Providing its latest update for the quarter ended March 31, 2017, Firestone Diamonds plc said that commissioning activities at its Liqhobong Diamond Mine in Lesotho are now largely complete and the final ramp up is progressing on track resulting in a steady improvement in both the quantity of ore treated and the number of carats recovered.

Liqhobong is owned by Firestone (75%) and the Government of Lesotho (25%).

During the three month period, 639,000 tonnes treated with nameplate capacity continuing to be achieved on numerous occasions (Q2: 402,000 tonnes) and 103,000 carats were recovered at a grade of 16.1 carats per hundred tonnes (cpht) (Q2: 58,000 carats at a grade of 14.1 cpht).

The company said that in these three months it continued to calibrate the processing plant with scheduled shut downs as part of the normal commissioning activities which resulted in a higher grade of 20.1 cpht achieved for March. It added that the grade is expected to continue to rise post the implemented plant modifications and the mining of higher grade ore in the main pit in the coming months.

As a result of these improvements in the plant, 31 special stones larger than 10.8 carats were recovered along with the continued recovery of fancy yellow diamonds (Q2: 27 special stones). After the end of the quarter, the Company also recovered a 110 carat gem‐quality light yellow diamond, Firestone's largest diamond to date.

Firestone also said that 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 US$107 per carat for total sale proceeds of US$13.7 million. The Company made its first debt repayment of US$1.4 million made at the end of March 2017 as scheduled.

At the end of the quarter, Firestone said that cash on hand was US$5.0 million, which excludes proceeds of the second diamond sale of US$5.5 million received post quarter end, with a further US$15.0 million available under the standby facility.

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. The final commissioning phase has seen the mine achieve nameplate capacity on numerous occasions which is very positive, particularly during the rainy season.”

He added that Firestone was now starting to move towards the better quality ore areas which will be treated towards the end of the current quarter.

Pic caption:  Liqhobong Diamond Mine
Courtesy Firestone