LONDON (ShareCast) - (Sharecast News) - Karelian Diamond Resources shares surged on Thursday, after it received official registration of mining rights for its Lahtojoki diamond project in Finland, marking a significant step forward in the development of what it described as a high-value gemstone deposit.
The AIM-traded firm said the Finnish Safety and Chemical Agency (TUKES) had issued the mining concession certificate under registration number K7363

It said the certificate entitled Karelian to exploit the mineral resources within the concession area, allowing it to advance to the next phase of work on the site.

The Lahtojoki deposit, located in eastern Finland, includes a 71-hectare concession featuring a 16-hectare kimberlite pipe.

It is notable for hosting high-quality colourless and pink diamonds, the latter of which are highly prized and can sell for up to 20 times the price of standard coloured stones.

A 2017 preliminary economic assessment estimated more than two million carats of recoverable diamonds with an in-situ value of $211m.

The report recommended an open-pit mining operation with a mine life of over nine years, a two-year payback period, and projected an internal rate of return of 55% with a net present value of $39.1m at an 8% discount rate.

"Confirmation of the registration of mining rights is a critical step for the company, and means that the company can plan the next stage of work at the Lahtojoki Diamond Deposit."

At 1226 BST, shares in Karelian Diamond Resources were up 172.32% at 1.53p.

Reporting by Josh White for Sharecast.com.

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