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,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