REG-Karelian Diamond Resources Plc: Resources licencing and operating update

Karelian Diamond ResourcesAnnouncement

07/02/2025 07:15

 
    7 February 2025


 

Karelian Diamond Resources PLC

("Karelian" or "the Company")

 

KARELIAN DIAMOND RESOURCES LICENCING AND OPERATING UPDATE

 
* Kuhmo, Finland - Licences extended over the areas targeted by diamond
exploration programme 
* Lahtojoki, Finland - Landowner compensation expected to be finalised in the
first half of 2025
* Northern Ireland - Strategic partner sought for emerging Nickel Copper PGE
district
 

 

Karelian Diamond Resources PLC ("Karelian Diamonds") (AIM: KDR) is pleased to
announce a licencing and operating update including that the Company is
extending its diamond exploration programme in the Kuhmo region of Eastern
Finland.

Exploration programme at Kuhmo

The Company has received notification from the Finnish Safety and Chemicals
Agency ("TUKES") of the granting of a new reservation, Kuumu 1, at Lentiira in
northern Kuhmo, 30 kilometres to the north of the Company's green diamond
discovery (announced by Karelian on 31 January 2017). The reservation provides
a one-year privilege to apply for an exploration permit in the area.

The Lentiira area is considered highly prospective by the Company. Several
orangeite dikes with highly prospective indicator mineral compositions were
discovered in the area by European Diamonds PLC in the early 2000s, and
diamonds were discovered by till sampling in a number of locations.
 Considering the fact that the ultimate sources of the main indicator fans
still remain unlocated, the exploration possibilities for the Company in the
Lentiira area are intriguing.

The Company has submitted an application to TUKES for an uninterrupted
extension of the exploration permit, Kuhmo 1, where a follow-up excavation
programme was recently completed up-ice of the green diamond discovery (as
announced by the Company on 25 September 2024).  The results of this
programme are expected in the first quarter of 2025. The Company plans to
continue its exploration programme in the Kuhmo region in 2025 focussing in
particular on the green diamond target area where a high priority drilling
target has already been identified from the detailed electromagnetic survey
conducted over the Company's green diamond target area, the results of which
were announced on 24 January 2025.

The exploration permit, Seitaperä, covering the Seitaperä diamondiferous
kimberlite (orangeite) in Kuhmo, circa 6 kilometres to the southwest of the
exploration permit Kuhmo 1, has been extended for a further 3 year period by
TUKES in March 2024. Karelian has shown the Seitaperä kimberlite to be the
largest known kimberlite in Finland, extending over a surface area of 6.9
hectares.   As announced by the Company on 25 January 2024, extensions for
the exploration permits, Riihivaara 26, Riihivaara 24, 24A and 24B in Kuhmo,
were granted by TUKES for further 3 years from January 2024.  The Riihivaara
26 exploration permit covers Karelian Diamond's kimberlite (olivine lamproite)
discovery at Riihivaara, circa 10 kilometres to the south of the exploration
permit Kuhmo 1.

All of the above-mentioned Karelian licence areas in Kuhmo, combined with the
new reservation extending the area of interest north to Lentiira, may together
prove to become a significant diamond province on the Finnish side of the
Karelian Craton.

In addition, new exploration permits at Liperi, in the Joensuu region of
Eastern Finland, and Salla, in Lapland of Finland, have been recently granted.

Lahtojoki Diamond Deposit

The Company expects to finalise all outstanding aspects of the landowner
compensation in the second quarter of 2025. As set out in the Company's
announcement of 18 October 2024 the decision of the Land Court has now gained
legal force with only three matters remaining to be finalised with the
National Land Survey. The court hearing was in relation to appeals by two
landowners regarding amounts of compensation to be paid to them and the mine
boundary itself at the Company's proposed mine development at Lahtojoki, in
the Kuopio Kaavi region of Finland.

A mining concession application for the Lahtojoki diamond deposit has already
been approved by TUKES.  The Company is reaching out to potential strategic
partners to advance the Company's proposed development of the Lahtojoki
diamond deposit.  Finalisation of the mine boundary and landowner
compensation is an essential step in progressing this development. 

Northern Ireland Nickel, Copper and Platinum Group Metals Projects

An assessment prepared by independent geological consultant, Dr Larry Hulbert,
announced on 24 June 2024, confirms the potential for Nickel, Copper, and
Platinum-Group Elements ("PGE"), in the Company's license areas in Northern
Ireland, following the discovery by the Company of indicator minerals for
Nickel, Copper and PGE, during the course of a stream sediment sampling
program.   This initial work identified several targets for follow up within
the Company's licence area.   The Company has engaged Dr. Hulbert to carry
out further work on its licences in Fermanagh where he believes that multiple
exploration indicators suggest a highly prospective district, comparable to
Michigan's Eagle Mine Nickel district model.  This work is ongoing and
includes work on the potential of the North East of the country to add
materially to a portfolio of targets in what would be a new Nickel, Copper and
PGE district.

The company is actively seeking a strategic partner to carry out a two year
exploration programme with a view to developing a number of targets in the
province capable of hosting significant economic deposits.

Brendan McMorrow, Chairman, Karelian commented:

"The year ahead promises to be an exciting one for the company with several
aspects to the Company's portfolio capable of progressing rapidly." 

 

 

 


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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