European Diamonds (AIM: EPD) announced an upgraded resource estimate for its Main Pipe Kimberlite in Lesotho. The indicated and inferred resource, which is now calculated to a depth of 130 metres from 45 metres, now stands at 30.4 million tonnes of kimberlite with 8.44 million carats of diamonds with an in situ value of US$591 million. The indicated diamond resource, which represents the first 45 meters contain approximately 13.99 million tonnes grading 0.282 carats per tonne and a stone value of US$70 per carat. The inferred resources, calculated from 45 meters to 130 metres contain 16.37 million tonnes grading 0.275 carats per tonne with a stone value of US$70/carat. European Diamonds added that the grade and value of diamonds recovered did not include three large stones recovered in December 2006; therefore it is likely the actual average value of stones recovered could increase if large stones are distributed throughout the pipe.
Meanwhile at European Diamonds operating mine, the Satellite pipe, the Company stated that the operation is now capable of running a full capacity of 400,000 tonnes per annum. European Diamonds intend to maintain current production at Satellite while using spare capacity to process additional bulk samples from the Main Pipe.
"Geocontracts also notes that the Main Pipe has been drilled down to 650 metres from surface and is still open at this depth. We know that the pipe at 150 metres from surface has an area of approximately 7.6 hectares (ha) and at 300 metres from surface approximately 5 ha, thus the Directors of EPD believe it is reasonable to assume that there is some additional potential below the 130 metre level that will be addressed over the coming months." added Roy Spencer, Europeand Diamonds CEO. "It should also be noted that this resource estimate statement does not include the K6 zone which makes up approximately 5% of the volume of the kimberlite to this depth and for which there is at present no grade data".