Firestone Diamonds: 300,000 Cts From Liqhobong By Financial Year End

(IDEX Online) – Firestone Diamonds plc expects to have recovered 300,000 carats from the Liqhobong mine in Lesotho at the end of the financial year due to the company's focus on implementing the final modifications to the plant in the quarter, the miner said in a report for the third quarter ended March 31.

"While this is below the lower end of previous estimates, the company is very pleased with the increasing grade and recovery rates which put Liqhobong in a strong position ahead of processing the better quality ore in the coming months," the firm said.

The first two diamond sales held during the quarter in Antwerp saw all 127,590 carats offered for sale sold, achieving an average price of $107 per carat for total sale proceeds of $13.7 million

In line with previous guidance, the company will hold two diamond sales per quarter and the company will update the market on the result of such sales in the next quarterly update expected in July 2017 for the quarter ended June 30.

Stuart Brown, Chief Executive Officer, commented: "It is pleasing to see that the improvements and modifications made to the plant during commissioning have improved performance. During the quarter, we have seen a steady improvement in the grade with our daily recovery exceeding 20 cpht at the end of March following the implemented modifications. 103,000 carats were recovered in the quarter including 31 special stones larger than 10.8 carats and post the period, we were delighted to recover our first plus 100 carat stone.

"The final commissioning phase has seen the mine achieve nameplate capacity on numerous occasions which is very positive, particularly during the rainy season. We are now starting to move towards the better quality ore areas which will be treated towards the end of the current quarter and l look forward to providing further updates as we complete the final ramp up phase over the coming months.

"Following the completion of construction in the previous quarter, Firestone's efforts principally focused on completing commissioning activities and fine tuning its operations," the firm's statement added. "Good progress continues to be made and the company remains on track to complete the ramp up phase in the coming months."

As at March 31, the company had $5.0 million cash on hand, which excludes proceeds of the second diamond sale of $5.5 million received post quarter end, with a further $15.0 million available under a standby facility.