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From: Nigel
ArtDate: 6th December 2006
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 87.74.94.221
Date: 16/12/06
Time: 10:14
6th December 2006
Firestone Diamonds plc Groen River Valley Exploration Update
News Item - Conduit PR
HIGHLIGHTS
Previous exploration recovered high value diamonds and identified 13 deposits in the GRV project area Diamonds recovered from bulk sampling on HL deposit Mobile sampling plant to be erected in Q1 2007 Bulk sampling on GR2 deposit scheduled for Q2 2007 Firestone Diamonds plc (“Firestone” or “the Company”), the AIM-quoted diamond mining and exploration company, is pleased to provide an update on exploration at its Groen River Valley joint venture exploration project with De Beers in South Africa. Exploration on the project to date has identified 13 deposits in the project area on which a systematic drilling and sampling programme is being carried out.
HL Deposit Initial results have been received from the follow-up bulk sampling programme carried out on the southern portion of the HL deposit. The HL deposit is one of five north-south trending Axial Channel deposits in the project area. Approximately 3,000 tonnes of gravel was excavated in four separate blocks from the bulk sample pit. The gravel recovered appears to be similar to the geological unit sampled by the large diameter auger drilling carried out further north on the HL channel earlier in the year, although heavily diluted with angular quartz rubble and clay.
Gravel from blocks 1 and 2 has been transported to the sample processing plant, and processing of the gravel has been completed. Block 1 produced no diamonds from 889 tonnes of gravel. Block 2 produced five diamonds weighing 1.11 carats from 553 tonnes of gravel. The diamonds are believed to have been recovered from a channel feature in the pit which was only partially sampled by block 2. The diamonds recovered were all high quality gemstones. Individual stone sizes were 0.15, 0.18, 0.22 and 0.26 carats. These results are encouraging as they prove that the deposit is diamondiferous, although a full assessment will not be possible until processing of blocks 3 and 4 has been completed.
As a result of very high rainfall in September and October, transporting of the gravel from blocks 3 and 4 to the processing plant has been suspended pending the erection of a mobile sampling plant in the Groen River Valley. The mobile plant will be located close to the bulk sample pits and will allow gravel to be processed more quickly. Planning for erection of the mobile sampling plant is at an advanced stage, and it is anticipated that the plant will be in full operation in Q1 2007.
GR2 Deposit Evaluation of the other 12 deposits in the project area is continuing. The next deposit selected for sampling is the GR2 deposit, which is one of four east-west trending Proto Channel deposits in the project area. The GR2 deposit is an attractive exploration target, as previous sampling of Proto Channel deposits in a number of locations elsewhere in the Groen River Valley area has produced grades of 7-13 carats per hundred tonnes, which would be economically viable given the high value of Groen River Valley diamonds.
The GR2 deposit is located to the east of the HL deposit and is approximately 4 kilometres long and 150 metres wide. Overburden is estimated to vary between 10 and 20 metres. Drilling will be carried out in Q1 2007 to identity a suitable location for bulk sampling pits, and sampling is expected to be completed in Q2 2007.
Philip Kenny, CEO of Firestone Diamonds, commented: “We are pleased to have recovered our first diamonds from this phase of sampling in the Groen River Valley project area. With good results from past exploration on the Proto Channel deposits in the area, we expect that the next phase of sampling on the GR2 deposit will allow us to make significant progress towards establishing the economic potential of the area.”
For further information: Philip Kenny Firestone Diamonds +44 20 8834 1028 / +44 7831 324 645
Leesa Peters / Laurence Read Conduit PR +44 20 7429 6600 / +44 7979 955 923
Jamie Cumming Bell Lawrie +44 141 314 8103 / +44 7768 044 620
www.firestonediamonds.com
Note: The information in this statement has been reviewed by Mr. Tim Wilkes, BSc, MSAIMM, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Mr. Wilkes is Chief Operating Officer of Firestone Diamonds plc and has over 25 years experience in diamond mining and exploration. Mr. Wilkes is a member of the sub-committee for diamonds of the South African Mineral Resource Committee (SAMREC).
Laurence Read Conduit PR Ltd 3rd Floor 76 Cannon Street London EC4N 6AE United Kingdom Direct: +44 (0) 20 7429 6605 Office: +44 (0) 20 7429 6666 Mob: +44 (0) 7979 955 923 Fax: +44 (0) 20 7429 6699 laurence@conduitpr.com
www.conduitpr.com
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