European Diamonds (AIM: EPD) rose 19% this morning after stating that it had confirmed a significant diamond resource in the first 45 meters of the Main Pipe Kimberlite in Lesotho. European Diamonds added that the first 45 meters contained 13.4 million tonnes of kimberlite with a recovered grade of 0.283 carats per tonne with a $70/carat stone value. This gives an in-situ value of US$265 million, but excludes the possibility of any larger diamond finds.
Roy Spencer, CEO,"We are delighted with this strong independent confirmation to CIM Standards that the Main Pipe at Liqhobong contains a valuable diamond resource in these near surface parts of such a large kimberlite. Quite obviously, the potential of the Main pipe does not stop at this near surface level and the Pre-Feasibility Study (PFS) that we are in the last stages of preparing will address much of the deeper parts of the pipe below this level. It should be noted that the kimberlite is known to exist down to 650 meters from surface.
We continue to increase our confidence in the geological model which has been developed for the Main Pipe and expect that the PFS will indicate that a much larger resource exists here. Meanwhile we continue to approach full scale production from the 400,000 tonne per annum Satellite Pipe Mine and diamond recovery plant."