in the longer term, the AGM was VERY upbeat last Monday.

These exploration drills are on sites adjoining some of the most valuable diamond mines in the world, just imagine the effect on the price if they prove to be commercially viable diamondiferous kiberklites!

And they have applied for permits on other massive areas surrounding these areas, so they must think there is something there to justify the cost of that.

And then there is the potential for SEVERAL mines in the Groen River in Namaqualand, which we may hear something about before too long.

Nothing wrong with locking in some profit, maybe top slice a few and reduce the average cost of the rest of your holding?

Cheers, Andy.

Andy. Posted on the AFD thread by Wendy on otherside, is this bullish for AFD?

If you look at the maps, the new kimberlites discovered by Firestone are immediately north of the AFD/DB cluster of AK17, 18 and 19, in the tongue of their land that pokes in between Orapa and PL85/96. Kimberlites to the left of them, kimberlites to the south of them, and to the north of them - new ones seem like an almost foregone conclusion....

aldwickk,

possibly, I attended both recent AGM's ,and AFD's annual report had the maps showing both their and FDI's areas, and they are literally surrounding the the major mines in Botswana.

Price now 147p, what a day!

A very good day indeed - it is dropping back slightly, but there are a few buys coming back in. I'm undecided about wether to take the profits - anyone care to share their thoughts?........

sooner44,

Well I beleive there is a lot more to come here, so will be adding again, maybe tomorrow if funds available.

IMHO it's never wrong to take a profit, it's not a profit until it's in the bank they say, and very true.

Only you can decide, but I would ask yourself why you bought in in the first place, and is the company meeting your expectations?

I honestly think there is a lot more potential here