JOHANNESBURG (miningweekly.com) – Aim-listed Firestone Diamonds was preparing to decommission the pilot plant at the Liqhobong mine, in Lesotho, to make way for the construction of the 500 t/h main treatment plant (MTP), set to start during the first half of 2014.

The diamond mining and development company, as part of its aim of becoming a one-million-carat-a-year producer from 2016, would close the pilot plant during the fourth quarter of 2013, and decommission it during the first half of 2014.

Firestone expected to mobilise the early works contractors early next year – subject to the completion of financing and the completion of a due diligence, as well as standard internal approval processes and debt insurance provision by the Export Credit Insurance Corporation of South Africa.

The required early-works included the construction of a new access road, accommodation camp for contractors and the construction of the starter wall for the residue slimes facility.

“Price validation exercises, and early-works schedules are all in progress as part of the front-end engineering and design, which is well under way in parallel with financing arrangements in order to facilitate the construction of the over one-million-carat-a-year MTP,” Firestone commented.

During 2013, the pilot plant had produced 156 131 ct of diamonds achieving an average price of $93/ct, compared with the 164 000 ct produced and sold for an average price $86/ct during 2012.

Although the tonnage treated increased significantly compared to 2012, the carats recovered were lower owing to the expected lower grade areas within K2 being mined and treated, compared to a higher local grade within K2 in 2012.

Over 166 712 ct were sold during the financial year to June 2013.

The pilot plant had provided confirmation of the quality, grade and size of the mine’s stones, as well as information on the characteristics of the orebody.

The presence of nine 100-ct plus stones was confirmed, but they had been damaged during the recovery process. The MTP had been designed to recover stones of this size intact.

Meanwhile, Firestone confirmed that talks with potential buyers were under way to dispose of its idled BK11 mine, in Botswana, and offers were being considered.

Further, an agreement, with an undisclosed party, had been entered into during August for the disposal of the group’s idled South African operations, which included Oena mine, on the West Coast, for £173 000.

Meanwhile, Firestone reported narrowing its losses during the year to June 2013, with the loss decreasing 52% to £14.5-million and total basic and diluted loss a share of 2.4c, up from the 5.9c loss in the prior year.

The company’s revenue increased 52% to £9.9-million during the 12 months.