StockMarketWire.com - Shares in Firestone Diamonds (LON:FDI) fell despite a positive update on its operations in Lesotho and Botswana and the sale of all the goods on offer at its rough diamond tender.

The company said it was very pleased with the performance of the plant at Liqhobong in Lesotho over the past two months.

Mining of K2, K4 and K5 ore types continues as the Main Pipe pit develops and construction of the tailings facility starter wall is under way.

At the BK11 mine in Botswana, a secondary crushing circuit has been installed and is being optimised and bulk sampling continues to confirm resource grades.

The company says the first tender of 2012 concluded on 3 February and was well supported with 35 international diamond buyers attending.

All stock available in the tender was sold.

Chief executive Tim Wilkes said: "We are very pleased with the performance of the plant at Liqhobong over the past two months.

"We are implementing a programme of continued improvement and enhancement to maximize the recovery of diamonds and we are confident that we will see positive results over the coming weeks.

"The performance of the mineral resource has been outstanding with respect to grade, mine call factor and diamond assortment.

"The recovery of three plus 100 carat diamonds, albeit broken, confirms Firestone's conviction that the resource has the ability to produce much higher value diamonds than recovered to date.

"These positive indicators bode well for Firestone as we shift our focus towards phase 2 of the project, being the development of a world class diamond mine and a purpose built plant facility."

Shares in Xstrata (LON:XTA) were also down after it agreed an all-shares merger with Glencore that would create a $90bn natural resources group.

Xstrata's operating businesses and Glencore's marketing functions will continue to operate under their existing brands.

It is proposed that the combined entity will be called Glencore Xstrata International, listed on the London and Hong Kong Stock Exchanges, with its headquarters in Switzerland and will continue as a company incorporated in Jersey.

Xstrata chief executive Mick Davis said: "A merger between Glencore and Xstrata offers a unique opportunity to create a new business model in our industry to respond to a changing environment.

"It is the logical next step for two complementary businesses, each with an outstanding track record of shareholder value creation, entrepreneurial management and a proven ability to spot valuable opportunities and capitalise on them."

Weatherly International (LON:WTI) has reported a 5% increase in the total resource at Tschudi - 50.1mt at 0.86% copper, up from 47.7mt at 0.85% copper.

The site contains a maiden open pit reserve of 22.2mt at 0.87% copper and reserves support an 11 year life of mine producing 15kt copper per annum.

The feasibility study is due for completion in mid-2012.

Chief executive Rod Webster said: "The progress being made on the Tschudi Feasibility Study demonstrates that the project is progressing as we had envisaged, albeit with some important enhancements.

"The fundamentals of the project are very good and we look forward to the prospect of adding an additional mine to our portfolio."

Galantas Gold's (LON:GAL) concentrate production in the last quarter of last year was 255% up on the corresponding period in 2010.

The company said that at 740.2 wet tonnes, the increase was due to improvements in the processing plant and to milder winter conditions than the unusually adverse conditions experienced in 2010.

During the whole of 2011, concentrate production was up by 55% compared to 2010, even though the early part of the first quarter of 2011 was affected by adverse winter conditions.

Horizonte Minerals (LON:HZM) has completed the acquisition of 100% of the Vila Oito and Floresta nickel laterite projects in Brazil.

These are next to Horizonte's 100%-owned Araguaia nickel project and have been acquired from the Brazilian affiliate of Canadian-listed Lara Exploration Ltd.

The total consideration for the acquisition comprises 8.5 million new ordinary shares which will be issued to Lara and equate to C$2m based on the 20 day average price to 10 January, as per the original heads of agreement announced on 18 January.

The consideration shares will represent 2.95% of the enlarged issued ordinary share capital after completion of the transaction which will then comprise 288,059,980 ordinary shares.

At 4:25pm:
(LON:AMI) American Investment Trust share price was -7.75p at 541.75p
(LON:AQP) Aquarius Platinum share price was -1.65p at 169.85p
(LON:BEM) share price was +2.01p at 16.13p
(LON:BKY) share price was 0p at 24.5p
(LON:CEY) Centamin Egypt Ld share price was -0.07p at 96.53p
(LON:CHL) share price was -0.12p at 15.38p
(LON:CZA) share price was -0.25p at 69p
(LON:EGU) European Goldfields share price was -2.5p at 782.5p
(LON:FDI) Firestone Diamonds share price was -0.88p at 12p
(LON:FRES) share price was -16p at 1801p
(LON:GAL) Galen Holdings share price was 0p at 4.25p
(LON:GEMD) share price was -4.65p at 229.75p
(LON:HOC) share price was -8.25p at 519.75p
(LON:HZM) share price was +0.13p at 15.13p
(LON:KMR) Kenmare Resources share price was -0.46p at 49.49p
(LON:VED) Vedanta Resources share price was -22.5p at 1294.5p
(LON:WTI) Weatherly International share price was -0.12p at 6.13p
(LON:XTA) Xstrata share price was -61.25p at 1200.25p


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