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From: Nigel
ArtDate: 18th December 2006
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 87.74.94.174
Date: 06/01/07
Time: 15:36
18th December 2006
Firestone Diamonds - Preliminary Results
News Item - Conduit PR
PRELIMS SUMMARY -
Tsabong
Prospecting licences granted over the Tsabong kimberlite field in Botswana, one of the largest diamondiferous kimberlite fields in the world, with 70 known kimberlites, of which 17 are diamondiferous Potential for significant economic kimberlite discovery 10,000 metres of exploration drilling and 6,000 metres of core drilling planned for 2007 Three large kimberlites discovered in November 2006 – 22, 18 and 15 hectares Jwaneng and Orapa
Firestone is the largest holder of diamond exploration rights around the Orapa and Jwaneng mines; holdings doubled to 17,000 square kilometres during the year De Beers conducting Zeppelin surveys over Firestone ground in Jwaneng; initial targets to be drilled in H1 2007 Extensive exploration work carried out by De Beers and Firestone in Orapa area; geophysics and drilling to continue in 2007 Groen River Valley
Thirteen deposits identified in the project area High quality gem diamonds recovered from bulk sampling on HL deposit Mobile sampling plant to be erected Bulk sampling planned on GR2 deposit in H1 2007 Bonte Koe Mine
Joint mine development with De Beers Operation expected to produce over 600,000 carats over 6 years Production commenced in August 2006 Expected to produce average £3.5 million revenue and £2 million operating profit per annum at full capacity Financial
Turnover for H2 2006 in line with H1 06; turnover for FY 2006 down 36% due to limited production at Avontuur Operating loss of £0.5 million due to development costs relating to Buffels River project Turnover expected to increase 50% in H1 2007; substantial increase expected for FY 2007 Liquid assets of £10 million - £4 million in cash and £6 million shareholding in African Diamonds plc Outlook
Fundamentals in rough diamond market remain very strong; diamond prices expected to increase in 2007 Mining operations focused on new opportunities with De Beers close to existing operations Applications pending for new exploration areas in Botswana and South Africa
Edward Portman Conduit PR Ltd 76 Cannon St London EC4N 6AE Office: +44 (0) 20 7429 6666 Direct: +44 (0) 20 7429 6607 Fax: +44 (0) 20 7429 6699 Mob: +44 (0) 773 3363 501
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