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Oena Mine, South Africa
The Oena Mine is located on the lower Orange River in a well established diamond producing area which produces diamonds comparable to the best in the world, typically selling at prices over $1,500 per carat. The Oena mining lease covers 8,900 hectares, and extends in a 4.8 kilometre wide strip along 15 kilometres of the Orange River. Oena is located upstream of the Auchas Mine, operated by De Beers, and the Baken Mine, operated by Trans Hex, South Africa's second largest diamond producer. Firestone owns an 87.5% interest in the Oena Mine.
The mine is currently operating at limited production levels, as the company plans to introduce a mining contractor to take over operations at the Oena Mine on a revenue-sharing basis. Full year 2006 production was 296 carats valued at approximately $1,595 per carat. Drilling and bulk sampling are also being carried out with the objective of increasing the identified mineral resources at the mine, which the Company expects will allow it to secure better terms for a revenue-sharing agreement with a mining contractor.
