Firestone Diamonds Reports Project Construction Completed at Liqhobong Mine

(IDEX Online) – Firestone Diamonds plc reports that project construction was completed at its Liqhobong diamond mine in the quarter ended December 2016.

The first diamond recoveries commenced in late October 2016, and more than 20 special stones larger than 10.8 carats have been recovered, with the largest being a 37-carat white diamond, as well as several fancy yellow diamonds.

Processing of lower grade stockpiles and diluted ore in the quarter produced 58,000 carats at a grade of 14.4 carats per hundred tones, the miner reported.

The company said it is in a strong financial position with cash and available facilities of $18 million, alongside a further $15 million standby facility available.

The first sale of Liqhobong diamonds will be held in Antwerp from February 6 to 10.

Stuart Brown, Chief Executive Officer, commented: "Construction activities at Liqhobong were completed early in the quarter and we are currently in the commissioning and ramp up stage of the project. We have been pleased with the tonnes processed by the plant, which has already seen nameplate production reached on multiple occasions at this early stage of ramp up.

A"s previously guided, the commencement of commissioning has seen the processing of historic low grade stockpiles, diluted ore and low grade ore from the main pit which at the end of December had produced 58,000 carats. Pleasingly, we have recovered over 20 special stones (larger than 10.8 carats) including a 37-carat white stone and numerous smaller yellow and fancy yellow stones, with no breakages of larger stones to date. At this stage of the ramp up, we have encountered the normal commissioning challenges and these are being addressed by our team in a methodical way.

We look forward to providing further updates on the ramp up program, as well as the diamond sale next month."

Liqhobong is owned 75 percent by Firestone and 25 percent by the government of Lesotho.