AIM listed Firestone Diamonds last month recorded a gross proceeds of approximately US1.4 million on its first 2011 diamond sale.

The company put on the market 7,111 carats of diamonds, attracting more than 25 local and international buyers.

The sale indicates a significant increase in prices achieved from both Liqhobong mine in Lesotho and BK11 in Botswana hinged on quality of production from the mines and continued strength of the rough diamond market.

“We expect to see significant further increases in prices achieved for production from Liqhobong and BK11 as production at both mines increases in 2011,” said Tim Wilkes, chief executive officer of Firestone Diamonds, chief executive officer.

The diamond sale recorded an average price of $181 per carat at Liqhobong while BK11 diamonds achieved an average price of $230 per carat.

The company expects higher diamond prices expected once new crushing circuit is commissioned

“The result is very significant, as 2011 production was comprised of mostly smaller diamonds due to the liberation problems that have been experienced at the BK11 plant.  Once the planned new secondary crushing is put into operation later in Q2 2011, the average stone size is expected to increase and higher diamond prices are anticipated.”