Karelian Diamond Resources discovers potential source in Finland

LONDON (ShareCast) - AIM-listed explorer Karelian Diamond Resources (LSE: KDR.L - news) has unearthed a potential high-grade diamond source near Finland's border with Russia. Karelian said mineral samples taken from its property in the Kuhmo region of Finland had been scanned by electron microscopes had confirmed the presence of Group I eclogite garnets, which it said can be associated with high diamond grades.

The potential new source was found in a new Kimberlite body discovered during follow-up pitting activities carried out by the company in an area where infill samples have previously found high concentrations of kimberlitic indicator minerals.

The new kimberlite body will now be assessed for extent and tested for diamond content.

Chairman Richard Conroy said: "This discovery of a potential new diamond source is very exciting news for the company.

"It is a major step forward in the company's exploration programme which has the objective of discovering a world class diamond deposit in the Karelian Craton in Finland, comparable to the world class deposits found on the Russian portion of the Karelian Craton." The material recovered from the pit was confirmed as being kimberlitic by Dr Hugh O'Brien of the Geological Survey of Finland, who Karlian said was an acknowledged expert in the field.

The newly discovered kimberlite body is the first kimberlite body to be discovered in Finland for approximately 10 years and is located to the southeast of Seitapera where the company has already outlined the largest diamondiferous kimberlite discovered to date in the country.