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Botswana: Firestone Upbeat on Tsabong
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Mmegi/The Reporter (Gaborone)
4 April 2008
Posted to the web 7 April 2008
Brian Benza
Gaborone
LSE-listed Firestone Diamonds has published an update on the company's operations, with particular interest in the Tsabong Project in the southern part of Botswana, which they say is their most important project.
The company, which has operations in Botswana and South Africa, noted that the independent data review it carried out concluded that there are "real chances of discovering an economic, large-sized diamondiferous kimberlite" at Tsabong where the initial MK1 grade estimate is for 20 carats per 100 tonnes. "Activities during the period were primarily focused on Botswana, which is the world's largest and lowest cost producer of diamonds. The most significant development during the period has been at the MK1 kimberlite in the Tsabong kimberlite field where results from initial evaluation work carried out have exceeded our expectations and show significant economic potential.
"We have continued to increase the pace of our activities in Botswana, with between twenty five and thirty 100 tonne mini-bulk samples planned in 2008. We believe that it is likely that further major economic diamond discoveries will be made in Botswana," said Firestone Chairman James Kenny, in a six-month interim statement to 31 December 2007.
Kenny added that Tsabong is the company's most important project as it contains 83 known kimberlites, including the 180-hectare MK1 kimberlite, which is one of the world's largest known diamondiferous kimberlites. An independent review of data from Tsabong by Mineral Services (Pty) Limited of Cape Town, one of the industry's leading diamond exploration and evaluation consultancies, was completed during the period. "The results of this review confirm that the Tsabong field is located in a similar geological setting to the major Jwaneng Mine and that it has the potential to contain economic large-sized diamondiferous kimberlite deposits," Mineral Services reported. At Orapa and Jwaneng diamond projects, the company was granted new prospecting licenses covering 4,000 square kilometres. According to Firestone's interim report, the company's turnover increased by 224 percent, reaching P24.93 million, or P7.87 million in the first half of the year. The company attributed the surge to the fact that Bonte Koe, a South African mine, reached full production capacity. Profits came to £2.4 million with diluted earnings per share reaching 3.7p.
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"Turnover for the current financial year is also expected to be significantly ahead of last year. The Company produced a profit for the period of P38.05 million, primarily as a result of the disposal of its interest in African Diamonds plc, which resulted in a gain of P36.74 million", said Kenny According to its website, Firestone says it is the largest holder of exploration rights around the Orapa Mine, including the BK11 evaluation project, and around the Jwaneng mine. In addition, they say De Beers has entered into joint ventures with them over some of their ground holdings in the Orapa and Jwaneng areas.
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