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Shares of Firestone Diamonds plc (LSE:FDI), listed on the Alternative Investment Market in London, were heavily traded today as the diamond exploration and development company said rare diamonds were found from its flagship mine in Lesotho, Africa, promising the company of a potentially diverse diamond assortment of high quality and size.
Over 69 million shares were traded by 4:00 PM GMT, surging the shares by 12.9% to 4.375 pence, several hours after the release of the news, which stated a type 2B small blue diamond was found along with 28 type 2A diamonds in August and September 2012.
About a little over 98% of all the gem diamonds found are type 1A diamonds while only less than 2% of that are type 2A, making the rare find very significant to Firestone, which plans to increase production to one million carats a year by 2015.
Blue diamonds, though not the rarest of all the gemstones, only comprise about 0.1% of all the gem stones found so far, with the most famous one, the Hope Diamond, on display at the Smithsonian Natural History Museum in Washington, DC.
Significant Upside
“The recovery of the rare type 2 diamonds and the increase in quality and the variety of colour endorses the directors belief that the Liqhobong resource contains significant upside,” said Firestone Chief Executive, Tim Wilkes.
The 75%-owned Liqhobong mine on top of the Maluti Mountains in Lesotho has been producing yellow and pink diamonds since it started production in June 2011, with the most recent finds of three yellow stones weighing a total of 59 carats and three white stones with aggregate weights of 30.7 carats.
In addition to the rare diamonds, Firestone said they have recovered a fragment of 200-carat stone, after reconstructing a 27-carat fragmented stone in September. The stone was broken as the current pilot plant is unable to process stones in excess of 100 carats, or those with dimensions bigger than 25 millimetres.
Firestone is awaiting the results of the Definitive Feasibility Study, due this month, aimed at increasing production through a fit-for-purpose treatment plant capable of recovering larger stones.
The company is also preparing a dual tender in Gaborone, Botswana and Antwerp, Belgium, which in July 2012 have sold over 45,000 carats amounting to US$4.4 million.
