Karelian Diamonds applies for two Arctic Circle claims

Dublin-based prospector, Karelian Diamond Resources has applied for two exploration claim reservations near the Arctic Circle.

If successful, the company — which is the sister firm to Conroy Gold & Natural Resources, which is aiming to establish a commercial gold mine in Co Monaghan — will have exclusive rights to apply for specific permits over a wide area.

Karelian has two “claims areas” in the south-east of Finland, close to the border with Russia.

Success with its latest applications would double that number and give the Irish firm a chance to gain a foothold in northern Finland.

The company has a sampling and information gathering deal in place with Australian mining giant, Rio Tinto.

Recent results gleaned from that relationship led to Karelian’s decision to make its latest application. In the first area tested, 121 kimberlitic indicator minerals were recovered, with 76 recovered in the second test area.

The company added that further studies, including microprobe analysis, confirmed that both test areas showed signs of containing diamond mineralisation.

“Finland has the potential to host diamond deposits comparable to the world class diamond deposits found in similar geology across the border in Russia and by utilising the Rio Tinto data, alongside our own, we are seeing very encouraging signs that that potential may be realised,” according to chairman, Professor Richard Conroy.

The AIM-listed company’s shares were up by over 20% in early trading yesterday, making it the second biggest positive mover on London’s secondary share index.