28 February 2025

 

Karelian Diamond Resources plc

(“Karelian” or “the Company”)

 

Half-yearly results for the six months ended 30 November 2024

 

Karelian Diamond Resources plc (AIM: KDR), the diamond exploration and natural resources company focused on Finland and Ireland, today announces its unaudited results for the six months ended 30 November 2024.  Details of these can be found below and a full copy of the interim results statement can be viewed on the Company’s website (www.kareliandiamondresources.com). Further operational progress was made by Karelian during the period, while the final approval for the proposed diamond mine remains awaited.

 

Highlights of the half-year period included:

 

Lahtojoki diamond mine boundaries were finalised with no change to the existing boundaries. Landowner compensation agreed and paid. Final approval on the three outstanding items is expected in H2 2025.

 

Exploration programme in the Kuhmo region of Finland continues with a follow-up detailed electromagnetic survey conducted over the target area which has identified two diatreme-shaped anomalies that could represent the kimberlitic source of the green diamond. New licence areas and extensions of existing ones have been granted over, and adjacent to, the target areas in Finland. In Northern Ireland expert assessment on the nickel, copper and platinum anomalies have proven very encouraging as being capable of hosting significant economic deposits and as a result further work is being carried out.

 

Brendan McMorrow, Chairman of Karelian Diamonds, said:

 

“The Company has made further progress in the period, especially with regards to the granting of the mining permit at the Lahtojoki diamond deposit. We have also made progress towards determining the source of the green diamond the Company discovered in the Kuhmo region in Finland and the Board is very excited regarding the potential for metal ores in Northern Ireland.”

 

 

 Further Information:

 

Karelian Diamond Resources PLC

Brendan McMorrow, Chairman

Maureen Jones Managing Director

 

+353-1-479-6180

Allenby Capital Limited (Nomad)

Nick Athanas / Nick Harriss

 

+44-20-3328-5656

Peterhouse Capital Limited (Joint Broker)

Lucy Williams / Duncan Vasey

 

+44-20-7469-0930

CMC Markets (Joint Broker)

Douglas Crippen

 

+44-20-3003-8632

Lothbury Financial Services

Michael Padley

 

+44-20-3290-0707

Hall Communications

Don Hall

 

+353-1-660-9377

 

http://www.kareliandiamondresources.com

 

Chairman’s statement

 

Dear Shareholder,

 

I have great pleasure in presenting the Company’s Half-Yearly Report and condensed Financial Statements for the period ended 30 November 2024.

 

The Lahtojoki Diamond Deposit

 

The mine boundaries for the Lahtojoki diamond deposit were finalised in the period. A hearing of the Finnish Land Court resulted in no change to the existing boundaries. This decision was an essential and long-awaited step as the Company proceeds with its plans for the proposed development of the Lahtojoki diamond deposit.

 

Additionally, the appeals by two landowners regarding the terms were rejected by the Land Court, except for three minor items. The Company has been informed that these will be determined in the next quarter.

 

Diamond Exploration Programme in Finland

 

The Company’s exploration programme in the Kuhmo region of Finland continues to be encouraging up-ice of the Company’s discovery of a green diamond. Basal till sampling suggests that two of the sample locations may be close to the source of the green diamond.

 

A follow-up semi-airborne unmanned aerial vehicle (“UAV”) based detailed electromagnetic (“EM”) survey has been conducted over the target area. A UAV-based EM survey is a geophysical method used to map the electrical conductivity of the subsurface.

 

As announced on 24 January 2025, the geophysical interpretation of the electromagnetic data has identified two diatreme-shaped anomalies that could represent the kimberlitic source of the green diamond (and the indicator mineral fan).  The anomalies are up-ice of the two highly anomalous basal till sample locations documented in the pitting programme carried out in 2023 (announced by the Company on 19 December 2023) and the green diamond previously discovered in till by the Company (as announced by the Company on 31 January 2017).

 

Several new licences and licence extensions have been obtained in the area.

 

As announced on 7 February 2025, the Company has applied for, and been granted, a new reservation, Kuumu 1, at Lentiira in northern Kuhmo, 30 kilometres to the north of the Company´s green diamond discovery (announced by Karelian on 31 January 2017). The reservation provides a one-year privilege to apply for an exploration permit in the area. The Lentiira area is considered highly prospective by the Company.

 

In addition the exploration permit, Seitaperä, covering the Seitaperä diamondiferous kimberlite (orangeite) in Kuhmo, circa 6 kilometres to the southwest of the exploration permit Kuhmo 1, has been extended for a further 3 year period by TUKES in March 2024 and as announced by the Company on 25 January 2024, extensions for the exploration permits, Riihivaara 26, Riihivaara 24, 24A and 24B in Kuhmo, were granted by TUKES for further 3 years from January 2024.  The Riihivaara 26 exploration permit covers Karelian Diamond´s kimberlite (olivine lamproite) discovery at Riihivaara, circa 10 kilometres to the south of the exploration permit Kuhmo 1.

 

The various licence areas in Kuhmo interlink and cover an area that the Company believes has the potential to become a significant diamond province on the Finnish side of the Karelian Craton.

 

New exploration permits at Liperi, in the Joensuu region of Eastern Finland, and Salla, in Lapland of Finland, have also been recently granted to the Company.

 

However, the main focus is on the development of a diamond mine at Lahtojoki which will bring significant benefits to the Company and its shareholders in the near to medium term.

 

Northern Ireland Nickel, Copper and Platinum Group Metals Projects

 

An assessment prepared by independent geological consultant, Dr Larry Hulbert, announced on 24 June 2024, confirms the potential for Nickel, Copper, and Platinum-Group Elements (“PGE”), in the Company’s licence areas in Northern Ireland. The results of this assessment were very encouraging.

 

Dr Hulbert has been engaged to carry out further work in the licence area and, as previously announced, the Company is actively seeking a strategic partner to carry out a two-year exploration programme with a view to developing a number of the targets identified as being capable of hosting significant economic deposits.

 

The Company holds three prospecting licences, totalling an area of approximately 750Km2, in Northern Ireland.

 

Finance

 

The loss after taxation for the half year ended 30 November 2024 was €121,186 (30 November 2023: loss of €136,351) and the net assets as at 30 November 2024 were €9,993,699 (30 November 2023: €9,832,149).

 

Directors and Staff

 

I would like to thank my fellow directors, staff and consultants for their support and dedication, which has allowed the Company to continue to develop, especially since the loss of Professor Conroy. Their support and commitment is key to the success of the Company.

 

Outlook

 

Over the period the Company has identified new highly prospective metals targets in Northern Ireland, expanded its knowledge of the Kuhmo region and acquired new adjacent licence areas. The Company is also, hopefully, finally reaching the end of the application process for the Lahtojoki diamond deposit which will allow the Company to move forward and develop a mine at the site.

 

Yours faithfully,

 

Brendan McMorrow

Chairman

 

28 February 2025

 

Condensed income statement

 

 

Six-month

period ended 30 November 2024

(Unaudited) €

 

Six-month period ended 30 November 2023

(Unaudited) €

 

Year ended 31 May 2024

 

(Audited) €

 

Continuing operations

 

 

 

 

 

Operating expenses

(164,741)

 

(255,240)

 

(418,312)

Movement in fair value of warrants

46,795

 

122,128

 

187,628

 

 

 

 

 

 

Operating loss

(117,946)

 

(133,112)

 

(230,684)

 

 

 

 

 

 

Interest expense

(3,240)

 

(3,239)

 

(6,476)

 

 

 

 

 

 

Loss before taxation

(121,186)

 

(136,351)

 

(237,160)

 

 

 

 

 

 

Income tax expense

-

 

-

 

-

Loss for the financial period/year

(121,186)

 

(136,351)

 

(237,160)

 

Loss per share

 

 

 

 

 

 

Basic and diluted loss per share

(0.0012)

 

(0.0014)

 

(0.0023)

 

 

Condensed statement of comprehensive income

 

 

Six-month period ended 30 November 2024

(Unaudited) €

 

Six-month period ended 30 November 2023

(Unaudited) €

 

Year ended 31 May 2024

 

(Audited) €

 

 

 

 

 

 

 

 

Loss for the financial period/year

 

(121,186)

 

(136,351)

 

(237,160)

 

 

 

 

 

 

 

Income/(expense) recognised in other comprehensive income

 

-

 

-