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

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?