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Much confusion and uncertainty remains regarding what exactly is happening at Lahtojoki, especially now with articles on *************.com weighing in, so lets put some cards on the table.
The only diamonds ever reported as being recovered from Lahtojoki were around 70 carats by AIM-listed European Diamonds (EPD) fifteen years ago. That company is long since defunct and its records lost to the mists of time.
The only remaining evidence of these diamonds is a cropped photo taken at the time which appeared in EPD reports, and has been reproduced in a GTK prospectus, from where Karelian presumably obtained it.
The photo shows around 30 diamonds, all under 1mm in size including three pink diamonds (around 10%). These diamonds collectively would weigh around one carat. Where these diamonds, and the other 69 odd carats recovered are now, nobody knows.
It is clear that the diamonds in the photo must be a small sub-set of the total, and nobody knows if they were representative, but it seems likely that they were not, and were selected for their good clarity, shape and colour.
In the last four years, Karelian has never announced the processing of ANY material to recover its own diamonds, nor that it has uncovered or obtained any of the past diamonds, but in yesterday's half yearly report Richard Conroy in his Chairman's Statement wrote the following:
"Examination of the pink diamonds made available for inspection by the Company, together with photographs of diamonds from the deposit, indicates that these diamonds are of high quality."
This is the complete, unedited and unambiguous stand-alone sentence as originally written!
This CAN ONLY BE UNDERSTOOD as meaning the Company now has pink diamonds from Lahtojoki in its possession. Where did they get them from, why did they not report them, and what evidence or proof of their existence, their size, weight, quality, representivity and provenance etc. can the company provide?
Stock exchange rules are very clear in this regard, to prevent scandal and frauds where companies invent or falsify results. Sampling and analysis needs to be conducted under controlled conditions, by competent persons and signed of by independent accredited authorities. Otherwise what is to prevent a company merely "planting" a few diamonds or gold nuggets in a sample and claiming a "discovery" - a Wild West fraud known as "salting a mine".
The Company and its NOMAD owe the investing public some answers: namely where did, and again I quote:
" ...the pink diamonds made available for inspection by the Company"
come from and where are they now?
I'm not a geologist but I can read the RNS
Final results Nov 2019
"Review of technical data suggests presence of pink diamonds in Lahtojoki deposit which if confirmed could have a significant impact on the economic evaluation"
Half year results Feb 2020
"Presence of coloured stones including pink diamonds confirmed at the Lahtojoki diamond deposit"
“Despite the distraction of the EGMs being called the Company has made further progress with the Lahtojoki Diamond Mining Project and continued to carry out further exploration work at both Lahtojoki and in the Kuhmo region. I am particularly pleased with the very encouraging news in regard to pink diamonds at Lahtojoki.”
In the intervening period there has been no update confirming pink diamonds that I am aware of. You cannot tell me that they made this confirmation on the day of releasing the half year results.
No transparency before the EGMs and none after it appears.
SirG, so it is clear to all then that:
1) Either the Company has undertaken some sampling and recovered but not reported new pink diamonds, or...
2) They have acquired but not reported some of the old EPD diamonds, or...
3) They have made a false and misleading statement?
No other choices
I have already covered the Interims from AIM-listed Karelian Diamonds (KDR) and the misleading statements within. But it seems I am not the only one who is concerned that investors are being led up the garden path with the acquiescence of Nomad Allenby, for an email has come into my possession which appears to question the validity of the statements offered up.
At the centre of it are those Pink Diamonds referred to in the half year report. Is this real information or just old news dressed up as progress by a company which was down to its last EUR 20,000 with a mountain of payables which it cannot meet in the hope of whipping up excitement?
The email reads:
To: Maureen Jones
Maureen
Hi
Ref the ‘new’ information in the Half yearly report today that 7% of Lahtojoki stones are coloured.
Can you please advise where and when that information has been previously disclosed to the market ?
Is it new analysis of new drilling/ tailings , or is it a rehash of old information
This is a very serious question as a Half yearly report should be a summation of whats gone before and significant new data should have been released properly
If I dont get a clear answer I will be taking this up with the Nomad and the FCA.
Many Thanks
Clearly I am not the only person who has serious doubts about what we were told yesterday. And there are minor issues such as releasing price-sensitive information in a timely manner to the market. So if Karelian has been sitting on information that 7% of the diamonds discovered at Lahtojoki are coloured and, by extension, a good portion of them are pink, that appears to me to be a slam-dunk breach of AIM Rules. Yet we have seen no release of such information via RNS during the half-year period.
On the other hand, if this is just the re-hashing of old news then what has Karelian been doing for the past six months, while spending other peoples’ money?
What I would love to know is where are those diamonds? Has the Nomad seen them? Are they being held by Karelian? Has it tried to sell them – goodness knows it could do with the cash! Or is this third-hand data with no diamonds to back it up?
I smell a rat.
what is clear, is that its not clear ...... and despite two attempts to gain clarity (One which would have succeeded if the system worked and one that vexatiously failed) it seems that shareholders are once again left wondering wtf is going on. One has to say if it looks like a rat, smells like a rat and talks like a rat the only conclusion you can draw is that its is a rat. Its not as if this is the only example
April 2016 - "The acquisition of the valid Mining Permit over the Lahtojoki project area will allow the Company, should it so decide, and subject to any relevant environmental assessments or requirements, to proceed through to the development of the project."
A valid mining permit? Nearly fours years on we are still sorting compensation for landowners. OK so caveated by 'subject to any relevant environmental assessments or requirements' but I cannot recall these ever being laid out or detailed as to what was required until the last 6 months.
Lets all hope is some cunning plan ........
The email to MJ says: "if this is just the re-hashing of old news then what has Karelian been doing for the past six months"
The problem here is NOT if this is just a re-hashing of old news, the problem is that the news, whether new or old, is just plain BS!
YOU CANNOT evaluate the potential of a diamond deposit by looking at some 15 year old photos of a few diamonds, which some unknown person took, especially when you have no proof or confirmation that they even came from the deposit, or are representative of it if indeed they did, and you CANNOT then release your "opinions" as an RNS or half year report.
There are REPORTING STANDARDS AND REGULATIONS and I note that NONE of this is signed off by a competent person.
Kevin McNulty has not signed off on a comoany technical RNS since 2018, and Howard Bird is presumably not stupid enough to do so, seeing as he has a reputation as a Canadian P.Geo and TSE board positions to protect.
Con roy and his "workers" have grabbed over €4 million in fees and salaries from KDR alone... Add several million more for CGNR... They ain't gonna be digging up pink (or any other colour) diamonds for many more years yet ;-)
zzzzzzzzz
This "company" is likely going to be heavily hit by coronavirus. The CEO is almost 90yo and won't be travelling to Finland to "look" for diamonds anytime soon. He is going to be housebound for months. That may well mean yet another placing to fund his lockdown.
ffs is that the best you can do??
Or cruel though it sounds he could just decide to retire and take his family with him. Now that would help - let someone interested in actually working for a living instead of this leech take over the company. It's been a bountiful meal ticket for him for far too long.
@blue eyes
The sad fact is that whilst this recent decline is probably just a result of general downgrading in the light of CV19 jitters, unlike other stocks, there will be little likelihood of a subsequent recovery if the underlying fundamentals are not addressed.
The only times this stock seems to "surge" is due to friends and family trading and pumping ahead of an imminent placing, and NOT on the basis of significant progress, as there hasn't been any real progress in years (not since the initial Lahtojoki acquisition and scoping study IMO).
I don't include applying for postage stamp licences, finding aberrant one-off green diamonds or a random narrow dyke after ten years of searching, or the fact that it is nominally a "bit different" (orangite) as "significant" btw.
Time to stock up on the cheap in anticipation of a Victor Meldrew moment with the "senior" management? Not unless you have faith that the younger generation of Conroys won't simply inherit, and continue to run with daddy's scam.
World recession - Diamond prices will collapse
World recession - Zero money for exploration
KDR - Worst management - Millions in debt
Outlook - Collapse or boards wages Deferred (Probably with interest)
This company spend more paying their board members than spending on exploration. It is not sustainable in a world recession. CONroy in big trouble now
REALLY !!! LOL
P I N K GEMS 60 X WORTH, DONT NEED A LOT
Diamonds Always IN DEMAND !!!
BJORNBERG!!!
Karelian Diamond Resources
@KarelianDRplc
·
3 Apr
#KDR #Diamonds #Finland ?????????????? ????????????????
Could Finland be the site of the next diamond motherlode?
@KarelianDRplc
actively exploring the Karelian Craton https://buff.ly/2w2KLk0
Karelian Diamond Resources
@KarelianDRplc
·
3 Apr
#KDR #Diamonds #Finland ?????????????? ????????????????
Could Finland be the site of the next diamond motherlode?
@KarelianDRplc
actively exploring the Karelian Craton https://buff.ly/2w2KLk0
Some chunky trades going through
Isa exchange from last week big sell .
Can LSE explain why they miss off so many trades on kdr
Two late afternoon not reported
1100 buy yesterday afternoon. Plus many more over past few weeks
Very poor!!
Roy Spencer ARTIC STAR presentation states (WHO CO FOUND THE GRIB MINE RUSSIA )
Russians have sampled the beejusus out of the Russian SIDE craton and only found high number of indicators and a small few diamonds .
Earth’s two topmost layers, the crust Conclusion the diamonds are coming from FINLAND.??
Mr Hugh O Brein will enlighten you on what we ARE SAT ON as well as Artic
Both are among the most respected geologist for Diamonds out there.!!!
https://www.youtube.com/watch?v=BH4p3dCxMaI
Also many other top name geologists are interested in Finland
Bees round a honey pot!!!
Make you own minds up!!!!
KDR agreement with RTZ ends in a few weeks ???Hmmmmmm
11 May 2020
Holding in Company
Karelian Diamond Resources plc (AIM: KDR) announces that it was today informed that Kevin Taylor now holds 3,022,939 ordinary shares of €0.00025 (“Ordinary Shares”) in the Company, equal to approximately 7.02% of the issued share capital and voting rights of the Company.
up 21%??
KT crossed 7% threshold - positive news
wonder we will see a large trade after hours