Shares in Kopane Diamonds (AIM: KDD) exploded this morning, jumping over 100%, after several press reports suggested the company is about to announce a significant resource statement for its ‘Main Pipe’ kimberlite in Lesotho, Southern Africa.
In a brief statement the company acknowledged the movement in the share price; however no further comment was made in relation to the speculation.
Kopane instead referred the investors to its previous independent Definitive Feasibility Study (DFS) for the Main Pipe which was detailed on the 17th November 2008.
A Pre-feasibility study in 2007 estimated 42 million tonnes of diamond-bearing kimberlite, however, in the DFS dated 17th November, the core drilling results led to a major recalculation of the dimensions of the Main Pipe, which allowed the definition of a significantly larger resource tonnage of more than 75 million tonnes ( a 79% improvement).
The potential $1bn value of the in-situ diamonds resources held within the main pipe development was initially aired back in the July 2008 following the pre-feasibility study (PFS), and subsequently revised in November 2008 following the DFS and interim report.
Kopane expects to receive an updated resource statement shortly, following which it will make a further announcement.