9th Nov 2015 11:16
LONDON (Alliance News) - Karelian Diamond Resources PLC Monday said mining giant Rio Tinto PLC has identified high category rating diamondiferous kimberlite indicator minerals within 100 metres of a previous discovery made in Finland.
Karelian and Rio Tinto have a confidentiality agreement which allows the two companies to share information about exploration work in Finland. That was signed back in 2010 and in return for supplying information, Rio Tinto has an option to earn a controlling stake in Karelian's projects by paying for development costs.
Karelian said it collected samples from an area within 100 metres of its previous discovery made at Rihiivaara, which were then processed and evaluated by Rio Tinto at the giant's laboratories in Melbourne, Australia.
"The presence of diamondiferous kimberlite indicator minerals together with the discovery nearby of the kimberlite body enhances the diamond potential of the area," said Karelian.
The results from Rio Tinto comprise of seven Harzburgitic G10 Garnets, including four that were classified as G10(D), 43 Lherzolite G9 Garnets and 24 G1 Eclogite grains.
A garnet is a precious stone consisting of a deep red vitreous silicate mineral that has been used for centuries as gemstones and abrasives. They are categorised dependent on what the garnet is made up of, as it is not one singular mineral but a combination of minerals.
"The presence of G10(D) Garnets which are low calcium chrome pyropes that form within the diamond stability field of the upper mantle, where the temperature and pressure is suitable for the formation of diamonds, is particularly encouraging," said Karelian.
Chairman of Karelian Richard Conroy said: "These are truly excellent results that confirm the potential within the target area, in particular the presence of the G10(D) Garnets which have proven to be positive indicators of diamonds in the past. As a result we remain very confident that the hard work by both Rio Tinto and our team will lead to an important new discovery."
Karelian shares were up 6.2% to 1.03 pence per share on Monday morning, with Rio Tinto shares trading up 2.4% to 2,336.0 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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