REG-Karelian Diamond Resources Plc: Appointment of New Chairman and Company Update

Karelian Diamond ResourcesAnnouncement

11/11/2024 12:45

 

 

Karelian Diamond Resources plc

("Karelian Diamonds" or the "Company")

11 November 2024

 

APPOINTMENT OF NEW CHAIRMAN AND COMPANY UPDATE

 
* Brendan McMorrow appointed as Company Chairman
* Update on current Company activity
  

Karelian Diamond Resources Plc (AIM: KDR) is pleased to announce that Brendan
McMorrow has been appointed Non-Executive Chairman of the Company with
immediate effect. Brendan was appointed to the Board of the Company as a
non-executive director on 15 November 2018. He assumes leadership of the Board
following the death of Company founder and Executive Chairman, Professor
Richard Conroy, last month.

Professor Conroy as Executive Chairman had led the Company for many years and
has left it with a very strong foundation including diamond exploration and
development opportunities in Finland and copper, nickel and platinum group
metal exploration licences in Northern Ireland. These projects offer
significant upside value and opportunity for the Company and its
shareholders. 

 

Update on current activity

 

Diamond exploration and development projects in Finland

The Karelian craton, which extends across Finland, is one of the largest
cratons in the world and has been proven to contain world class diamond
deposits.  The presence of the Lahtojoki diamond deposit confirms that the
Finnish section of the Karelian craton is diamondiferous, and the size of the
Karelian craton in Finland suggests the potential for the occurrence of a
world class diamond deposit.    

Lahtojoki Diamond Deposit

Karelian's acquisition of the Lahtojoki diamond deposit in the Kuopio - Kaavi
region of Finland was driven by the Company's experience in diamond
exploration. A preliminary economic assessment carried out by the Company in
2017 suggested that 2.11 million carats would be recoverable from the mine.
The presence of pink diamonds at Lahtojoki is significant and could have a
considerable effect on the profitability of a mine as they command a
substantially higher price than colourless diamonds (up to twenty times
higher).  Analyst calculations based on a 3% pink diamond content at
Lahtojoki estimated a net present value for the project of $69 million at an
8% discount rate.

The Company has been progressing the project steadily towards the granting of
a mining concession.  The last step in this process is the finalisation of
landowner compensation.  The Land Survey decision in relation to this
requirement was given in late 2023 and compensation paid in early 2024.  Two
landowners appealed the decision in relation to aspects of the mine boundary
and the quantum of compensation.  The mine boundaries for the Lahtojoki
diamond deposit were finalised by the decision of the Finnish Land Court,
announced on 13 August 2024, resulting in no change to the existing
boundaries.  The Court also held in the Company's favour on most of the
matters raised in the appeal in relation to compensation with three remaining
matters referred back to the Land Survey to review. The appellants were also
required to contribute to the Company's legal costs.  With no further appeal
having been lodged, the decision has now gained legal force.  Following
finalisation of these last matters regarding compensation the Company will
progress to the development phase of this project.

Diamond exploration programme

The Company is also active in an increasingly exciting diamond exploration
programme in Finland.  The Company has carried out an extensive and
systematic exploration programme for diamonds using, inter alia, geology,
geophysics, kimberlitic indicator mineral trains, airborne and UAV (unmanned
aerial vehicle) drone surveys together with excavation and drilling and the
analysis of basal till samples. The programme has led to the previous
discovery of a green diamond in the Kuhmo region of Finland - the best
possible kimberlitic indicator.

Analysis of basal till samples excavated at various target locations in the
Kuhmo region of Finland, suggests that the Company's search is narrowing for
the source of the green diamond with the amount and type of garnets identified
in sample locations suggesting a close proximity to a kimberlite source.
Further work is ongoing in relation to this effort, the results of which will
be released at the appropriate time.

Exploration for Nickel, Copper and Platinum Group Metals in Northern Ireland

The Company is carrying out an exploration programme for nickel, copper and
platinum-group elements in Northern Ireland.  Initial results from this
programme indicate a highly anomalous river catchment area. This area has
yielded five samples each having over 1,000 indicator minerals. The indicator
minerals are primarily Chromite and Forsterite with some Chalcopyrite. 
Microprobe analysis on Chromite grains from samples taken from this area
showed high zinc oxide values. Such high zinc oxide values can be a signature
of sulphide rich nickel-copper platinum-group elements deposits. It was also
noted that several of the chromites have inclusions of nickel as well as on
the Chromite margins, which is significant as it indicates the presence of
nickel mineralisation.

The Company now holds three prospecting licences, totalling an area of
approximately 750km2, in Northern Ireland.  An independent assessment by Dr
Larry Hulbert, an internationally recognised expert in nickel-copper and
platinum-group elements, confirmed the potential for these elements in the
Company's licence areas in Northern Ireland.  Dr Hulbert's review also noted
marked resemblances to the Baraga Basin in Michigan that hosts the world class
Eagle and Eagle East nickel-copper and platinum-group elements deposits and
recommended that the Eagle deposit should serve as Karelian's exploration
model.

Mr. McMorrow, Chairman of the Company, commented:

"I am looking forward to leading the Board as we move into the next phase of
our work at Lahtojoki in Finland where the mining permit is in the process of
being finalised.  This, together with progressing the ongoing search for the
source of the Green Diamond at Kuhmo, should make 2025 an exciting year for
the Company in Finland.   In addition, we will be following up on the
promise of our projects in Northern Ireland, where the independent review
carried out by Dr Hulbert confirmed that our licences are prospective for
nickel, copper and platinum-group elements with marked resemblances to the
Baraga Basin in Michigan that hosts world class deposits.  I appreciate the
confidence shown in me by my fellow directors to take the vision of Professor
Richard Conroy to its next stage."

 

Further Information:

 Karelian Diamond Resources plc Brendan McMorrow, Chairman Maureen Jones, Managing Director  +353-1-479-6180    
 Allenby Capital Limited (Nomad) Nick Athanas / Nick Harriss                                 +44-20-3328-5656   
 Peterhouse Capital Limited (Joint Broker) Lucy Williams / Duncan Vasey                      +44-20-7469-0930   
 CMC Markets (Joint Broker) Douglas Crippen                                                  + 44-20-3003-8632  
 Lothbury Financial Services Michael Padley                                                  +44-20-3290-0707   
 Hall Communications Don Hall                                                                +353-1-660-9377    

 

http://www.kareliandiamondresources.com

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