Last checked at 6 Dec 2010 15:30
6 December 2010 Karelian Diamond Resources Plc (the "Company") AGM Statement
At today's Annual General Meeting of Karelian Diamond Resources Plc (AIM: KDR, ESM: KDRI), the diamond exploration company focused on Finland, the Chairman Professor Richard Conroy will make the following comments:
"Having already delineated the largest kimberlite pipe found in Finland to date, the year under review has been one in which we reduced our on-site work programmes, due to the fall in the diamond price, and focussed on office based modelling and the acquisition of additional licences in the Kuhmo area.
"Historically there has been only limited exploration in the Kuhmo area of Finland, however our results to date show that the area has potential for diamondiferous kimberlites and our new licences, granted post period, cover the two other known kimberlite occurrences in the area - Kimberlites 18 (Havukkasuo) and 24 (Lentiira).
"We also continue to explore in Joensuu to the South East of Kuhmo and the results show that the Joensuu prospect could also contain kimberlite pipes.
"As well as continuing our work on our existing licences we entered into a confidentiality agreement with back in rights with Rio Tinto Exploration Limited ("Rio Tinto") under which they are disclosing to us their extensive database and physical samples, compiled over a number of years exploring in Finland. The data will significantly increase Karelian's knowledge base and thereby enhance our exploration programmes. In return Rio Tinto has the right to acquire 51 per cent of any major discovery by paying the direct cash expenditures incurred in developing the project. As well as diamonds, the agreement covers the discovery of other resources with an in situ value equal to or greater than the in situ value of 3 million ounces of gold in a JORC compliant resource calculation.
"Rio Tinto is one of the largest mining companies in the world with interests spanning aluminium, copper, diamonds, iron ore, coal, uranium, gold and industrial minerals. Rio Tinto Diamonds is the third largest supplier of diamonds in the world with diamond production ranging from the unique pink diamonds of the Argyle mine in Australia to the spectacular whites of Diavik's high value gemstones in Canada.
"Overall, the year has been one in which Karelian again moved forward and with the data from Rio Tinto we can quickly and cost effectively build further upon the encouraging work which has been done to date. The Board views the future with increasing optimism and we look forward to continuing to progress towards our objective of making a world class diamond discovery in Finland comparable to those made across the border in Russia."
Further Information:
Professor Richard Conroy, Chairman, Karelian Diamond Tel: +353-1-661-8958 Resources plc
Simon Clements/Virginia Bull, Merchant Securities Tel: Limited (Nomad) +44-20-7628-2200
John Tuite, IBI Corporate Finance Limited (ESM Adviser) Tel: +353-1-637-7800
John Grant/ Karen Kelly/ David Lawman, XCAP Securities Tel: +44-20-7101 PLC (Broker)
7070 Michael Padley/Michael Spriggs, Lothbury Financial Tel: Services +44-20-7868-2010 Don Hall, Hall Communications Tel: +353-1-660-9377
http://www.kareliandiamondresources.com
vendor