Kopane Diamond Developments PLC

December 07, 2009 02:00 ET

Main Pipe Grade Increase

                                               PRESS RELEASE
                                      KOPANE DIAMOND DEVELOPMENTS Plc
                                              (the "Company")
7 December 2009
                                         MAIN PIPE GRADE INCREASE

Kopane Diamond Developments Plc wishes to announce the following information to its shareholders.

Main Pipe Grade

The  Company is pleased to announce an increased resource grade of 34.3 carats per hundred tonnes  ("cpht")
at  its Main Pipe at Liqhobong, Kingdom of Lesotho. This represents an overall increase of 4.1% over the 33
cpht  grade  announced in the Resource Statement of 10 September 2009. The grade of the indicated  resource
contained  in the upper 180 metres of the pipe has increased from 31 cpht to 32.8 cpht. The overall  number
of  carats  estimated  to  be contained in the Main Pipe is increased to 31.14 million,  compared  to  29.7
million shown previously, as set out in the following table:

Category              Attributable to LMDC (100%)                  Net Attributable to Kopane (75%)
----------       --------------------------------------       ---------------------------------------------
MAIN PIPE            Tonnes       Grade      Contained             Tonnes        Grade       Contained
Mineral           (millions)      (cpht)      Diamonds          (millions)       (cpht)       Diamonds
Resources                                     (million                                        (million
                                                carats)                                         carats)
Indicated             38.54        32.8          12.64              28.90         32.8            9.48

Inferred              52.12        35.5          18.49              39.09         35.5           13.87

Total                 90.66        34.3          31.14              67.99         34.3           23.35


The  estimated in-situ value of the Main Pipe is increased to $2.7 billion, based on an independent run  of
mine valuation of $86 per carat in September 2008 of rough diamonds recovered from bulk sampling.

The  Company had mentioned previously that further work would be undertaken to review grade because it  was
of  the  opinion  that the overall grade estimate of 33 cpht was the lowest estimate in a  range  of  grade
results ultimately possible in the Main Pipe due to anomalies arising from the diamond recovery analysis of
the  Large  Diameter Drilling ("LDD") samples because of the loss of stones from the drilling process.  The
higher grade of 34.3 cpht results from further review by ACA Howe International of the LDD results and  the
kimberlite rock.

Frank Scolaro Chairman of the Company commented today: "This anticipated increase in the grade estimate for
the  Main Pipe adds further value to the Liqhobong project and its mining potential. We are continuing  our
discussions to execute the most profitable route to deliver value for our world class asset."

Mr  Andrew  Birnie, MAusIMM, and a Director of Kopane Diamond Developments Plc is a "qualified  person"  as
defined under the AIM rules and a competent person under the JORC reporting standards. The technical  parts
of  this  announcement have been prepared under Mr Birnie's supervision and all reporting is  to  JORC  and
similar  standards.  All grade, valuation and carat figures represent that from diamond  recovery  using  a
bottom cut of 1mm.

About Kopane

Kopane  is a diamond producer, developer and explorer with core projects at Liqhobong in Lesotho,  Southern
Africa. The Liqhobong operations are operated by Liqhobong Mining Development Company ("LMDC") which is 75%
owned by Kopane and 25% by the Government of Lesotho ("GoL"). As a result of the successful development  of
the operations at Liqhobong and the delineation of a substantial geological resource in the Main Pipe, LMDC
was, in February 2007, granted a 20 year mining licence for the Main Pipe by the GoL.

LMDC  produced  over  350,000  carats of diamonds since operations commenced  at  the  end  of  2005  until
suspension of production in December 2008. The principal development project is the Main Pipe which has the
potential to produce at a rate of one million carats per annum.

Kopane also has a joint venture to explore for diamonds in Finland, managed and financed by Mantle Diamonds

The Company is listed on AIM (and is also traded through the Plus Market), ticker symbol: KDD.

For further information contact:                     
Kopane Diamond Developments Plc                      Threadneedle Communications
Frank Scolaro, Chairman                              Laurence Read/Beth Harris
James Cable, Finance Director                        +44 (0) 207 653 9850
+44 (0) 20 7963 9590

Matthew Robinson/Ed Frisby
+44 (0) 20 7600 1658

e-mail: ir@kopanediamonds.com
website: www.kopanediamonds.com

Contact Information

  • Kopane Diamond Developments PLC