The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014
("MAR").
10 August
2016
DIAMOND MINE
POTENTIAL OF LAHTOJOKI KIMBERLITE PIPE
- Extensive Database of Information Received for the
Diamondiferous Lahtojoki Kimberlite Pipe on Which a Mining Permit
has Been Granted
- Assessment of the Information Together with Significant
Advances in Diamond Ore Processing Indicates the Potential for the
Lahtojoki Pipe to Become a Profitable Open Pit Diamond
Mine
- Re-modelling of the Kimberlite Pipe Planned to Establish
Optimum Locations for Any Further Drilling that May be Required and
for Bulk Sampling
Karelian Diamond Resources plc (“Karelian”) (AIM: KDR, ESM:
KDRI), the diamond exploration company focused on Finland, is pleased to announce that a large
database of information relating to the diamondiferous Lahtojoki
kimberlite pipe has now been received by Karelian from A & G
Mining Oy, further to the Company’s announcement of 1 June 2016].
The comprehensive database of information has enabled Karelian
to expedite its overall assessment of the project and plan an
effective development programme going forward.
The assessment of previous drilling and bulk sample information
provided, together with other technical information, including
consultant reports, indicate that the Lahtojoki diamondiferous pipe
has the potential to become a profitable open pit diamond mine.
The Lahtojoki diamond mine project benefits significantly by
being well located with water and grid power available.
Recent advances in ore processing are also relevant as they are
expected to reduce process capital and operating costs.
A phased approach is planned, which will include re-modelling
the diamondiferous pipe using the latest understanding of
kimberlite processes. This work, together with a
re-assessment of the microdiamond data available, will allow the
Company to target locations for any further drilling that may be
required and for bulk sampling. This next stage is expected
to take up to 12 months.
This release has been approved by Michael Brennan (MSc SAIMM), who is a member of
the Company's technical staff, in accordance with the guidance note
for Mining, Oil & Gas Companies issued by the London Stock
Exchange in respect of AIM Companies, which outlines standards of
disclosure for mineral projects.
Professor Richard Conroy, Chairman, Karelian Diamond
Resources plc commented:
“I am delighted that excellent progress is being made
in relation to the technical data which has been received.
The acquisition of the Lahtojoki diamond pipe Mining Permit,
together with these encouraging results relating to its potential,
complement our existing licences and are a major step forward for
our diamond programme in Finland”.
Further Information:
Professor Richard
Conroy, Chairman, Karelian Diamond Resources plc |
Tel: +353-1-661-8958 |
David Hart /
James Thomas / Nick Harriss, Allenby Capital Limited
(Nomad) |
Tel: +44-20-3328-5656 |
Ger Heffernan / Jan
Fitzell, IBI Corporate Finance Limited (ESM Adviser) |
Tel: +353-7662-34800 |
Jon Belliss /
Elliot Hance, Beaufort Securities Limited (Broker) |
Tel: +44-20-7382-8300 |
Michael Padley,
Lothbury Financial Services Limited |
Tel: +44-20-3290-0707 |
Don Hall, Hall
Communications |
Tel: +353-1-660-9377 |
www.kareliandiamondresources.com