Firestone Diamonds plc says it has been able to reduce its net losses as it moves ahead to complete the Lesotho based Liqhobong Mine
Development Project. The company is also in the process of selling its assets in Botswana.
The company directors are of the view that the Botswana operations present a rare opportunity that has the ability to deliver strong returns under the ownership of an operator or operators for whom it would be a core asset.
According to the AIM-quoted diamond company’s final audited results for the year ended 30 June 2014, the group net loss decreased to $11.2
million from $22.6 million in the same period in 2013.
Cash on hand at year-end stood at $107 million compared to $4.1 million on the prior year while a funding package of $222.4 millionw as completed.
Firestone is currently focused on Liqhobong with the goal of becoming a mid-tier plus 1 million carats per annum producer from mid-2016 and it has initiated formal disposal process for Botswana assets.
The company owns BK11 mine in Botswana and already it has named Questco Pty Limited, the South Africa-based corporate finance adviser,
to manage the sale process.
The BK11 mine is located in the Orapa kimberlite field in northern Botswana, approximately 7km north-west and 20km south-east of Debswana’s Letlhakane and Orapa mines respectively, and is within 5km of Karowe mine which is currently operated by Lucara Diamond Corporation.
The surface area of BK11 is estimated to be 9.6Ha and overburden, consisting of Kalahari sands and calcretes, is shallow at, on average, less than 4m. Up to 20m of intensely calcretised and silcretised,
highly diluted low grade material lies directly above the pipe (K1).
The BK11 kimberlite has been shown to be a classic ‘champagne glass’ shaped pipe with a large crater bowl filled with layered volcaniclastic deposits (K2-K3) and talus slope deposits, commonly known as country rock breccia, closer to the crater walls. A rather less-well delineated ‘neck’ of more massive volcaniclastic kimberlite (K4) and basalt breccia underlies the crater.
The western and central side of the kimberlite pipe at BK11 is characterised by a cleaner and subsequently higher grade kimberlite, containing a higher proportion of clear white crystals with very
little boart. However, the eastern side of the kimberlite pipe at BK11 is characterised by dirty, heavily diluted and therefore lower grade kimberlite.
No LDD sampling has been performed below a depth of 150m, however core holes have been drilled down to depths of 250m and the results thereof indicate primary kimberlite resource and continuity to depth.
It will now focus its resources on the Lesotho project. The Liqhobong Mine Development Project is fully funded through to completion and the
management team and contractors are in place to deliver the project on time and on budget, according to the company.
Firestone beefed up its management team with the appointment of Chief Executive Officer, Stuart Brown in 2 September 2013 and Chief Project
Officer, Glenn Black, who was appointed 3 March 2014.
