The area has proven to have a number of Jurassic age kimberlite bodies and Stockdale Prospecting, a De Beers subsidiary, recovered a number of isolated diamonds there in the 1970s.

Managing director, Clarke Dudley, said drilling done by the South Australian Mines Department at the edge of the Hiles Lagoon found kimberletic features which Alcaston will continue to explore.

“It’s not often that someone just hands you a target,” Dudley said.

“The project is very enticing and if the kimberlite pipe is diamond bearing it will be a real shot in the arm for the company,” Dudley said.

Alcaston plans to undertake further drilling in the December quarter.

The company has a substantial interest in Sweden. Its Swedish subsidiary, Alcaston Diamond Exploration AB, holds granted exploration licenses totalling 3% of the country’s land mass.

“Things are going unbelievably well at the moment,” Clarke said.

“Our aim is to raise additional seed capital through an initial public offering and listing in Sweden.

“By October this year we hope to have $7 million in the bank and a $15 million asset in Sweden.”