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

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?!