Name and Location
Liqhobong diamond project, Lesotho.

Client
Firestone Diamonds (75%) and the government of Lesotho (25%).

Project Description
Liqhobong deposit has an indicated and inferred resource of about 89-million tonnes, containing an estimated 29-million carats (down to 510 m).

A definitive feasibility study (DFS) on the Liqhobong diamond project has shown it could recover 1.2-million tonnes a year from a new openpit mine.

The DFS envisions an openpit mine with three stripping cuts, with an average stripping ratio of 2.26, to be mined to 393 m below surface over a 15-year mine life.

The openpit resource of 55-million tonnes and 17.6-million carats can be mined at an average life-of-mine (LoM) grade of about 32 cpht. Further, scope exists to extend the LoM through underground mining after 2030.
The main treatment plant (MTP) has been designed to treat 500 t/h of ore, which equates to 3.6-million tonnes a year, and comprises purpose-built crushing, scrubbing, screening and recovery technology. Mining and processing will be contractor operated.

Value
$167.3-million, including $86.8-million for the main treatment plant, $23.8-million for infrastructure, $33.4-million for the slimes dam, $9.8-million for grid power and a contingency of $13.5-million.

Duration
The plant and infrastructure are expected to be completed in about 24 months, with commissioning expected in the second half of 2015.

Latest Developments
Firestone is preparing to decommission the pilot plant at the Liqhobong mine to make way for the construction of the 500 t/h MTP, set to start during the first half of 2014.

The diamond mining and development company will close the pilot plant during the fourth quarter of 2013, and decommission it during the first half of 2014.

Firestone expects to mobilise the early works contractors early next year, subject to the completion of financing and 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 include the construction of a new access road, an accommodation camp for contractors and the construction of the starter wall for the residue slimes facility.

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

During 2013, the pilot plant has 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.

The pilot plant has 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 were damaged during the recovery process. The MTP has been designed to recover stones of this size intact.

Key Contracts and Suppliers
DRA Projects (DFS).

On Budget and on Time?
None stated.

Contact Details for Project Information
Firestone Diamonds, tel +44 20 8741 7810, fax +44 20 8748 3261 or email info@firestonediamonds.com.