Firestone Diamonds Increases Value at Liqhobong Mine

Firestone Diamonds plc (LSE:FDI) provided an update on the potential diamond value at its Lesotho-based Liqhobong mine, commenting that the base average diamond price, excluding potential large stones, has risen to US$107 per carat, while the upside price, including large stones greater than 100 carats, now sits at potentially US$156 per carat.

As quoted in the press release:

The Pilot Plant has recovered approximately 325,000 carats during the period September 2011 to July 2013. The data from the recovery and subsequent sale of these diamonds has allowed for the assortment and revenue models to be updated by the independent consultant and for higher confidence to be placed by management on the modelled prices that will be realised once production commences via the new fit for purpose Main Treatment Plant.

The previous assortment and revenue models, used to estimate the mineral resource that was incorporated in the 2012 Definitive Feasibility Study (“DFS”), were based on the 2007 wide diameter drill samples, which were derived from approximately 2,500 carats and 10,000 tonnes of each rock type treated from four localised individual pits. These models have now been updated with the large production parcel recovered and sold over the past 22 months. Furthermore, the models have been updated with the nine large (plus 100 carat) stone fragments to determine the potential upside in diamond values that can be expected.

Click here to read the full Firestone Diamonds plc (LSE:FDI) press release.