Firestone Diamonds’ Botswana Operations
Following a decision to focus on its flagship Liqhobong Diamond Mine in Lesotho, Firestone commenced a disposal process for all its assets in Botswana. In May 2017 Firestone entered into a conditional option agreement for the potential disposal of its Botswana operations, which include its interest in the BK11 mine, to Amulet Diamond Corporation for a total potential consideration of US$5.1 million in cash.
Further information can be found here: http://www.firestonediamonds.com/investors/new-alerts/regulatory-news
About the Botswana Operations
The Botswana operation’s primary asset is the BK11 mine and the company also has a number of ancillary assets in country.
Firestone is of the view that the Botswana operations present a rare opportunity that has the ability to deliver strong returns under the ownership of an operator or operators for whom it would be a core asset for, inter alia, the following reasons:
- 11.5Mt of production in the mine plan, over a life of mine of 10 years, at an average grade of 8.5cpht
- Potential to substantially improve the yield from the BK11 treatment plant with the introduction of further capital investment
- Fully commissioned electrical power infrastructure that was ready for connection to BK11 when the BK11 operations were placed on care and maintenance
- No LDD sampling has been performed below a depth of 150m, however core holes have been drilled down to depths of 250m and the results thereof indicate primary kimberlite and continuity to depth
- High quality infrastructure is in place due to the existence of the Debswana (50/50 partnership between the Government of the Republic of Botswana and the De Beers group) mines (Letlhakane and Orapa) in the region
- Significantly coarse BK11 mine production parcels with lack of any boart or industrial material