LONDON (ShareCast) - (Sharecast News) - Karelian Diamond Resources reported positive results from its latest kimberlite indicator mineral (KIM) analysis on Friday, strengthening evidence of a nearby kimberlitic source for the green diamond discovery in the Kuhmo region of Eastern Finland.
The AIM-traded company said that 19 out of 21 till samples taken up-ice from the discovery site contained KIMs, including peridotitic garnets, orange mantle garnets, chrome diopsides, and chromites.

Three basal till samples and one surface till sample returned highly anomalous results, with a high concentration of peridotitic garnets, some in the larger 0.5 to one millimetre range.

The company said the presence of partial alteration mantles, known as kelyphitic rims, on 15 of the garnets suggested a relatively short transport distance from their source.

It added that the discovery of orange mantle garnets, likely eclogitic in nature, was particularly significant, as the minerals were often associated with higher diamond grades.

The findings, combined with a recent semi-airborne UAV-based electromagnetic survey, had significantly narrowed the potential target area for drilling.

However, further till sampling up-ice was not possible due to increasing overburden thickness in a swampy area northwest of the last sampling point.

As a result, the company said drilling was now the necessary next step to locate the primary kimberlite source.

"We are very encouraged by further excellent kimberlite indicator mineral results highlighting the recent electromagnetic anomaly as a potential source of the green diamond," said managing director Maureen Jones.

At 1356 GMT, shares in Karelian Diamond Resources were down 7.79% at 0.69p.

Reporting by Josh White for Sharecast.com.

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