European Diamonds Plc (EPD: AIM) is a diamond exploration and development company with advanced projects in Finland and Lesotho.

In Finland, the company has explored a large part of the prospective Karelian Craton and identifed a number of kimberlite indicator trains. Kimberlites have been discovered in one of these areas and exploration continues in the others. Evaluation work on the promising Lahtojoki Pipe has begun with a 5,000 tonne bulk sample due to be collected before Easter 2005.

In Lesotho, European Diamonds holds a 25 year mining license to develop the Liqhobong diamondiferous kimberlites. The Liqhobong Project provides for the commencement of mining at 290,000 carats per annum from the end of 2004 from the Satellite Pipe and the evaluation of the adjacent large Main Pipe and start of a Feasibility Study in 2005.

European Diamonds will become a mid-tier diamond producer in 2005 and intends to grow through acquisition and in-house exploration. The experienced management and technical team of European Diamonds have a strong track record of discovery and a history of wealth creation for shareholders.



The Kingdom of Lesotho gained its independence from the UK in 1966 and is the only constitutional monarchy on the African continent. The country is a small, densely populated mountainous country situated in the east of the Republic of South Africa, which entirely encircles the country.

Diamonds in Lesotho
The country has long been known as a source of large, high quality diamonds, mostly from alluvial deposits. To date most of the country's diamond production has been derived from the Letseng-la-Terai deposit which was mined by De Beers between 1977-1981. Letseng has recently returned into production and is again producing high quality gems albeit on a modest scale. Apart from Letseng, the only other known significantly mineralised kimberlites in the country are the Liqhobong suite and the nearby lower grade Kao pipe all located about 40 kilometres west of Letseng also high in the Maluti mountains.





Finland project.

Project Highlights
Work undertaken by European Diamonds and the Geological Survey of Finland has proven that the Achaean-aged Karelian Craton is highly prospective for hard-rock diamond deposits.
European Diamonds currently have seven regional exploration projects in eastern and central Finland in addition to the Lathojoki project currently under evaluation.
The Company has recovered high quality kimberlite indicator minerals from all of the exploration projects and will continue with the field exploration of these areas in 2005.
Work on the Lentiira Project in central eastern Finland has identified a large kimberlite complex covering an area of some 160 square kilometres. Although the Company has recovered high quality indicator minerals and diamonds from the project area, to date only linear kimberlite dykes have been discovered.
None of the sampled dykes has proved to be the source of the highest quality indicators emanating from the highly prospective 'Railway' indicator train. Further assessment of this project will continue throughout 2005.





Corporate website : http://www.europeandiamondsplc.com/s/Home.asp

Shareholder info : http://www.europeandiamondsplc.com/s/InformationRequest.asp

Thanks for the reply Andy, gives me something to aim for

I think 73p is numis initial price target based on satellite pipe start-up...
with ongoing newsflow from lesotho and sample from finland in 1st half
followed by main pipe work in 2nd half i think we could see and pass 1 quite
quickly..imo

dibbles,

Yes that's correct, though it wouldn't suprise me if that target is exceeded IF minestart is on schedule.

This sure is a frustrating one - moves like a train for a few days, then lies doggo......

Hopefully it will consolidate at this level before next assault........
Excitement should build again as we get ever nearer minestart.....
Also fundmanagers visiting site early Feb so EPD must feel they have something
good to show them.......

dibbles,

well you would expect so!

Nice find in lesotho, not EPD's mine, but increases interest in the area.

http://www.timesonline.co.uk/article/0,,3-1460769,00.html

Shouldn't be long now before we start finding our own, big or small, i'll take
either as long as it gets momentum building.....

All quiet on the news front after the Indaba mining Conference, Cape Town, which took place last week.

One the brokers and analysts are back at their desks, maybe some news from lesotho will be forthcoming.

Share price dipped 10% last week, so we could do with some positive news.

On the otherhand, any drop below 40p on light volume and no news would be a buying opportunity IMHO, and one I would take too!

Woooah! What were those big trades that went through at 45.50?

Hmmm,

Not sure, but IMHO, I'm not sure they were buys, could just as easily have been sells due to their size > NMS, and possibility of being delayed.

It'll be interesting to see which direction EPD goes tomorrow.

http://www.europeandiamondsplc.com/i/pdf/2005-02-15_B.pdf

February 15, 2005

Bloomberg interview with Chairman Anthony Williams
By Simon Casey

Feb. 15 (Bloomberg) -- European Diamonds Plc. plans to start recovering its first gems at a mine in Lesotho, southern Africa, sometime next quarter, Chairman Anthony Williams said.

The London based company is completing construction of the Satellite Pipe mine, which will produce about 290,000 carats of diamonds per year, Williams said in a telephone interview. "It is the first stage of what we confidently predict will be a major mining operation in Lesotho," Williams said.

European Diamonds will supply diamonds to a market in which demand is estimated to be outpacing production. Prices for so called rough diamonds, sold on to jewellers for polishing and cutting, have gained 40 percent in the past two years because of surging sales of rings and necklaces.

The company is also exploring the northwest of Finland for kimberlites, volcanic rock formations which contain economically recoverable quantities of diamonds.

"We've yet to discover an economic kimberlite," Williams said. "All the exploration guidelines are that we will find economic kimberlites in that area."

The company is carrying out a sampling of rock taken from its Lathojoki site in central Finland "early in 2005," Williams said. It also plans to complete in 2005 a study of a site adjacent to Satellite Pipe that's six times larger.

European Diamonds lost $1.6million in the year ended June 30. The company won't break even this fiscal year, Williams said. Shares in the company dropped 1.5 pence, or 3.2 pence in the past year, valuing the company at 19 million pounds ($36 million).



--------------------------------------------------------------------------------

For further information please contact:

Tony Williams - Chairman
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7436 7486
Fax: +44 (0) 20 7631 1444
e-mail: enquiries@europeandiamondsplc.com
website: www.europeandiamondsplc.com

Allan Piper
First City Financial Limited
32 Percy Street
London W1T 2DE
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail: mailbox@firstcitypr.com

I see the buying last Friday has carried over ito today, and we are up 3p today so far.

Does anyone know whether EPD was tipped in the press this weekend, or by a tipsheet? interested to know where the interest has come from.

Looking at early trades, it suggests a tipsheet, as they are of the private investor size.

Photo courtesy of anomolous, ADVFN.

rhps

Ta!

Andy - what photo?

philfpolio,

THAT photo!

Slight typo there, thanks for pointing it out.

Nice end to the day again, EPD up another 6.5p, and again no news to substantiate the rise.

I can only summise that the visit to the minesite in lesotho by brokers and analysts a couple of weeks ago has sparked the interest, and with minestart imminent, peeps are buying in anticipation of a rise once diamonds are actually being recovered.

Perhaps this is the start of a new move up after the announcement last week of mine start. However it looks to be a measured progress....

Momentum Investor
European Diamonds, 46.5P
By: Richard Welby
The increased appetite for risk among investors has spawned a burgeoning number of
diamond mining companies coming to AIM to raise large amounts of money by
promising earth shattering returns. Very few will ever find a commercial discovery,
but the carrot is that those who will do often be transformed from acorns into big
oaks.
One that has a fighting chance of becoming the latter is AIM minnow, European
Diamonds, which has not found a commercial discovery but is also about to start
production this May.
For such a small company, European Diamonds is blessed with a geologist of the
highest calibre. Its Chef Executive, Roy Spencer, discovered the giant Grib diamond
pipe in Russia, which contains more than US$5 billion worth of the largest economic
diamond deposit outside South Africa. Fresh fro this success it wasnt difficult to find
new backers for his new vehicle, European Diamonds, which floated on AIM at 70p
in 2000, raising 3m, with a brief to make diamond discoveries in Finland.
In spite of one false start, European Diamonds second project Lathojoki, near the city
of Kuopio in central Finland, looks more promising, with a drilling program
discovering the presence of a two hectare kimberlite pipe, the classic rock formation
which can contain diamonds. Chairman, Tony Williams, who we met over the month,
gave us a how to master-class in determining the crucial tipping point at which a
diamond mine is declared commercial and this resolves around three main factors: the
size of the kimberlite area, diamond grade and average run-of-mine diamond value.
Given that independent analysis of a large sample of the Lathojoki discovery yielded
grades of .44 carats a tonne, well above the minimum acceptable range of 0.25-0.3,
thus is very encouraging although further analysis will be required on both grade and
value.
However, the area that could produce some real short term fireworks in the share
price is in Lesotho in South Africa, a country which has the highest concentration of
known kimberlite pipes in the world. Here, European Diamonds paid just 3m in
shares in October 2003 for two advanced diamond development projects, the low
price reflecting the fact that the seller could no longer finance its license obligations to
the government of Lesotho. Of the two projects, the smaller satellite pipe, in which
European Diamonds has a 65% interest , is known to contain high grade (0.7 carat)
diamonds in commercial quantities and has been independently verified. With the
help of a placing of new shares at 40p last year, which has raised 6.5m, the company
has virtually completed the construction of a new mine and processing plant and the
first diamonds from the satellite pipe are expected to be processing in the second
quarter. It should generate net cash flow of US$5m from a production rate of 290,000
carats/ year in the first full year and has a mine life of at least five years.
But that could be just the beginning, with European Diamonds, with European
Diamonds planning to use the cash flow from satellite pipe to fund the the
development of the main pipe, next door, which is much larger and deeper and
covers a whopping 9.5 hectares. While the original surveys encountered low grade
(0.16 carats) diamonds, more recent studies have indicated at least three much higher
grade zones and although early days, analysts believe it it has the making of 700.000
carats per year operation, generating revenue of $45m. With a Lesotho site visit for
institutional investors expected shortly, there could be some explosive news flow
soon. Although not without considerable risk, the shares are an exciting speculative
buy!

Pholfolio,

Many thanks for posting that article, which clearly states the potential EPD has in it's prospects IMHO.

Production is due to start at the end of April I belive, and if this date doesn't slip, I feel we will see some positive price action very soon.

The commencement of production will be the catalyst for EPD I feel, so may explorers, but very few producers on AIM!

Andy et al, greetings and thanks for the interesting posts above which I've now caught up on together with the various otehr RNS along the way.

The share seems to have been through a typical history of early ambition dissipated by (relatively minor) delays in getting set up on site. Its recent lift from the 40p support level of last year's finance raising is showing the right momentum.

It looks a good time to get in now. The NPV of the Satellite Pipe I reckon covers about 10-12p of the SP, so the rest is riding on the future prospects of the Main Pipe (which could be enormous and carries already a high degree of good sentiment, I imgine) and Finland (still a bit uncertain with pretty cool sentiment, I estimate). What's your view on the next stage for the SP as they dig the first shovel of dirt in April?

Interesting race between EPD and NML in nearby Angola which I am already in!

SD

Stockdog,

You raise a couple of interesting points, one of which was recently discussed "over the road" at ADVFN, where the poster calculated NPV @ 49p including capex.

Another poster has done a calculation on a PE of 15, giving a value of 72p per share for the satellite for the next year.

I have not had the time to check out the calculations, but believe them to be fairly accurate.

IMHO it IS a good time to "get in now", PROVIDED the minestart commences on schedule, ie late April, as I expect a surge in the share price once minestart is confirmed.

EPD have other prospects in Lesotho, and are awaiting news in finland, so there is always a chance of unexpected news arriving, in addition to the minestart RNS.

With regard to EPD and NML, I honestly believe that EPD will be mining before NML, perhaps by a period of months. I think NML are short of cash, and are still being hampered by the weather, and that may continue for another month yet, according to average rainfall figures for the area.

I should declare that I hold EPD, and not NML, at the moment.

My plan is to top slice EPD, and buy NML with the funds, provided of course that EPD can commence production before NML, and NML do in fact obtain their mining permit from the Angolan government.

If you are looking at junior diamond miners, I suggest you take a look at Firestone Diamonds, (FDI), because they already produce from three mines in Namaqualand, S. Africa, but, IMHO, also have some very interesting exploration areas too!

i have an 80p price target for the minestart

cannot be far away now, we are nearly in April!!!

Andy, thanks for your considered response. My NPV was taken as $8m @1.88 = 4.25m from their own fund-raising prospectus last September for the Satellite Pipe which with 42.5m shares in issue equates to 10p per share - plus as you say the main pipe and Finland (we'll always have Finland!) - also several suggestions that the satellite may have deeper to go for longer with higher grade ore. The 5 years plus mine life is probably the most significant limiting factor, giving a 3 year pay-back then only two years of free profits - 10 years would have been much nicer. Should I also add in the 6.5m cash just raised to the NPV of the mine - that brings total NPV to 25p which is more like it for the current SP?

That said, I suspect sentiment, on minestart, will take the SP to where you and Aimtrader suggest - a 50% lift would be nice for a relatively short term trade. Better try to find some dosh for the trip.

SD

Ouch, what's going on? Getting the **** kicked out of it!

philfolio

Well, nothing's going on actually. They broke sideways through the massive 3 year down trend earlier this year and are now dicking about between 40 and 60p waiting for mining to start "in April". Still technically in the middle of a well defined minor down channel.

We still have 2 weeks to go before they disappoint and the SP lurches down below the 35p support level. Or maybe they will start, and the SP will flip up to a new range above the 65p resistance level.

On balance, they're on my buy more before mining starts list, when I can arrange the necessary, rather than my sell before more bad news which I do not expect.

SD

stockdog,

Yes I am considering a top up too, as like you I expect them to more or less start on time.

Stockdog,

Well it's a total slaughter out there this morning, and EPD, IMHO, has faired better then most!

I only have one stock blue, Mano River, and only have a small holding in that anyway.

It's certainly bleak out there today. Too bleak to buy IMHO - want to see this sell off hit bottom firmly before committing more funds.

EPD could certainly have fared worse, but I have other penny stocks stocks that have not moved at all today. Hoping this is a sign of strength to come, rather than just too small to bother people who will sell these off too once they have dealt with the bigger fish.

Having posted lyrically about being a born again stop-losser on the ARX (funnily enough the one bit of blue on my screen today) thread yesterday, in practice I am sitting like the proverbial rabbit in the headlights again, hoping the wheels will go either side of me.

SD

Shouldnt this stock be going NORTH instead of SOUTH. I Know its murder out there today.

When can we expect to see a movement back up?

Stockdog,

Well I have been selectively selling since Friday (not EPD), as I suspected we were due a fall today, and I agree, before I commit those funds back into the market I want to see a solid base too.

I have a nasty feeling the US market is going to have a quick correction, and drag UK down too.

On my non oil stocks, I have placed stop losses, and am selling as soon as they are breached. I have made several sales today, and I can buy them all back CURRENTLY at cheaper prices.

I relaise there is a risk of missing a quick rise, but I have lowered my risk, and am happy to sit out today, to see how Wall St. CLOSES!

Sceniroute,

The quick answer is yes, but with the market being so soft, until EPD actually announce official minestart, which could be any day now, I think we will wallow around this price.

Any opinions from anyone about todays news?

Well, the issue price of the units for 45p suggests some support for the SP at around that price (above today's 41.5p mid-price), since the warrants for half a share at 75p are well out of the money and are therefore just a kicker at this stage. But investors must think 75p will be cheap enough by the time they swap their warrants into shares within quite a limited time-frame of 1 year.

"Each whole warrant will entitle its holder to
acquire one ordinary share of the Company for a period of one year following the
closing date at an exercise price of 75 pence per share."

Is the closing date the date of closing of this issue or some date specified in the issue documents?

Also, a little surprised to see reference to an EGM to be convened "shortly", but a listing date of 25th April for the new shares. Don't they know when the EGM will be yet - today, Friday or Monday - and what happened to 21 days notice of a GM?

The private placing in Bermuda has overtones of dodgy funds - was it so much better than raising in London? Is EPD listged on a Bermudan stock exchange?

Basically very good news for the operational side of the company and no discount to the SP, but a couple of tiny alarm bells about the corporate administration - or am I being too sensitive?

SD

I agree Stockdog, some questions need answers, but at least so far the SP is not collapsing again. Looking again at today's release, I note that the 4.25m shares have already been subscribed, and it is these that they hope to start trading 25th April. The remaining 6.86m shares are the ones for which they are calling an AGM to seek approval.

Stockdog,

I think you are confusing two issues.

I think they already have shareholder permission to issue the 4.25 million shares, hence so they will commence trading on 25/04/2005.

In order to obtain shareholder approval for the additional shares and warrants, they will need to call an EGM, and give, as you rightly say, 21 days notice.

Once the EGM approves the additional shares / warrants, they will be issued, but not before.

Bermuda is a taxhaven, so not necessarily "dodgy", possibly simply tax avoidance.

Andy, as I said, good news on balance and I'm prepared to be called over-sensitive about the other issues. Not making a big issue out of it. Still holding.

BTW Comdirect marked the offer up to 45 (from 43 close) after hours - usually a sign the MMs are protecting themselves from cheap buyers expected in the pre-market tomorrow, I think. So maybe we touched bottom at 41.5p mid-price yesterday and today before climbing back up through the dma's to the wide blue yonder - only another 70 days till end of Q2 by when they say they will commence production.

stockdog,

That's interesting, re Comdirect, will watch the open tomorrow closely.

May be worth attending the EGM if in London that day, all formality, and over quickly, but you have the opportunity to have a chat with the directors afterwards, so could prove fruitful.

I believe production is due to start by the end of April/beginning of May, so hopefully that will prove to be accurate.

Stockdog,

Well spotted sir!

Following on from your Comdirect comment yesterday, up goes the price today!
maybe a few traders coming in now that minestart MAY be imminent?

Another possibility is the placing at 45p has put a support under the price, and we're simply rising to that level.

Anyway, a nice finish to a poor week overall.

It's a good day generally for me, Andy

Topped up on some holdings first thing today. Gratified to see I am clear of the offer price already on two of them already.

If only NML would get out of bed, I'd be feeling totally chipper!

SD

Stockdog,

I'm now considering a topping up my EPD again on Monday morning, maybe the march northwrds has started now?

Stockdog,

The post below was posted on ADVFN by Anomolous, and he relates a recent conversation with kerry at EPD, and is well worth a read IMHO.

Anomolous has given permission to rperoduce his post here.

=====================================================================


Anomalous - 23 Apr'05 - 10:40 - 4356 of 4369

I spoke with Kerry yesterday evening. She gave me an insight into what happened with the issue. She couldn't tell me beforehand, because that would have been against the rules and I appreciated that she didn't.

They had been arranging the placing for a while and wanted to get it over and done with so they didn't miss out on any of the precious working time in Finland. You see, in Finland, there are a few months where they are completely unable to do any work at all. So they have to cram as much in as they can during the Summer and Autumn months.

They've already started clearing the ground at the Kimberlite in late January, but they need the warmer months to make the drilling easier. These are approaching fast. If EPD didn't have the money to get the work completed immediately, they might have had to wait another season to get the BFS done and delayed bringing the mine into production by as much as a year.

So they took the decision to go ahead with the fund raising (just for Lahtojoki, none of the cash goes to Lesotho), so that they could make the most of the time they have available. This much cash means that the work can proceed from the bulk sample to the BFS seamlessly. They are rushing the bulk sample through the labs (in Perth, Western Australia) and will send back the preliminary results to enable the BFS drilling to start in the right place. They haven't firmed up the true dimensions of the Kimberlite yet, but it is estimated to be 2 Hectares and the initial grade from the samples taken so far is 44 cpht. This might change (up or down) during the bulk sample. But the key thing is that they will have a better idea of the carat price too.

Now, they were in the final negotiations over the deal for the placing when someone (shall we say possibly sgfund) stuck his great big foot in it and went round saying that there was going to be a dilution. The original strike price for the deal was 55p per share.

Yes that's right, they would have raised 5 million at 55p, not the eventual 45p. So you can all kick sgfund for causing the issue to be 2 million shares higher, which represents an extra 5% dilution.

The rumours caused the price to drop during the negotiations and the placee came back to EPD and asked for a lower price. They settled on 45p, just before the price dropped even more to 40p because of Wall Street.

The main point about the placing, is that the company now has the funds to get Lahtojoki closer to production. If they can get the BFS completed this year, then they might be able to consider bringing Finland into production in 2006, rather than 2007. This would mean that EPD would have three pipes in production simulataneously. Satellite, Main and Lahtojoki. So we may have to revise our estimates for the share price considerably. As having three pipes in production is bound to increase the company value.

We won't have more details on Lahtojoki until much later in the year. In fact, we shouldn't really expected anything before September or October for the bulk sample. But Kerry is forward thinking vice-president and she realises the value of having shareholder and investor support. So it is intended to keep everyone updated with much more regular reporting, similar to the reports that Tawana get. On a regular schedule. They won't go silent for months, but will honestly keep you appraised on their progress, by saying that they are 1 or 2 days behind schedule but that mining is underway.

EPD told us that they would start mining by the end of the month and they are still on track. Fully funded and ready to go. I expect we will hear something very soon to tell us if they have made the mine start. The plan for Lesotho over the next three months is to work up to full production by August 2005. So in May, June and July, they will increase the amount they are processing, till they are at the maxmimum load they can handle.

They have a pile of tailings (that does have diamonds in) ready to be put through. So they know this will test the ability of the equipment to sort and extract the diamonds. The pile should keep them more than occupied whilst the other engineers start extracting fresh kimberlite directly from Satellite.

They are conscious of the fact that Lesotho does have a preponderence of large high carat stones. So they are going to do their best to process the ore without breaking up these stones beforehand. It has a lot to do with the settings for how they screen the ore as it goes into the production line.

They are using wet and dry methods to process the ore. The water supply is ready and so are the staff and the equipment. In fact, they might be just finishing off the last bits of preparation as I write.

So.. we have Kerry's regular reports to look forward to, we have a fully funded mine about to start production, we have a fully funded exploration underway in Finland and we have two low-risk countries to work with.

I believe that we are about to become very wealthy shareholders. Bring it on.......

Things seem to be looking up here, and if the above post is true, then mine-start is just around the corner!!!

finland is looking ok to, so overall i still expect a healthy rise here soon!!!

Andy,
If you where short of funds would you sell some FDI to buy EPD?

or even some NML - lol!

Aldwick,

Possibly on a short term basis, as it SEEMS more likely we will hear about minestart at EPD before any news from FDI, but in all honesty, that is a guess, and FDI could bring out some company making news tomorrow, for all I know.

I would bertainly bear in mind that it's nearly three months since FDI confirmed they had found three kimberlites in Botswana, and they were drilling one hole per one and a half days, so I would have thought they must have some more news coming up from Botswana, and then of course we are waiting news from the Groen River.


For example only;

Let's just say I had 2,000 in EPD, and 10,000 in FDI, I might consider selling, say, 4k FDI, and even both holdings up at 6k, thus hedging my bets.

'IF' EPD announced minestart, and the price rises, say, 20%, you could then sell 4k of EPD, and use the proceeds to re- buy 4k FDI, thus regaining your original holding, and making 800 of EPD shares. (excluding dealing costs)

If you do this within 30 days, your FDI holding will be deemd to be continous for the purposes of BATR.(I believe)

Of course, FDI may also rise, and you could lose out that way, so it's one to ponder beforemaking any rash moves.

I have sold holdings in another stock to top up on EPD, but it wasn't FDI!

Hope this helps.

Stockdog,

LOL!

Andy,
Cheers, I think it will be best if i just take out a CFD on them.

European Diamonds PLC
25 April 2005


European Diamonds PLC

Issue of Shares

25 April 2005

European Diamonds PLC ('the Company') announces that it has issued a further
4.25 million ordinary shares at 45p per share as part of the private placing
announced on 21 April 2005. Application has been made for these shares to be
admitted to AIM and it is expected that they will be admitted on 26 April 2005.
Following admission the total number of shares in issue will be 46,772,561.

For further information please contact:

Graham A Potts - Company Secretary
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244


This information is provided by RNS
The company news service from the London Stock Exchange

Thanks, Andy - that's a pretty good price I would say. Should give the SP a bit of support.

SD

SD,

Well let's hope so, some decent trades today, yet no real momentum in the price yet.

I agree, the 45p placing price will help.

European Diamonds PLC
26 April 2005


EUROPEAN DIAMONDS PLC

ANNOUNCEMENT

26 April 2005

Disclosure of share interest

The Company has today been notified that investment funds under the management
of DKR Saturn Management L.P. hold in aggregate 4,250,000 ordinary 5p shares
representing approximately 9.09% of the issued share capital.

For further information please contact:

Graham A Potts - Company Secretary
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502

Aldwick,

Cheers.

Does anyone know whether these new shares are in the market today, as announced yesterday? Seems awful quiet....

philfolio,

Some of them are, and some aren't, as the company were only authorised to issue so many additional shares without an EGM, and the latest placing exceeds that.

As a result, they must have an EGM to agree on the issue of the non authorised additional shares, so theseadditional, so THESE shares are NOT in the market, but the ones they were authorised to issue as per previous AGM's ARE.

And what happened to Mine Start at the end of April? The stock looks moribund, perhaps until after the EGM at the end of May...a good opportunity to buy in the 30s?

phil,

No idea, to be honest.

I spoke to kerry Spencer, (as indeed did some other holders) a week or so ago, and she said the switch from exploration to production is not always clear, and therefore not easy to define and announce.

I pointed out that the price was drifting lower, and if they didn't announce, we could go much lower if the market thought they were failing to deliver.

She said she was "comfortable" with the end of April, so I empasised the need for an RNS.

So far no RNS, and I am considering lowering my holding, because any further delay could have a massive negative impact on the price IMHO.

let's see if we have any news tomorrow.

Did Kerry mention which year she was comfortable with?!

stockdog,

No, lol!

Sadly all mining comopanies seem to miss their targets, and EPD seem to bee no exception.

From a shareholder point of view, it is disappointing because the date is set by the company itself, and clearly they don't allow for possible problems, and then the market takes a negative view.

Griffin Mining (I don't hold) are a rare exception here IMO, as it would seem, they are opening on time and on budget.

Andy -

Well, some support buying today, could this be in anticipation? I also emailed the company last week and they replied, speaking only of 'second quarter' for minestart, so that suggests they are hedging their bets.

phil,

Well that would appear to be the case!

Still holding, but not as happy as I was.

Andy

remember a while ago we thought EPD would beat NML to production - well this month they've both lost their way a little.

Who will be first back on track do you reckon?

SD

Nice couple of sizeable (for today's overall volume) buys at the end of trading today. It will be interesting to see if the offer is still there at 40 tomorrow.

Hope it's EPD, sold NML today to pay for more SEO's

Stockdog,

Interesting question!

I still think EPD, but not as confident as I was previously!

I originally planned to top slice EPD profits into NML, but that may not be possible to do now, although NML's price is low enough to be bale to make a decent profit IF they finally deliver.

Well yesterday's gain has been lost again this morning, come on EPD, where's the RNS?

Andy, we may both be stop lossing out of NML into EPD's rise! lol

I'm not good at arriving at a balanced view in these dreary market days, so feel unsettled much of the time which I dislike.

However NML has remained firm at 3.75 bid and EPD has found support at 25p. If they don't go lower then one day they will rise. Do you think there is much downside risk left in them?

SD

Stockdog,

Well 'IF' EPD fail to deliver a minestart RNS by the end of May, we could see a dip towards 30p IMHO, although this is a worst case scenario, which I hope doesn't happen, obviously.

With regard to NML, it looks low at 3.75p BID, but 'IF' they were to do a placement at, say, 3p, then the price would drift down towards the placement price IMO. Again a worst case scenario IMHO, and they may borrow money rather then do a placing, in which case I see a very limited downside from the current price personally.

In fact today you can buy NML at UNDER 4p, despite the offer being 4.25, so it looks as though the MM's may have some stock to sell there.

Looks like we're headed to 30 in any case, I see no serious interest in buying

Phil,

I can't disagree with that, I've reduced my EPD for now, and increased my FDI and SEY.

Phil,

Well I'll be looking out for na RNS tomorrow, two weeks since the end of April, so now would around the time we can expect to see one of the schedule is still on track IMHO.

Personally, I think they have delayed too long, and do not expect the rise I would have expected two weeks ago. Hopefully I'l be proved wrong, we shall see.

Andy,

You were spot on, here's the announcement:

++++++++++++++++++++++++++++++++++++++++

European Diamonds PLC
16 May 2005


Appointment of leading valuers for diamond marketing
Completion of Liqhobong diamond recovery installation

European Diamonds ('The Company') has appointed two of the world's leading
diamond valuation and advisory consultancies to set up trial marketing systems
for the diamond production from its new Satellite Pipe mine at Liqhobong in
Lesotho, southern Africa.

Subject to approval by the Lesotho Ministry of Mines, the company has
commissioned two firms, WWW International Diamond Consultants and
Johannesburg-based Fancy Colour Diamond Cutters Ltd Pty, to establish a
long-term marketing system for diamonds from Liqhobong, where initial output is
expected to be in excess of 290,000 carats per year.

Although the start of initial production at the Satellite Pipe has been delayed
by bad weather and the late delivery of equipment, construction work for the
diamond recovery section is now complete. Initial commercial production is to
commence once final testing is completed over the next few weeks.

European Diamonds' Chairman Tony Williams said: 'We are, of course, disappointed
by the delays to full production from Liqhobong. However we are not losing sight
of the fact that we expect to be producing a range of high-quality stones, some
of which are fancy colour in a global market where demand will continue to
outstrip supply for at least the lifetime of Liqhobong. This new marketing move
represents another key step towards establishing us as the world's largest
mid-tier diamond producer.'

Rough diamond prices have risen by over 30% since 2000, and global demand is
expected to rise from over US$11 billion in 2004 to approximately US$14 billion
by 2012.

While independent valuations in 2000 put a mine stone value of US$40 per carat
on diamonds from Liqhobong, where European Diamonds is working in partnership
with the Government of Lesotho and the Industrial Development Corporation of
South Africa, subsequent discoveries of larger stones may push this figure
considerably higher. Stones of up to 30 carats have been found historically by
local workers, and European Diamonds has discovered a 3.5 carat 'fancy yellow'
stone.

+++++++++++++++++++++++++++++++++++++++

But with the EGM in ten days time, what chance of short term upside?

Phil,

Thanks, and yes, quite disappointing really, more delays, and the SP is already down a tad.

I don't know why these AIM mining juniors set themselves such tight timelines, and then when they can't achieve, it looks like delivery failure.

It really does look as though we won't have confirmation of production commencement until the end of June now.

Here we go!

Now down 3p (8.22%) as probably traders head for the exit, and the MM's are never slow to spot an opportuntiy!

It looks to me more like a buying opportunity - the news is not bad, merely a delayof a few weeks, and it appears someone is ready to jump in very quickly when the SP drops. We may even get lucky and have some good news timed to coincide with the EGM....???

Numis has a buy rating and 71p price target for EPD says Citywire

Canary9 -

Yes that's from some time ago. At the moment we're mired in this EGM next week, coupled with delays to mine start, both of which seem to me to be short term problems

Phil,

Yes EPD have bounced as you predicted, and Numis have issued a buy note, which someone has posted on ADVFN, and I have pasted it below, although I cannot verify if this is the Numis note, I have no reason to doubt it either.

=======================================


numis update this morning.

EUROPEAN DIAMONDS* 36.5p BUY, target 71p - Process plant installed at
Liqhobong and valuers appointed

European Diamonds is preparing its operations for production of diamonds at
the Satellite diamond mine at Liqhobong in Lesotho in Southern Africa. We expect
to see first production in the next few weeks followed by a valuation of the per
carat value of the diamond production over the next few months.

We are forecasting around 100,000cts of diamond production this year and
near 300,000cts per year for the five years thereafter from the Satellite
diamond pipe.

The plant has been delayed in its construction by bad weather in the
mountains of Lesotho and by the re-design of some larger equipment which may
raise production levels once the second diamond 'Main' pipe is started next to
the Satellite is started.

We anticipate increased news flow over the next few weeks and months.
hil,

Sparkling diamonds soaring in popularity.

The Sunday Times - 22 May 2005

http://www.timesonline.co.uk/article/0,,2095-1622100,00.html


A HUGE increase in global demand for diamonds will force prices up by a third in the next few years, it is predicted. Either that or the market will face a $3 billion (1.6 billion) supply shortage by 2012, writes Dan Box.

James Picton, an analyst at WH Ireland, will warn an international diamond conference tomorrow at the London stockbroker Hargrave Hale that demand will rise by at least 50% by 2012, to $14 billion (7.7 billion).

This is equal to the combined annual production of Russia and Botswana, the worlds biggest diamond producers. Meanwhile, reserves in Australia and Canada are declining.

As a result, prices for rough diamonds, from which gems are cut, will go up by at least 30%. Although much of this will be absorbed by companies that act as middlemen in the diamond trade, the price of gemstones will inevitably rise.

You have supply going up by 1% a year on average, and demand going up by at least 5% a year, he said. But that was a conservative estimate and the real increase in demand could be much higher.

There are going to be other mines coming on stream, but nothing like another $3 billion worth. Thats almost another De Beers. Its just not going to happen, he said.

Demand was being driven by both the industrial and commercial markets, while there had been a massive new increase in demand for gemstones in China and India, Picton said.

Looks like you talked it up 50p Andy!! That's progress!

phil,

50p?

What share are you talking about?

Whoops! Must be wishful thinking. 0.50p I mean of course!

:-)

Anyway, keep writing nice things and we may reach 40p in time for Xmas

What date is the EGM?

Any views on Sunrise Diamonds spun off from Tertiary minerals and soon to apply for an AIM listing?

EGM is 11.30am today

Philfolio,
Cheers
Ald.

EPD is ticking slowly back up towards 40p, and still the official minestart RNS is awaited.

I feel we will have it later this month, but with This weak market it may well be absorbed.

What a shame a good opportunity was lost, ahd they announced two months ago I genuinely think we would have had up to a 50% increase, and now, probably no more than 10% IMO.

Who rattled their cage today, I wonder. Anyone got any news - no RNS, but an interesting rise of 2p which was sustained through closing, in spite of a couple of sells of 50,000 shares each at about 15.30.

Has someone put a spade through a kimberlite pipe, or something? Any views, Andy?

sd

stockdog,

Well we are due a minestart RNS IMO, and there has been a board meeting in the Uk this week, so maybe people are anticipating some positive news in the near future?

EPD was selected as an undervalued stock by a new mining report according to posters on ADVFN, so that would have helped too I would have thought.

Approaching the 50DMA, which I would like to see us break.

EPD has been recommended by James Picton in his latest report. Not only that but there are hints that the recent board meeting decided something which will improve the share price dramatically. There have been rumours about what this information might be. That a well known major has been making approaches to EPD with a view to either buying the company outright, or at least buying a stake in the company. We have to consider that if there is an veracity in these rumours, then EPD holders are going to benefit.

Guesswork

Baughfell - 25 Jun'05 - 13:24 - 96 of 96
Guesswork

Jealousy!

I'd be surprised if we were a takeover target for a major unless they know
more about Finland than we do.
Lesotho is a great start for EPD but its small fry for a major imo...

stockdog,

I'll be watching the price and volume closely here in the morning, hoping to see both increase, and break the 50DMA.

Higher volume may indicate some news is in the offing.

Andy

Seen the RNS today - they started mining. It's been so long I can't remember who we were betting on to start first, NML or EPD. The report sounds like they may be quite organised, promising 420,000 tonnes per annum at a grade of 0.69 carats per tonne priced at $42 per carat plus 30% price increase = $15,823,080 per annum revenues - about 18.5p per share. What's it cost to get them out of the ground and amortise the 8m capital cost?

Anyway SP is up 3p over last couple of days in response, so maybe there's life in the old fella yet. Wait till we hit the main pipe!

stockdog -

My calculations show net post-everything earnings from Satellite of approx 2.5 million p.a. attributable to EPD.

That's based on the figures given by the company, adjusted for an additional 30% on carat value, and slightly increased costs. The original cost figures (payable in Rand) were calculated with a Rand/$ rate of 9 - these days it's more like 7.

Hard to take Satellite in isolation though, as its life is so short. I have done a 13 year NPV for the Lesotho projects combined - 5 years of Satellite overlapping with 10 years of Main. At 8% (as per this morning's Numis note), assuming that Main is 16.2 cpht, carat value is +30%, and costs and capex are adjusted for a Rand/$ rate of 7, the NPV is approx 25 million after allowing for a 9 year repayment of $80 million (43 million - 8 years x 5 mill + 1 year x 3 mill)) Main capex.

If Main turns out to be higher grade, as is currently thought, then the figures are very much better. With all the same factors as above, plus Main=25 cpht, the NPV is 70 million.

If Main capex is paid back faster, then both NPVs will reduce, as the earnings in the early years, which carry the least discount, will also reduce.

I believe that these figures are slightly higher than those produced by Anomalous - that may be because I have treated Lesotho as a "whole" project rather than trying to add together two separate NPVs.

Wendy - thanks for this, very interesting. I agree the Lesotho project should be treated as a whole because management and much infrastructure, processing and tailings are common capex etc.

At todays market cap of 19.41 million, your 2.5m pa earnings gives a PE of 7.8 - pretty humble IMHO. At a PE of nearer 18 for a company with the Main Pipe still in prospect, the SP might be about double today's price. News of first diamonds and first sales will be big positives to look forward to.

sd

Wendy,

Thanks for updating your figures, today's news, after FDI yesterday, may stir the junior diamond sector a bit from it's recent slumber.



Stockdog,

Yes I remember those days!

Good news indeed, and (hopefully) a discovery or two in Finland to ice the cake.

The general consensus puts a value on EPD around 60p, some say more, but 60p for now is the most we can expect IMO.

Lets all stick to this thread, it will make things less confusing.

aldwickk,

yes I agree, multiple threads can cause some posts to be missed.

Quiet day again so far, only 11,000 shares traded.

Roll on September!

Nice write up on www.minesite.com.


Minews Story
Date: July 14, 2005

European Diamonds Has Started Production At Satellite Pipe Mine In Lesotho

The market can act in a very perverse way on many occasions. The week before last European Diamonds announced that commissioning of the diamond recovery plant at the company's Liqhobong property in Lesotho was complete and initial production of diamonds had commenced. The shares dropped 10 per cent to 42p on the week. Last week Last week our London Correspondent reported in That Was The Week That Was that the shares had fallen back by 14 per cent to 37.5p. Agreed the start of diamond production came as no surprise, but it is worth remembering that European Diamonds is only capitalised at 42 million. Kimberlite diamond production tends to merit a high rating.

As John Meyer, analyst at Numis Securities points out, the implied valuation for the Diavik diamond mine in Canada is simple to deduce from the $1.7billion market capitalisation of Aber Resources which holds 40 per cent of the deposit. This implies a $4.25billion valuation for the Diavik diamond mine. Compare it with the Ekati diamond mine which lies relatively near-by in Canada. BHP Billiton went on to acquire 29 per cent of the Ekati diamond pipe for $446million effectively valuing the project at $1.54billion at that time. OK, production at these two mines is a whole lot higher than at Liqhobong, but the question that the market should be pondering is whether the differential between $4.25 billion and 42 million is sensible.

The first materials being processed are tailings from previous bulk sampling and surface mining activities. Production will gradually increase over the next four months to around 35,000 tonnes of ore per month, and by the end of the third month the first batch of primary kimberlite will enter the processing stream. This primary material is expected to contain significantly higher diamond grades and values than the surface material and tails. As Roy Spencer, the chief executive, points out European Diamonds is targeting a production rate of 24,000 carats per month by the end of this year. This makes for a total annual production of just under 300,000 carats compared with the 6 to 7 million carats produced at Diavik, which helps put things in perspective. European Diamonds has yet to sell any diamonds from run-of-mine production, but the presence of fancy yellow stones could have an impact on value.

The other plus for investors interested in the Liqhobong property is that the 1.6 hectare diamondiferous Satellite pipe was brought into production 20 per cent below the original US$10 million budget and in only just over 9 months. And this was achieved despite paying for increased engineering capacity at the crushing section of the processing plant and for a larger tailings dam for waste disposal. It is an open pit operation which will be mined at a rate of 420,000 tonnes/year so has an initial life of 5 years. This life may well be extended, but well before that time production will also have started from the Main pipe which is considerably larger. It is 9.5 hectares in area and Roy Spencer thinks the economics are very promising. He expects to use existing infrastructure to accelerate production from it once economic evaluation is complete.

In recognition of this achievement the Welsh Wizard is stepping down as chairman to bog standard director and in his place comes Buddy Doyle, former head of diamond exploration for Rio Tinto in Canada. Buddy led the team which was helping Eira Thomas when she discovered the A-154 pipe which became the Diavik mine. The fact that he is taking over at the junior says something for what Tony Williams has achieved over the past 4.5 years and it should not be forgotten that European Diamonds has also had success with its exploration on the prospective Karelian Craton in Finland. Kimberlites have been discovered and evaluation work on the promising Lahtojoki pipe has begun with a 5,000 tonne bulk sample now underway.

European Diamonds PLC
14 July 2005


New Kimberlite Discovery in Finland
Bulk Sampling Update - Lahtojoki, Finland


New Kimberlite Discovery in Finland

The management of European Diamonds plc is pleased to announce the
discovery of a new kimberlite body in its Area 3 exploration zone in central
Finland. The discovery comes as a result of the drilling of a geophysical
anomaly located at the head of a 30 kilometre long glacial train of indicator
minerals which has been traced by the company's field team over the last 18
months.

Roy Spencer, the company's CEO, has noted that 'this new kimberlite
appears to be a pipe but we cannot yet say how big it is. The chemistry of the
minerals we have been following is excellent but at this stage we cannot
speculate on whether the kimberlite will be diamondiferous or not. Once the
current drilling is completed, we will send material to laboratories in both
Canada and Australia for micro-diamond analysis and chemical work. We expect
these results to be available by the end of August.

The discovery is confirmation of the prospectivity of the Finnish
part of the Karelian craton and the widespread occurrence of kimberlites across
the region.'
Bulk Sampling Update - Lahtojoki, Finland

The management of EPD is pleased to issue the following update on
the company's bulk sampling activities at the Lahtojoki site in Finland.

Roy Spencer, the Company's CEO, reports 'the first part of the
5,000 tonne bulk sample planned for the pipe has been completed. Approximately
2,500 tonnes from the central and western parts of the plus 2ha the pipe have
been recovered and are now under cover awaiting the final decision as to the
most appropriate method of processing. The company is presently negotiating a
processing agreement with the Geological Survey of Finland who will produce a 20
tonne concentrate for shipment to Canada for final analysis and diamond
recovery.

Results of the first 2,500 tonne Lahtojoki analysis are expected
early in 2006 and the remainder of the 5,000 tonne sample will be collected
during late winter if results from the earlier analysis justifies doing so.

For further information contact:

James Cable, Finance Director, European Diamonds plc: +44 20 7529 7500
John Harrison, Numis Securities Ltd: +44 20 7776 1500
Allan Piper, First City Financial Public Relations: +44 20 7436 7486
+44 7736 064 982






This information is provided by RNS
The company news service from the London Stock Exchange

Not much of amove up given the two recent positive RNS's, not to mention minsite's write up. Lot of sellers getting out at 40/41p - need them to clear before SP moves higher.

sd

not that these things are the be-all and end-all but nice to see:

Numis says sell Acambis (178p price target) and has upgraded Admiral to add from hold (raising the target price to 440p from 390p). The broker says buy Alizyme (140p price target) and hold Amlin (180p price target). Numis says buy Biofuels (180p price target) and says reduce Bovis Homes (620p price target). The broker says add Chaucer Holdings (LSE: CHU.L - news) and buy European Diamonds (LSE: EPD.L - news) (77p price target) Numis says add Oilexco (165p price target) and add Wilmington (190p price target). The broker has upgraded Neteller (LSE: NLR.L - news) to buy from hold (raising the target price to 1000p from 700p).

Thanks, ched

I see BFC ignored this note and fell back today. Happy to have sold Bovis last week for a modest profit. Roll on EPD.

European Diamonds PLC
19 July 2005


EUROPEAN DIAMONDS PLC

ANNOUNCEMENT

19 July 2005

Disclosure of share interest

Date of notification: 18 July 2005

Shareholder: investment funds under the management of DKR Saturn Management L.P.

Transaction: acquisition (by way of allotment) of 2,222,222 ordinary 5p shares

Resulting share interest: aggregate holding 6,191,722 ordinary 5p shares
representing approximately 12.6% of the issued share capital.

For further information please contact:

Graham A Potts - Company Secretary
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail:
enquiries@europeandiamondsplc.com
website:
www.europeandiamondsplc.com

Slightly unsettling RNS - 2.1m out of 5m fund-raising not to be completed and delay in first diamond sales from September to November 2005.

SP reacting accordingly.

sd

Andy,
Whats your view on this, has share price fall been over done?

aldwick,

This was one VERY disappointing announcement, IMHO, and It's hard to find any positives.

They have lost the further funds due for the placing, postponed Finland, experienced difficulties in constructing the taillings wall, and as a result will not sell any diamonds until November, if all goes well!

I think that's enough shocks for one RNS!

The ONLY positive is the fatc that they seem to be finding some decent stones amongst the tialings, which may lead to higher revenue than expected once they commence sales, but they will probably have to raise finance to arrive in November, so the Sp may have a further knock yet.

To be honest, I think the Sp is about righ given the current situation, and may well indeed fall further before bottoming, it's hard to predict.

I hope any holders here have not lost significant sums, and l hope that EPD report better news later this year.

Between EPD and NML, I can only ponder on the words of the old song that Diamonds Are A Girl's Best Friend and remember that I am NOT a girl! Marilyn certainly did OK with her couple of rocks (bigger than the average find)!

sd

I agree that the timing of the RNS could have been better, it would have given me a chance to sell if it had come out early morning.
The weeks worst performer was European Diamonds, which picked Friday lunch time to announce that it has serious cashflow problems as a result of a slow production build-up at its Liqhobong diamond mine in Lesotho, combined with the partial failure of a private placement of stock announced back in April. In spite of the timing of the announcement, the stock was immediately marked down and by the end of the afternoon was down by 33 per cent at 23p The release did point out that the placement had been done directly so broker and NOMAD Numis is not directly at fault, and the fact that the most recent company releases no longer list a Numis contact may be a pointer to the current state of the relationship. The bottom line is that European Diamonds is in discussions with its advisers concerning alternative potential sources of finance to meet the company's short-term working capital requirements. So, reading between the lines, shareholders either cough up or write it off.

A high volume of trades today, both buys and sells......

The long term looks as good if not better than previously communicated so my hunch is that they will convince their financial backers and/or shareholders to cough up. It could well be a time to add as I suspect oversold again this morning.

joe,

well at 17p they probably were oversold, but back at 20p now, which is fair value IMHO, until they can confirm further funding.

This is a mess, and the fact that they aren't listing Numis as a contact makes it look even worse IMO.

One for the watchlist now I'm afraid, EPD look in dire straits.

joe,

Well the price seems to have stabalised for now.

Personally, I think those that currently hold, and those that are considering an investment will both wait for the confirmation ,or otherwise, of further funding.

I agree with you Andy. For good or bad, I got interested at 20p and wiil see it through. Low volumes and a case of wait and see. An interesting few weeks ahead either way but possibly not for the faint hearted.

Nice article from Minesite.
----------------------------


Minews Story
Date: August 18, 2005

Time To Take A Long, Cool Look At European Diamonds.

At the beginning of this month AIM listed European Diamonds issued a warning that it had encountered a hitch to its funding plans and was running behindhand on its schedule for production from the Satellite kimberlite pipe in Lesotho. Unfortunately it chose to release this news on a Friday at around lunch time which is always considered the best time for burying bad news. Inevitably this added to the shrill wails and laments from tipsters and bulletin board heroes alike as the shares sank to new lows. None of them gave their brains time to work out that the word of a hedge fund manager can be ephemeral and that bringing a mine into production 10,000 feet up a mountain in one of the most backward countries in the world is slightly harder than making widgets in Birmingham or selling unripe tomatoes to townies.

First the money. Back in April the company announced a private placement to raise a gross 5 million from institutional investors in Bermuda. Effectively it was based on a verbal agreement between Tony Williams and connections of his out there. Each unit was priced at 45p and consisted of one European Diamonds share and half a subscription warrant. Each whole warrant entitled its holder to subscribe for one ordinary share of the company for a period of one year following the closing date at an exercise price of 75p per share.

A fraction under 2 million had been received at the time of the announcement and the issue of the remaining shares had to await shareholder approval at an EGM which did not take place until 26 May . By that time it is thought that the hedge funds involved had problems of their own with redemptions as junior mining markets were looking a bit weak. They therefore asked that the balance of the subscriptions be re-scheduled and this was agreed.

The story then moves on to mid July, by which time European Diamonds had received 2.9 million with the subscribers chipping in another 1 million, but they could go no further. As a result they lost a major part of their entitlement to warrants and the directors of European Diamonds had to put their thinking caps on again. It was just their bad luck that the company's contractors had experienced delays in erecting the tailings retaining wall at the Liqhobong mine site to a safe height for the disposal of large quantities of tailings in this mountainous region. These delays do not impinge on the processing of the limited quantities of surface material and tailings which are already going through the plant, but do mean that the start of larger scale throughput of primary high grade kimberlite ore will be deferred until next month.

The processing of these tailings is going well and the kimberlite at the Satellite pipe is now being exposed. Diamonds of up to 3.1 carats in weight have already been recovered since processing started in June, but not too much should be read into this at such an early stage. The plan now is to introduce primary kimberlite, which is much higher grade than the tailings, into the processing circuit in September. OK there will have been a delay of three months and the hit on cash flow during that time will put some pressure on the company, but it is not terminal. It would be a simple matter to slow down the bulk sampling programme in Finland during that period, but that is not what the company wants to do.

The company has around 1 million in the kitty and it needs another 2 million to carry it forward into 2006 when the cash flow will be moving up to 24,000 carats/month. A six month loan on this basis should be readily available even if the lender chooses to attach a couple of bells and whistles to the terms in view of the local difficulty. First diamond sales from the Liqhobong mine are now planned for November this year which is a slippage of only 3 months. The first parcel for marketing is likely to comprise some 15,000 carats and the size of parcels is expected to rise rapidly thereafter to the 24,000 carat level per month. In the whole of next year free cash flow of over US$5 million can be expected as the company expects the diamonds to sell for better than US$40/carat.

Jut one more thought. Buddy Doyle, former head of diamond exploration for Rio Tinto in Canada took, over from Tony Williams as chairman just over a month ago. These problems were well known to the company at the time, but did not deter him. He knows that the Satellite pipe at Liqhobong was brought into production within budget and in less than a year. And this was despite paying for increased engineering capacity at the crushing section of the processing plant and for a larger tailings dam for waste disposal. Not a bad effort, so lets stop the whingeing and watch the share price.

Andy, interestingarticle, thanks.

Still looks like they need to raise 2million pdq, which may involve some rather dilutive terms, e.g. lots of warrants at an exercise price of rather less than 75p attaching to either a loan or share capital. Here's hoping they can make that happen.

The delay of 3 months is rather less important IMHO.

sd

Very sensible analysis. Let's see what happens.

What happens is a big jump in volume and we'll start to see the price move up now methinks..I like it.

Prepare for lift off.

joe,

well the price has certainly increased, not sure how much more it will appreciate unil the company announced further fundiong is secure to be honest.

I'm waiting for the next RNS.

so folks, what's rattled EPD's cage today - nice little move up off the floor on some half decent volume but no knews I could find?

sd

Stockdog,

Yes a nice 12% rise, on good volume, maybe something in the air?

Let's see if it follows through tomorrow, and I'll be watching the volume in particular.

Nicely encouraging report - do you think short-term finance excludes the possibility of a share placing?

RNS Number:4116R
European Diamonds PLC
19 September 2005

PRESS RELEASE





Encouraging results of sampling from the Area 3 Kimberlite in central Finland





European Diamonds is pleased to announce positive results from drill samplings
at its new kimberlite discovery in the Area 3 exploration zone in Central
Finland.



The results are described as "spectacular" by the Geological Survey of Finland.



Separate drill core samples were sent to laboratories in Australia and Canada
for kimberlite mineral identification and micro-diamond analysis. The results
show that the chemistry of the minerals is both highly prospective for diamonds
and the likely source of the minerals found in the 30-kilometre mineral train,
which the European Diamond exploration team has been following.



Dr Hugh O'Brien of the Geological Survey of Finland said: "The compositions of
the pyropes and chromites from this kimberlite are spectacular in terms of their
diamond potential ranking."



Most significantly, micro-diamond analysis at the laboratories of Kennecott
Canada Exploration in Thunder Bay, Canada, identified a total of 42 small
diamonds between 0.15 and 0.88 mm in size from 4 samples totalling 41.2 kg in
weight. Sample processing was to the ISO/IEC17025 standard. Eleven of the 42
diamonds have a longest axis equal to or greater than 0.5mm with the largest
stone having a long axis of 0.88 mm. Approximately 26% of the stones were white
and some 38% were octahedrons.



European Diamonds' Chief Executive, Roy Spencer, commented "These exciting
results provide further strong evidence of the prospectivity of the Finnish part
of the Karelian Craton - which already contains the world class Grib kimberlite
in the Arkhangelsk area of north western Russia."

European Diamonds' exploration in this part of central Finland has already
identified 6 other kimberlite indicator trains within 20 kilometres of its
latest discovery. Exploration of this kimberlite and the mineral trains in the
near vicinity will continue over the course of the field season.



Funding:

The Company continues discussions with advisers concerning potential sources of
short-term finance to meet the Company's working capital requirements.

This is almost certain to ease any phasing financing concerns and also provides further certainty to the site. IMHO we will see this back at 40-50p before too long.

Given the positive find - It may also be worth checking out SDS who are currently drill testing Kimberlite fields in the same geological area in Finland. SDS are essentially a start up operation (spin off from Tertiary Minerals) and if the news is positive, then expect it rocket up.

Good news at last

RNS Number:5969R
European Diamonds PLC
22 September 2005





Liqhobong Satellite Pipe Mine Firmly on Track for First Diamond Sales in

November





DATE: 22nd September 2005



AIM-quoted European Diamonds is pleased to announce that the first batch of
primary kimberlite has now passed through its new diamond recovery plant at the
Liqhobong Satellite Pipe mine in Lesotho, Southern Africa, following completion
of the heightened tailings retaining wall.



The mine is currently working with a single shift but is on course to be running
at full capacity to produce 290,000 carats per annum of diamonds by the end of
the year. As previously announced, since the project came on stream in June,
the plant had until now been processing tailings from previous bulk sampling and
surface-mining activities.



Arrangements are being put in place for the first sale of Liqhobong diamonds in
mid November. The first diamond sale is expected in part to comprise lower-value
diamonds recovered from the reworking of tailings, as well as those recovered
from the primary kimberlite and may therefore not realise prices as high as
subsequent sales in 2006.



European Diamonds' Chief Executive Roy Spencer said: "We have created a diamond
mine which, at full production, will make this company the largest independent
diamond producer in carat terms in the world. It has been an enormous task
undertaken well under budget by our field team in a very challenging
environment."



Mr Spencer added that continued work over the next 12 months on the neighbouring
Main Pipe - which at 9.5 hectares is considerably larger than the Satellite Pipe
- "will place the company firmly on the diamond world's radar screen".

As we all knew the financing hiccup was just that and nothing to get over-excited about. IN the low 20p's this share was phenomenally undervalued. At 33p it is still unfeasibly cheap and given today's announcment the institutions will start to weigh in again before to long. I would think that 60 p by Christmas is as good as assured.

I'll drink to that.

i can't remeber exactly, but a broker target of 60-70p was about before the financing problem and i think that was without the finland operation??? (please dont hold me to that but it was either 70p without finland or losotho). so now finlands ok, lord knows what a target may be. any ideas/links?

tbrooking66,

The broker note was 77p for satelite pipe alone, 4 if Finland is a goer.

dibbles - I think I can speak for otehr posters when I say we'd all like to hear more from you!

I'll second that!

-Just watching with a view.

Hi all, not sure what more I can add at the moment.
The past broker note won't matter much until they confirm short-term funding although I'd be surprised if they don't get it with a working mine and diamonds in the safe.
I sold out earlier this year to move more funds to GFM but couldn't resist buying back in at low 20's.
Once reasonable funding is announced we've got ourselves a bargain imho.

EUROPEAN DIAMONDS PLC
(the 'Company')

ANNOUNCEMENT

27 September 2005

Disclosure of share interest

Date of notification: 27 September 2005
Shareholder: investment funds under the management of DKR Saturn Management L.P.

Transaction: disposal of 669,500 ordinary 5p shares

Resulting share interest: aggregate holding 5,522,222 ordinary 5p shares
representing approximately 11.3% of the issued share capital.

dibbles,

Well I thought I had missed an entry point with the recent rise, but looking as though I may be fortunate after all.

Back to 20p?

Maybe IMO, they have to finance before it can move forward, and I won't buy until then, fear of instant dilution keeps me out for now, good luck.

Ditto Andy,

Haven't researched EPD thoroughly yet but from what I have learned this still looks like a great prospect. One to watch for now imo.

Don't wait too long dibbles, the re-financing announcement may be soon and it's likely to be a lot better than some have suggested. They have enough to last till November, but they only need enough to keep running for 3 - 4 months. Revenue stream will allow them to get back to normal from January onwards. Remember they will have $millions coming in each month at full production and if the tailings are anything to go by (which we can not assume) then we might get even better prices for any fancy yellows.

If the market reacts positively, which I think they will, then the share price might take off IMO.

Anom hi,
I'm already in, although have to admit to a little trading.
Couldn't resist with last weeks spike.

Andy hi,

I'd be surprised if they dilute for what they need, but who knows.
I think once they announce funds in place you'll have to be quick as we've seen how these can move imo.

dibbles,

Yes you are probably correct, and they may well borrow rather than issue more stock, we shall see.

September 29, 2005: AIM-quoted European Diamonds is pleased to announce positive
sampling results from its Main Kimberlite Pipe in Lesotho, Southern Africa.

Caustic fusion micro-diamond analysis undertaken by Kennecott Canada Inc has
recovered 886 diamonds larger than 150 microns from 691 kg of kimberlite core.
The sampling is the first carried out by European Diamonds on the 9.5-hectare
Main Pipe, located 200 metres from the company's producing Satellite Pipe mine.

The strong results further underscore European Diamonds' progress towards
becoming the world's largest independent producer of diamonds, and the biggest
diamond producer on AIM.

Table 1 below provides the detailed sample results.

Table 1 Square Sieve series diamond distribution

Sieve 0.15mm 0.212mm 0.3mm 0.425mm 0.6mm 0.85mm 1.18mm

No. of Diamonds 482 226 89 54 22 9 4

The largest stone measures 2.1mm on its longest axis and approximately 30% of
the diamonds are descried as transparent and white.

European Diamonds' Chief Executive Roy Spencer said: 'Our expectation is that
the Main Pipe will be the basis of a long-term, major diamond mine that will
push European Diamonds further ahead as the world's largest independent diamond
producer. The company's target for the Main Pipe's diamond production is over
700,000 carats per annum which is additional to the current annual production
rate of 290,000 carats.'

Numis still have EPD as a buy this morning with a 76p price target.

Wel they managed to raise the cash needed at 23p.



From : European Diamonds Plc
Sent : 05 October 2005 08:40:22
To :
Subject : Private Placement Financing


Go to previous message | Go to next message | Delete | Inbox

=======================================================================
Re: Press Releases - Wednesday, October 05, 2005
Private Placement Financing
=======================================================================

The Company announces that it has raised 1,150,000 by way of a private
placement of 5 million new ordinary shares at 23p per share and has
received the subscription monies. In connection with this private
placement, the Company will also issue 2.5 million share subscription
warrants, subject to shareholder approval at an Extraordinary General
Meeting which is to be convened in the near future. These warrants will
be exercisable at 35p per share and will be valid for twelve months.

The funds raised through the private placement will be used for the
Company's working capital.

Following this subscription, the Company has in issue 53,994,783
ordinary shares.

The Company owns diamond interests in Lesotho and Finland. Its
principal project is currently the Liqhobong Satellite Mine in Lesotho
which has recently commenced processing primary kimberlite. First
diamond sales are scheduled for November 2005. The Company is also
sampling at its 9.5 hectare Main Pipe, adjacent to the Satellite Pipe,
and has recently announced positive sampling results.

The Company also has diamond exploration projects in Finland,
principally at Lahtojoki, Lentiira and Area 3. The positive results
from sampling confirm the prospectivity of the Finnish part of the
Karelian craton.



For further information please contact:

Roy Spencer
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail: enquiries@europeandiamondsplc.com
website: www.europeandiamondsplc.com

======================================

More dilution as you said Andy, but at least the immediate future is now secured.
Why do they keep going for private placings I wonder, are they looking after buddies?

In any case, dilution aside, with the open funding question laid to rest and the excellent sampling results from Finland, this will surely see the investors come back in droves. Large overhang cleared yesterday.

dibbles,

It makes you wonder!

as you rightly say, the immediate future looks sorted, and they have now secured the funds to take them through to when they will be recieving revenue from diamond sales.

Good news IMO.

I like the warrants - exercisable within 12 months only at 35p - at least that indicates they expect the SP to be north of there by then.

A few bargain hunters in today, I wonder if DKR have finished selling yet?

New report on diamond sampling in K5 section of the Main Pipe in Lesotho. The following is a curious extract:-

"It [the report] is written by Buddy Doyle, who is the principal of Lithosphere Services Inc and Chairman of European Diamonds"

Is this normal? Does it devalue the weight of the report? I do not wish it to, currently I need a lot of good news in my portfolio, but I had to ask.

sd

Here is the release in full - it is very encouraging and should be material for the sp today....

European Diamonds PLC
12 October 2005



European Diamonds plc ('European Diamonds' or 'the Company')

New Analysis Suggests Higher Diamond Grade in Main Pipe



European Diamonds is pleased to announce further promising results from the core
samples taken at its Main Kimberlite Pipe at Liqhobong, Lesotho, Southern
Africa.



Micro-diamond analysis suggests that the size distribution of diamonds within
the sampled part of the Main Pipe is very similar to that in the neighbouring
Satellite Pipe, which is already in production.



European Diamonds' Chief Executive Roy Spencer said: 'The results are
encouraging enough to add momentum to our plans for adding the Main Pipe to our
production schedule at Liqhobong. This would extend the life of the overall
project and significantly lift production rates above the 290,000 carats per
annum currently expected from the Satellite Pipe.'



Mr Spencer added: 'It is our intention to recover a large bulk sample
from the K5 zone as soon as possible to corroborate the new micro-diamond
results - and then to extend the micro-diamond and bulk sampling programme into
the other units of the Main Pipe. We wish to be in feasibility mode on the Main
Pipe early in 2006.'



European Diamonds announced last month that more than 880 diamonds of up to
2.1mm in size were found in a total of 691kg of Main Pipe kimberlite core, taken
from the K5 zone. The new micro-diamond analysis has returned a diamond count of
1,282 micro-diamonds per tonne. Moreover, the size distribution of diamonds is
very similar to that obtained from the Satellite Pipe which has a grade of 0.68
carats per tonne.



The new micro-diamond analysis was completed by the Canadian specialist diamond
consultant Lithosphere Services Inc (LSI).



LSI undertook its review of the new data in the light of work done on the Main
Pipe by its previous owners in the nineties. The review follows accepted
reporting guidelines in Canada and Australia. It is written by Buddy Doyle, who
is the principal of Lithosphere Services Inc and Chairman of European Diamonds,
and who is a Competent Person in both countries.



LSI reports that 'the previous owners took a 13,000 tonne bulk sample
from the K2 zone of the Main Pipe which returned a grade of 0.17 carats per
tonne. The new md (micro-diamond) results are from 3 drill holes that target the
K5 unit. They demonstrate that the K5 unit has 3-4 times the md count and is
therefore most likely of a higher grade than the rock type that was bulk sampled
by the previous owners.



'For comparison, md results from the bulk sample completed by the
previous owners reported only 259 md's per tonne. The K5 kimberlite has returned
1282 md's per tonne. This high diamond count is considered very encouraging.
Moreover, the size distribution of diamonds from the K5 portion of the Main Pipe
is very similar to that obtained from the Satellite Pipe which has a grade of
0.68 carats per tonne.'

At least it sounds like they want to speed up bringing the Main Pipe into production.
700,000 carats a year extra should improve anyones portfolio.

dibbles,

I agree!, this is excellent news IMO.


Stockdog,

I don't think it devalues the credibility of the report at all, I would imagine they are preserving capital by conducting it in-house, (so to speak) but that's just my opinion.

I don't think Mr. Doyle would risk his reputation, nor that of his company, personally, do you?

Why would anyone do a X-trade for 6000 shares?

Well this is superb news. To find out that part of Main is 3 to 4 times higher in grade than the area that was originally sampled puts a whole new perspective on the value of Main pipe.

What we need to do now is work out the size of this area, to see how it affects the overall value of the pipe. In the meanwhile, as they said, EPD will start looking at each of the other areas and sampling them. A rough model can then be constructed for each individual area and the value of the area extrapolated.

For the moment, it does suggest that one fifth of the pipe is a similar grade to Satellite. 3 to 4 times the original 17 cpht grade is 51 to 68 cpht. If we take that further and remember that we don't have dimensions and the other area grades (which could be similar and assuming an equal area size) we can work out a rough valuation for Main pipe, similar to the spreadsheet above:



It should be remembered that:

a) we don't as yet know if the grades are uniform throughout the area
b) we don't have the true grades for the other areas
c) we don't know the size of each area (but are assuming that they are equal)

So the calculations are extremely rough and no reliance can be placed upon them as yet. They are demonstrative only, to suggest the possible revisions to the Main pipe valuations.

Extrapolating the data to the DCF, we come out with a revised Main DCF value (including Satellite, but not including Finland) of 1.48

It should be remembered that these figures are very conservative and other DCF figure could be a great deal higher. These figures are my own opinion and no reliance should be placed upon them for investment purposes. They merely show the overall value that can be presently seen in EPD from my point of view.

To which Wendy replied as follows:


wdurham - 12 Oct'05 - 13:23 - 7097 of 7105

No, Anom -

"Well this is superb news. To find out that part of Main is 3 to 4 times higher in grade than the area that was originally sampled puts a whole new perspective on the value of Main pipe."

That is NOT what it says at all.

The UKREG announcement gives an indication that the spot where the 3 cores were taken COULD be higher in grade, as the samples contain significantly more microdiamonds.

This is extremely encouraging, and gives some small evidence for the eventual potential of 25 cpht overall from Main.

But to have produced the figures above on the results from just 3 drill holes, which sampled only 691 kg, and for which no grade has been estimated, is irresponsible in the extreme. Your figures are NOT "rough calculations" - they are utter and complete guesswork.

One could even call them an utter and complete ramp.

>Wdurham

I think you are deliberately under-estimating the importance of this RNS and falsely accusing me of an utter ramp, when I have made it crystal clear that no reliance can be placed on the figures for investment purposes as there are many unknowns that need to be resolved first.

The only true way to determine the grade of the K5 area is with a proper bulk sample. The company plans to do this in early 2006, when the revenue stream is flowing. But you are quite wrong to discount the data and suggest that the eventual potential is 25cpht, because they have not tested the other areas yet.

The original Minegem survey is now in question. Primarily because they missed so many diamonds in the bulk sample of Satellite. The pictures from the recent tailings work proves that the processing was not 100% efficient and maybe seriously underestimating the true grades of both Satellite and Main.



All that the data does suggest is that the K5 area might be considerably richer than previously suggested and validates the multiphasic theories about the pipe.

The previous Minegem bulk sample only revealed 259 micro-diamonds per tonne. The new K5 sample contained 1282 micro-diamonds per tonne. That is 4.94 times more than the old sample. EPD have suggested that the distribution is similar to Satellite. So it stands to reason that part of Main may very well be the same grade as Satellite or at least close to it.

Until they have sampled the other areas and defined them, we can not determine the overall grade for Main. We can only suggest how the valuations might be altered by a change in the value of one area only.

Even your figure of 25 cpht might be termed a ramp, because by using the lower figure of 3 times the carats in K5, the grade would be 23.16 cpht. Only if you consider the figure at 3.5 times the grade would it be 24.86 cpht.

As we have seen, the md analysis indicates nearly 5 times the number of diamonds. But you can not equate 5 times the md with 5 times the grade of carats. You and I know that very well.

The point is that all the figures for Main have so far been based on the grade of 16.2 cpht. If the figures were closer to Satellite at 69 cpht, that's 4.3 times the value originally proposed.

Nobody is suggesting that the grade is uniform. So it would be wrong to claim such. However, it is possible to extrapolate a 'rough' valuation based on one area being the same as Satellite and that is what I have done. I have made it perfectly clear that these figures are my own and should not be taken as fact. So I don't see any problem

What I do suggest is that your review of the RNS and my subsequent post is 'clouded' by your bad judgement on another share. You've found out that the company was not as good an investment as your thought it was and are now seeking to poke holes in my theories to try and accuse me of bad judgement.

Just because NML have been effectively neutered by the Angolan Government for trespassing, doesn't necessarily mean that you can have a go at the EPD RNS or my interpretation of it.

I've been prudent with my figures and only suggested an increase of 3 times the value, the lower figure, for the K5 area. Your 25 cpht grade suggest that you've given it 3.5 times the grade. Far more than me.
so who's the ramper then? - because it appears to be you

leave it out - Wendy why can't you state your numbers without attacking Anomalous', maybe even a hint of polite reference of respect for one man's view however different from your own - then us poor stupids can form our own opinion between the two - we don't need the bickering bit - it is so boring.

thanks

sd

More very encouraging news for holders with the announcement from Sunrise Diamonds (SDS) who are exploring an adjacent sector of the prospective Karelian Craton:-

October 13, 2005

MICRO-DIAMONDS FOUND IN NEW

KIMBERLITE CLUSTER AT KUUSAMO, FINLAND

5 Micro-Diamonds Recovered From Core Sample Of Kimberlite 45

Till Sampling Results Identify High Priority Diamond Indicator Mineral
Trains

Further Magnetic Targets Identified In Proximity To New Discoveries
________________________________________________________________________________


Sunrise Diamonds plc, ('Sunrise Diamonds' or 'the Company') is pleased to
announce that it has recovered five micro-diamonds from a drill core sample of
Kimberlite 45 at its Kuusamo exploration area in northern Finland where the
Company has discovered a new kimberlite cluster, with five separate kimberlites
identified to date.

The results confirm the diamond prospectivity of the Earth's mantle beneath the
Kuusamo project area, previously only inferred from indicator mineral chemistry,
and vindicate the Company's exploration strategy.

The five micro-diamonds were recovered from a sample of Kimberlite 45 weighing
25.6kg analysed at Kennecott's Laboratory in Canada (accredited to ISO/IEC
17025). All are fragments and have a longest axis between 0.27mm and 0.39mm.
Four are white and transparent with minimal resorption whilst one is grey and
transparent with no evident resorption.

Samples from a second kimberlite, Kimberlite 47, did not return micro-diamonds
but mineralogical work during the summer reveal it to be a higher-level
diatreme-type kimberlite, unlike Kimberlite 45 and the earlier discoveries at
Kuusamo which are all hypabyssal-type occurrences. Kimberlite 47 thus indicates
that the discovery of larger kimberlites is possible in the Kuusamo area as not
all of the pipes are eroded to their hypabyssal roots.

Till sampling during the summer has identified several trains of kimberlite
indicator minerals that need to be followed up with further sampling and
drilling. These include mineral trains containing diamond-diagnostic G10
pyrope-garnets, kimberlitic ilmenites, chrome diopsides and chromites and are of
a notably higher order than those associated with the kimberlite discoveries
made to date.

Kimberlites 45 and 47 were drilled solely on the basis of their magnetic
signature. The magnetic data from the areas surrounding these kimberlites has
now been re-processed and this has identified additional priority drill targets
in the vicinity of Kimberlites 45 and 47.

Commenting on the results, Sunrise Chairman Mr. Patrick Cheetham said today 'The
discovery of micro-diamonds at Kuusamo is a major milestone for Sunrise and has
been achieved on a very limited budget. We are look forward to the very real
possibility of further discoveries in this exciting new kimberlite field.'

>joe

Whilst I have no doubt that Sunrise will find more diamondiferous kimberlites, the data that's been produced here is encouraging, but not spectacular. It proves that Sunrise are on the right track and the previous sample chemistry was indicative of diamondiferous kimberlite. Half the problem for minexs is finding the blighters, let alone extracting them!

The sample was 5 md from 25.6 kg. That's 195 md/tonne. There was no mention of the distribution, so a grade can not be inferred. Besides, a sample so small would not really be suitable and couldn't tell us this information. We'd need to see more sampling.

I think the one point that is notable is that pipe 47 is a diatreme type. They've correctly pointed out that this does raise the possibility that there could be even larger kimberlites out there. The larger a kimberlites, the more likely that it can be extracted, even at low grades. We have to remember that this area of Finland was covered by glacier many many times. The kimberlite has been eroded in the process. So much of the ore has been carried away.

To my knowledge, Kuusamo is not near the EPD licenses. Sunrise do have a license close to Kaavi, near the EPD site of Lahtojoki, but as far as I know, EPD are not prospecting in the Kuusamo area. The reason I say this, is because the company has been extremely secretive about the location of Area 3 for obvious reasons.

Still, at the current price, Sunrise is a very good long term investment in my opinion and I would welcome anyone to have a look at their data. I do not hold, but might in the future. DYOR.

Charlemagne Capital (IOM) Limited have increased their holding from 9.57% to 11.5% over the last couple of months or so - seems someone likes these in a fairly significant way. What's holding them back after recent announcements?

sd

Thanks for the post Anomalous - knowledgeable and well reasoned.

From AD^FN

elliot66 - 11 Nov'05 - 22:54 - 7445 of 7447


Anom

"with probable extractions to date topping 30,000 carats, based on 2 full months since they started cutting fresh kimberlite at 15k per month (and that's a conservative estimate)".

I am a concerned holder:

1. If the company is 'stockpiling' when the market is trashing the shareprice then why not announce how many carats they have in stock, because that would be good news when it is very much needed. If EPD has big stocks what logical reason is there not to announce? So worst case is production has been crap and so actually EPD is selling all it has produced. Ok there might be 'stock' of minimal quantities that mean technically the market has not been mislead.

2. In the RNS the Company said its production was from 'previously worked kimberlite........not tailings and new diamonds' (paraphrasing). If previously worked kimberlite is not tailings what the hell is it? My uncle works in the diamond game and is worried about a company that does not seem to be able to get its basic terminology right.

3. From the RNS: "The implication of the new South African tax and other legislation
relating to the importation of rough diamonds to South Africa for sale are
currently unclear and the Company is reviewing further plans for marketing its
diamonds in Johannesburg".......

Is this more softening up for bad news?.......ie 'we might not be able to market diamonds in SA so that's another reason why we might announce in Jan that we are only selling a limited amount" rather than "production is lower than forecast and we don't have the diamonds to sell"?


4. The RNS again: All rough diamonds now being produced from the primary kimberlite currently being mined at Liqhobong are being stockpiled for the first major sale in Antwerp in January 2006 and an announcement in respect of this sale will be made after consultation with the Government of Lesotho.

More sftening up?.........ie we blame Lesotho sometime later that we are selling less diamonds than planned.

5 The RNS again: the Company's mining activities and
processing of primary kimberlite are continuing at planned rates, with full
capacity of 65 tonnes per hour set to be achieved by the end of the year.

Note how this does not say diamonds are being produced at planned rates, rather that kimberlite is going through the plant at planned rates. If I was epd and diamond production was at planned rates I would say so. What reason is there not to?


If anybody has rational answers to the above I am all ears. Even better if rational and I can be shown to be wrong.



Anomalous - 12 Nov'05 - 14:03 - 7446 of 7447

>elliot66

I maybe able to answer all of your questions.

1. Diamond companies are generally secretive about the stocks they hold, for a number of valid reasons.

Firstly and most obvious of all, they don't want criminals to find out as it might be too tempting a target to steal. Secondly they can't declare the cash equivalent of any stockpile until it has been valued.



They may have an idea of the amount of carats in weight, but it is deceptive to then use this to apply a value for the balance sheet or mkt cap, as the price of diamonds varies with the size of the individual stones, together with their clarity and colour. Even the majors whose security is considerably more robust, do not declare the exact amount they are holding at any one time.



I do agree that EPD could have worded the last RNS far better. There was much that could have been excluded and even included. It seems that they were either badly advised or someone was not aware of the result of their statement. By saying as little as they did, they invited others to speculate the worst.

One of the main reasons why the share price dropped from the 50p band earlier this year, was down to the lack of news. The market had expected a mine-start announcement by April at the very latest. When it did not arrive, they assumed that things were not on schedule and that further fund raising might be necessary.

Their failure to reassure the shareholders cost all of us a great deal of value. If the CEO wants to blame anyone for selling at 20p, then he should blame himself, as he carries ultimate responsibility for any lack of investor relations.

Getting back to your questions though, you can not read into the RNS that they are not producing diamonds or that they have attempted to mislead the market. There is ample evidence that the market prices for 'indian' diamonds (smaller than 25 points), has declined and it would not be in the best interests of the company as a whole, to sell while the prices are low.



Rubstone posted on the other BB that 'lower end goods' prices has softened. This doesn't necessarily mean that it will stay that way. Prices may improve and EPD may be able to sell a far larger parcel in the coming months.

2. EPD are using the terminology for their industry, but you may not be understanding what they mean, because you have mis-interpreted it. Again this is a failure in communications on EPD's part, because they have to assume that some of their investors are not savvy with the correct jargon. It would have been better if they had explained the source of the diamonds.

Previously worked kimberlite can mean material that was extracted for any number of reasons, such as;

A) for the drill samples

B) for the bulk samples

C) to clear the site for operations.

Minegem did two bulk samples, one of Satellite and the other of Main. They did recover a number of diamonds during these samples. The recent processing of the tailings recovered even more, because Minegem's equipment was not as efficient as the new installation set up by EPD. Remember that our new plant is virtually the Rolls Royce of processing plants, but purchased at the price of a Mini, or low end Mondeo!



I would guess that in this instance, when the company states that they are selling diamonds from previously worked kimberlite, they are referring to the diamonds recovered by Minegem in both bulk sample and the core samples. They need a representative parcel and 3,000 carats seems perfectly acceptable. If this is the bulk sample diamonds, then it will give us a pretty good clue as to the average carat price we might see in the future.

3. You have mis-interpreted the meaning here. It has not been clarified whether the new South African tax applies to diamonds being imported into the RSA for valuation and selling, followed by export out of the RSA to their buyer.

Liqhobong diamonds are not the produce of the Republic of South Africa, but of the Kingdom of Lesotho.

The Lesotho Royal Family - Princess Senate, Queen 'Masenate and King Letsie III

If the RSA law states that ALL diamonds exported from South Africa are subject to the 15% tax, regardless of their origin, then EPD will naturally export ALL the Liqhobong diamonds to Antwerp instead, to avoid paying the 15% out of their profits.

I'm afraid that the South African Government have shot themselves in the foot here. Despite the fact that there are still major deposits of diamonds in the RSA, all the new tax is doing is to encourage further development outside the RSA, whilst restricting the amount being exported from South Africa.

You're making assumptions about the switch which are unfounded. You simply can not read into EPD's announcement that the production is lower than expected, simply because they are reconsidering selling through Johannesburg. It is purely a matter of the 15%.

4. Again you are reading too much into the announcement. The Government of Lesotho GOL is EPD's partner in the project. The GOL provide the license for EPD to export the diamonds, together with the certification.



Naturally, the GOL are expecting cashflow from royalties, taxes and their share of the profits. They must be consulted to advise them why the company is intending to alter the amount exported in the first few parcels, because they must be interested to know when they can expect their first revenue.

The company has a valid reason for holding back. If they sold now, they might get a much lower price than waiting a month or so. The company has enough working capital, so they can wait a good while longer to see the prices stabilise. When the time is right, then they will take the parcels to the market. By the way, it is the GOL that makes up the parcels.



The company may extract the diamonds and hold them on-site until they have a reasonable amount, but they have to be processed by the GOL for (Kimberley) certification prior to export. If EPD wants to sell a smaller parcel, then they would have to consult with the GOL and arrange for the correct parcels sizes to be produced.

The company is not going to blame the GOL for selling less diamonds later on. You are mis-understanding the RNS.

5. You need to understand how a diamond producing company refers to it's operational rates and capacity.

Simply put, the rate at which kimberlite ore is processed is more important for operational reasons, than the rate at which diamonds are found. I know that sounds odd, because it is the diamonds that we are after. Let me explain.

As you may know, the distribution of diamonds in the rock is not completely even. Some areas may be richer in diamonds than others. That is why diamond companies have to do bulk samples and feasibility studies, to find the average 'grade' of diamonds. This is to determine if the rock is economic to mine.

When processing, they refer to the amount of kimberlite ore processed per hour rather than the diamonds recovered, because the quantity of rock maybe a constant, but the quantity of diamonds found can vary. This variation may not be huge, because the bulk sample has given them an idea of the amount of diamonds to expect, but when discussing the operational capacity or processing rate, the mining industry usually refers to the throughput of ore.



Just because they have followed industry convention and discussed ore processing rates, does not mean that you can interpret this to mean that they are not recovering the diamonds at the grades indicated by the previous exploration and feasibility work. If the company was producing far less, then this would be something they would have to report to the shareholders in due course, as it is price sensitive news. They have NOT reported this, so you can not assume that anything is wrong.

The RNS says that production is at planned rates at the moment. The company planned to slowly work up to full capacity in stages. They don't want to break the equipment and cause a temporary production shutdown for repairs by running before they can walk. The whole point of processing the tailings was not just because there were still diamonds in there, or that it was occupying space in the tailings dump that they needed for the newly processed fresh kimberlite. The tailings were 'soft' rock that had been processed once. It would put less strain on the equipment and enable them to bring the plant to maximum planned capacity, far earlier than if they went all out with fresh (hard) kimberlite from the start.



IMO, it might be far better for EPD if they held back their diamonds till they have a major parcel. A really big parcel, to take to Antwerp in December. The more press attention that the company gets, the liklier that the market will notice that EPD is finally generating huge volumes of cashflow and that the share price does not reflect the value of this revenue.

EPD's production is mostly lower end goods. The smaller stones that are below 1 carat and sent to India to be cut into tiny diamonds like these:



Any larger stones are going to cause a splash. Rubstone says that "good quality yellow diamonds will be well received." As you know, Liqhobong does produce quite a few yellow stones. They may not all be fancy colours, but they might attract reasonable prices.

As was seen in the previous posts, good quality fancies do attain very high prices. The higher the clarity, the better the price and I would not be surprised to hear from EPD in the next few months that they've either found some larger oversize or that they have some more fancies.



Either way, this news would cause a significant increase in the revenue and could cause a spurt of demand and speculation in the share price. You only have to remember what the news of Letseng's oversize did to all other diamond shares, to understand what this means. Actually holding EPD if such news breaks would be thrilling, because there could be intense speculation about their value. We shall see.

The AGM is on the 8th December .............. in ST.Albans!

Why on earth is it there, and in the morning too!

I guess they are trying to discourage as many potential attendees as possible!


Annual General Meeting


The Annual General Meeting will be held at the Cedar Room, St Michael's Manor,
Fishpool Street, St Albans, Herts AL3 4RY on Thursday, 8 December 2005 at 11.00
am.

Andy
According to Anom, their new Head Office is in St Albans

takahe,

I know, but why hold the AGM there?

MOST AGM's are in the city, probably due to the fact that all the brokers and analysts are resident there, so IMO it's extremely odd to hold an AGM in St. Albans.

I now it's not unheard of, there are of course other AGM's held outside the city, (EG TDM) but IMO if you want the people that count there, you have it where they prefer.

Portman Building Society moved their AGM from London to Bournemouth, and start it at 10:30 am, to lessen the number of attendees, fact!

Andy - at least they aren't wasting overhead expenditure - no travel, no room hire, less refreshments in St Albans. It really isn't so far to go, if you are a serious shareholder, by train from Kings X Thameslink. Nice day out to the ancient Roman city of Verulanium.

sd

stockdog,

I agree it's not far, but it takes time to travel there, and maybe for that reason alone these things are usually in the city, where the analysts and brokers are.

A business room hired for a couple of hours is relatively cheap, and a lot of AGM's only provide coffee anyway, so it can be done in the city very modestly.

Some brokers will provide a room, Starvest held theirs in the offices of Grant Thornton recently for example.

Why not have the AGM on video link for the city analysts & brokers ?

Here's the interesting bits from the phone call to EPD.

Firstly the RNSs. EPD have been generating releases that they consider (and we would as well) to be very upbeat about their prospects. The unfortunate thing is that the releases are being 'doctored' before they are put out on RNS. The nomad, broker or PR company are altering the text. The reason for this editing is apparently so that they conform to the standard required of RNSs.

The management have been as concerned as you, that the share price has not been moving at this news. Indeed, they've spoken with other mining engineers from the industry, who've been astonished at the achievements of EPD (under budget, difficult terrain, high quality set up and very large extraction capacity) and these engineers can't understand why the share price hasn't taken off either. So it does appear that the general downturn in the mining sector has been holding back some of the shares that should by all rights have gone ballistic.

To rectify the problem of the RNSs, as EPD can not change the Exchange rules, they are going to put out news releases to the wire services simultaneously as the RNS go out. The news releases will have all the data that the RNS misses out on. So it maybe a lot better to read the AFX or wire service report, after you've read the RNS.

Additionally, they are conscious of the need for more graphics. The engineers have been out with the cameras, taking numerous pictures of the site at work. Some have even taken MPEGs as I mentioned earlier. The company is planning to edit these together and put them out as a release or make them available on the website.

I was told a while back that new pictures were on the way, including some of the diamonds, the company has been holding some of these back for the Annual Report. Obviously I've pointed out that they would do better by releasing as much as they can in the meanwhile, so that the market can see what they are getting up to. So here you are...... new pictures from Liqhobong as on the EPD website.

Having a Blast at Satellite!

The mining engineers are having a lot of fun testing the various parts of Satellite. They are trying to find the area that yields the most diamonds in any one processing load as any new producer would. Satellite is nearly 100 metres in diameter, so there's a great deal of ground from which to chose the ore. IMO they are doing their level best to maximise the production.

Of course, as the company said before, they are still on single shift for the next month or so, so the plant is only operating for 8 hours a day but they do plan to step this up to the double shift as RNS'd. So any rumours that the company is not extracting what they said they would are unfounded. Everything is running according to the previously announced RNSs.

As a follow up to the posts I made about Kao, I asked if they had heard anything about their neighbours. The news is that apart from two security guards, nobody has been seen at the Kao kimberlite for nearly three weeks. The place looks deserted. There are rumours that the fees are due to be paid to renew the licenses soon. If they don't come up with the money, then Lesotho Diamond Corporation plc might lose control of their concession. This would leave a 20 hectare kimberlite up for grabs and you can tell who would be in a prime position to benefit.

The DMS plant in operation

EPD do have spare capacity at the Satellite plant. They are planning to only work two shifts of 8 hours = 16 hours per day. So there would be 8 hours spare for other processing. This would give economies of scale, if the plant were processing a bulk sample for elsewhere - such as Main............or even Kao! The upshot is that this may be an option that would be too sweet to pass on if it presents itself.

The Tailings Dam Wall under construction

The company is going to be at Indaba next year and will be showing off their wares to the industry. I guess that they will be one of the highlights of the show, along with FDI/DB and Petra/BHP and a few others. I doubt that there will be the same sort of visits as were arranged last year, but there maybe a few execs that might take a trip into the Highlands.

EPD are now established at St.Albans. They have moved office as I said they had last week. The carpets are in, the phones are in, the computers are connected and all they need are curtains! The website has been updated and you can note the new telephone numbers. Kerry said that they have to bring in their own tea and coffee for the moment! but things are progressing. They are planning to give everyone that comes to the AGM a great presentation. It may be a bit out of the way to come to St.Albans, but it's only 40 minutes by train and a 8 minute taxi ride. You won't be disappointed as they can fill you in on all the news and explain what they've done.

The management are as disappointed as you that the share price continues to squat at 20p when it should be closer to 70p or even 100p, but they are doing what they can to make this happen. You should be comforted by the fact that they are aware that if the company does make a huge splash by making a massive sale, then people will sit up and take notice of them.

De Beers did another massive sale of rough last week and flooded the market once again before Christmas. The word around the industry is that DB are trying to accumulate as much cash as they can for some reason. Only the board of DB know why for the moment, but it may have something to do with South African politics and the tax.

On the tax point, they are also uncertain about what the RSA will do about the tax re the sales on the Johannesburg bourse. So it might be that very few of the EPD parcels go there. They have completed their first tender and I'll write what I can here, but I've asked the management to write a more detailed explanation of the process. As usual, EPD have not passed anything about that would be considered price sensitive. So no I don't know how they got on. EPD are also aware that they need to explain the tender process to you, so that the shareholders can understand the figures.

The parcels are being made ready at Liqhobong, a GOL official prepares and Kimberley certifies them on-site. They are then taken with the presence of high security to Maseru, the Lesotho capital. From there, they catch a flight to JoBurg and a connecting flight onwards to Europe. As the goods are bonded into customs in Lesotho, there should not be any problem with the RSA export tax, even though they pass through RSA territory on the way. Of course any parcels that are sold in JoBurg, would be subject of the tax, but DB is doing their best to fight the tax on behalf of the industry.

Liqhobong Diamonds

Once in JoBurg and at the Bourse, the parcels are taken to cubicles within a large room. The walls of the cubicles have large two way mirrors, so the security guards outside can watch as the people inspecting the parcels open them and examine the rough. Anyone tendering has to give their name, company, address details etc and then can make a bid on the parcels they have inspected. This way, the company gets a mass of marketing data on the people who are most interested in the EPD produce.

This means that certain companies might be invited to tender for special parcels, if they are regular buyers. There is a healthy interest in yellow stones at the moment. Epd does have pictures of all this and I reckon they will explain better when they can. Obviously they will release the news on the sales as soon as everything is concluded.

One point that is notable though, is that they don't expect to sell everything out of an entire sight. Apparently the process is to parcel the diamonds of equal size into separate packets. So there might be a parcel of 1 carat stones, another of 50 point stones, another of 25 point etc. They may not sell all of these parcels at one sight. So if they took 3,000 carats to JoBurg, they might not sell all 3,000, but most of it. The rest would go back into the EPD stockpile for another day.

On the other hand, the prices may be better for some stones than others, or even worse than expected. It all depends on the market prices at the time. Because of the large De Beers sales, the prices are still relatively depressed. The polishers and retailers have been flooded with merchandise and they are quite short on cash. You may have seen reference to this on Diamond.net

Liqhobong diamonds

Liqhobong is apparently producing some beautiful octahedral stones. I'm sure that the more savvy amongst you realise what this means. It means that each rough when cut can yield a much larger finished diamond. Less waste means higher price. Of course the lower end goods or indian produce can be wasteful if the crystals are the wrong shape. You might only get a gemstone at 40% of the carat weight of the rough. But Liqhobong does seem to produce some nice octahedral product as you can see in the photos, so the prices might be better, or might not. It all depends on the market. But one thing is certain, the colour of the Liqhobong stones is certainly what the market is after at the moment. So we can expect to get a lot of visitors to the sights.

So that's all she wrote for the moment. If I can think of anything else we discussed, I'll put it in another post. But we will get larger and better explanations from EPD in wire releases AFTER each RNS. So keep watching in case one comes out.

The Liqhobong Site

By the way - ALL these pictures were from Liqhobong!

Anom,

I have been studying this picture, what size would you say the large one on the middle is?

>Andy

I reckon that's a 6 carat. You can see striations along some of the crystal faces and those are also seen on larger stones. If that is the case, this single stone alone could be worth upwards of $12,000, based on GIA Z or Fancy colour, vivid yellow.

Well if that's a 6 carat, the four around it look a decent size too, in fact the whole parcel looks quite nice.

If, as the picture suggests, thay have found some large stones, EPD may realise more than anticipated for the initial batch sale.

Released at 7am this morning:-

European Diamonds PLC
28 November 2005

EUROPEAN DIAMONDS PLC RNS

RESULTS OF 1ST DIAMOND SALE

28 November 2005: AIM-quoted European Diamonds is pleased to announce that the
first sale of Liqhobong diamonds from its new Satellite Pipe Mine in Lesotho,
Southern Africa, realised a total of US$76,372 - over 25% more than expected.
The diamonds taken to tender consisted of stones recovered from the mine
overburden and previous exploration activities on site and as such were not
representative of 'Run-of-Mine' production.

In view of the seasonally soft market, weakened further following recent heavy
diamond sales by De Beers, European Diamonds took to sale only lower value
stones.

During the sale, at the South African Diamond Bourse in Johannesburg, the
company sold a total of 2,722 carats of diamonds to several international
diamantaires for an average price of US$28.05 per carat.

A number of high quality fancy yellow stones of up to 7 carats in weight, with
reserve prices of between US$850 and US$7,500 per carat, were held back and will
be taken to Antwerp in a major sale planned for the New Year.

European Diamonds Chief Executive Roy Spencer said: 'As expected, the Liqhobong
goods at the tender attracted significant interest from international buyers and
were very well received despite the soft market conditions. The values received
for these lower quality goods from Liqhobong were 26% above our anticipated
tender prices and as such we are very encouraged by the outcome of the sale.'

Mr Spencer added: 'We are now looking forward to the New Year sale and achieving
full-scale production.'

In line with seasonal trends, diamond prices are expected to continue to
strengthen in January.


For further information, please contact:


Kerry Spencer, European Diamonds +44 (0) 1727 852 417
+44 (0) 7739 827 231
Sarah Samworth, First City Financial Public Relations +44 (0) 20 7436 7486
+44 (0) 7977 276 023


This information is provided by RNS
The company news service from the London Stock Exchange

Joe,

Yet more dilution, another placing, @ 20p, plus 30p warrants (24 months)

I knew the placing was coming, and I have to express my surprise at them getting it away at 20p, although I don't think they filled it, it's lower than i thought, and a rather odd amount of shares and money.



European Diamonds PLC
04 January 2006


EUROPEAN DIAMONDS PLC
(the 'Company')

ANNOUNCEMENT

4 January 2006

Private Placement Financing

The Company announces that it has raised 614,300 by way of a private placement
of 3,071,500 new ordinary shares at 20p per share and has received the
subscription monies. In connection with this private placement, the Company will
also issue 3,071,500 share subscription warrants, subject to shareholder
approval at an Extraordinary General Meeting which is to be convened in the near
future. The warrants will be exercisable at 30p per share and will be valid for
twenty four months.

The funds raised through the private placement will be used for the Company's
working capital.

Application has been made for these shares to be admitted to AIM and it is
expected that they will be admitted on 9 January 2006. Following the
subscription, the Company has in issue 57,066,283 ordinary shares.

The Company owns diamond interests in Lesotho and Finland. Its principle project
is currently the Liqhobong Satellite Mine in Lesotho which has commenced
processing primary kimberlite. First diamond sales were held in November 2005
and the next sale is expected in January 2006.

The Company also has diamond exploration projects in Finland, principally at
Lahtojoki, Lentiira and Area 3. The positive results from sampling confirm the
prospectivity of the Finnish part of the Karelian craton.

European Diamonds PLC is listed on the Alternative Investment Market (AIM) of
the London Stock Exchange and its shares trade under the symbol EPD.

For further information please contact:

Roy Spencer, Chief Executive or James Cable, Finance Director and Company
Secretary
European Diamonds PLC
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail:

enquiries@europeandiamondsplc.com

website:

www.europeandiamondsplc.com



This information is provided by RNS
The company news service from the London Stock Exchange

Well the trick of releasing the bad news just as the market is closing seems to have worked here!

I have to admit I'm surprised.

Clearly this is an odd amount and an odd figure to raise, and the inclusion of warrnants suggests they struggled to raise the cash, so another placing may follow IMO.

If the promised sale of diamonds at the end Of January is less than expected, this will then drop IMO.

Strange, expected to see a bit of a sell-off after fundraising but seemed to have quite a few nibblers today.

dibbles,

I'm amazed to be honest,even more so that they got this away at 20p!

I would love to have attended those presentations!

Things looking brighter now after this weeks newsflow.
Strange how quickly nerves can be eased and sentiment changed in this game.

dibbles,

I am waiting until the next diamond sale is completed before coming to any firm conclusions.

I will be looking at the quantity sold, carat price achieved, and a new estimate of how many carat per month they plan to mine this year.

Another consideration is how long it took to complete whatever parcel size they do sell, and whether they have overcome the problems that they are encountering.

I feel there will be a softening all round.

Andy, I agree with you to a point but it seems to me that the 20p range held up well in less certain times so any reasonable production figures make a mockery of the 10m mkt cap, but we shall see.

As I said its a funny old game but I was quite impressed with the volume traded since the production update, at least we know EPD have been noticed.

Dibbles,


Nice rise (16%) this morning!

No RNS, so maybe someone thinks the next diamond sale is closer then we think?

Morning Andy,

Looking positive, I wonder if RAB are picking up more?
I see a 200k buy went through earlier which is bigger on it's own than EPD's usual daily average.

The recovery continues.........fingers xxxd

Dilbles,

Updated the header with a beautiful photo fo the mine taken recently, courtesy of Anomolous on the other BB.

Thanks Andy,

Starting to look promising, have you bought yet?

=======================================================================
Re: Press Releases - Wednesday, February 01, 2006
European Diamonds as AIM's largest producer announces marketing
partnership
=======================================================================

European Diamonds Plc is pleased to announce that, with the approval of
the Government of Lesotho, BHP Billiton has been appointed to market
the entire production of diamonds from its Satellite Pipe Mine at
Liqhobong in the Kingdom of Lesotho. Projected diamond production is
set at 290,000 carats per year.

BHP Billiton will initially market the diamonds through its Antwerp
office for a period of 1 year. The date of the first large scale sale
of Liqhobong diamonds will be announced shortly in consultation with
both BHP Billiton and the Government of Lesotho.

European Diamonds Chief Executive Roy Spencer has said; "BHP Billiton
is a major player on the world diamond scene in part as a result of the
sophisticated and successful marketing system it has developed to sell
the Ekati diamond mine production. We are particularly pleased that, as
the world's newest diamond producer set to become the largest hard rock
producer on the AIM market, we will be able to make use of BHP
Billiton's expertise and uniquely flexible multi-channel marketing
system and benefit from the accountability and transparency which this
association provides."


For further information please contact:

Kerry Spencer, European Diamonds:
+44 (0) 1727 852 417
Roy Spencer, CEO, European Diamonds:
+44 (0) 1727 852 417
James Cable, Finance Director, European Diamonds:
+44 (0) 20 7529 7502
Sarah Samworth, First City Financial Public Relations:
+44 (0) 20 7436 7486 +

Website: www.europeandiamondsplc.com

=======================================================================
Copyright (c) 2006 EUROPEAN DIAMONDS PLC (EPD) All rights reserved.
For more information visit our website at
http://www.europeandiamondsplc.com/ or send
mailto:enquiries@europeandiamondsplc.com
Message sent on Wed Feb 1, 2006 at 2:07:43 AM Pacific Time
======================================================================

Trendwatch article-02/02/06
European Diamond's Lesotho mine now operating

You'll find that this issue's recommendations have a prominent natural resource bias. If you don't have much interest in this sector, we can't really apologise.
The hottest sectors on Stockmarkets around the world at this time are the natural resource sectors. Commodity prices are booming for two main reasons: supply and demand. Demand is booming, thanks to the demands from China, India and many other countrie's. Supply in the mining sector has been constrained by massive underinvestment in new mines over many years, when commodity prices were low. Only now that we have booming prices is this being rectified- but opening a new mine can take years, so supply is likely to remain constrained for years.
Given those facts, why on earth would you not want your portfolio to be overweight in these sectors?
In view of the rising gold price, we'd like to have increased our exposure to gold. Our last gold recommendation was Oxus Gold, which has put on nearly 50% in 4 months. If you wanted to add to your gold holdings, we wouldn't put you off buying Archipelago Resources.
Our platinum investments, Ridge mining and Jubilee are also performing well.
But we have no exposure to diamonds, so we thought we'd rectify that with European Diamonds. Apart from that current lack of exposure, we were attracted to the company for two reasons. First, the share appears to be close to the bottom. Second, its first mine is now producing and set to ramp up production.
In 2003, the company acquired Minegem, a Canadian miner developing a mine project at Liqhobong in Lesotho, Africa's only constitutional monarchy. European Diamonds has a 75% stake; the other 25% is owned by the Lesotho government.
This is now European Diamonds principle project. It commenced processing primary kimberlite at its so-called Satellite Pipe towards the end of last year.
First diamond sales were held in November 2005 and the next sale was expected in last month. Production should now build up to 290,000 carats per year for 5 years.
Next to be developed will probably be the adjacent 'Main Pipe', which is a much bigger proposition. An independent pre-feasibility study in 1998 indicated that it had the potential to produce up to 0.7m carats a year over 10 years. Evaluation of the Main Pipe is continuing, as it is with the 8 regional exploration projects in eastern and central Finland, principally at Lahtojoki, Lentira and "Area 3".
Positive sampling results confirm the prospectivity of the Finnish part of the Karelian craton.
If any of this seems to ring a bell, so it should because this is the share that we recommended exactly a year ago, at 52p. Sadly, it seems we were too early.
With the shares now at only half that level, yet diamond production now under way, this surely makes the shares lower risk than a year ago.
The downside should be limited, partly because production at Lesotho is now ramping up, and partly because the price chart indicates strong support at 20p.
What about the outlook for diamond prices? In 2004 De Beers increased prices of rough diamonds three times, one of 3% and two of 5%. The second increase of 5% in August 2004 was seen in the market to have been much closer to 10%. In January last year, De Beers added another 3%-5%, weighted towards larger diamonds of over 2 carats, plus another 3% increase in June this year. Prices have increased in compound terms by nearly 40% since January 2003.
Market analysts reckon that annual demand for rough diamonds worldwide rose from $11.8bn in 2004 to $13bn last year and will rise to $14.5 billion by 2015 ( adjusting for inflation). Production over this period will be stable, indicating no oversupply in the medium term.
Our last successful attempt at investing in diamonds was Firestone Diamonds. It gave us a profit of 162% between August 2003 and May 2005. Lets see if we can do as well with our second bite at European Diamonds. BUY

EPD has just been tipped by Trendwatch via T1ps.com.

Here is the text;


Buy European Diamonds at 26.75p

Says Rob Cullum of Trendwatch.co.uk

If you don't have much interest in the natural resources sector, we can't really apologise. The hottest sectors on stockmarkets around the world at this time are the natural resource sectors. Commodity prices are booming for two main reasons: supply and demand. Demand is booming, thanks to China, India and many other countries. Supply in the mining sector has been constrained by massive underinvestment in new mines over many years, when commodity prices were low. Only now that we have booming prices is this being rectified - but opening a new mine can take years, so supply is likely to remain constrained for years.

Given those facts, why on earth would you not want your portfolio to be overweight in these sectors?

The value of investments can go down as well as up. Investing in equities can lose you part or all of your capital. Smaller company shares can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares. UK-Analyst.com is owned by t1ps.com Ltd which is authorised and regulated by the FSA and can be contacted at 49 Rivington St, London EC2A 3QB or on 0207 033 9389


We were attracted to European Diamonds for two reasons. First, the share appears to be close to the bottom. Second, its first mine is now producing and set to ramp up production.

In 2003, the company acquired MineGem, a Canadian miner developing a mine project at Liqhobong in Lesotho, Africa's only constitutional monarchy. European Diamonds has a 75% stake; the Lesotho government owns the other 25%.

This is now European Diamonds' principle project. It commenced processing primary kimberlite at its so-called Satellite Pipe towards the end of last year. First diamond sales were held in November last year and the next sale was expected in last month. Production should now build up to 290,000 carats per year for 5 years.

Next to be developed will probably be the adjacent 'Main Pipe', which is a much bigger proposition. An independent pre-feasibility study in 1998 indicated that it had the potential to produce up to 0.7m carats a year over 10 years. Evaluation of the Main Pipe is continuing, as it is with the 8 regional exploration projects in eastern and central Finland, principally at Lahtojoki, Lentiira and "Area 3". Positive sampling results confirm the prospectivity of the Finnish part of the Karelian craton. Earlier this month, the company announced that bulk sampling of the first 500 tons of rock from the Lahtojoki pipe had begun.

What about the outlook for diamond prices? In 2004 De Beers increased prices of rough diamonds three times, one of 3% and two of 5%. The second increase of 5% in August 2004 was seen in the market to have been much closer to 10%. In January last year, De Beers added another 3%-5%, weighted towards larger diamonds of over 2 carats, plus another 3% increase in June this year. Prices have increased in compound terms by nearly 40% since January 2003.

Market analysts reckon that annual demand for rough diamonds worldwide rose from $11.8bn in 2004 to $13bn last year and will rise to $14.5 billion by 2015 (adjusting for inflation). Production over this period will be stable, indicating no oversupply in the medium term.

I actually recommended this share just over a year ago, at 52p. Sadly, I was too early. With the shares now at only half that level, yet diamond production now under way, this surely makes the shares lower risk than a year ago. The downside should be limited, partly because production at Lesotho is now ramping up, and partly because the price chart indicates strong support at 20p. BUY.


Key Data
EPIC: EPD
NMS: 10,000
Spread: 26.5p - 27p

Andy

Whats the difference between trendwatch and tips.com?
I'm not complaining, the more publicity the better but I don't understand why tips.com would post a trendwatch article?

dibbles,

I believe it's an associated company of the T1ps group of companies.

I'm not sure why they do this, maybe so they can milk punters for multiple subscription fees!

Dibbles,

Well, to my surprise, EPD are now back up to 30p!

I want to see the result of the next sale before making a decision.

IN particular, I want to see how many carats go in the sale, because I think they are struggling with the mining due to the wet kimberlite, amongst other things.

Andy,

just read an article on another bb about EPD.

States over 10,000 carats to go to sale next week but won't confirm exact amount until then.
10,000 is less than I had hoped for but the overall write-up is positive......

dibbles,

If that is true, then the production rate is FAR worse than I thought!

They are committed to producing 290,000 carats PA in 2006, which equates to 24,166 per month, and since Spetember last year they only have circa 10,000?

Do you remember the RNS where they said they were holding some production back until the market firmed?

And they STILL only have around 10000 carats?

If this is true, something is wrong here.

The rise was due to a tip from UK ANALYST and their email TIP OF THE DAY. I received this by email on Thursday 16th Feb, see below:-



Buy European Diamonds at 26.75p
Says Rob Cullum of Trendwatch.co.uk
If you don't have much interest in the natural resources sector, we can't really apologise. The hottest sectors on stockmarkets around the world at this time are the natural resource sectors. Commodity prices are booming for two main reasons: supply and demand. Demand is booming, thanks to China, India and many other countries. Supply in the mining sector has been constrained by massive underinvestment in new mines over many years, when commodity prices were low. Only now that we have booming prices is this being rectified - but opening a new mine can take years, so supply is likely to remain constrained for years.

Given those facts, why on earth would you not want your portfolio to be overweight in these sectors?

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We were attracted to European Diamonds for two reasons. First, the share appears to be close to the bottom. Second, its first mine is now producing and set to ramp up production.

In 2003, the company acquired MineGem, a Canadian miner developing a mine project at Liqhobong in Lesotho, Africa's only constitutional monarchy. European Diamonds has a 75% stake; the Lesotho government owns the other 25%.

This is now European Diamonds' principle project. It commenced processing primary kimberlite at its so-called Satellite Pipe towards the end of last year. First diamond sales were held in November last year and the next sale was expected in last month. Production should now build up to 290,000 carats per year for 5 years.

Next to be developed will probably be the adjacent 'Main Pipe', which is a much bigger proposition. An independent pre-feasibility study in 1998 indicated that it had the potential to produce up to 0.7m carats a year over 10 years. Evaluation of the Main Pipe is continuing, as it is with the 8 regional exploration projects in eastern and central Finland, principally at Lahtojoki, Lentiira and "Area 3". Positive sampling results confirm the prospectivity of the Finnish part of the Karelian craton. Earlier this month, the company announced that bulk sampling of the first 500 tons of rock from the Lahtojoki pipe had begun.

What about the outlook for diamond prices? In 2004 De Beers increased prices of rough diamonds three times, one of 3% and two of 5%. The second increase of 5% in August 2004 was seen in the market to have been much closer to 10%. In January last year, De Beers added another 3%-5%, weighted towards larger diamonds of over 2 carats, plus another 3% increase in June this year. Prices have increased in compound terms by nearly 40% since January 2003.

Market analysts reckon that annual demand for rough diamonds worldwide rose from $11.8bn in 2004 to $13bn last year and will rise to $14.5 billion by 2015 (adjusting for inflation). Production over this period will be stable, indicating no oversupply in the medium term.

I actually recommended this share just over a year ago, at 52p. Sadly, I was too early. With the shares now at only half that level, yet diamond production now under way, this surely makes the shares lower risk than a year ago. The downside should be limited, partly because production at Lesotho is now ramping up, and partly because the price chart indicates strong support at 20p. BUY.


Key Data
EPIC: EPD
NMS: 10,000
Spread: 26.5p - 27p

TrendWatch is unique. It is the only publication that gives you complete listings of shares in uptrend and downtrend - vital information for investors and traders alike. Based on this, we make three fully researched share recommendations per fortnight. For a 3-issue free trial, contact us at http://www.trendwatch.co.uk/.

Hope this clears this up for everybody.

Tchno,

Cheers, that has already been posted here, but a reminder for those that are new here.

Nothing new in the article, and only a regurgitation of the companies recent news releases.

The area of concern for me is the production, and IF the 10,000 carat figure is true, they are way behind where they said they were going to be as recently as the end of last year.

I await the sale with interest!

Lesotho diamonds to hit bourse.
Allan Seccombe
posted: Fri, 17 Feb 2006

(miningmx. com) -- More than 10,000 carats of diamonds will be made available in Antwerp in coming days as European Diamonds sells the first major output from its Lesotho mine, CEO Roy Spencer said.

European Diamonds, listed on the Alternative Investment Market (AIM), will market its first major batch of diamonds through BHP Billiton before the end of next week, Spencer told miningmx in an interview.

Production started at the Liqhobong satellite pipe mine in Lesotho's northern mountain range at the end of 2005 and full production should be achieved around April this year.

Spencer declined to say exactly how many carats have already come from the mine.

"We will announce that when we announce the sale, but we estimate it's going to be just over 10,000 carats," he said.

Asked about the quality of diamonds coming from the mine, he said there was a broad spectrum. One stone, an intense yellow 7.7 carat diamond, was expected to fetch $8,000 a carat.

"We will go all the way down to $4 or $5 a carat. The average price we are working with is just over $40. That's for the total run of mine," he said.
The $40/carat estimate is based on a sample of 6,000 carats taken in 2000 for an independent valuation.

Prices six years later are likely to be significantly higher given the drive by diamond giant De Beers to stimulate demand for the gem.

When the satellite pipe mine, which has a grade of 0.68 carats per ton, hits its stride in the next couple of months, it should produce 290,000 carats a year. The life of the operation on the 1.5 hectare kimberlite is five years.

European Diamonds is exploring the main 9.5 hectare kimberlite pipe nearby and should embark on a feasibility study before the end of this year, Spencer said. The study should be completed by next September.

"From the main pipe, we are looking at production of somewhere between 750,000 to a million carats a year," he said.

The new main pipe mine will be open cast and go down 100 metres, but there is a lot more prospectivity that can still be exploited.

"We know it goes down to a kilometre," Spencer said.

European Diamonds is in talks with the Lesotho government, which owns 25% of the Liqhobong project, about other prospects further north.

"We have an application in with the government for a large area in the northern mountains and are waiting for that to be awarded."

European Diamonds is considering a listing in Toronto, Spencer said.

"Toronto gives us access to North American retail buyers which would hopefully broaden our shareholder base away from the UK, which, traditionally, is an institutional based exchange," he said.

He declined to say how much it would cost to develop a second mine in Lesotho.

European Diamonds is also active in Finland, where it has found a "highly prospective" geological terrain. Its key project is at Lahtojoki in central Finland, where a drilling programme has confirmed a kimberlite pipe with grades of 0.44 carats per tonne.
A feasibility study is expected at Lahtojoki later this year.

First European sale today then

All will be revealed.....eeek

"more than 10,000 carats"?

I would certainly hope for a lot more than 10K!

dibbles,

Thanks, I have posted it across the road.

So, if this report is to be believed, my worst fears are realised, production running 9 months late, and around only 10000 carats produced in several months production including the remainder from the last sale!

Hi Andy,

If they have only taken 10,000 carats to market then they are obviously having teething problems to say the least, but I still think at this current sp they haven't any production valued in compared to many explorers who may come up completely empty handed.
At the end of the day they are now producing, which makes them a safer bet than many imo.
If you include the other assets they have and potential for more + regular news from sales and Main Pipe/Finland etc., it could be argued they are a bargain at current levels should sentiment change.

At 30.25p- IC view- Despite all the activity on the ground, the shares are unloved. Good value.

WHEN DO WE GET RESULTS OF DIAMOND SALE AMOUNT AND PRICE ? ANYONE

70020,

Good question!

The sale started last week apparently, so we may hear something this week.

andy
thanks but how long can it take to sell 10k if this is the amount,surely we should know by now

http://moneyam.uk-wire.com/cgi-bin/articles/200603140701067375Z.html

700202,

What as simply appalling RNS (IMO)!

EPD announced commencement of production last MAY! and in November they had a small sale, blaming De Beers "flooding the market" and so "withheld some diamonds from the sale", and now, in MARCH 2006, they sell "aproximately 9000 carats", which I interpret as LESS than 9000 carats!

So even if we put September as the real start of production, this sale represents SIX full months of production, less the small parcel sold in November!

MY guess is they will now do another placing, as this revenue is not sufficient IMO.

Really poor RNS EPD!

"major sale"! LOL!
-----------------------------------------------------------------

European Diamonds PLC
14 March 2006

EUROPEAN DIAMONDS PLC

RNS

RESULTS OF EPD'S FIRST SALE IN ANTWERP
PRODUCTION UPDATE

14 March 2006: EPD is pleased to announce the results of its first major
European diamond sale by closed tender in Antwerp. The company has received the
sum of US$435,500 from the sale of approximately 9,000 carats undertaken on the
company's behalf by its marketing agent, BHP Billiton. Prices for the Liqhobong
goods fetched up to US$6,100 per carat for large, special stones. This
production represents a surface ore grade of approximately 0.5 carats per tonne
recovered from 19,100 tonnes of contaminated near surface kimberlite.

Roy Spencer has commented: 'The average price of US$49 per carat for this parcel
is in the mid range of the expected prices for the Liqhobong diamonds, and is
encouraging given the present market conditions.

'We are confident that on an annualised basis, Liqhobong run of mine will
continue to exceed the Feasibility Study value of US$41 per carat and that with
more tonnage throughput, we will see more large stones in excess of 5 carats. It
is however pleasing that in particular the hallmark yellow Satellite Pipe stones
have attracted so much attention and we intend to aggressively develop this
market in the future.

'The information we receive from this and the next sale gives us the opportunity
to fine tune the recovery plant and develop an economic cut-off for the smallest
stones we will recover. Present throughput is at approximately 50% of full
capacity, due in no small measure to the low grade contaminated surface
weathered kimberlite which still remains on the Satellite Pipe. This material
will take about 4 months to completely remove and process before we only have
primary kimberlite to put through the mill. The reduced production was also the
result of a longer plant commissioning phase exacerbated by severe wet weather
conditions and southern Africa-wide fuel shortages.

'Production will increase from current levels as we introduce and test the
correct screens for the economic cut-off, introduce fuel-efficient conveyors to
replace the existing slurry pumps and other measures to produce consistently at
a higher level. These changes will be introduced as we mine through the
weathered surface kimberlite and will be completed by mid-year, at about the
same time as the removal of the surface kimberlite is completed. '

For further information contact:

Kerry Spencer, European Diamonds +44 (0) 7739 827 231
+44 (0) 1727 852 417

Sarah Samworth, First City Financial Public Relations +44 (0) 20 7436 7486
+44 (0) 7977 276 023

Roy Spencer, CEO, European Diamonds: +44 (0) 1727 852 417

James Cable, Finance Director, European Diamonds: +44 (0) 20 7529 7502


This information is provided by RNS
The company news service from the London Stock Exchange

Very disappointing RNS despite the gloss they have tried to put on it.

Dangling the carat
BY MARTIN WALLER

IS THE next speculative bubble on the Alternative Investment Market going to be diamonds? The market is booming, wildly risky companies are queueing up to float and one or two have the potential to be the next Regal Petroleum or White Nile, if my reading of the signs is correct.

Demand is soaring from the emerging middle class in China and India, explorers are looking in more and more dangerous places and investment banks are planning specialist diamond funds.

The statistics are awesome, according to AIM's house magazine. Just one in five of so-called kimberlitic pipes contain diamonds, and only 1 per cent are economic.

The London Stock Exchange, which runs AIM, is days from producing tighter rules governing mining stocks.

Don't say you haven't been warned.

Well EPD have done ANOTHER placing!

I find it absolutely astonishing that a company that has failed to deliver as many times as EPD, have raised over 1 million at 25p!

And the shareprice that was heading towards 20p is now UP at nearly 24p!

Dibbles' article above is probably pertinent to EPD at least in the diamond sector, IMO.

----------------------------------------------

European Diamonds PLC
16 March 2006


EUROPEAN DIAMONDS PLC

(the 'Company')

ANNOUNCEMENT

16 March 2006

Private Placement Financing

The Company announces that it has raised 1,335,000 by way of a private
placement of 5,340,000 new ordinary shares at 25p per share and has received the
subscription monies. In connection with this private placement, the Company will
also issue 5,340,000 share subscription warrants, subject to shareholder
approval at an Extraordinary General Meeting which is to be convened in the near
future. The warrants will be exercisable at 30p per share and will be valid
until 15 March 2008.


The funds raised through the private placement will be used to fund exploration
in Finland and Lesotho and for general working capital purposes.


Application has been made for these shares to be admitted to AIM and it is
expected that they will be admitted on 22 March 2006. Following the
subscription, the Company has in issue 62,406,283 ordinary shares.


The Company is producing from its Liqhobong Satellite Pipe in Lesotho and
recently held its first European sale of rough diamonds in Antwerp. It is also
carrying out sampling in Lesotho at its Main Pipe and exploration activities in
Finland, principally at Lahtojoki and Area 3.


European Diamonds PLC is listed on the Alternative Investment Market (AIM) of
the London Stock Exchange and its shares trade under the symbol EPD.


For further information please contact:


Roy Spencer, Chief Executive Officer

James Cable, Finance Director and Company Secretary

European Diamonds PLC

Tel: +44 (0) 20 7529 7502

Fax: +44 (0) 20 7491 2244

e-mail:

enquiries@europeandiamondsplc.com

website: www.europeandiamondsplc.com

andy

you were predicting a heavily discounted placing on another thread.you were wrong

How does one spell schadenfreude?

Andy, I guess the private placees were told a little more information about prospects that us mere mortals! Seems a positive signal, although I remain out at 25.76p for the moment.

sd

How much did they get for 10,000 carats in first d/sale 2006in Antwerp,is there support at 20p.on s.p. chart,perhapsthey had teething problems starting during the last 6 monthes,annual target carat prodn.290,000 appears v/ambitious at this stage,maybe hope for future improvement since now up and running in 2006andf/dimond sale,any views Andy.

goon39,

I also predicted the placing, and was told I was wrong, but I turned out to be right!

I seem to remember others telling me there wouldn't be one!

And if the placing was done when the price was 30p, in January, it WAS discounted!

Stockdog,

Check the chart, EPD was run up to 30p in January, and has since come back down!

I wonder when the placing was done?

I wonder what the price was then?

Andy, I'm very much aware of the chart - interesting times.

The new man on board should help, he said hopefully.........

The most common complaint I've heard about EPD is geologists trying to run the company and get the mine into production when they should stick to doing what they do best so hopefully this appointment will allay those complaints.....

Perhaps they are listening at last...

dibbles,

I agree, this is a big step in the right direction IMO.

IMO it will take a few months to sort out the mining problems, so I don't expect a quick fix, and neither does the market if today's lack of price action is anything to go by.

All,

Is anyone here interested in attending a presentation by EPD?

The presentation is on Wednesday 19th April, at 12-00.

Location - Cannon Street, Central London.

A formal presentation will be made by EPD, followed by a buffet lunch, and an opportunity to meet and chat with the directors on an informal basis.

Duration 2 hours.


Afterwards there may well be a post match analysis at a local hostelry, for those wishing to meet up for a drink and a chat with their fellow investors.


Numbers are limited, so if you are interested in attending, please email Ian at the address below to secure your place.


Ian@proactiveinvestors.com

Without in the least wishing to ramp this wonderful stock, now is a perfect buying opportunity - the bad news is all out, the company has money in the bank enough to see them over the next few months whilst production gears up, further sales are scheduled, there are prospects for further contracts and developments. You'll kick yourself one year from now if you don't buy at 20-22p. That's all I have to say.

pgb8149,

"there are prospects for further contracts and developments".

Care to expand on that statement?

It would seem that AJ Williams is confident in how things are progressing???

Andy - can I refer you to Jick's post no 743 of today on the advfn BB?

pgb8149 ,

OK cheers

edit,

Just read the post, and it indeed does look interesting.

Thanks for pointing it out, I may ask him if I can copy it here.

Andy.

Just do it mate, go for it.

KD.

Posted with permission from Jick on ADVFN.

Jick - 7 Apr'06 - 15:09 - 743 of 762


Spoke to Kerry Spencer the other day.

Feel mildly optimistic after conversation. Frustration seems to be overwhelming emotion. Full prod did happen for 2 days over Xmas at Satellite Pipe but back to single shift now. 2 main problems relate to 50% increase in fuel costs and fuel shortages in South Africa as a whole. Price still very high but at least they have fuel . Long term is the installation of electricity supplies but I can't see this being sooner than 15 months even tho the Lesotho Govt is on board. Problems still with weathered kimberlite. BHP will decide upon timimg of next sale and reading between lines this may be at end of April, early May. Parcel size similar to last one I would guess. One of Chris Sangster's jobs will be to make small but important changes to the "fuel hungry" parts of the mine and to move sampling ahead at Main Pipe - this also needs testing through separate equipment to ensure that results are accurate. Potential of Main Pipe is very great - 9 hectares across! Chris Sangster has alot of experience in South Africa -they have been after someone for over a year and are looking at bringing other people on board.
DKR Saturn - yes they do keep selling into strength but there's not alot that can be done about it.

Finland - testing progressing and timing of results expected in line with recent RNS.
Lahtojoki would be about the size of Satellite if it can be proven to be economic.
Area 3 prospects obviously exciting and looking at a number of other targets. Exploration will crack on when land dries out in Summer. Spring and Autumn are useless for exploration hence the unfortunate timing of one of the fundraisings but they needed the money there and then otherwise another "window" would have closed.
My own opinion is that I can't see this flying short-term but regular money from sales plus news from Main plus Finland will help turn sentiment around. Big news would be re mains electricity in Lesotho. Other companies are lobbying for this as well. Further licences are possible in Lesotho which is very prospective. Listing on TSX still possible as per recent company news releases.
.

For those that are interested EPD are giving a presentation 19/04/06.
Just click on the link.Registration is free and anyone can go.

http://www.proactiveinvestors.com/calendar.asp

hh,

Already done, see post 227.

Hopefully a god number of investors will attend, as it's an excellent opportunity to meet the directors, and fellow investors, in an informal atmosphere.

And in this case, there really IS such thing as a free lunch!

With thanks to mdchand on the other side,

Cannacord broker note issued 07.35 today

11 April 2006

Precious Metals and Minerals

European Diamonds plc

Emerging diamond producer

Production could triple within three years

European Diamonds is one of the few publicly listed independent diamond producers. The company expects to be producing 290,000 carats per year by mid-2006 from the Satellite Pipe at its Liqhobong Project in Lesotho. This is envisaged as a starter project, with the main driver of value being the much larger, albeit lower grade, Main Pipe. This could add additional production of 500,000 - 700,000 carats per year by 2009.

Grade expected to double at Main Pipe

The ultimate viability of the Main Pipe hinges upon the grade of the kimberlite, which was determined by past operators to be 0.17ct/t. It now appears that the pipe is multi - phased with at least four zones of varying grades and that the original bulk sample was taken from the lowest grade portion. A subsequent re-interpretation of the geology indicates the overall recoverable grade could be closer to 0.37ct/t and that one zone (K5) could have similar grades to the Satellite Pipe (0.68ct/t). The Company is now taking bulk samples to test the various zones, with the first results by the end of Q3/06.

Continues diamond hunt in proven Karelian Craton

While the focus has shifted to Africa, European Diamonds continues its regional exploration program in the Finnish part of the Karelian Craton. It was on the Russian side of the border where company founder and CEO, Roy Spencer, had major exploration success with the discovery of the US$3.7 billion Grib Pipe. The company is now evaluating a diamondiferous kimberlite at its Lahtojoki project, from which bulk sampling results are expected in May.

Strong buying opportunity

This report puts forward several arguments on why the market has overlooked the embedded value of European Diamonds projects. We believe the Company to be worth 27 million, or 35p per share, representing 60% upside from current trading levels. We are initiating coverage of European Diamonds with a BUY recommendation and near-term target price of 35p.

dibbles,

There are still a couple of places available for the EPD presentation in London next Wednesday if anyone is interested.

Please send me a message if you are interested.

Andy, won't be able to make that date unfortunately........

Shame because it should prove interesting but hopefully someone attending can give us a feel of how well the management think things are progressing...

dibbles,

If I attend I will post my notes.

Hi Andy,

I sold some of my GFM and bought some EPD with some of it...I hope to do just as well ...that would be nice :-)
Di

Hi Di,

Let's hope so, I currently don't hold, but I may buy back after the meeting if I like what I hear.

I saw your thread re the scalping, and hope you manage to find someone that will allow you to trade again, it did seem a shame as it's surely good for them to have a few successful traders?

Welcome aboard Dynamite,

Yours wasn't the 150k at the end of the day was it?

Dibbles I wish!!!
:-)

Another 150k this morning and 350k at the end.......

The plot thickens...........

Not many reports coming back from the presentation yet...

Was it that dull.........

dibbles,

I have heard it went well, but they were having a buffet and drinks afterwards, so that may account for the lack of posting!

I was unable to attend after a last minute problem, so cannot report as I had hoped to.

OK Andy, thanks...

Lets hope it turns sentiment a bit

Finland test results and the next sale within 4-6 weeks, I wonder if we can avoid too much drifting in the meantime....

RNS - nothing new really, I guess this is the start of the run up to the TSX listing and placing.


European Diamonds PLC
19 June 2006



European Diamonds plc ('the Company' or 'European Diamonds Plc')
Strategic Mine Development and Exploration Plans


European Diamonds is pleased to announce further plans to develop its key assets
in Lesotho and Finland. The company is entering a significant growth stage of
its development; not only is full production from the Satellite Pipe expected by
the autumn of 2006 but bulk sampling at the much larger Main Pipe has started
already, leading to a feasibility study in 2007.


Lesotho

The Company is successfully producing from the Satellite Pipe in Lesotho and, at
the full scale feasibility study production level of 290,000 carats per year,
will be one of the largest independent diamond producers in the world.
Development of the Satellite Pipe has however always been regarded as the first
strategic step in the commercial development of its diamondiferous kimberlites
in Lesotho. In this regard the adjacent Main Pipe is a major target for the
Company. Plans are advanced, subject to evaluation work, to significantly expand
diamond production by testing and developing the Main Pipe, which at 9+ hectares
in size and containing over 20 million tonnes of kimberlite could become an
additional long term feedstock for the Liqhobong mining operation with the
potential to establish the Company as a long term diamond producer. A production
rate of over 700,000 carats per annum from the Main Pipe has been projected from
internal company scoping studies.

The timing and scale of the development of the Main Pipe will depend upon the
results of a bulk sampling programme presently underway and to concluded by the
end of 2006. Geological understanding of this large multi-phase kimberlite pipe
has been considerably improved over the last 18 months with at least 4 discrete
zones of kimberlite having been identified. Each of these zones appears to have
its own unique diamond content. The micro diamond analysis undertaken thus far
indicate that the 2.4 hectare southernmost K5 zone may have a grade similar to
that of the Satellite Pipe.

The bulk sampling programme is intended to recover up to 15,000 tonnes of
surface kimberlite from the K5 zone, close to the present mill site. Once this
sampling is completed, the kimberlite will be processed on site over a period of
approximately 2 months. The bulk sampling will then be extended to the other
zones with samples of approximately 5,000 tonnes being recovered from each of
the remaining zones. This programme is designed to recover up to 10,000 carats
for valuation purposes. Encouraging early sampling results from metallurgical
tests of this bulk sample material has recently produced a 27 carat diamond, the
largest to be recovered from the licence area by the Company to date.

The commercial decision whether to mine the Main Pipe will be taken based upon
the results of a Feasibility Study which will begin early in 2007. This study
will also determine whether to accelerate the mining of the Satellite Pipe and
stockpile the kimberlite for processing through the present recovery plant. In
this scenario it may be possible to use the resultant pit to dispose of up to
1.5 million cubic meters of tailings from the Main Pipe. This particular process
would have the advantage of avoiding the large early construction costs of a new
tailings dam.

Should the Company decide to mine the K5 zone only, a additional option may be
to target production in excess of 500,000 carats per year for over 6 years
which, when added to that from the Satellite Pipe, could mean total production
of over 700,000 carats per annum, cementing the Company's position as one of the
leading independent hard rock diamond producers in the world.

If the Feasibility Study shows that it is commercially viable to mine all of the
Main Pipe, this option would represent a significant increase in the annual
mining rate of up to 2 million tonnes per year over an initial mine life of 13
years. The increased processing plant capacity to handle this level of
production (up to 250 tonnes/hour) is likely to cost in the order of 25 million
although this has yet to be assessed in detail. A further alternative would be
to mine the K5 zone first, using existing upgraded facilities and then mine the
rest of the Main Pipe.

The value of the Main Pipe stones were estimated in 1998 to be U$62 pct on the
basis of a 1,700 carat parcel recovered by the former owners of the project.
World rough diamond prices have strengthened considerably since 1998 and the
Company is optimistic that the value of stones from the K5 zone will be higher
than those achieved in 1998.

The mine at Liqhobong is situated at an altitude of over 2,500 metres in the
Maluti Mountains and diesel fuel to power the electric generators is brought in
by truck, a laborious, weather-dependent and expensive process. Linking in to
Lesotho's electrical grid system is a key requirement to facilitate production
at the much higher levels envisaged from the Main Pipe. Accessing grid power is
presently under discussion with various organisations.

Grid power could potentially also considerably reduce the operating costs of any
mining operation in particular with respect to diesel costs, which have risen by
over 50% over the past year. The upside potential in terms of short and medium
term production, establishing significantly increased diamond resources and
potential returns to shareholders could be significant.


Finland

The Company is currently focussing on its exploration and evaluation assets in
central Finland at Lahtojoki and Area 3. The Finnish part of the Karelian
Craton, one of the largest and least explored diamond-prospective Archaean
cratons in the world, remains the Company's most important exploration area. The
Company has been exploring the craton for 8 years and has discovered many
kimberlites in the region, including at least 6 discrete areas from which either
new kimberlites have been found or where kimberlite indicator mineral trains
have been recovered.

In the south of the craton, a bulk sample of approximately 2,500 tonnes has been
collected from the diamondiferous Lahtojoki kimberlite pipe. The first 500
tonnes of this sample has been processed at the Geological Survey of Finland's
Outokumpu diamond facility with results of this part of the bulk sample having
recently been announced. The presence of commercial sized diamonds up to 0.45
carats have been confirmed with a grade substantially higher than that achieved
by previous explorers.

The Company plans to process the remaining 2,000 tonnes during the second half
of 2006. Preparation of a concentrate of approximately 20 tonnes will also take
place at Outokumpu, with final observation to be carried out at the Geological
Surveys offices in Helsinki.

Area 3 is the most important of the Company's regional exploration targets to
have been identified so far in Finland. The clusters of indicator trains (and
now kimberlites) that these discoveries represent are known to extend for over
150 kilometres from Area 3, overlapping recent kimberlite discoveries in the
Kuusamo area.

A small bulk sample of approximately 9 tonnes has been collected from the Area 3
kimberlite and has been processed at Outokumpu. The sample was observed at the
Geological Survey in Helsinki, with results recently announced. Macro diamonds
up to 0.09 carats have been recovered from this small sample.

Further work to discover the source of other indicator trains in the vicinity of
the Area 3 kimberlite and to determine the size of the new body will be
required. This work will be supplemented by an additional 300 metres of core
drilling and the collection and processing of 100 till samples.

In addition, the Company has discovered several hitherto unrecognised kimberlite
indicator trains in the vicinity of Lahtojoki and will assess these over the
next year.

Roy Spencer, the Company's CEO has noted 'It is obvious now that the company has
successfully emerged as a major producer of hard rock diamonds. By the time the
present plant upgrades are in place, EPD will be one of the largest independent
diamond producers in the world. Should the bulk sampling work that has already
started on the Main Pipe at Liqhobong prove as successful as we anticipate, the
group could be producing well over half a million carats per year by the end of
the decade. The exploration potential that the Company has identified both in
Lesotho and in Finland is exciting and promises to add significantly to the
group's diamond inventory.'

In recognition of this development, the Company has introduced significant
changes to its management structure both by opening an Operational Office in St
Albans in the UK and by adding to its already strong technical and management
team by the introduction of Mr Chris Sangster as General Manager to, along with
the Liqhobong Production team, initially take the Satellite Pipe to full
production and then to become involved in the day to day running of the Company.
This change will allow Andrew Birnie, the Company's Chief Geologist, with his
geological team, to concentrate on the bulk sampling and pre Feasibility work on
the Main Pipe at Liqhobong and to bring this kimberlite into production as soon
as possible. It will also free members of the team to continue with the highly
successful exploration the Company has been carrying out in Finland and to
conclude the evaluation of the Lahtojoki and Area 3 kimberlites'.


European Diamonds PLC is listed on the Alternative Investment Market (AIM) of
the London Stock Exchange and its shares trade under the symbol EPD.


Mr Roy Spencer, GSSA Member, FAusIMM, and Chief Executive Officer of European
Diamonds plc is a 'qualified person' as defined under the AIM rules and a
competent person under the JORC reporting standards. This announcement has been
prepared under Mr. Spencer's supervision.



For further information please contact:

Roy Spencer, CEO + 44 (0) 1727 852 417
James Cable, FD / Company Secretary + 44 (0) 20 7529 7502
Kerry Spencer, IR + 44 (0) 1727 852 417
+ 44 (0) 7739 827 231


Sarah Samworth, First City PR + 44 (0) 20 7436 7490



European Diamonds PLC

e-mail:
enquiries@europeandiamondsplc.com

website:
www.europeandiamondsplc.com

Andy,I bought@ 39p!! many months ago,is your post a possible recovery or am I DREAMING.

.

Nice thread

chesneywilliam,

At the moment I have a bearish view on EPD, but if they can actually commence bulk production, that could change to a bullish view very quickly, so I can't answer your question, only you can make that choice.

I think they need to deliver in a big way, and they have failed to deliver on promises made for some time now.

I sold after speaking to Kerry Spencer last year because what she told me was contrary to the facts being presented by the company, which made me feel uncomfortable, and in my experience, that feeling is the time to sell.

I may buy again, but not before they start to deliver, and they seem some way off that currently, as we have only had one small diamond sale this year, and that 9k small sale parcel included some held over from October 2005!

They are running well behind their target of 290,000 PA, and the RNS above puts back yet AGAIN the commencement of 290k PA!

Not impressed I'm afraid.

In addition, they are looking to list and probably raise money on the Canadian Vancouver Stock Exchange, which if they list at around this price, will cause some unwelcome dilution for existing shareholders.

Andy .... sounds like a stock well worth avoiding!

cynic,

Well I wouldn't buy EPD at the moment, that's for sure.

Today's RNS seems more of an attempt to support the price than report anything newsworthy IMO.

visit my thread

I believe EPD are touring Europe this week with Minesite, yet didn't present at the London Minesite forum today.

I wonder why?

Shame they arn't just selling diamonds as promised.
Should have known better than to come back here although I've made money here in the past!!!!!

Looks like they have sold some diamonds !
LONDON (AFX) - European Diamonds PLC said it discovered two large diamonds at the Liqhobong kimberlite mine in Lesotho.

The gems weighed 29.2 carats and 24.3 carats. They were found less than a month after it discovered a 27.7-carat stone in the same site.

Separately, the miner said it sold 16,500 carats of the Liqhobong diamonds for 691,000 usd in Antwerp recently.

'In view of the present volatile rough diamond market, we view this sale as very positive. Market reception for our better quality yellow diamonds has been strong and the Liqhobong yellows are rapidly becoming sought-after in the European market,' said chief executive Roy Spencer.

monicca.egoy@afxnews.com

mbe/joy

Some great news today for EPD! 30p here we come!

Dynamite,

Only 16,500 carats sold in three months?

That's 30k this year so far then?

And the last parcel contained some stones carried over form the previous October!

A bit short of the 290k PA EPD production schedule, which keeps being put back!

This is (IMO) a really poor performance, and a lower average selling price than the previous tranche too!

Interesting that this is announced today, when they are touring Europe, so much for timely release of price sensitive information!

Nice larger stones too, but news released on the same day?

me a cynic?

Another positive article out on EPD.For those that are not familiar with the site it is free to register and read.

http://www.proactiveinvestors.co.uk

European Diamonds Plc: Turning point for European Diamonds?
By Penny Sterling.

European Diamonds has been having a torrid time of it lately.

Currently working up to full production on the Satellite Pipe on its Lesotho Liqhobong property, and having commenced bulk sampling at the nearby larger Main Pipe, the company also has kimberlite assets in Finland at a relatively early stage of exploration, where bulk sampling is currently underway.

Another horror show.....5 pence must surely be the next stop.

laila25,

Yes the chart looks bad, but 5p?

iIthink they wll be taken out before they get that low.

Horror show.

Laila25,

I totally agree, management have failed to meet expectations, and I sold @ 38p ages ago!

If they commence mining at the required rate, I may buy back, but I'm not holding my breath!

Down a tad more today, I guess no diamond sale is expected in the near future.

The lesotho Promise has sold for US$12 million!



Golf-ball sized diamond is a $12m hit at auction
THE biggest diamond to be found in 13 years, the Lesotho Promise, was sold yesterday at auction for more than $12 million (6.4 million) and is expected to fetch in excess of $20 million once it is cut.

The 603-carat (120g) diamond, named after the tiny African mountain kingdom where it was found, went under the hammer at the Antwerp Diamond Centre and was sold to the South African Diamond Corporation, partly owned by luxury jeweller Graff.

The tenth largest white diamond ever to be found, it will be cut into a large heart-shaped gem and several smaller stones which will then be sold. The uncut diamond is a third bigger than a golf ball.

Johnny Kneller, from the South African Diamond Corporation, said that once it was cut, he expected to sell the stones for a third more than the auction price.

"We hope it's going to fetch over $20 million," he said.

The Lesotho diamond was found at the Letseng Diamond Mine high in the mountains of the tiny nation which is surrounded by South Africa, by a woman who was sorting through the rocks.

This article: http://news.scotsman.com/international.cfm?id=1498232006

Last updated: 10-Oct-06 01:50 BST

Andy, can you shine any light to why the share price is dropping. On other boards, investors are voicing their concerns over the lack of news published by EPD. Many, myself included have even sent the company emails for updates. No one has received any replies, which add to the frustration.

With production well underway, you would expect the SP to head North instead of South, So what the heck going on.

Scenic

These guys are the masters of spin IMO!
================================


European Diamonds PLC
26 October 2006


Liqhobong Diamond Mine Production Update

The management of EPD is pleased to provide the following technical update on
the mining and technical operations at Liqhobong.

Satellite Mine

Over the past year, an open pit mining operation has been successfully
established on this small, high grade kimberlite and a modern recovery plant
constructed to recover diamonds from this pipe.

The operation achieved 'Commencement of Commercial Production' (CCP)
as defined in the official mining licence documentation, in late July. This
requires the Satellite diamond recovery plant to have the demonstrated ability
to continuously process at two-thirds of the rated capacity of 60 tonnes per
hour over a period of 1 month. A number of delays relating to tailings disposal
and plant design issues have had the effect of delaying the achievement of full
production. In effect however, the plant is still undergoing commissioning with
various adjustments currently being made to the circuit.

For the 10 months to the end of September, the plant processed 67,577 tonnes of
kimberlite from the Satellite open pit for a total diamond recovery of 40,899
carats. It is important to note that grade at the mill, and therefore total
diamond recovery, is controlled by the current 1.35mm lower cut-off compared to
the 1.0mm cut-off noted in the Feasibility Study. Depending on the lower cut-off
decided on over the next year, at full production the plant should produce
between 650 and 850 carats per day.

Small diamonds are often not worth recovering, however the analysis of
information from the first sales in Antwerp now indicates that the -7 sieve
Satellite diamonds are fetching prices which imply that these small stones are
economic to recover. This conclusion has only been made possible with the
availability of the Antwerp sales data.

Three opportunities to enhance recoveries have been identified in the Satellite
plant circuit. These are; 1) existing slurry pumps should be replaced by more
reliable conveyors, 2) the existing tertiary crushing circuit needs to be
upgraded to allow for better fine crushing and 3) a second specialist DMS fines
cyclone needs to be introduced into the system to recover small diamonds.

Plans to improve both recovery and throughput are well advanced although, as for
many mining operations worldwide, lead times for new plant and equipment are
very long indeed.

A new conveyor system has been installed and is being commissioned at the
moment.

The Company, with the engineering firm Metso Minerals (South Africa) Ltd, has
acquired a suitable tertiary crusher. Metso has indicated that the new crusher
will be available for transport to site by the end of November.

The additional fines cyclone system, to address the recovery of small diamonds,
is expected on site at the end of November.

The Company has been assured by the contractors that all of the planned
equipment upgrades will be completed and on site by the end of November and
in-house commissioning is thus anticipated to be achieved by the end of the
year.

Main Pipe Evaluation

To date we have processed approximately 25,000 tonnes of bulk samples from the
Main Pipe through the Satellite facility. Processing the Main Pipe samples
through the Satellite plant has saved the Company considerable expense in that
this system closely simulates diamond recoveries expected during production and
thus avoids the expense of a purchasing a separate testing unit for this work.
It is anticipated that up to an additional 10,000 tonnes of bulk sample will be
collected from the pipe during the course of 2006 and into 2007.

The production team will also continue to blend small quantities of the softer
Main Pipe kimberlite through the same plant for additional metallurgical testing
purposes preparatory to the Feasibility Study contemplated for next year.
Strategic blending will continue until all plant upgrades are completed. Because
of the lower grade of the Main Pipe kimberlite, this procedure has however
impacted somewhat on the total carats produced over this period.

A further 2000 metres of core drilling is underway to further develop the 3-d
geological model.

The Scoping/Pre-Feasibility Study is well underway with results due to be
available for independent review early in 2007.

EPD's CEO Roy Spencer commented 'Difficulties in simultaneously
processing both the weathered near surface clay rich kimberlite and the deeper
and harder fresh material required us to design, procure and install various
additions to the diamond recovery system. Despite severe winter snowfall and
long lead times for delivery of mining and processing equipment being
experienced worldwide, we are making good progress towards full production.

We are also looking at ways of further increasing revenue by recovering more of
the small stone sizes which our marketing analysis indicates are now economic.
We have continued to recover diamonds during the extended commissioning phase
and our Main Pipe results are very encouraging.

We expect to announce the results of a recent tender of diamonds in Antwerp as
soon as the final sales receipts have been received.

All in all, despite our operational difficulties in 2006 we have prepared the
ground for a long life, large and profitable diamond mine from a standing start
eighteen months ago.'

Mr Roy Spencer, GSSA Member, FAusIMM, and Chief Executive Officer of European
Diamonds plc is a 'qualified person' as defined under the AIM rules and a
competent person under the JORC reporting standards. This announcement has been prepared under Mr. Spencer's supervision and all reporting is to JORC standards.

For further information contact:
Kerry Spencer, European Diamonds
+44 (0) 1727 852 417

Allan Piper, First City Public Relations
+44 (0) 207 631 2737

Roy Spencer, CEO, European Diamonds:
+44 (0) 1727 852 417

James Cable, Finance Director, European Diamonds:
+44 (0) 20 7529 7502




This information is provided by RNS
The company news service from the London Stock Exchange

Really is time to get your feet wet again Andy! Encouraging third sale results today, plant upgrades soon to be in place, full production within 2-3 months from Satellite, Main valuations good....

Well EPD finally had another sale!

On the face of it the receipts of $2 million were quite stunning, but the 27 carat diamond discovered earlier this year, along with other large stones held back by EPD, were included, distorting the value of the sale.

However, what cannot be disputed is the total of $4.5 million sales achieved over the course of 2006.

The cynic in me questions the timing of this release, and once again there is a woolly statement of the sort that I really dislike in ANY company RNS.


-------------------------------------

European Diamonds PLC
27 December 2006




EUROPEAN DIAMONDS PLC



Results of Fourth Diamond Sale in Antwerp







The management of European Diamonds Plc is very pleased to announce that the
fourth sale of Liqhobong mine production, from the Company's Lesotho-based
subsidiary Liqhobong Mining Development Company (Pty) Ltd's open pit mining
operation, has been successfully concluded in Antwerp. A total of 13,567 carats
of run of mine goods were offered for tender by the Company's sales agents. No
bids were entered for 1,959 carats and the remaining 11,608 carats were sold for
U$2.17 million.



The Company's CEO, Roy Spencer has commented that 'The price for this parcel is
significantly higher than that achieved in previous sales, due in no small
measure to the extraordinarily high price of U$27,008 per carat achieved for a
27.7 carat clean D-colour stone, recovered from the Main Pipe, which was
included in this sale, together with several other smaller high quality stones
of between 11 carats and 23 carats. We believe this may be the highest price
paid on a per carat basis from Lesotho in recent times. If the 3 largest, high
quality stones, are removed from the equation, the remaining parcel fetched U$72
per carat.



Importantly, there are also indications that the 27 carat stone is a Type IIa
diamond fragment of a much larger diamond which, taken together suggests that
larger, similarly high quality stones, may be present in the Main Pipe.



The effect that these stones will have on the overall value of the Main Pipe
diamonds is still being assessed but will certainly increase the value from the
U$60 per carat achieved in the last sale. Similarly, the effect of these high
quality stones is being considered in the context of the Pre-Feasibility Study
we are currently working on and which will be completed in early 2007.

The 1,959 carats not sold were smaller low value stones and a decision on the
on-going marketing of this type of diamond will be made in due course.

This sale brings to a total of U$4.3 million, the gross proceeds from diamond
sales by the Company in the last 12 months.'

EPD MM's all moving up this morning and all blue on L2 ...about time we get some good news
Di

up 6% in last hour..MM's still marking up... I bought some more at 18.67 for some reason Barclays stockbrokers doesn't always show up...edit...now another 0.5p...come on EPD already in profit from this mornings trade
Di

somethings up...another 0.25p up now...maybe they have found a huge vane of diamonds!!

from the other side
'another fair statement from River / Bond.
http://www.mining-journal.com/Breaking_News.aspx?breaking_news_article_id=2291

"....There is currently a diamond rush in Lesotho occasioned by the phenomenal values being achieved for some of the large diamonds recovered in Lesotho mines," River Diamonds said...."

from the other side;
Institutional roadshow was set for this week so not suprised by the move up. Should be worth a couple of days of rises and then hopefully followed up by the feasability study update to move it to the next level.
Management apparently feel this will be around 46p by mid summer give or take a few pence when the full impact of their work is realised...So anyway a 1 bagger now seems finally on the cards went long again a few weeks back all be it I could have got in slightly cheaper...

Dynamite, that's "vein".

I'd boast about my spelling skills but I wouldn't want to appear vain.

Arf...of course it is...I put it down to my broken leg..it must have reduced my spelling skills :-)

On second thoughts that is implying my brain is in my leg :-( so maybe not

I wonder what's up? High volume yesterday and today.
1) current production line up to speed
2) pre-feasibility study contains some nice large numbers
3) takeover offer
4) large diamond find
5) roadshow spreading the word and persuading buyers
6) more diamonds in Finland

Any guesses? Most of those are easily possible.


As to brains and legs, I know that fleas have their brain in their legs. It goes like this: you train them to jump when you shout "jump". Then you chop off their legs. Then you shout "jump" and nothing happens, obviously because they no longer understand the word "jump", which is what happens if the brain is removed. Alternative theories are that the ears are in the legs so they can't hear any more.

Do you think this share price will jump if I shout loud enough?

European Diamonds PLC
17 May 2007




EUROPEAN DIAMONDS PLC
(The 'Company')

Updated Resource Statement

LESOTHO UPDATE



Diamond Resource of Main Pipe Extended to 130 metres


US$591 million in-situ value excluding large stone potential


Satellite Plant now operating at full capacity


17th May 2007: European Diamonds Plc ('EPD' or the 'Company') and its 75% owned
subsidiary Liqhobong Mining Development Company (LMDC) is pleased to announce an
updated resource statement for the Main Pipe Kimberlite at the Company's
flagship diamond project at Liqhobong in the Kingdom of Lesotho with an update
on the Satellite Plant.

Main Pipe
The updated resource statement has again been carried out by specialist
independent diamond geological and mining consultancy Geocontracts Botswana
(Pty) Limited ('Geocontracts'). Dr. Leon RM Daniels Ph.D, MAIG, who has over 30
years of experience in diamond exploration, mining and recovery, prepared the
resource statement. The statement was prepared according to the Definitions and
Guidelines for the CIM Standards on Mineral Resources and Reserves of the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM Standards) and is
based on data collected during 2006.

The Main Pipe resource was calculated to 130 metres from surface and is made up
of 2 sections. Firstly, a revised Indicated Diamond Resource (IDR) to 45 metres
from surface, which now contains approximately 13.99 million tonnes of
kimberlite with a recovered grade of 0.282 carats per tonne (cpt) and a stone
value of US$70 per carat (pct) (Press Release dated 27/03/07). Secondly, the
updated resource statement extends the diamond resource from 45 to 130 metres as
an Inferred Diamond Resource (IFR) containing approximately 16.37 million tonnes
of kimberlite with a slightly reduced (due to dilution) recovered grade of 0.275
cpt also with a stone value of US$70 pct.

The calculated resource is thus estimated, at this stage, to contain a total of
30.4 million tonnes of kimberlite and 8.44 million carats of diamonds, which
represents an in-situ diamond value of US$591 million to 130 metres from
surface. Additional information relating to production costs will be established
by the Pre Feasibility Study.

It should be noted that none of the stone valuations in the resource statement
include the three large, high quality stones between 15 and 27.7 carats produced
from the Main Pipe in December 2006 and which sold for up to US$27,000 per carat
(press releases dated 27 December 2006 and 15 March 2007).

The IDR and IFR were referenced on over 7,600 metres of drilling, approximately
30,000 tonnes of bulk sampling (which recovered 9,014 carats), some 5.1 tonnes
of microdiamond analyses and 5 separate independent stone valuations on a total
of 6,990 carats of run of mine diamonds recovered from the Main Pipe during
2006.

Satellite Diamond Plant
The Satellite Diamond Plant is now capable of production at its rated capacity
of 400,000 tonnes per annum. Full production from the Satellite open pit will
continue to be subject to the processing of lower grade Main Pipe material in
addition to the higher grade Satellite ore, as is operationally appropriate and
as the Main Pipe bulk sampling programme requires.

Roy Spencer, the Company's CEO commented today that 'Geocontracts also notes
that the Main Pipe has been drilled down to 650 metres from surface and is still
open at this depth. We know that the pipe at 150 metres from surface has an area
of approximately 7.6 hectares (ha) and at 300 metres from surface approximately
5 ha, thus the Directors of EPD believe it is reasonable to assume that there is
some additional potential below the 130 metre level that will be addressed over
the coming months. Further supporting this assumption, the Scoping Study
prepared for MineGem Inc. by Fluor Daniels Southern Africa in 1997 (Press
Release 9th August, 2004), suggested that an open pit operation based on the
Main Pipe could go as deep as 350 metres from the surface.

It should also be noted that this resource estimate statement does not include
the K6 zone which makes up approximately 5% of the volume of the kimberlite to
this depth and for which there is at present no grade data'.


For summary of reserves see:

http://www.investegate.co.uk/Article.aspx?id=200705170700217081W

Where is the company heading

News


Click HERE

or read here :-) Thanks Share Trader
European Diamonds upgrades Main Pipe resource estimate
Thursday, May 17, 2007, 07:46 AM
European Diamonds (AIM: EPD) announced an upgraded resource estimate for its Main Pipe Kimberlite in Lesotho. The indicated and inferred resource, which is now calculated to a depth of 130 metres from 45 metres, now stands at 30.4 million tonnes of kimberlite with 8.44 million carats of diamonds with an in situ value of US$591 million. The indicated diamond resource, which represents the first 45 meters contain approximately 13.99 million tonnes grading 0.282 carats per tonne and a stone value of US$70 per carat. The inferred resources, calculated from 45 meters to 130 metres contain 16.37 million tonnes grading 0.275 carats per tonne with a stone value of US$70/carat. European Diamonds added that the grade and value of diamonds recovered did not include three large stones recovered in December 2006; therefore it is likely the actual average value of stones recovered could increase if large stones are distributed throughout the pipe.

Meanwhile at European Diamonds operating mine, the Satellite pipe, the Company stated that the operation is now capable of running a full capacity of 400,000 tonnes per annum. European Diamonds intend to maintain current production at Satellite while using spare capacity to process additional bulk samples from the Main Pipe.

"Geocontracts also notes that the Main Pipe has been drilled down to 650 metres from surface and is still open at this depth. We know that the pipe at 150 metres from surface has an area of approximately 7.6 hectares (ha) and at 300 metres from surface approximately 5 ha, thus the Directors of EPD believe it is reasonable to assume that there is some additional potential below the 130 metre level that will be addressed over the coming months." added Roy Spencer, Europeand Diamonds CEO. "It should also be noted that this resource estimate statement does not include the K6 zone which makes up approximately 5% of the volume of the kimberlite to this depth and for which there is at present no grade data".

European Diamonds PLC
18 July 2007



EUROPEAN DIAMONDS PLC


Board and Senior Management Changes and Proposed Corporate
Re-organisation
Pre-Feasibility study identifies potential for over US$1 billion of
recoverable diamonds in Lesotho



18th July 2007: European Diamonds Plc ('EPD' or the 'Company') announces changes
to the Board of Directors and senior management of the Company and a proposed
comprehensive corporate re-organisation in conjunction with the release of
positive pre-feasibility study results at the Company's Main Pipe diamond
project in Lesotho.


Board and Senior Management Changes and Proposed Corporate Re-organisation:

Board and Senior Management Changes

Effective immediately:

Timothy Philip Read (aged 60) joins the Board of the Company as
Executive Chairman. Mr Read has over 35 years' experience in mining and the
mining finance sectors, and was Chief Executive Officer of Adastra Minerals
Inc. until August 2006, when the company was acquired by First Quantum
Minerals Limited. Prior to joining Adastra in 1999, he was co-head of mining
investment banking at Merrill Lynch.


Mr Read will provide strategic leadership to the Company and assume
responsibility for communications with the financial community.


Stephen Lay (aged 52) joins the Board of the Company as Chief Operating
Officer. Mr Lay is a mining engineer with over 30 years of worldwide mining
and project management experience. In addition he has a strong background in
management and executive roles in a number of public listed companies. Mr
Lay will have responsibility for overall technical and operational
leadership of the Company and in particular will coordinate the Definitive
Feasibility Study ('DFS') for the Main Pipe which the Company proposes to
initiate immediately.


Roy Spencer steps down as Chief Executive Officer of the Company and
becomes a non-executive director. Mr Spencer will continue to advise the
Company on all its exploration activities in Lesotho and will also be
responsible for all exploration activities in respect of the Finnish mineral
properties which the Company is proposing to spin off to shareholders by way
of a corporate re-organisation (described below).


Murdoch Beaton steps down as a director of the Company but will continue
to act in an advisory capacity on all of the Company's activities in
Southern Africa and will remain as a director of the Company's Lesotho
subsidiaries.


Buddy Doyle steps down as Chairman but remains as a non-executive
director.


See Appendix 2 for further details in relation to Tim Read and Stephen Lay.


Corporate Re-organisation

The Company's Board is proposing a corporate re-organisation in relation to the
Company's Finnish mineral properties and a change of name of the Company.


In relation to the Company's mineral properties in Finland, it is proposed that
the common shares of the sub-holding company that holds these assets will be
distributed to the Company's shareholders to form a new public company, to be
known as North European Diamonds Limited (the 'NED Spin Off'). The NED Spin Off
will be subject, inter alia, to a court approved re-structuring to make the
proposed dividend of the common shares of NED to the Company's shareholders tax
neutral.


The Board will also be proposing a change of name of the Company to one that
more properly reflects the ongoing focus of the Company in developing
substantial diamond production in Lesotho.


The proposed NED Spin Off and change of name will both be subject to
shareholders' approval. Full details will be circulated to shareholders in due
course.


Main Pipe Pre-Feasibility Study

The Company has completed its Main Pipe Pre-Feasibility Study ('PFS') which has
generated the following technical and financial elements:

Kimberlite resources modelled 55.5 million tonnes *
Proposed kimberlite processing rate 3.5 million tonnes per annum
Initial mine life 16 years
Provisional cost estimates:

Capital US$100 million

Operating US$11 / tonne

Indicated grade 27 carats / hundred tonnes
Approximate recoverable carats 15 million carats
Indicated run of mine value US$70 / carat
Provisional value of recoverable

diamonds US$1.05 billion

*Refer to Appendix 1 for further details.


The PFS has been reviewed and audited throughout its development by ACA Howe
International Limited ('Howe'), who has commented as follows:


'Howe has determined that the PFS has been carried out to a high standard and
uses conservative design, operating and revenue parameters. Current studies and
modelling show a 16 year open pit mine life. This is based on a resource model
extending down to the 2,250 metre elevation (approximately 280 metres below
surface), where the kimberlite has a modelled cross-sectional area of 5.1
hectares (8.56 hectares at surface). However, limited drilling has shown that
the pipe extends to at least 650 metres below surface.'


'Operating and financial parameters should be especially favourable in the first
four years when minimal pre-stripping is required and the stripping ratio
averages 0.25 (tonnes waste to tonnes ore) rising to a favourable overall mine
life average of 1.1.'


'Howe notes that the average grade of 27.38 carats per hundred tonnes ('cpht')
and the average diamond price of US$70 per carat used in the PFS financial
modelling has been derived from a parcel of 6,088 carats extracted from the Main
Pipe. Howe considers that there may be significant revenue upside above this
level because these numbers deliberately excluded several large or bonanza
stones, including a 27.7 carat clean D flawless stone recovered from the Main
Pipe bulk sampling in December 2006 that realised a price of US$27,000 per
carat.'


'Howe notes that an independent review and assessment of the macro-diamond size
distribution of the Main Pipe based on the recent bulk sampling results by MM
Oosterveld, has indicated that an average 200,000 tonnes of kimberlite would
yield 4 stones larger than 50 carats and 1 stone larger than 100 carats.'


'Howe has recommended a programme of diamond core and large diameter drilling
for further definition of the Main Pipe and to add greater confidence to the
resource base. Howe has also identified a number of aspects of both mining and
processing procedures which should be addressed in the DFS and may further
optimise the project.'


'Howe concludes that the PFS shows the project to be financially and technically
robust and recommends that the Company should proceed with the DFS.'


Roy Spencer, Director, commented:

'We believe the Board and senior management changes and proposed corporate
re-organisation will accelerate market recognition of the considerable value we
have already developed for shareholders. The PFS is comprehensive with all key
areas independently verified by experienced consultants. The PFS clearly
demonstrates the potential economic viability of the Main Pipe even with the
conservative parameters used. Since the end of 2006 for example, we have
processed another 14,000 tonnes of Main Pipe kimberlite at a recovered grade of
over 0.4 carats per tonne and, as noted by Howe, we have strong evidence to
support the project's large stone potential. This information, together with
further bulk sampling and financial data, will be incorporated into a DFS which
will start as soon as possible. In the meantime we continue to produce diamonds
from the Satellite Pipe which is now processing kimberlite at its design rate of
420,000 tonnes per annum. We are now also fully funded to completion of the
DFS.'


'I would like to thank all our directors, employees and shareholders who have
supported us to date. I welcome our new management additions and look forward to
helping develop our Company further over the coming years.'


Tim Read commented:

'I am delighted to be joining the Company at this very exciting time. It should
be noted that the delineation of the Main Pipe has been a considerable technical
success and that this, in conjunction with the PFS, has demonstrated the
project's potentially robust economics. We will now be embarking upon the DFS
and making initial approaches to various sources of project finance, in order to
bring this outstanding project to full value.'


About EPD:


European Diamonds Plc is listed on the AIM Market ('AIM') of the London Stock
Exchange and its shares trade under the symbol EPD.


Mr Roy Spencer, GSSA Member, FAusIMM, and a Director of European Diamonds Plc is
a 'qualified person' as defined under the AIM rules and a competent person under
the JORC reporting standards. This announcement has been prepared under Mr
Spencer's supervision and all reporting is to JORC and similar standards.


For further information contact:


European Diamonds PLC Canaccord Adams Limited

Tim Read/James Cable Robert Finlay/Mike Jones/Ryan Gaffney

+44 (0)20 7529 7502 +44 (0)20 7050 6500


Roy Spencer/Kerry Wells
+44 (0)1727 852 417
First City Public Relations
Allan Piper
+44 (0)20 7242 2666
E-mail:
ir@europeandiamondsplc.com
Website:
www.europeandiamondsplc.com

Coimment, click here

http://www.proactiveinvestors.co.uk/articles/art.php?EPD4

Last March, with the price at 16.5p mid, we thought that European Diamonds could well be on the cusp of a turnaround. The successful PFS and the excellent prospects going forward show that we were right.


Last Friday, European Diamonds called an EGM to change the company name to Kopane Diamond Developments plc. Kopane they explain - is a Sesotho word meaning "Unity". As the first corporate step towards the total repositioning of the company in the market, this comes as a clear clarion call that EPD's management remain determined to change public and market - perception of their company.

It was back in July when this move was first mooted, along with a significant reorganisation of the top echelon of management. Chairman Buddy Doyle reduced himself to the ranks of non-executive director, whilst Roy Spencer resigned as Chief Exec and also became a non-exec, though he did retain responsibility for the Finland operations. Newcomer Tim Read took the top job as Executive Chairman, and a new Chief Operating Officer was introduced in Stephen Lay. Read has years of experience of the mining industry, having served as CEO at Adastra from 1999 to 2006, after some years as co-head of mining investment at Merrill Lynch. Lay's 30 years of experience as a mining engineer and senior executive will stand him in good stead as he takes on the task of progressing the Main Pipe to full feasibility and production.




At the same time, they also announced that two key corporate actions were under active consideration the spinning off of the Finnish assets into a new company to be known as Northern European Diamonds, and a change in the name of the company to more accurately reflect the Lesotho focus. The spin off, it was clear, would take some time, as court approval would be required to reorganise the capital structure of the Finnish holding company, but the good news was that the shares in the new NED would be distributed to EPD shareholders by way of a dividend.

Still more good news included in that 18th July announcement was the upgrading of the Main Pipe resource and the completion of the Preliminary Feasibility Study, under the supervision of ACA Howe, for which shareholders had long been waiting.

To quote the company's own words on that day: The Company has completed its Main Pipe Pre-Feasibility Study ("PFS") which has generated the following technical and financial elements:
* Kimberlite resources modelled 55.5 million tonnes
* Proposed kimberlite processing rate 3.5 million tonnes per annum
* Initial mine life 16 years
* Provisional cost estimates: Capital US$100 million; Operating US$11 / tonne
* Indicated grade 27 carats / hundred tonnes
* Approximate recoverable carats 15 million carats
* Indicated run of mine value US$70 / carat
* Provisional value of recoverable diamonds US$1.05 billion

It's also worth noting two key comments from Howe, as follows: Howe considers that there may be significant revenue upside above this level because these numbers deliberately excluded several large or bonanza stones, including a 27.7 carat clean D flawless stone recovered from the Main Pipe bulk sampling in December 2006 that realised a price of US$27,000 per carat."

"Howe notes that an independent review and assessment of the macro-diamond size distribution of the Main Pipe based on the recent bulk sampling results by MM Oosterveld, has indicated that an average 200,000 tonnes of kimberlite would yield 4 stones larger than 50 carats and 1 stone larger than 100 carats."

So plenty of potential upside on the $70 per carat level, assessed and vouched for by a specialist organisation whose qualifications to make such an assessement are beyond doubt.



A resource statement issued just two months before, on 17 May, had valued the Main Pipe at a significantly lower level than this, based on available drilling/sampling results at the time. The May assessment prepared by expert diamond consultant Dr Leon Daniels - had covered a mix of indicated and inferred resources down to the 130m level of the pipe, coming up with 30.4 million tonnes at just under 28 cpht, equating to 8.44 million carats and thus valuing the resource at $591 million. This assessment had enabled a successful fund-raising during May and June at 20p, to put another 5.2 million in the bank.

So the July announcement was very good news all around. A new Chairman with some clout, a new COO who was a real mining engineer and not a geologist, a dividend for the shareholders in the fullness of time, and a value for Main Pipe almost 80% higher than just two months earlier.

Which makes it quite inexplicable that the share price, which had been in a gently rising trend from its earlier all time low in November 2006 almost immediately began to fall! Having reached 25p on the day of the announcement, the very next day saw a drop of over a penny, and apart from a couple of stabs at resistance, it has barely stopped since.

Today it stands at just 16.75p, when the company is probably in better shape than it has ever been, with a firm future, strengthened management and a completed PFS that leaves one in absolutely no doubt that the Main Pipe will be Lesotho's next diamond mine. Add to that the fact that the Satellite processing plant is now fully up to speed and churning out diamonds from both Satellite ore and Main samples, and the share price action seems even more strange.

To add to the upside, sales news released just two weeks ago showed that this summer's auctions in Antwerp have realised another $3.4 million in revenue, bringing the total so far to well over $9 million. Overall, run of mine stones are fetching almost $60 per carat average showing the influence of the lower grade Main Pipe samples on the total plant output. The price did try to rise when this news hit the market, but to no avail. It seems that investors really have fallen out of love with European Diamonds.

It has to be said that in the past the company has - justifiably - acquired a reputation for being a serial non-deliverer whilst raising funds from the market on a depressingly regular basis on decreasingly favourable terms.

But for the last twelve months, operations at the Liqhobong diamond project in Lesotho have progressed steadily, and the plant which serves the producing 69 cpht Satellite Pipe is now at full output, handling both ore from Satellite and bulk samples from the Main Pipe. Main Pipe is under continuing development to arrive at the final full feasibility study and commence production in 2009.

Last March, with the price at 16.5p mid, we thought that European Diamonds could well be on the cusp, and that the problems of the past were over and done with and the company could begin the task of turnaround. Their work of this last Spring and Summer, the successful PFS and the excellent prospects going forward show that we were right. Sadly, the market doesn't agree with us.

But with luck and a following wind not to mention shareholder unity at the upcoming EGM Kopane Diamond Developments might get a different reception.

Di
You still in these? Sold out at 50% loss in Jan 06. Not regretted since. However, maybe this time they could be on their way. Will watch and wait for some seriouos price/volume action, breaking back up through 20p.
sd

SD,

I think I must have bought EPD at a much lower price and certainly more recently as I am just below the price I bought and waiting ;-)
DI

an interesting interview with Tim Read, Ex Chairman of EPD and Wall Street Reporter
www.wallstreetreporter.com/page.php?page=featured&tab=2&id=27213

Kopane are presenting in London on Monday 26th November @ 18:00.

Registration details click HERE

Other companies presenting are Weatherly (WTI) and Central China Gold (GGG)

Proactive Investors One2One Forums

Monday 26th November 2007

Each company will present for 20 minutes with 10 minutes Q&A to follow. After the presentations are complete the directors will be available to take questions during a free canapand wine reception which will be open until 9pm

5:45pm for a prompt 6:00pm start at the Chesterfield Mayfair Hotel 35 Charles Street, Mayfair, W1J 5EB

Nearest tube station is Green PARK

proactiveinvestors.com have written an in depth article on KDD that should be very interesting to holders and watchers alike!

Click HERE