23rd Nov 2015 10:23
LONDON (Alliance News) - Karelian Diamond Resources PLC on Monday said it made "significant progress" in its diamond exploration programme in its most recently ended financial year, as it reported a narrowed pretax loss.
The Finland-focused diamond exploration company posted a pretax loss of EUR121,551 for the year to end-May, narrowed from a pretax loss of EUR198,891 a year before, as a result of lower operating expenses. It did not report revenue in either period.
During the year, Karelian discovered a new kimberlite body at Rihiivaara, near Kuhmo in Eastern Finland, which it said is a "major step forward" in its diamond exploration programme. Karelian also continued exploration work elsewhere on its other exploration licences in Finland, and extended its confidentiality agreement with Rio Tinto Mining & Exploration Ltd, part of Rio Tinto PLC, to 2020.
Under the agreement Rio Tinto discloses confidential information to Karelian about samples relating to exploration in Finland, in return for an option to earn a 51% interest in any project identified by Karelian in Finland.
"The company made a very important discovery at Rihiivaara during the year where we have identified a new kimberlite body. Analysis of the sample material from Rihiivaara is highly encouraging and we are carrying out further work which we believe will lead to an important new discovery," said Chairman Richard Conroy in a statement.
Shares in Karelian were down 7.9% at 0.990 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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