Kopane Diamond Developments PLC

November 17, 2008 02:00 ET


                                               PRESS RELEASE

                                      KOPANE DIAMOND DEVELOPMENTS Plc
                                     (FORMERLY EUROPEAN DIAMONDS Plc)
                                        ("Kopane" or the "Company")
                                              RESOURCE UPDATE
17 November 2008
            Interim Resource Statement shows major increase in Main Pipe size, grade and value

*       Total  resource  tonnage  of 76 million tonnes, up 78 % on the Pre-Feasibility  Study  ("PFS")
        statement published last year of 42 million tonnes.
*       Increase in the average grade to 39.1 carats per hundred tonnes ("cpht") (PFS - 27.8 cpht),
*       Increase of 156 % in the gross diamond resource of 29.6 million carats (PFS - 11.5 million
*       Increase in the average run of mine carat value to $86 (PFS - $70).
*       Increase in the indicative value of the Main Pipe by 213% to $2.5 billion.
*       Completion of a 25 hole Large Diameter Drilling ("LDD") programme.

Kopane  Diamond Developments Plc (the "Company") today announces a revised interim resource  statement  for
its Main Pipe at Liqhobong in the Kingdom of Lesotho.

The  Company has been progressing its Definitive Feasibility Study ("DFS") in respect of the Main Pipe  and
has completed its advanced geological evaluation programme. This work included a programme of bulk sampling
and  narrow diameter core drilling and has resulted in a re-interpretation of the geological model  of  the
Main  Pipe.  This  information  has  been used by independent mining and geological  consultants  ACA  Howe
International Limited ("Howe") to provide a revised interim resource estimate as follows:

Category             Attributable to LMDC (100%)                  Net Attributable to Kopane (75%)
MAIN PIPE            Tonnes        Grade         Contained        Tonnes      Grade         Contained
Mineral Resources    (millions)    (cpht)        Diamonds         (millions)  (cpht)        Diamonds
                                                 (million                                   (million
                                                 carats)                                    carats)
Measured             -             -             -                -           -             -
Indicated            16.0          34.12         5.498            12.0        34.12         4.124
Inferred             59.6          40.42         24.078           21.13       40.42         18.059
Total                75.6          39.12         29.576           31.62       39.12         22.182

The  bulk sampling programme consisted of a series of samples extracted and processed to test the grade  of
the  four identified facies, namely the K2, K4, K5 and K6, totalling 33,921 tonnes, to provide grade, stone
size  distribution and stone value data in each case. A total of 12,514 carats were produced from the  bulk
samples, at a bottom cut-off of 1 millimetre.

The  programme  of  narrow (HQ/NQ) diameter core drilling comprising 4 holes with a total  depth  of  1,705
metres plus a further 5 geotechnical holes with a total depth of 1,247 metres. This programme has permitted
a  recalculation  of the dimensions of the Main Pipe, resulting in a much larger resource tonnage  of  75.6
million tonnes, a 79% increase on the 42 million tonnes resource identified in the pre-feasibility study.

Valuation of the bulk samples of $86 per carat, for run of mine production, has been determined by  putting
the parcel out to independent valuation. This compares with $70 per carat run of mine valuation used in the

Following from this work the interim resource statement, prepared by Howe under strict QA/QC protocols to a
DFS  standard,  gives  a total resource tonnage of 76 million tonnes, up 78 % on the Pre-Feasibility  Study
("PFS")  statement  published last year of 42 million tonnes. The resource categorization  and  limits  are
based  on  the  same  parameters used for the 2007 PFS interim resource estimate.  The  average  grade  has
increased  to  39.1 cpht (PFS - 27.8 cpht), giving a 156 % increase in the gross diamond resource  of  29.6
million  carats  (PFS - 11.5 million carats). This resource has been calculated to the  2,140  metre  depth
level  only,  which is a mean depth of 420 metres below surface. The mineralisation is open at depth,  with
one  earlier  diamond drill hole remaining in kimberlite to the end of the hole at a depth  of  650  metres
below surface.

Applying the value generated by the bulk sample of $86 per carat, the indicative value of the Main Pipe has
increased  by  213%  to $2.5 billion (29.6 million carats at $86 per carat) from the  $0.81  billion  (11.5
million  carats  at $70 per carat) shown in the PFS resource statement. Due to changes in geometry  of  the
various  facies  with  depth, the weighted average grade of the bulk sample parcel  does  not  reflect  the
weighted average grade of the Main Pipe kimberlite.

In  addition, a programme of Large Diameter Drilling ("LDD") undertaken by Bauer, using a  Prakla RB-40  RC
drill  rig, which commenced in March 2008, has now completed. This was a 25 hole programme, totalling 4,415
metres of drilling and recovering some 1,800 tonnes of mini bulk samples. These samples are currently being
treated at Liqhobong in a custom-built dense media separation ("DMS") plant with a capacity of 5 tonnes per
hour,  under the QA/QC supervision of Howe. Once these samples have been processed, the Company  will  have
depth  continuity  data  on grade for each of the facies, which will enable more  of  the  resource  to  be
classified into the higher definition measured and indicated categories.

Tim  Read,  Executive Chairman of the Company, commented today: "This interim resource statement represents
the first component of our Definitive Feasibility Study and clearly shows that the Liqhobong Main Pipe is a
much larger and richer resource than was initially contemplated. We look forward to the publication of  the
final  statement,  early  in the new year, which, following the completion of  the  treatment  of  the  LDD
samples, should show a substantial increase in the measured and indicated categories of the resource."

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.

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 has to the end of October 2008 produced over 340,000 carats of diamonds since operations commenced at
the end of 2005 and is currently producing at a rate of 160,000 carats per annum. 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

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
Tim Read, Executive Chairman                         Laurence Read/Graham Herring
James Cable, Finance Director                        +44 (0) 207 653 9850
+44 (0) 20 7529 7502

Canaccord Adams Limited
Robert Finlay
Mike Jones
+44 (0) 20 7050 6500

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

Contact Information

  • Kopane Diamond Developments PLC