AMN - LESOTHO: Production set to start at Liqhobong

Firestone Diamonds, the AIM-quoted diamond development company, reports on construction activities at its Liqhobong diamond mine. Liqhobong is owned 75% by Firestone and 25% by the Government of Lesotho.

Highlights:

• Construction nearly complete.

• Plant commissioning progressing

• Initial production now expected in this quarter, with full production rates expected to take at least six months

• Revised capital budget of ZAR2.1 billion, remains within the original project budget of $185.4 million

• Production guidance for financial year ending June 2017 between 1.8 and 2.0 million tonnes

• First diamond sales anticipated in January 2017

• Zero lost time injury record maintained, with approximately 2.6 million man hours worked

Firestone Diamonds CEO Stuart Brown says: "I am pleased to report that construction activities at the Liqhobong diamond mine have continued to progress well over the last quarter. As at the end of June, construction was ahead of schedule and initial production is now expected this quarter. The company remains fully financed throughout its ramp-up period and expects to host its first diamond sale in January 2017. The excitement and momentum is building nicely and we are looking forward to the recovery of our first carats in this quarter.”

Liqhobong has continued the momentum achieved during the first quarter of this year. The strong performance is once again attributed to hard work from the dedicated project and construction teams. Pleasingly, the project team have been able to accelerate the commissioning phase of Liqhobong

Lesotho is emerging as one of Africa's significant new diamond producers, and hosts gem quality diamonds

www.firestonediamonds.com

News courtesy of International Mining