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

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