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LONDON (Alliance News) - Karelian Diamond Resources PLC on Wednesday said technical data regarding the Lahtojoki kimberlite pipe has identified the potential for the pipe to become a profitable open pit diamond mine and said it is planning a phrased approach for the site.
Karelian received the mining permit for the Lahtojoki diamond project in Finland in June after having first struck a deal with A&G Mining Oy in April to pay EUR50,000 upfront and a further EUR100,000 over two years if it decides to progress the project.
On Wednesday, Karelian said it has received a database of information relating to the project from A&G Mining, including assessment of previous drilling and consultant reports, which will enable it to expedite its assessment of the project and plan an "effective" development programme.
The data indicates "that the Lahtojoki diamondiferous pipe has the potential to become a profitable open pit diamond mine", Karelian said, noting that it is planning to re-model the pipe which will allow it to target locations for any further drilling or bulk sampling. This is expected to take up to 12 months, the company said.
"The acquisition of the Lahtojoki diamond pipe mining permit, together with these encouraging results relating to its potential, complement our existing licences and are a major step forward for our diamond programme in Finland," said Chairman Richard Conroy.
Shares in Karelian were up 1.3% at 0.836 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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