Firestone Diamonds Reports Jump In Value of Diamonds From Liqhobong

(IDEX Online News) – Firestone Diamonds reports that its base average price per carat, excluding potential large stones, for diamonds from its Liqhobong mine in Lesotho has increased to $107 from $98 per carat.

The updated values were provided by an independent mineral resources consultant, following an analysis of the pilot plant's diamond production over the past 22 months, the firm said.

The price, including large stones of 100 carats and more, could potentially be $156 per carat.

"The pilot plant has recovered approximately 325,000 carats from 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 an independent consultant and for higher confidence to be placed by management on the modeled prices that will be realized once production commences via the new fit for purpose Main Treatment Plant.

"It is important to note that the independently modeled size of the nine large fragmented stones that were recovered have been limited to 100 carats per stone. Three of these stones were calculated to have been 200 carats or larger, the largest being a cape yellow diamond of around 430 carats. Had these large stones been recovered undamaged, the potential price upside could well be greater than that which is currently modeled and is supported by the knowledge that Lesotho is known for its production of large high quality diamonds."

Stuart Brown, incoming CEO, said: "Today's range of increased diamond values at Liqhobong is extremely encouraging, building on the solid numbers outlined by the Definitive Feasibility Study last year. This latest analysis takes into consideration all the data available from the board believes that these new figures further enhance the robust project economics for the Liqhobong project."