22nd Nov 2019 17:31
(Alliance News) - Diamond miner Karelian Diamonds PLC on Friday reported its annual loss narrowed and that it sees economic potential at its Lahtojoki asset.
For the financial year ended May 31, the miner's pretax loss narrowed to EUR370,654 from EUR439,568 last year.
Karelian did not generate any revenue in the period, as it continues its diamond exploration and development programme in the Karelian Craton in eastern Finland.
During the year, Karelian said it completed a preliminary economic assessment on the Lahtojoki diamond deposit and also tested the large Eastern lobe of the deposit, with positive results. The deposit is within the Karelian Craton.
The company hopes to develop the Lahtojoki diamond deposit as Europe's first diamond mine, outside Russia.
Karelian saw micro-diamond results from, previously untested, larger Eastern Lobe of the Lahtojoki diamond deposit giving it "increased confidence for economics of potential mine". In addition, the company said it has made progress made in relation to regulatory matters required for getting a mining permitting at Lahtojoki and technical data suggests presence of pink diamonds at the site.
"We have built on last year's successful programmes and, despite the distractions and cost of the recent EGMs, we have had continued exploration success and most importantly, the company has made further progress towards the development of a diamond mine at Lahtojoki," said Chair Richard Conroy.
Elsewhere, Karelian said it has appointed Howard Bird as a non-executive director.
Shares in Karelian Diamond Resources closed 1.3% lower at 1.90 pence on Friday in London.
By Arvind Bhunjun; [email protected]
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