Karelian Regulatory News (KDR)

1 Sep 2005 07:35

1 September 2005 Karelian Diamond Resources Plc ("KDR") KARELIAN LISTS ON AIM WITH PORTFOLIO OF DIAMOND PROSPECTS IN FINLAND * Focussed On Discovering Potential World-Class Diamond Deposits In Karelian Craton * Holds 57 Claims Including Those Over A Proven Diamondiferous Kimberlite Pipe * Planned Programme Includes Drilling, Sampling And Micro-Diamond Analysis Karelian Diamond Resources plc is pleased to announce the admission of itsshares to trading on AIM today.KDR is the holding company of a diamond exploration group focussed ondiscovering a potential world-class diamond deposit in the Finnish sector ofthe Karelian Craton. This is a block of ancient crustal rocks, which occupiesmuch of eastern and northern Finland, extending over the border into Russia.The potential of the Karelian Craton to host diamond deposits is indicated bymajor diamond discoveries in the Russian sector of the Craton. These includetwo world-class deposits: the Grib pipe which is estimated to contain aresource of 98 million tonnes at an average grade of 69 carats per hundredtonnes (cpht) with an estimated in situ value of US$3.7 billion, and theLomonosova deposit whose diamond reserves are estimated to be worth US$12.0billion.KDR believes that the Finnish sector of the Craton, given its size andpotential, is under-explored and, by analogy with the Russian sector, has thepotential to host similar world-class diamond deposits.As of September 1, the group holds a total of 57 claims in Finland, includingthose covering a proven diamondiferous kimberlite pipe at Seitaperƒ¤ in theKuhmo area near the Russian border. The licences are divided on a geographicalbasis into four separate claim blocks (Lapland, Western Finland, Kuhmo andSouth-Eastern Finland), all four of which have been independently assessed as"highly prospective for diamonds."KDR has developed a close working relationship with the Geological Survey ofFinland (GTK) and is able to draw on its expertise, its extensive knowledge ofFinnish geology and its excellent technical and laboratory services. KDRemploys GTK staff under contract as local consultants and to undertakefieldwork and has benefited greatly from this relationship. In addition, KDR'ssenior consultant, Dr Bert Gerryts, is an internationally respected diamondgeologist who pioneered the use of indicator minerals and geophysics in diamondexploration.KDR's planned work programme includes drilling, geophysics, sampling,processing and analysis, including micro-diamond analysis and indicator mineralgeochemistry.Within the Kuhmo block, which includes the claims covering the diamondiferousSeitapera pipe, KDC has recovered diamond indicator pyrope garnets (includingG9s and G10s which are formed at the same temperature and pressure as diamonds)as well as chrome diopsides of kimberlitic composition. Sixteen separateindicator mineral anomalies have been identified which, when coupled with thepresence of the known diamondiferous kimberlite pipe, suggests that multiplesources for diamonds may exist in the area. KDC's claims cover all of thehighest priority targets so far identified.The management of KDR, together with its staff and consultants, have a trackrecord of success in mineral exploration and look to enhance this record with amajor commercial diamond discovery in Finland.On admission, KDR raised ‚£500,000 (before expenses) through a placement of10,000,000 ordinary shares at 5 pence each, representing 22.3 per cent of theenlarged issued share capital of 44,771,676 ordinary shares.Further Information:Professor Richard ConroyChairman Karelian Diamond Resources plc. Tel: + 353-1-661-8958Charles DampneyCity Capital Securities Limited. Tel: + 20-7822-7107Jeffrey CoburnJohn East & Partners Limited. Tel: +20-7628-2200Ron Marshman/John GreenhalghCity of London PR Limited. Tel: + 20-7628-5518ENDKARELIAN DIAMOND RESOURCES PLC