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

Thanks for the reply Andy, gives me something to aim for

I think 73p is numis initial price target based on satellite pipe start-up...
with ongoing newsflow from lesotho and sample from finland in 1st half
followed by main pipe work in 2nd half i think we could see and pass 1 quite
quickly..imo

dibbles,

Yes that's correct, though it wouldn't suprise me if that target is exceeded IF minestart is on schedule.

This sure is a frustrating one - moves like a train for a few days, then lies doggo......

Hopefully it will consolidate at this level before next assault........
Excitement should build again as we get ever nearer minestart.....
Also fundmanagers visiting site early Feb so EPD must feel they have something
good to show them.......

dibbles,

well you would expect so!

Nice find in lesotho, not EPD's mine, but increases interest in the area.

http://www.timesonline.co.uk/article/0,,3-1460769,00.html

Shouldn't be long now before we start finding our own, big or small, i'll take
either as long as it gets momentum building.....

All quiet on the news front after the Indaba mining Conference, Cape Town, which took place last week.

One the brokers and analysts are back at their desks, maybe some news from lesotho will be forthcoming.

Share price dipped 10% last week, so we could do with some positive news.

On the otherhand, any drop below 40p on light volume and no news would be a buying opportunity IMHO, and one I would take too!

Woooah! What were those big trades that went through at 45.50?

Hmmm,

Not sure, but IMHO, I'm not sure they were buys, could just as easily have been sells due to their size > NMS, and possibility of being delayed.

It'll be interesting to see which direction EPD goes tomorrow.

http://www.europeandiamondsplc.com/i/pdf/2005-02-15_B.pdf

February 15, 2005

Bloomberg interview with Chairman Anthony Williams
By Simon Casey

Feb. 15 (Bloomberg) -- European Diamonds Plc. plans to start recovering its first gems at a mine in Lesotho, southern Africa, sometime next quarter, Chairman Anthony Williams said.

The London based company is completing construction of the Satellite Pipe mine, which will produce about 290,000 carats of diamonds per year, Williams said in a telephone interview. "It is the first stage of what we confidently predict will be a major mining operation in Lesotho," Williams said.

European Diamonds will supply diamonds to a market in which demand is estimated to be outpacing production. Prices for so called rough diamonds, sold on to jewellers for polishing and cutting, have gained 40 percent in the past two years because of surging sales of rings and necklaces.

The company is also exploring the northwest of Finland for kimberlites, volcanic rock formations which contain economically recoverable quantities of diamonds.

"We've yet to discover an economic kimberlite," Williams said. "All the exploration guidelines are that we will find economic kimberlites in that area."

The company is carrying out a sampling of rock taken from its Lathojoki site in central Finland "early in 2005," Williams said. It also plans to complete in 2005 a study of a site adjacent to Satellite Pipe that's six times larger.

European Diamonds lost $1.6million in the year ended June 30. The company won't break even this fiscal year, Williams said. Shares in the company dropped 1.5 pence, or 3.2 pence in the past year, valuing the company at 19 million pounds ($36 million).



--------------------------------------------------------------------------------

For further information please contact:

Tony Williams - Chairman
European Diamonds PLC
22 Grosvenor Square
London, W1K 6LF
Tel: +44 (0) 20 7436 7486
Fax: +44 (0) 20 7631 1444
e-mail: enquiries@europeandiamondsplc.com
website: www.europeandiamondsplc.com

Allan Piper
First City Financial Limited
32 Percy Street
London W1T 2DE
Tel: +44 (0) 20 7529 7502
Fax: +44 (0) 20 7491 2244
e-mail: mailbox@firstcitypr.com

I see the buying last Friday has carried over ito today, and we are up 3p today so far.

Does anyone know whether EPD was tipped in the press this weekend, or by a tipsheet? interested to know where the interest has come from.

Looking at early trades, it suggests a tipsheet, as they are of the private investor size.

Photo courtesy of anomolous, ADVFN.

rhps

Ta!

Andy - what photo?

philfpolio,

THAT photo!

Slight typo there, thanks for pointing it out.

Nice end to the day again, EPD up another 6.5p, and again no news to substantiate the rise.

I can only summise that the visit to the minesite in lesotho by brokers and analysts a couple of weeks ago has sparked the interest, and with minestart imminent, peeps are buying in anticipation of a rise once diamonds are actually being recovered.

Perhaps this is the start of a new move up after the announcement last week of mine start. However it looks to be a measured progress....