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
Mineral Resources
Tonnes
(millions)
Grade
(cpht)
Contained
Diamonds
(million carats)
Tonnes
(millions)
Grade
(cpht)
Contained
Diamonds
(million 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 Limited.
The Company is listed on AIM (and is also traded through the Plus Market), ticker symbol: KDD.
Contacts
For further information contact:
For further information contact: Kopane Diamond Developments Plc
Frank Scolaro, Chairman
James Cable, Finance Director
+44 (0) 20 7963 9590
FinnCap
Matthew Robinson/Ed Frisby
+44 (0) 20 7600 1658
