Karelian Diamond
Resources plc
(“Karelian Diamonds” or “the
Company”)
12 May 2020
THREE DIAMOND
EXPLORATION RESERVATIONS GRANTED
IN LAHTOJOKI AND
KUHMO
- Potential for further discoveries around Lahtojoki diamond
deposit
- Reservations cover twenty regional Kimberlitic Indicator
Anomalies in Kuhmo Area
- Kuhmo target area could be part of emerging Kimberlite
province
Introduction
Karelian Diamond Resources plc (“Karelian Diamonds”) (AIM: KDR),
is pleased to report that TUKES (The Finnish Mining Authority) has
granted the Company three strategic diamond exploration
Reservations. One of these diamond exploration Reservations
(KDR-R1) is situated around the Company’s approximately two hectare
in size Lahtojoki kimberlite pipe diamond deposit which is within
the Kaavi kimberlite field. The other two diamond Reservations
(KDR-R2 and KDR-R3) are in the Kuhmo kimberlite field target area
around the Company’s Riihivaara kimberlite discovery and the
Company’s anomaly 5 target, where the Company discovered a green
diamond in till.
All the Reservations are in the Karelian Craton in Finland where the Company is actively working
on the discovery and development of economic diamond deposits.
Following a review of airborne geophysics and past exploration
data the Board decided to apply for these new diamond exploration
Reservations. These Reservations secure the adjacent ground to
already held and known kimberlite bodies, which is important as
Kimberlites tend to occur in clusters, and in both areas there are
indications for the potential of new kimberlite discoveries.
The Company is also today providing an update on the impact of
the COVID-19 outbreak on its activities.
The Lahtojoki KDR-R1 Reservation,
Kaavi Area
The Lahtojoki KDR-R1 Reservation of 26.47km² has been granted by
TUKES for a period of one year. This Reservation secures for the
Company the potential for further discoveries in the immediate
area.
This Reservation surrounds the Lahtojoki diamond deposit over
which the Company holds a mining concession and where it is moving
towards the potential development of a diamond mine.
The Reservation also surrounds the Diamond Exploration Permit
over Lahtojoki South. In the Lahtojoki South Exploration Permit
kimberlite boulders from an unknown kimberlite have been discovered
(as previously announced by the Company on 12th January 2017).
The Reservation KDR-R1 area also has a number of high interest
geophysical and kimberlite indicator mineral anomalies that have
been identified by the Company and which the Board believe could
add additional diamondiferous resource potential to the Lahtojoki
diamond deposit (as previously announced by the Company on
19th September 2016).
The Kuhmo Area KDR-R2 and KDR-R3
Reservations
The Kuhmo KDR-R2 Reservation of 1,476.95km² and KDR-R3
Reservation of 1,453.24km² have been granted by TUKES for a period
of two years, respectively.
These Reservations secure ground around a series of twenty
regional kimberlite indicator anomalies that have been identified
by the Company.
The Board believe that the series of kimberlites in the Kuhmo
area could be part of a new emerging kimberlite province in this
area. These include the Riihivaara kimberlite discovered by the
Company and the largest (6.9 Hectare) diamondiferous kimberlite in
Finland, the Seitaperä kimberlite
pipe held by the Company, as well as a series of significant
regional kimberlitic indicator mineral anomalies defined by the
Company.
In the twenty regional anomalies in the KDR-R2 and KDR-R3
Reservation areas there are significant numbers of kimberlitic
indicator minerals identified that include four G10 garnets, twenty
three G9 garnets, as well as well as one hundred and thirty seven
chromites of which twenty nine plot in the diamond inclusion
field. These garnets and other minerals such as certain
chromites are used to locate kimberlites and are referred to as
kimberlitic indicator minerals. Some of these garnets, the G10’s
and certain G9’s, are created under similar conditions to diamonds
within the ultramafic mantle rocks underlying the crust and are
therefore used as predictors of the presence of diamonds as well as
chromites that plot in the diamond inclusion field.
COVID-19 update
Since the outbreak of the COVID-19 pandemic, the Company has
taken necessary measures in accordance with government guidelines
to protect the health, safety and wellbeing of its employees,
contractors and partners in both Finland and Ireland. COVID-19 is presently restricting
field and laboratory work in Finland given the restrictions on operations
and movement. Other work related to the Company’s exploration and
development programme such as that described in today’s
announcement is, however, ongoing.
Professor Richard Conroy, Chairman, Karelian Diamond
Resources plc commented:
“The granting of these Reservations
by TUKES is a key step forward for Karelian Diamonds and we
consider this to be extremely important in regard to our future
development of the Lahtojoki diamond deposit where any additional
resources identified could dramatically change the magnitude of the
project, and also the advancement of our exploration programme in
the Company’s Kuhmo target area in what appears to be a new
emerging kimberlite province.”
Further Information:
Karelian Diamond Resources plc
Professor Richard Conroy, Chairman |
+353-1-479-6180 |
Allenby Capital Limited (Nomad)
Nick Athanas / Nick Harriss |
+44-20-3328-5656 |
Brandon Hill Capital (Broker)
Jonathan Evans |
+44-20-3463-5000 |
Lothbury Financial Services
Michael Padley |
+44-20-3290-0707 |
Hall
Communications
Don Hall |
+353-1-660-9377 |
http://www.kareliandiamondresources.com