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Topics 1 Company Background 2 Diamond Exploration Worldwide 3

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Presentation on theme: "Topics 1 Company Background 2 Diamond Exploration Worldwide 3"— Presentation transcript:

0 Corporate Overview RBC Diamond Conference, London May 2008

1 Topics 1 Company Background 2 Diamond Exploration Worldwide 3
Key projects – Botswana 4 Outlook

2 Company Background Listed on AIM 1998 Management team
Philip Kenny – CEO Tim Wilkes – COO Jan Louw – Director of Operations 10 diamond geologists on staff Focused on kimberlite exploration in Botswana assembled largest land position in Botswana kimberlite fields Cash flow from toll treatment JV with De Beers in South Africa

3 Diamond Exploration Worldwide
Siberia 17% “Hot spots” 11% Kasai 9% 3% Craton 10% Kaapvaal 40% Source: BHP Billiton

4 Diamond Mines in Southern Africa

5 Key Projects – Botswana

6 Why Botswana? World’s largest diamond producer 30% by value
geology is favourable for new discoveries Lowest cost producer Climate, infrastructure, politics are favourable Lowest economic threshold of major kimberlite producing regions Northern Canada, Russia ~ $ /tonne Angola, DRC ~ $25-50/tonne Botswana ~ $8-10/tonne

7 Botswana Kimberlite Fields
Orapa 8 out of 75 economic Orapa Mine ~ $1B revenue p.a., 70% margin Gope 1 out of 9 economic Gem doing feasibility Kokong 79 kimberlites 19 with diamonds Rio Tinto evaluating Martin’s Drift 5 out of 7 economic Mine being developed Jwaneng 3 out of 11 economic Jwaneng Mine ~ $2B revenue p.a., >90% margin Tsabong 83 kimberlites 18 with diamonds Firestone evaluating Economic ratio worldwide: 1% Economic ratio Botswana: 7%

8 Firestone Interests in Botswana
Orapa BK11 advanced evaluation 10,000 sq km surrounding Orapa JV with De Beers over 5,000 sq km; De Beers earning 61% to BFS Jwaneng 3,000 sq km surrounding Jwaneng JV with De Beers over 3,000 sq km; De Beers earning 61% to BFS Tsabong 5,000 sq km Covers entire kimberlite field Firestone Licence areas De Beers JV areas

9 Key Projects – Botswana
 Tsabong

10 Tsabong Kimberlite Field
One of the largest diamondiferous kimberlite fields in the world 83 known kimberlites; 18 diamondiferous MK1 kimberlite hectares, diamondiferous Mir 7ha ~200 cpht $200/t ~100 cpht $100/t ~100 cpht $200/t ~40 cpht $14/t ~147 cpht $162/t MK1 180ha MK45 25ha MK38 ~20ha Udachnaya 20ha Orapa 111ha ~46 cpht $28/t Catoca 66ha Kimberley 4ha Premier 32ha Jwaneng 45ha

11 Tsabong Background Limited evaluation since first discoveries in the 1980’s Evaluation limited by overburden – 20 to 80m Microdiamond and geochem techniques in their infancy Most kimberlites sampled with 50 kg sample from a single 6” hole Good diamond potential Geochemistry favourable for diamonds Similar setting to Jwaneng Drilling technology improved significantly Diamond prices increased substantially Economic threshold is modest 20 cpht & $120/carat would support a major mine

12 Tsabong Kimberlites 95%>10Ha

13 Evaluation Programme Focus on most prospective kimberlites
Indicator mineral chemistry Diamond content Size 14 high interest kimberlites selected 17 LDD holes planned ~ 6,000 m of 24” LDD drilling ~ 3,500 tonnes of kimberlite sample 6,000 metres of core drilling

14 ??? MK1 - Historical Work A A’ Significant microdiamond intersections
Tuffaceous Facies Kalahari Crater Sedimentary Facies Intrusive facies A A’ Significant microdiamond intersections ??? m

15 MK1 – Firestone Work A A’ 510m Tuffaceous Facies Kalahari
Crater Sedimentary Facies Intrusive facies A A’ 85-120m 14 diamonds m 15 diamonds m 26 diamonds m 62 diamonds 510m

16 MK1 – MiDa Results 117 microdiamonds recovered from 561 kgs
Size frequency analysis done by Tinus Oosterveld Plotted micro portion Extrapolated macro portion Requires diamonds Ideally 20 stones across the middle sieve sizes Grade of all samples 20cpht Grade of sample 4 – 119cpht 20cpht 119cpht

17 MK1 - Work Programme A A’ MiDa samples pending 490m 510m 524m
Kalahari Crater Sedimentary Facies Tuffaceous Facies Intrusive facies LDDH DDH Hole 53 A A’ 490m MiDa samples pending 510m 524m m 4 x 100t LDD holes planned

18 Bulk sampling – LDD Rig Large diameter drill rig 18” & 24” holes
Drill to 700m Allows rapid recovery of bulk sample

19 Bulk sampling – DMS plant
10 tonne per hour, tonne per day No reliance on labs 25-30 bulk samples in 2008 Mobile

20 MK1 - Volume Model -0 -80 MK1-101 (m) -520 20

21 MK1 - Preliminary Volume Estimates

22 MK1 - conceptual modelling
Base case $120/ct = $24/tonne revenue $10/tonne opex 1.1 B tonnes 24Mt per annum 50 year LOM Start 2014, full tonnage 2015 22 22

23 High Interest Kimberlites
23 23

24 High Interest Kimberlites
Surface Area Macros recovered Micros recovered Comments MK 1 180 + Very large size; 13% G10 garnets MK 31 75 NS Large size MK 45 25 - 4% G10 garnets; best KIM chemistry MK 4 20 10% G10 garnets MK 42 MK 39 MK 38 24% G10 garnets; best KIM chemistry MK 7 Group 1 eclogitic garnets MK 34 MK 52 15 MK 51 10 17% G10 garnets MK 82 10% G10 garnets; best KIM chemistry MK 65 Best diamond results MK 48 NS = Not yet sampled

25 MK45 Core Olivine macrocrysts Graded bedding Mantle eclogite

26 MK38 Core

27 Mini Bulk Sampling Programme - 2008
# of Holes Tons Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov BK11 3 600 MK1 4 560 MK31 1 140 MK38 MK45 MK50 MK65 MK39 MK42 MK4 MK84 MK51 MK7 MK34 MK48 ? 25 3,680 Rig 1 Rig 2 Legend LD Drilling Treatment Results

28 Tsabong Evaluation Timeline
2007 2008 2009 2010 H2 H1

29 Tsabong Exploration 29 29

30 Tsabong Exploration >80 geophysical targets to drill.
MK1 MK6 MK4 MK51 MK37 >80 geophysical targets to drill. 13 kimberlites discovered since Nov 06 8,000 metres of drilling planned

31 Depth of Overburden (m)
New discoveries Kimberlite Estimated Size (Ha) Depth of Overburden (m) Kimberlite type MK71 15 48 Crater/diatreme MK72 22 91 MK73 18 16 Diatreme/hypabyssal MK74 8 20 MK75 28 97 Diatreme MK76 12 35 Crater MK77 34 MK78 5 90 MK79 133 MK80 105 MK81 63 MK82 MK83 111

32 Tsabong Exploration Timeline
2006 2007 2008 Q4 Q1 Q2 Q3 Phase 1 Geophysics Discovery drilling KIM and Mida analyses Phase 2 Geophysics Discovery drilling KIM and Mida analyses Ranking and evaluation

33 Tsabong Town

34 4 Outlook

35 Botswana projects 92 kimberlites, 23 diamondiferous
Expect more than 100 kimberlites by end 2008 Bulk sample kimberlites by end 2008 (3 samples completed) Botswana economic ratio 7% Good prospects for significant economic discovery New projects identified

36 Corporate Information
Shares in issue: 55 million, 63 million fully diluted ~45% institutions; ~26% retail; ~29% management Market cap £106 million Cash Dec 07 ~ £5 million Major shareholders AXA/Framlington - 10% Gartmore - 9% JPMorgan - 6% Artemis - 6%

37 Summary Experienced management team Cash and cash flow
Highly prospective kimberlite portfolio Bulk sampling and exploration news flow in 2008

38 Disclaimer The information contained in this presentation ("Presentation") has been prepared by Firestone Diamonds plc (the "Company") and is being communicated for general background informational purposes only. The Presentation has not been independently verified and the information contained within is subject to updating, completion, revision, verification and further amendment. While the information contained herein has been prepared in good faith, neither the Company, nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as "Information") and liability therefore is expressly disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss, howsoever arising from this Presentation. In communicating this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent. Information contained in this Presentation is the property of the Company. It is made available strictly for the purposes referred to above. The presentation and any further information made available to any recipient may not be reproduced, used or disclosed without the prior written consent of the Company. This Presentation shall not be copied, published, reproduced, or distributed in whole or in part at any time without the prior written consent of the Company.


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