Wrap Text
TAW - Tawana Resources NL - Firestone Diamonds announcement regarding the
Orapa Joint Venture
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
("Tawana" or "the Company")
1 February 2010
Firestone Diamonds (AIM: FDI) announcement regarding the Orapa Joint Venture
On 21 December 2009 Tawana Resources NL ("Tawana") announced to the ASX that
it had entered into a joint venture agreement with Firestone Diamonds plc
("Firestone") a diamond mining and exploration company, over its kimberlite
exploration and evaluation projects in Botswana, which includes 8 kimberlites
in the Orapa kimberlite field. Under this agreement Firestone has the
opportunity to earn initially up to a 70% interest in any kimberlites in the
prospecting licences controlled by Tawana. However, in the event that Tawana
does not contribute to funding second stage evaluation then Firestone can earn
up to a 85% interest in any kimberlites in the prospecting licences controlled
by Tawana.
On 28 January 2010 Firestone released the attached announcement to the
Alternate Investment Market of the London Stock Exchange regarding the
kimberlites in the Orapa kimberlite field of Botswana.
Euan Luff
Director
Tel: +61 3 9224 1000
Email: eluff@wfw.com.au
Sponsor: PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Firestone Diamonds plc Orapa joint venture update
Firestone Diamonds plc ("Firestone" or "the Company"), the AIM-quoted diamond
mining and exploration company (ticker:AIM:FDI), is pleased to announce that
it has completed its planned review of historical data from the eight
kimberlites in the Orapa kimberlite field in Botswana covered by the joint
venture announced with Tawana Resources NL ("Tawana") in December 2009. Under
the terms of this joint venture Firestone can earn up to 85% interest in these
kimberlites.
HIGHLIGHTS
* BK24
- In excess of 3 hectares in area
- Grades of up to 5 carats per hundred tonnes from limited sampling
* BK19-22 & BK25-26
- All proven to contain diamonds
- Limited sampling and delineation work carried out
* Planned evaluation programme
- Large diameter drill sampling on BK24
- Geophysical surveys and core drilling on remaining kimberlites
- Work to be carried out after commencement of production from BK11 in
Q2 2010
Philip Kenny, CEO of Firestone Diamonds, commented: "We are encouraged by the
results of our review of Tawana`s kimberlites in the Orapa area. Firestone`s
portfolio in the Orapa area now contains 18 kimberlites, 12 of which are
proven to contain diamonds. With our ability to use the infrastructure at BK11
to develop and exploit the economic potential of these kimberlites, we are
optimistic about the potential for significantly expanding our operations in
the Orapa area."
The review carried out by Firestone, covered historical works carried out by
De Beers, Tawana and others on kimberlites BK19 to BK26, and identified a
number of high interest kimberlites on which Firestone intends to carry out
further evaluation work.
BK24
BK24 is located 12 kilometres from Debswana`s Damtshaa Mine and 40 kilometres
from Firestone BK11 kimberlite, which is due to commence commercial production
in Q2 2010. BK24 is the largest of the kimberlites, with an estimated area in
excess of 3 hectares. Macrodiamonds have been recovered from pitting to a
depth of 30 metres. As the top 25 to 30 metres of BK24 is comprised
predominantly of basalt breccia and contains very little kimberlitic material,
this result is considered significant, and further evaluation work is
warrante4d on the undiluted kimberlite below the basalt breccia. Grades
reported from the limited sampling carried out by De Beers were up to 5 carats
per hundred tonnes.
BK19-22 and BK25-26
These kimberlites were also proven by De Beers to contain diamonds, but
limited work was carried out to determine the sizes of the kimberlites or
macrodiamond grade.
Evaluation programme
Firestone intends to carry out large diameter drill ("LDD") sampling on BK24
and to carry out geophysical surveys and core drilling on the remaining
kimberlites to determine whether any of them warrant LDD sampling. The Company
intends to carry this work out after the commencement of production at BK11 in
Q2 2010 and it is anticipated that the work will be funded through operating
cash flows form BK11.
For further information, visit the Company`s web site or contact:
Philip Kenny, Firestone Diamonds
+44 20 8834 1028/+44 7831 324
Simon Edwards/ Tim Redfern, Evolution Securities (Joint Broker)
+44 20 7071 4330/4312
Rory Scott, Mirabaud Securities (Joint Broker)
+44 20 7878 3360
Alexander Dewar, Brewin Dolphin (Nominated Adviser)
+44 131 529 0276
Jos Simpson/ Leesa Peters, Conduit PR
+44 20 7429 6603/+44 7899 870 450
Background information on Firestone Diamonds:
Firestone Diamonds plc ("FDI.L") is an international diamond mining and
exploration company with operations in Botswana and South Africa. Botswana is
the world`s largest and lowest cost producer of diamonds, with annual
production worth over $2,5 billion, and is considered to be one of the most
prospective countries in the world to explore for diamonds.
Firestone is the largest holder of mineral rights in Botswana`s diamondiferous
kimberlite fields, controlling over 25,000 square kilometres around the major
Orapa Jwaneng mines and the entire Tsabong kimberlite field. Firestone has 103
kimberlites in its portfolio, of which 30 have been proven to be
diamondiferous. Fifteen of Firestone`s kimberlites are at the bulk sampling
stage.
Notes:
1. The information in this statement has been reviewed by Mr Tim Wilkes,
BSc,Pr Sci Nat, 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 Diomands plc and has over 27 years`
experience in diamond exploration, mineral resource management and
mining. Mr Wilkes is a member of the sub-committee for diamonds of the
South African Mineral Resource Committee (SAMREC)
This information is provided by RNS
The Company News Service from the London Stock Exchange
Date: 02/02/2010 10:51:02 Supplied by www.sharenet.co.za
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