Karelian Diamond Resources granted reservation in eastern Finland

The AIM-traded company said a review of positive past exploration results and airborne geophysics in the area led it to the decision to apply for the reservation.

It explained that the Liperi region lay within a geological area known as a Craton, which straddled Russia and Finland.

Two “world class” diamond deposits - Lomonosov and Grib - had been discovered on the Russian sector of the Craton, and were now in production.

Karelian Diamonds said it had an ongoing exploration programme on the Finnish sector of the Craton, in particular in the Kuhmo region where it discovered two new kimberlite bodies.

It was also assessing a diamond deposit at Lahtojoki in the Kaavi region of Finland, with a view to developing a mine, which would be the first in Europe outside Russia.

The firm said the Liperi reservation covered an area of 12 square kilometres, adding that a reservation in Finnish law gave it exclusive rights to apply for an exploration permit within the reservation area.

“I am delighted that Karelian Diamonds has been granted this reservation in the Liperi region of Finland,” said Karelian Diamonds chairman Richard Conroy.

“It lies to the south of the Kuhmo region, where the company has discovered two kimberlite bodies.”