Firestone Unearths 326ct. Diamond

RAPAPORT... Firestone Diamonds has recovered a 326-carat, near-gem-qualityrough - the largest diamond the miner has found to date. The company unearthed the stone at its Liqhobong mine inLesotho in October, it reported last week. "[The 326-caratdiamond] provides further evidence of Liqhobong's large-stone potential, and,importantly, the ability of the treatment plant to recover larger stonesintact," Firestone CEO Paul Bosma said. The discovery followed sales of $13.5 million in the firstfiscal quarter ending September 30, in line with the same period last year, itadded. Strong sales volumes partly offset the negative impact of weak pricesfor smaller, lower-quality rough at the one sale Firestone held during thequarter, it said. While the average price of $70 per carat at that September tender- from sales volume of 194,206 carats - was higher than last year's $69 percarat, it was still below the company's expectations. Prices improved at the Octobertender, Bosma noted. "We completed our second sale of the financial year [followingthe end of the quarter], and, pleasingly, the strong demand for our specialstones offset the continued pricing pressure on the run-of-mine stones,resulting in an improved average value realized of $79 per carat," theexecutive added. Production rose 21% year on year to 240,733 carats for thefirst fiscal quarter despite snow-induced delays, with the miner recovering 114stones weighing more than 10.8 carats each. The equivalent period last year wasLiqhobong's first full quarter of commercial production. Firestone, which owns 75% of Liqhobong in partnership withthe Lesotho government, is in the process of evaluating its mine plan anddetermining whether it is viable to extend the asset's current life span. Image: Liqhobong mine. (Firestone Diamonds)