Companies: FDI   

Gem miner Firestone Diamonds suggests its Tsabong kimberlite field in Botswana ‘has the potential to be one of the biggest diamond finds for 25 years’ after evaluating drilling at the MK1 pipe, one of 83 kimberlite formations in the field. This evaluation, based on exploring down to 500 metres below ground, suggested MK1 could hold 1.1 billion tonnes at 20 carats per hundred tonnes, but the company says ‘the deepest samples show 119 carats per hundred tonnes’.

Bulk sampling should reveal the incidence of particularly large and disproportionately valuable stones in MK1 and further drilling will see how much deeper it goes. Firestone points out that the whole Tsabong area is four times the size of Jwaneng, gem-rich Botswana’s richest diamond mine to date, owned jointly by the government and De Beers.

Headed by second-generation mining entrepreneur Philip Kenny, AIM-quoted Firestone, whose other interests include a joint venture with De Beers at Bonte Koe in South Africa, says it has £5 million in the bank to help fund developments.

At 162.5p, the shares should outperform several peers, even in today’s markets.

Firestone Diamonds	AIM	£13.89m	22.50p	0.50p
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Other company articles:
Firestone raises £5m			16/07/2008
Firestone hails Botswana find			04/03/2008
China calls the shots			03/03/2008
Botswana boost for Firestone			25/02/2008
Still scrambling for Africa			07/02/2008