Diamond News: Firestone Diamonds plc, the AIM-quoted diamond mining and exploration company (ticker: AIM:FDI), has entered into a joint venture agreement with Tawana Resources NL over Tawana’s kimberlite exploration and evaluation projects in Botswana, which includes 8 kimberlites in the Orapa kimberlite field. Under this agreement Firestone could earn up to an 85% interest in any kimberlites in the prospecting licences controlled by Tawana.
Philip Kenny, CEO of Firestone Diamonds, commented: “With production from our planned new mine at BK11 due to commence in Q2 2010, we will be able to use the infrastructure at BK11 to develop and exploit economic potential at other satellite kimberlites in the Orapa area quickly and at relatively low cost. We are excited about the potential of Tawana’s kimberlites in the Orapa area, which bring the total number of kimberlites in Firestone’s portfolio in the Orapa area to 15, and look forward to updating our shareholders about the results of our initial review of the project in early 2010.”
Orapa prospecting licence
The Orapa prospecting licence covers an area of 57 square kilometres in the Orapa kimberlite field and contains a cluster of 8 kimberlites, BK19-26. The largest of these kimberlites, BK24, is located 2.5 kilometres from Debswana’s Damtshaa Mine and 26 kilometres from Firestone’s BK11 kimberlite, which is due to commence commercial production in Q2 2010. The Company has commenced a review of the historical data available from work carried out by Tawana and other operators on BK19-26. This review is expected to be completed in January 2010.”
Francistown prospecting licences
The Francistown prospecting licences cover an area of 1,500 square kilometres close to the town of Francistown in eastern Botswana. Although no kimberlites have been discovered in this area before now, the prospecting licences are located in the right geological setting for the discovery of diamondiferous kimberlites. The Company has also commenced a review of the historical data available from work carried out by Tawana and other operators in this area. This review is expected to be completed in Q1 2010.
Joint venture terms
Firestone can earn a 70% interest in any kimberlite by financing all evaluation work on that kimberlite up to the completion a bulk sample of a minimum of 150 tonnes from kimberlites less than 1 hectare in size, and of a minimum of 250 tonnes from kimberlites greater than 1 hectare in size. Tawana will then have an option to fund its pro-rata share of all further work on that kimberlite. If Tawana is unwilling or unable to exercise this option, Firestone will be entitled to earn an additional 15% by financing all further evaluation work up to and including the making of a mine development decision on that kimberlite. The agreement is subject to the approval of the Minister of Minerals, Energy & Water Resources.
Related posts:
- Firestone Diamonds CEO Optimistic about Potential for Ssgnificantly Expanding Diamond Operations in Orapa Area of Botswana
- Firestone Diamonds Intends to List on Botswana Stock Exchange
- Firestone Diamonds: Mine development to commence at BK11 diamond project in Botswana
- Firestone Diamonds Intends to List on Botswana Stock Exchange
- Firestone Diamonds Expects to Reach Mining Target of 325,000 Tons at Botswana’s BK11 Project Next Month
