Business
Interim Results
Interim Results.
About this update from Karelian Diamond Resources Plc
[{"type":"text","content":"\n \nTo be embargoed until Tuesday 27 February at 7.00am.\n\n Karelian Diamonds Resources plc \n\n (\"the Company\") \n\n Interim Results for the six months ended 30 November 2006 \n\nChairman's Statement\n\nI have great pleasure in presenting your Company's Interim Report for the six\nmonths ended 30 November 2006. During the period your Company made excellent\nprogress in its exploration programme for diamonds in Finland.\n\nThis programme is focussed on discovering a potential world-class diamond\ndeposit in the Finnish sector of the Karelian Craton. This is a block of\nancient crustal rocks which occupies much of eastern and northern Finland,\nextending over the border into Russia where two world class diamond deposits,\nLomonosova and the Grib pipe, have been discovered.\n\nYour Company believes that the Finnish sector of the Craton, given its size and\npotential, is under-explored and, by analogy with the Russian sector, has the\npotential to host similar world class deposits.\n\nYour Company's claims in Finland are grouped on a geographical basis into four\nblocks, all of which lie within the Karelian Craton. The Kuhmo block is the\nlargest and includes claims covering a proven diamondiferous kimberlite pipe at\nSeitaperä.\n\nThe Seitaperä pipe, which has a surface area of approximately 4 hectares, was\ndiscovered by Malmikaivos Oy in 1993 but was never fully explored. Only a very\nlimited number of shallow vertical drill holes were completed by Malmikaivos Oy\nand its partner Ashton before the latter withdrew from the area to focus on\nother Finnish claims some 120km away. However, a 13.3 tonne composite sample\nfrom the Seitaperä pipe was reported to have returned a grade of 1.09 carats\nper hundred tonnes. As the Seitaperä pipe covers a large surface area which had\npreviously been the subject of only limited drilling, your Company is carrying\nout a drilling programme as part of a comprehensive reassessment of the diamond\npotential of the pipe.\n\nThe presence of diamonds in the Seitaperä pipe indicates that the right\ngeochemical conditions exist to host diamonds in the Kuhmo area. Your Company\nhas discovered 18 separate indicator mineral anomalies in the same general area\nas the Seitaperä pipe. It has also encountered kimberlitic material in a\npreliminary trenching programme that followed a detailed magnet...