Karelian Diamond Resources PLC · LSE:KDR
Karelian Diamond Resources — PDAC 2020
37 slides from Karelian Diamond Resources's conference presentation, March 2020
Slide 1: Karelian Diamond Resources
AIM: KDR www.kareliandiamondresources.com
Slide 2: Disclaimer
DISCLAIMER • This Document comprises an institutional presentation (the “Presentation”) which has been prepared by and is the sole responsibility of Karelian Diamond Resources (the “Company”) • The content of this Presentation has not been approved by an authorised person within the meaning of the U
Slide 3: Company Objective
COMPANY OBJECTIVE THE DISCOVERY AND DEVELOPMENT of ECONOMIC DIAMOND DEPOSITS Karelian Diamond Resources 3
Slide 4: Karelian's Exploration Strategy
KARELIAN’S EXPLORATION STRATEGY Strategic decision to explore in a given area based on such factors as: the possible diamond potential of the area, the security of tenure, geographic location and the political and business environment Based on these criteria the Company initiated an exploration prog
Slide 5: The Karelian Craton: A World Class Address for Diamonds
THE KARELIAN CRATON (BALTIC SHIELD) A WORLD CLASS ADDRESS FOR DIAMONDS The Karelian Craton (Baltic Shield) straddles Finland and Russia and is larger in area than the diamond rich Canadian Slave Lake Craton Two world class diamond deposits Lomonosov have been discovered in the & Grib Russian sector
Slide 6: Karelian Craton: Model
KARELIAN CRATON: MODEL G10’s are known as diamond inclusion garnets P-Diamonds have originated from peridotitic mantle E-Diamonds have originated from eclogitic mantle Karelian Diamond Resources 6
Slide 7: Kimberlite Model
KIMBERLITE MODEL Lomonosov Diamond Mine Kimberlite Cross-section Karelian Diamond Resources 7
Slide 8: Key Project Areas: Kuhmo and Lahtojoki
KEY PROJECT AREAS: KUHMO AND LAHTOJOKI The Company has two key project areas: 1. Diamond exploration in the Kuhmo region of Eastern Finland : 2. Development of the Lahtojoki Lomonosov & Grib diamond deposit in the Kaavi region, also in Eastern Finland: Kuhmo Lahtojoki Karelian Diamond Resources 8
Slide 9: Diamond Exploration in Kuhmo
DIAMOND EXPLORATION IN KUHMO 1. Diamond exploration in the Kuhmo region of Eastern Finland : Successes to date include: • The discovery by the Company of a green diamond in a till sample • The discovery of a previously unknown kimberlite body at Riihivaara • The discovery of twenty additional kimber
Slide 10: Lahtojoki Diamond Deposit
LAHTOJOKI DIAMOND DEPOSIT 2. Development of the Lahtojoki diamond deposit in the Kaavi region also in Eastern Finland: • The Company has acquired a Mining Concession over the Lahtojoki diamond deposit • Available data and reports regarding the deposit have been reviewed and initial technical studies
Slide 11: Diamond Exploration Relies on Tracking Kimberlite Indicator Minerals
DIAMOND EXPLORATION RELIES HEAVILY ON TRACKING KIMBERLITE INDICATOR MINERALS Glaciers eroded the top of the Kimberlite indicator minerals dispersion train kimberlite dispersing the kimberlite within glacial sediments indicator minerals within the glacial sediments Ice Flow 0,4 km 1,3 km 2,0 km Glaci
Slide 12: Geophysical Anomalies
GEOPHYSICAL ANOMALIES An extensive analytical programme of airborne geophysical data covering most of Finland was carried out by independent consultants Dr. E. Gerryts / Dr. R. Davies and Dr. M. Smith The analysis was based on airborne geophysical characteristics (dipole anomalies) and topographic f
Slide 13: Sample Collection and Laboratory Analysis
SAMPLE COLLECTION AND LABORATORY ANALYSIS High Kimberlite Indicator Minerals Count Suggests Close Proximity to Kimberlite body Nature of the KIM’s Found Provides Additional Indicator of Proximity 60 Kg Till samples - Surface, Middle and Basal Till Kimberlite Indicator Mineral grains mounted for anal
Slide 14: Karelian's Sample Processing
KARELIAN’S SAMPLE PROCESSING Till sample 60 kg Wet screening 1 mm >1 mm Optical microscopy or stored Preconcentration Knelson Overflow stored Till Sampling Knelson Concentrator HMS d = 3.2 d < 3.2 stored LIMS Magnetic fraction stored Dry sieving <0.25 mm Optical Microscopy Heavy Mineral Separation s
Slide 15: Kimberlite Indicator Minerals KIMs
KIMBERLITE INDICATOR MINERALS “KIMs” Mantle minerals known as kimberlite indicator minerals “KIMs” including diamonds are associated with kimberlite bodies. Examples include Chrome – pyropes Picroilmenite Cr – and Mg – rich Chrome Diamonds (Garnet group) (Mg-rich ilmenite) chromite Diopside (CD) G10
Slide 16: Discovery of Green Diamond
DISCOVERY OF GREEN DIAMOND A Green diamond was discovered in a till sample in Kuhmo Anomaly 5 This is a very rare and significant discovery ODM Laboratory has processed more than 50,000 exploration till samples and has recovered less than 10 naturally occurring diamonds It is reasonable to suppose t
Slide 17: Green Diamond Discovery
GREEN DIAMOND DISCOVERY Anomaly 5 Green Diamond Sparkling clear crystal with clean faces Colour greenish Diameter 0.8mm Dodecahedron shape Karelian Diamond Resources 17
Slide 18: Anomaly 5 Pyrope Analysis
ANOMALY 5 PYROPE ANALYSIS PYROPE RESULTS G10’S AND G9’S PRESENT GROUP I ECLOGITIC PYROPES CONFIRMED TO BE FROM THE DIAMOND STABILITY FIELD Karelian Diamond Resources 18
Slide 19: Anomaly 5 Orangeite (Group II) Kimberlite Discovered
ANOMALY 5 ORANGEITE (GROUP II) KIMBERLITE DISCOVERED Orangeite (Group II Kimberlite) Discovery Drill core from Anomaly 5 Karelian Diamond Resources 19
Slide 20: Anomaly 5 Cross Section Looking Northeast
ANOMALY 5 CROSS SECTION LOOKING NORTHEAST NW KDR-18-04 KDR-18-03 KDR-18-02 KDR-18-01 SE Possible feeder dyke to larger blow Karelian Diamond Resources 20
Slide 21: Riihivaara: Karelian Kimberlite Discovery
RIIHIVAARA: KARELIAN KIMBERLITE DISCOVERY New kimberlite body discovered by the Company at Riihivaara in the Kuhmo region of Finland Indicator Mineral analysis indicates that the kimberlite is likely to be diamondiferous Group I Eclogitic pyropes present Geotherm prospective for diamonds. Kimberlite
Slide 22: Riihivaara Kimberlite Discovery
RIIHIVAARA KIMBERLITE DISCOVERY Kimberlite discovery pit Kimberlite discovered by Karelian Karelian Diamond Resources 22
Slide 23: Riihivaara: Cross Section Looking Northwest
RIIHIVAARA: CROSS SECTION LOOKING NORTHWEST SW KDR-18-06/04 NE Kimberlite dyke dips to Northeast Karelian Diamond Resources 23
Slide 24: Riihivaara Drill Core Kimberlite Intersected
RIIHIVAARA DRILL CORE KIMBERLITE INTERSECTED Olivine macrocrystic kimberlite Purple pyrope 6mm xenocryst with presumed kelyphytic rim Karelian Diamond Resources 24
Slide 25: Riihivaara Drill Core Thin Section Confirmed as Orangeite
RIIHIVAARA DRILL CORE THIN SECTION CONFIRMED AS ORANGEITE (GROUP II) KIMBERLITE G10 pyrope surrounded by kelyphitic rim – Good indications of significant mantle carrying capacity Karelian Diamond Resources 25
Slide 26: Seitaperä: Diamondiferous Orangeite (Group II) Kimberlite
SEITAPERÄ: DIAMONDIFEROUS ORANGEITE (GROUP II) KIMBERLITE Macro and micro diamonds from drill core 6.9ha Orangeite (Group II) Kimberlite defined Shown by Company to be the largest known kimberlite in Finland to date Abundant mantle xenoliths in kimberlite Karelian Diamond Resources 26
Slide 27: Seitaperä Diamondiferous Pipe – Diamonds Recovered
SEITAPERÄ DIAMONDIFEROUS PIPE – DIAMONDS RECOVERED 67 diamonds recovered from 100kg sample Included 6 macro-diamonds (>0.5mm) Good white colour, clarity and preservation Confirms Seitaperä is diamondiferous, in keeping with mineral chemistry results Abundant peridotite mantle xenoliths Karelian Diam
Slide 28: Chairman Richard Conroy Examining Seitaperä Diamonds
CHAIRMAN RICHARD CONROY EXAMINING SEITAPERÄ DIAMONDS Karelian Diamond Resources 28
Slide 29: Kuhmo Targets
KUHMO TARGETS Kuhmo target area (6,000Km²) Five kimberlites (Seitaperä, Riihivaara, Anomaly 5, Havukkasuo, Lentiira) discovered to date Twenty additional anomalies identified to date by Company (Regional KIM dispersion trains in Finland tend to be relatively short - at Seitaperä <1km, as compared wi
Slide 30: Success in Kuhmo Diamond Exploration
SUCCESS IN KUHMO DIAMOND EXPLORATION Diamond discovery in a till sample in Anomaly 5 – a very rare event in diamond exploration Discovery of a kimberlite body at Riihivaara – the first discovery of a kimberlite body in Finland in over 10 years The definition, at Seitaperä, of the largest known diamo
Slide 31: Lahtojoki Diamond Deposit
LAHTOJOKI DIAMOND DEPOSIT Lahtojoki Mining Concession acquired Available data and reports by previous Operators reviewed Preliminary Economic Assessment (“PEA”) based on the data and reports by previous Operators completed. Positive outcome technically and Kuhmo financially Lahtojoki A Mining Permit
Slide 32: Lahtojoki Diamond Deposit Site
LAHTOJOKI DIAMOND DEPOSIT SITE Karelian Diamond Resources 32
Slide 33: PEA Highlights – Lahtojoki Deposit
PEA HIGHLIGHTS – LAHTOJOKI DEPOSIT (BASED ON DATA AND REPORTS BY PREVIOUS OPERATORS) PEA suggests 2.11M Carats recoverable with a gross value of US$211M Mining operation recommended 5.6 million tonnes at c.40 cpht Nine year mine life indicated: Payback year 2 IRR 55% and NPV (@8%) US$39.1M Lahtojoki
Slide 34: Lahtojoki Deposit – Diamond Quality
LAHTOJOKI DEPOSIT – DIAMOND QUALITY Lahtojoki Diamonds High (60%) gem quality diamonds at Lahtojoki Karelian Diamond Resources 34
Slide 35: Lahtojoki Deposit – Pink Diamonds
LAHTOJOKI DEPOSIT – PINK DIAMONDS Pink diamonds are known to be present in the Lahtojoki deposit Pink diamonds only accounted for >5% of the production at the Argyle mine in Australia, yet generated c.50% of the revenue Review of the data available, including photographs, suggests that the populatio
Slide 36: Lahtojoki Deposit – E-Diamonds
LAHTOJOKI DEPOSIT – E-DIAMONDS (E-DIAMONDS ORIGINATE FROM ECLOGITIC MANTLE) Eclogite diamonds are a key component in the Lomonosov diamond deposits in Russia Eclogitic diamonds may also be a key component in relation to the grade of the Lahtojoki diamond deposit An exceptional Eclogite grade of 90,0
Slide 37: Lahtojoki: Adjacent Potential
LAHTOJOKI : ADJACENT POTENTIAL Lahtojoki Mining Concession Kimberlites tend to occur in clusters Lahtojoki Kimberlite Kimberlite (HK) type boulders have also been discovered to the south of Lahtojoki which cannot be derived from the Lahtojoki (TK) type Kimberlite The ilmenite composition from the bo