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European Diamonds Starts Production (EPD)
Dunnyspage
- 29 Jun 2005 11:30
Re: Press Releases - Wednesday, June 29, 2005
Title: *Diamond Production Begins, Board Changes Announced
--------------------------------------------------------------------------------
*Diamond production starts in Lesotho
*Acquisition increases equity stake to 75%
*Management reorganisation to reflect these landmark events
June 29, 2005: European Diamonds plc is pleased to report that commissioning of the diamond recovery plant at the Company's Liqhobong property in Lesotho is now complete and initial production of diamonds has commenced.
The first materials being processed are tailings from previous bulk sampling and surface mining activities. Production will gradually increase over the next four months to around 35,000 tonnes of ore per month, and by the end of the third month the first batch of primary kimberlite will enter the processing stream. This primary material is expected to contain significantly higher diamond grades and values than the surface material and tails. Construction of the tailings dam will also be completed during this period.
Chief Executive Roy Spencer said: "We are targeting a production rate of 24,000 carats per month by the end of the fourth quarter of 2005. Thereafter, we expect at least 10 to 12 sales of diamonds by tender at this level, per year, commencing end of September 2005.
European Diamonds has also agreed to acquire an additional 10% interest in the Liqhobong property held by the Industrial Corporation of South Africa (IDC), increasing its equity stake to 75%. The government of Lesotho holds the remaining 25%. The company will pay IDC a cash consideration of 4 million South African Rand for its interest.
About the Satellite Pipe Mine
Initial production at Liqhobong will be from the Satellite Pipe. Construction work on this 1.6 hectare diamondiferous kimberlite started in September 2004. The project has been completed some 20% below the originally budgeted US$10 million, despite paying for increased engineering capacity at the crushing section of the processing plant and for a larger tailings dam for waste disposal.
The mining method is by open pit mining. Kimberlite will be mined at an annual rate of 420,000 tonnes. A bulk sample taken in 2001 showed the Satellite Pipe has a grade of 0.69 per tonne and therefore the mine is expected to produce approximately 290,000 carats per year. Recent studies indicate that the final recovery grade may be higher and mine life extended beyond 5 years.
The price of the diamonds recovered from the 2001 bulk sample was assessed to be $US42 per carat. Since then, however, diamond prices have risen by over 30% and the market for coloured "fancy yellow" stones is particularly strong. High quality "fancy yellow" diamonds have been recovered from the Satellite Pipe.
Roy Spencer further commented: "Our project manager Andrew Birnie and his team deserve to be congratulated for completing construction of the mine and the state-of-the-art diamond recovery plant in just over nine months. We are now poised to become a significant independent producer of diamonds over the next few months.
"Shareholders should also be reminded that the Satellite Pipe operation is only the first stage in what the company believes will become a major long-life mining operation at Liqhobong," he added. "The large adjoining Main Pipe kimberlite is over 9.5 hectares in area and the economics appear very promising. We expect to use our existing infrastructure to accelerate production from the Main Pipe once economic evaluation is complete".
Management Reorganisation
In response to these landmark events for European Diamonds, the board is also pleased to announce a management reorganisation reflecting the growth and maturation of the company.
Tony Williams will step down as executive Chairman, but will remain as a non-executive director. Mr. Williams was a founder director of EPD and has been instrumental in elevating the company from explorer to diamond producer. The board gives sincere thanks to Tony for his tireless efforts over the last 4 and a half years.
Buddy Doyle becomes the non-executive Chairman. Mr. Doyle is a recently appointed director of the company and brings 23 years of diamond exploration and discovery experience, predominantly gained during his time with Rio Tinto.
Mr. Roy Spencer remains in his current role of CEO and Mr. Richard Wake-Walker remains as a non-executive director.
Mr. George Murdoch Beaton has been appointed as Chief Operating Officer (COO) to supervise day-to-day activities in order to allow Mr. Spencer more time to concentrate on managing the company's rapidly growing mining and exploration activities.
Mr. Beaton moves from his previous non-executive role to COO from a background with, among others, the T&N Group in South Africa where he held various senior management, accounting and financial positions. Since 1999 he has been an independent business consultant involved in various projects in Africa, Asia and Europe, and established and has administered the Group's operations in Finland andLesotho.
Murdoch Beaton is a Chartered accountant (SA) and has a Master of Business Leadership from the University of South Africa. Mr. Beaton will transfer to London shortly.
Mr. James Cable has accepted the position of Finance Director. Mr. Cable is a chartered accountant of over 27 years standing and a member of the Institute of Directors. He has experience in several industrial sectors, including oil, internet, IT and construction, and has worked in the UK, Far East, Middle East, Africa and Scandinavia. He has been a director of public and private companies and has substantial multinational company experience. He has many years experience in developing entrepreneurial, fast growing companies. and brings considerable experience to the company.
For further information contact:
James Cable, Finance Director, European Diamonds plc:
+44 20 7529 7500
John Harrison, Numis Securities Ltd:
+44 20 7776 1500
Allan Piper, First City Financial Public Relations:
+44 20 7436 7486
+44 7736 064 982
--------------------------------------------------------------------------------
Copyright 2005 EUROPEAN DIAMONDS PLC (EPD) All rights reserved. For more information visit our website at http://www.europeandiamondsplc.com/ or send email to enquiries@europeandiamondsplc.com .
Message sent on Wed Jun 29, 2005 at 1:14:18 AM Pacific Time
Title: *Diamond Production Begins, Board Changes Announced
--------------------------------------------------------------------------------
*Diamond production starts in Lesotho
*Acquisition increases equity stake to 75%
*Management reorganisation to reflect these landmark events
June 29, 2005: European Diamonds plc is pleased to report that commissioning of the diamond recovery plant at the Company's Liqhobong property in Lesotho is now complete and initial production of diamonds has commenced.
The first materials being processed are tailings from previous bulk sampling and surface mining activities. Production will gradually increase over the next four months to around 35,000 tonnes of ore per month, and by the end of the third month the first batch of primary kimberlite will enter the processing stream. This primary material is expected to contain significantly higher diamond grades and values than the surface material and tails. Construction of the tailings dam will also be completed during this period.
Chief Executive Roy Spencer said: "We are targeting a production rate of 24,000 carats per month by the end of the fourth quarter of 2005. Thereafter, we expect at least 10 to 12 sales of diamonds by tender at this level, per year, commencing end of September 2005.
European Diamonds has also agreed to acquire an additional 10% interest in the Liqhobong property held by the Industrial Corporation of South Africa (IDC), increasing its equity stake to 75%. The government of Lesotho holds the remaining 25%. The company will pay IDC a cash consideration of 4 million South African Rand for its interest.
About the Satellite Pipe Mine
Initial production at Liqhobong will be from the Satellite Pipe. Construction work on this 1.6 hectare diamondiferous kimberlite started in September 2004. The project has been completed some 20% below the originally budgeted US$10 million, despite paying for increased engineering capacity at the crushing section of the processing plant and for a larger tailings dam for waste disposal.
The mining method is by open pit mining. Kimberlite will be mined at an annual rate of 420,000 tonnes. A bulk sample taken in 2001 showed the Satellite Pipe has a grade of 0.69 per tonne and therefore the mine is expected to produce approximately 290,000 carats per year. Recent studies indicate that the final recovery grade may be higher and mine life extended beyond 5 years.
The price of the diamonds recovered from the 2001 bulk sample was assessed to be $US42 per carat. Since then, however, diamond prices have risen by over 30% and the market for coloured "fancy yellow" stones is particularly strong. High quality "fancy yellow" diamonds have been recovered from the Satellite Pipe.
Roy Spencer further commented: "Our project manager Andrew Birnie and his team deserve to be congratulated for completing construction of the mine and the state-of-the-art diamond recovery plant in just over nine months. We are now poised to become a significant independent producer of diamonds over the next few months.
"Shareholders should also be reminded that the Satellite Pipe operation is only the first stage in what the company believes will become a major long-life mining operation at Liqhobong," he added. "The large adjoining Main Pipe kimberlite is over 9.5 hectares in area and the economics appear very promising. We expect to use our existing infrastructure to accelerate production from the Main Pipe once economic evaluation is complete".
Management Reorganisation
In response to these landmark events for European Diamonds, the board is also pleased to announce a management reorganisation reflecting the growth and maturation of the company.
Tony Williams will step down as executive Chairman, but will remain as a non-executive director. Mr. Williams was a founder director of EPD and has been instrumental in elevating the company from explorer to diamond producer. The board gives sincere thanks to Tony for his tireless efforts over the last 4 and a half years.
Buddy Doyle becomes the non-executive Chairman. Mr. Doyle is a recently appointed director of the company and brings 23 years of diamond exploration and discovery experience, predominantly gained during his time with Rio Tinto.
Mr. Roy Spencer remains in his current role of CEO and Mr. Richard Wake-Walker remains as a non-executive director.
Mr. George Murdoch Beaton has been appointed as Chief Operating Officer (COO) to supervise day-to-day activities in order to allow Mr. Spencer more time to concentrate on managing the company's rapidly growing mining and exploration activities.
Mr. Beaton moves from his previous non-executive role to COO from a background with, among others, the T&N Group in South Africa where he held various senior management, accounting and financial positions. Since 1999 he has been an independent business consultant involved in various projects in Africa, Asia and Europe, and established and has administered the Group's operations in Finland andLesotho.
Murdoch Beaton is a Chartered accountant (SA) and has a Master of Business Leadership from the University of South Africa. Mr. Beaton will transfer to London shortly.
Mr. James Cable has accepted the position of Finance Director. Mr. Cable is a chartered accountant of over 27 years standing and a member of the Institute of Directors. He has experience in several industrial sectors, including oil, internet, IT and construction, and has worked in the UK, Far East, Middle East, Africa and Scandinavia. He has been a director of public and private companies and has substantial multinational company experience. He has many years experience in developing entrepreneurial, fast growing companies. and brings considerable experience to the company.
For further information contact:
James Cable, Finance Director, European Diamonds plc:
+44 20 7529 7500
John Harrison, Numis Securities Ltd:
+44 20 7776 1500
Allan Piper, First City Financial Public Relations:
+44 20 7436 7486
+44 7736 064 982
--------------------------------------------------------------------------------
Copyright 2005 EUROPEAN DIAMONDS PLC (EPD) All rights reserved. For more information visit our website at http://www.europeandiamondsplc.com/ or send email to enquiries@europeandiamondsplc.com .
Message sent on Wed Jun 29, 2005 at 1:14:18 AM Pacific Time
Dunnyspage
- 09 Jul 2005 17:09
- 9 of 11
No problem, thread closed.
:-)
:-)
sampson - 05 Aug 2005 13:02 - 10 of 11
Big crash in the price, any info anyone?
stockdog
- 05 Aug 2005 13:20
- 11 of 11
see other thread and RNS today
- Page:
- 1
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