Karelian Share News (KDR)

(Sharecast News) - Karelian Diamond Resources announced results from its stream sediment sampling programme focused in Northern Ireland on Wednesday, reporting that 10 samples had been collected and shipped to Overburden Drilling Management in Canada for mineral concentration, picking and analysis for indicator minerals.
The AIM-traded firm said the sampling programme was being carried out in relation to the reported discovery of a diamond in the Colebrooke River, and the previous reported recovery of chromite minerals, which could be associated with the presence of diamondiferous kimberlites.

It said the results proved the presence of chromite in all samples, with nine samples being interpreted as either anomalous or highly anomalous.

The best sample contained over 1,800 chromite grains in the 0.25 to 2.0 millimetre size fraction, with the samples also showing the presence of forsterite olivine and metamorphic massive sulphide indicator minerals (MMSIMs), chalcopyrite and low chrome diopside.

Initial interpretation of the chromite grains and forsterite olivine, together with the MMSIMs, was suggestive of a non-kimberlite source rock, which itself was indicative of additional targets for mineralisation within Karelian's licence area, the board said.

Relating the results to the Tellus geochemical and geophysical programmes, carried out by the Northern Ireland government in the mid-2000s, provided insight to possible sources of the chromite mineralisation.

The firm said the Tellus project proved the presence of elevated levels of nickel, copper, chromium, platinum and palladium in the area of the company's licence.

Interpretation suggested those geochemical enrichments were associated with Palaeocene dykes, which crosscut the area.

Relating the results with other sampling programmes in known areas of nickel-copper-platinum mineralisation globally indicated the company's data should be considered as "highly anomalous", the directors added.

"These exciting results heighten the prospectivity of the company's exploration programme in Northern Ireland and add an additional dimension to the company's exploration interests," said chairman Richard Conroy.

At 1004 GMT, shares in Karelian Diamond Resources were down 6.2% at 2.81p.