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

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?