Company Information for River Diamonds Ltd

AIM-RVD

www.riverdiamonds.co.uk

Company stock charts - 12 Month chart

AIM; RVD

View full financial data

Company Statement

River Diamonds plc is a UK based exploration and mining company with gold and diamond projects in Fiji, Sierra Leone and Brazil.

The Company was admitted to AIM on 26 August 2004 to pursue a strategy of building and exploiting a portfolio of mineral exploration and mining projects. Initially the Company focused principally on exploration for alluvial diamond deposits in Brazil, through the projects at Alto Paraguai and Diamantino.
In the following year, after a strategic review, the Company extended its investment in exploration to include kimberlite resources at Paranatinga in Brazil and in Sierra Leone, through its participation in the Panguma dyke project which it now wholly owns. Through its diamond exploration activities in Brazil, the Company was given the opportunity to apply for gold exploration licences in the Rio Novo project in central Brazil and to date it has carried out some preliminary gold exploration over the area. The Company's diamond exploration licences have all lapsed or are being allowed to lapse. In April 2007, the Company acquired 0.46% of the ordinary share capital of GDR. GDR is a diamond exploration and development company whose principal asset is the Kao diamond project in Lesotho.

In the second half of 2007 the Company was presented with the opportunity to extend its interests in the gold sector and to participate in productive or near productive operations by acquiring in two stages (through subscribing for new shares for cash) 20% of the equity of VGI for an aggregate amount of £4,250,000. The investment gave the Company an indirect equity interest in the Vatukoula Gold Mine of approximately 19%. The investment in the Vatukoula Gold Mine has provided the Company with access to a near term producing asset at a time of prevailing strong gold prices. In March 2008 the Company acquired the remaining share capital of VGI, providing River Diamonds with 100% ownership of the Vatukoula Gold Mine, enabling it to have full control over its existing investment in the Mine and to expand significantly its interest in the gold sector.

River Diamonds' strategy is to build a portfolio comprising of advanced development and production projects in order to provide sustainable cash flow. This cash flow will be used to fund the company's large scale exploration projects that have the potential to yield significant reserves.
The Company's near term strategy is to bring the Vatukoula Gold Mine back to full production and profitability, and to exploit any exploration potential at or surrounding the Mine.

Current Operations

Fiji
Vatukoula Project
o Processing plant has been prepared for commissioning
o Reserves of 830,000oz gold and a 5.15 million oz resource
o Operational shafts have been re-commissioned
o In November 2007, the first gold was poured from the operations since the
mine was placed on care and maintenance in December 2006

River Diamonds hold a 100% indirect equity interest in the Vatukoula Gold Mine, a historic underground mine in Fiji with an operational history of over 70 years. The Mine commenced production in 1933 and has produced some seven million ounces of gold and over two million ounces of silver from the treatment of around 22,500,000 tonnes of ore. The Mine is located in Fiji, an island group in the South Pacific Ocean. The mine currently has 526 staff and will build this up to approximately 700 people.

The Mine is hosted within basaltic rocks of the Tavua Volcano, except for the R1 area which is hosted in the younger Turtle Pool Formation. Mineralisation is hosted within quartz carbonate veins and are typically seen as flatmakes, steep shears and shatter zones. Flatmakes are shallow to moderate dipping mineralised fractures, steep shears have a dip of greater than 45 degrees and shatter zones are zones of intersection between one or more flatmakes with two or more major faults or faulted dykes. The main ore bodies are the Prince/Dolphin flatmake, Matanagata flatmake, 2000N flatmake and 166N flatmake. In addition to flatmake mineralisation there is the R1 area and Steep Structures that relate to the flatmakes.

As part of the planned restart, substantial near-mine and development exploration has been planned. This will initially focus on mineralisation along strike and down dip of existing ore bodies; once this has been completed exploration will begin on the Basala target. This target is 200 square metres with an elevated soil gold grade of 0.25 ppm. There is also exploration potential at two localities around the caldera, the Nasomo magnetic target and the Waikatakata area. The Competent Person believes significant further upside with regard to potential additional resources exists.

At the Mine site there is a seven hundred thousand tonne per annum processing facility, which includes crushing, grinding, flotation, roaster, and CIP and tailings dams. Equipment at the Mine also includes several Toro load-haul-dump vehicles, jumbo rigs, support trucks and other associated equipment. Infrastructure at the Mine also includes a 20.5 Mega-watt power station and freehold land.

Sierra Leone
Panguma Dykes project (“Panguma”)
o Advanced exploration target
o Internal scoping study completed
o Two confirmed kimberlite dykes, one confirmed as diamondiferous
o Awaiting renewal of exploration licenses

The Panguma Concession is approximately 230km north east from Freetown, and covers approximately 54 square km in eastern Sierra Leone. The Panguma exploration license expired on 1 March 2008. The license can be renewed for a further term of one year at the discretion of the Minister of Mineral Resources. The Company has applied for a renewal for a further term of one year.

Brazil
Rio Novo Project
o Located within the Tapajos gold province
o RVD own interests in 4 areas covering 30,000 hectares

River Diamonds has two licences which give it the right to explore for gold within the Tapajo´s gold province in central Brazil, an area which has undergone very little modern exploration. The licensed areas lie in a highly prospective area, with other companies actively exploring the surrounding area and the working Palito mine, owned by Serabi Mineracao, which is adjacent to the licensed areas.

Lesotho
Kao Diamond Project
On 26 April 2007, the Company acquired 1,212,121 ordinary shares in Global Diamond Resources plc (representing approximately 0.46% of its issued share capital as of December 2007) for £400,000. GDR's principal asset is the 93% owned Kao Diamond Project in Lesotho which is a kimberlite deposit with an indicated and measured resource of 147 million tonnes of kimberlite at a grade of 6.9 carats per hundred tonnes.

Geographical Spread

Fiji – Vatukoula Project
Sierra Leone – Panguma Dykes Project
Brazil – Rio Novo Project
Lesotho – Kao Diamond Project

Board of Directors and Key Management

The Board comprises the following executive and non-executive directors who bring significant expertise and experience to the Group's operations and activities:

Ian Colin Orr-Ewing - Executive Chairman

Kiran Caldas Morzaria - Finance Director

David Anthony Lenigas - Executive Director

Donald Ian George Layman Strang - Non-executive Director

John Ian Stalker - Non-executive Director

Neil Lindsey Herbert - Non-executive Director

Brian Stanley Wesson - Technical Manager, Fiji

Mike Shaw Walker - Country Manager, Brazil

Kobus Gregory - Plant Manager, Brazil

Company Address

22 Arlington Street
London, United Kingdom SW1A 1RD


Email:	coe[at]blakman.com
Website:	http://www.riverdiamonds.co.uk

Capital

No. of shares in issue – 1,685,155,387

Year End

31 August

Nominated Brokers

WH Ireland
24 Martin Lane
London
EC4R 0DR

Hichens, Harrison & Co. plc
Bell Court House
11 Bloomfield Street
London EC2M ILB

Nominated Advisors

WH Ireland
24 Martin Lane
London
EC4R 0DR

Major Shareholders

Templars Minerals Ltd	428,290,000	25.42%
Viso Gero Global Inc	143,290,000	8.50%
Fair Choice Ltd	143,290,000	8.50%
Euroclear Nominees	109,521,154	6.50%
Olympus Mining Corporation Ltd	93,985000	5.58%
Bear Sterns Securities Corps	57,650,000	3.42%

Most Recent Statement

15/07/08 - Operational Update from the Vatukoula Gold Mine in Fiji
09/06/08 - Placing of £3 million and Expanded Exploration Programme Underway
05/06/08 - Placing of £5.5 million
19/05/08 - First Gold pour at Fiji Gold Mine after recommissioning
08/05/08 - Commencement of Roaster at the Vatukoula Gold Mine in Fiji Further Open Pit Resource Identified
18/04/08 - Commencement of Gold Treatment Operations at the Vatukoula Gold Mine in Fiji

To top