Test results encouraging for Karelian Diamond

The company reported a loss of €121,551 for the year to 31 May 2015, which equated to a loss per ordinary share of €0.00004.

Karelian reported total equity and liabilities of €8.9m, and end of year cash and cash equivalents of €474,026.

The focus of the report, however, was the discovery of a new kimberlite body at its Rihiivara site in the Kuhmo region of Finland. Kimberlite is an igneous rock best known for its ability to contain diamonds.

Indicator minerals from this body indicated they were derived from the diamond stability field, the company reported, with further testing by Rio Tinto of minerals in the area suggesting the samples are from within the diamond stability field of the upper mantle.

This was particularly encouraging, the company said, as the minerals were formed in an area where the temperature and pressure were suitable for diamonds.

Karelian was also analysing samples from another Finnish exploratory area in Kuopio Kaavi, where it said there were five known kimberlite bodies.