BG reporter

Firestone Diamonds, the AIM-quoted diamond mining and exploration-company has commenced production at its BK11 mine after being granted a 12-year mining license.
“The commencement of production at BK11 is a major milestone for Firestone as the company is now one of only three listed kimberlite producers worldwide outside of the major mining companies,” said Chief Executive Officer, Phillip Kenny.
The achievement is exceptional, as the company has been tying to get the license in the past three years. An upbeat Kenny said that the combination of cash flow from production at BK11- an extensive portfolio of kimberlites in the Orapa and Tsabong kimberlite fields- and exciting toll treatment opportunities places Firestone very well for significant growth in Botswana.
“We are confident about Firestone’s future prospects,” said Kenny.
Phase-one development work at the mine’s production plant, which was completed at the end of the second quarter, has allowed for a capacity to treat 650 000 t/y run-of-mine (ROM).
According to the junior explorer, Phase-two development, to boost throughout to 1,5-million tonnes a year ROM, remained on schedule to be completed during the third quarter, with the plant expected to ramp up to full output by the end of this year. BK11 would produce about one-million carats of diamonds over its ten-year life.
In Botswana output would be sold by open-tender but the Ministry of Minerals, Energy and Water Resources has also given approval for tenders to be run outside the country until December 2013, with the possibility of an extension to December 2015. In terms of the mining license, Firestone’s 90% owned subsidiary, Monak Venture, would be required to pay a diamond royalty of 10% on the gross market value of production from the mine. The BK11 project would form the centre of Firestone’s satellite mining operations in the Orapa area.
Firestone has 21 other kimberlites in the Orapa area, of which 13 are proven to be diamondiferous, and BK16 is the most advanced. The company intends to commence evaluation work, which will initially consist of core drilling and large diameter drill bulk sampling, on the satellite kimberlites once BK11 reaches full production.