Newly appointed Executive Chairman of Kopane Diamonds (AIM: KDD), Timothy Read, took the opportunity of the company's full year results to expand on his vision for the company going forward. Kopane Diamonds is the new name for European Diamonds, which is producing diamonds in Lesotho, South Africa, and has considerable exploration acreage in Lesotho and Finland.
Mr. Read began by highlighting the 'outstandingly successful' partnership the company had developed with the Government of Lesotho at the Liqhobong Mine where Kopane has a 75% interest. Mr. Read then went on to highlight the potential of the Main Pipe, where the company completed a pre-feasibility study that modelled a kimberlite resource of 55.5 million tonnes grading 0.27 carats per tonne with an average diamond value of US$70/carat which gave a 'provisional' estimated value of recoverable diamonds of US$1.05 billion over a 16 year mine life with a US$100 million Capex. A definitive feasibility study is now underway, and will include large diameter drilling and bulk sampling in 2008 to better define the grade and diamond values.
Meanwhile at the company's satellite mine, which is in operation, Mr. Read said that a number of operational issues had been tackled at the company was now expecting the mine to achieve 'higher levels of operational efficiency'
As for the group's Finnish assets, Mr. Read stated that the company was now considering a 'number of options' to allow the assets to be funded and developed separately, but still allow shareholders in Kopane to retain a 'material participation'. Also on the corporate structure front, Mr. Read said that Kopane was planning to seek a secondary listing on the AltX market of the Johannesburg Stock Exchange.