Karelian Diamond Resources granted reservation in Finland

Karelian Diamond Resources announced on Thursday that TUKES - the Finnish Mining Authority - has granted a it reservation situated in the Salla region of north eastern Finland.

The AIM-traded firm said that, following a review of airborne geophysics and past exploration data, it decided to apply for the reservation in the Salla region.

It explained that it believed this area, which lay to the north of known diamondiferous kimberlites, was a “highly prospective” region of Finland for the discovery of further diamondiferous kimberlite bodies.

The Salla region lay within a geological area which straddled Russia and Finland.

Two world-class diamond deposits - Lomonosov and Grib - had been discovered on the Russian side of the border, and were now in production as major diamond mines.

Karelian Diamonds said it had an ongoing exploration programme on the Finnish side of the geological, adding that in the Kuhmo region it discovered a green diamond and two new kimberlite bodies.

The company was recently granted a reservation in the Liperi region, and was also assessing a diamond deposit at Lahtojoki in the Kaavi region of Finland, with a view to developing a mine.

The Salla Reservation covered an area of 1,100 hectares.

“I am pleased that Karelian Diamonds has been granted this reservation in the highly prospective Salla region of Finland, where geophysics and analysis of past exploration data has suggested the possible presence of kimberlite bodies,” said Karelian Diamond Resources chairman Richard Conroy.