31 March 2009
Karelian Diamond Resources plc
("Karelian Diamond Resources" or "the Company")
Sampling Results
* Latest micro-diamond results at Seitaperä return one positive outcome
* Full mineralogical study indicates variable micro-diamond distribution with
extensive stone breakage during processing
* Company is proceeding with evaluation and claim applications in Finland
despite diamond market downturn
Karelian Diamond Resources (AIM:KDR), is pleased to announce results from
micro-diamond testing of material extracted during the recent drilling
programme on its Seitaperä diamondiferous kimberlite pipe in the Kuhmo region
of Finland. A total of 700 kg of material was extracted from which four
composite samples, each of 50 kg, have been tested to date.
One of these samples returned a positive micro-diamond result, yielding a white
translucent fragment measuring 0.20x0.17x0.06 mm, a white translucent fragment
measuring 0.20x0.14x0.03 mm and a white translucent octahedral showing 99 per
cent. preservation measuring 0.12x0.11x0.11 mm. The other three samples tested
did not contain micro-diamonds.
A full mineralogical study of all the Seitaperä diamonds recovered to date,
including the 67 micro and macro-diamonds recovered from a 100.20 kg sample as
reported in July 2008, has now been completed by MCC Geoscience of Vancouver,
Canada. This indicates that the grade distribution in the Seitaperä Kimberlite
is likely to be highly variable, a feature common to the diatreme root zones of
many kimberlites. It is not possible to estimate an overall bulk diamond grade
at this point.
An investigation of diamond surface characteristics carried out as part of the
study indicated that a substantial proportion (approximately 60 per cent.) of
the micro-diamonds recovered are in fact fragments of a larger diamond or
diamonds which were present in the mantle xenoliths and broke apart during
processing. The majority of diamonds underwent only limited resorbtion (the
process by which, due to heat and pressure, diamonds can be absorbed into host
magma) and were well-preserved within their mantle host. As such, diamonds in
Seitaperä are sparsely and irregularly distributed, but follow a relatively
coarse size distribution.
These findings suggest that there is the potential for larger diamonds to be
present in Seitaperä, and the majority of the kimberlite, including the new
northeast extension, remains untested. However, in view of the present state of
the diamond market, the Company will not at this stage proceed with the
extensive further drilling and micro-diamond sampling that will be required to
adequately test a kimberlite of this size (6.9 ha). Nevertheless, the Company
will continue with evaluation work and advancing its claim applications in
Finland.
Professor Richard Conroy, Chairman of Karelian, commented:
"Despite the downturn in the diamond market, we will continue to evaluate the
situation. In view of the positive findings to date, both at Seitaperä and in
the Kuhmo area generally, we will press on with our application for licences
over the other known kimberlites in the Kuhmo area as well as licence
applications in the Joensuu area."
This release has been approved by Dr. Stephen Grimmer of the Company's
technical staff, who holds a PhD in Geochemistry/MSc in Exploration Geology, in
accordance with the guidance note for Mining, Oil & Gas Companies issued by the
London Stock Exchange in respect of AIM Companies, which outlines standards of
disclosure for mineral projects.
Further Information:
Professor Richard Conroy, Chairman Karelian Diamond
Resources plc Tel: +353-1-661-8958
Charles Dampney, City Capital Corporation Limited Tel: +44-20-3178-3399
Simon Clements/Jeffrey Coburn/Virginia Bull, John East &
Partners Limited Tel: +44-20-7628-2200
Ron Marshman/Michael Padley, Lothbury Financial Tel: +44-20-7011-9411
Don Hall, Hall Communications Tel: +353-1-660-9377
http://www.kareliandiamondresources.com