JOHANNESBURG (miningweekly.com) – Aim-listed Firestone Diamonds has started commercial production at its BK11 mine, in Botswana, after having been granted a 12-year mining licence for the project.

“The commencement of production at BK11 is a major milestone for Firestone as the company is now one of only three listed kimberlite producers worldwide outside of the major mining companies. It is an exceptional achievement to have reached this point in just over three years from being granted a prospecting licence,” CEO Philip Kenny said on Monday.

Phase-one development work at the mine’s production plant, which was completed at the end of the second quarter, has allowed for a capacity to treat 650 000 t/y run-of-mine (ROM).

Phase-two development, to boost throughput to 1,5-million tons a year ROM, remained on schedule to be completed during the third quarter, with the plant expected to ramp up to full output by the end of this year.

BK11 would produce about one-million carats of diamonds over its ten-year life.

Output would be sold by open tender in Botswana, but the Ministry of Minerals, Energy and Water Resources had also given its approval for tenders to be run outside the country until December 2013. This could potentially be extended to December 2015.

In terms of the mining licence, Firestone’s 90%-owned subsidiary, Monak Venture, would be required to pay a diamond royalty of 10% on the gross market value of production from the mine.

The BK11 project would form the centre of Firestone’s satellite mining operations in the Orapa area, in Botswana.

The diamond miner had access to 21 other satellite kimberlites in the Orapa region, with the BK16 project the most advanced.

Further evaluation work, including core drilling and large diameter drill bulk sampling, would be undertaken at BK16 once BK11 reaches full output.

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