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Karelian Diamond Resources is rated "speculative buy" by XCAP

Last updated: 04:35 17 Nov 2011 EST, First published: 05:35 17 Nov 2011 EST

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Shares in Finland focused Karelian Diamond Resources (LON:KDR)  were up more than 15 per cent today after it revealed its final results for the year - a period in which it made "significant progress".

The company told investors it had delineated the largest known diamondiferous kimberlite so far discovered in the country and had received excellent results in this season's drilling season.

As at 10.10am, the firm's shares were up 15.38 per cent - to trade at 1.88 pence each.

For the year ended May 31, it posted a loss after tax of €187,261 (2010: €173,081) and its net assets as on that date were €4,652,829 (2010: € 3,621,349).

Chairman Professor Richard Conroy said he was 'delighted' with the results achieved by the firm to date and reiterated that its aim was to make a major diamond discovery in the Karelian Craton in Finland comparable to the world class discoveries already made on the Russian side of the Craton.

During the year, Karelian continued to progress its diamond exploration programme in Finland. At Seitaperä in the Kuhmo region of eastern Finland, it has delineated the largest known diamondiferous kimberlite so far discovered in the country, he said.

Drilling resumed at Seitaperä during the year aiming to test the extent of the diamond-bearing kimberlite facies at Seitaperä and the shape of the pipe to a depth of around100 metres.

Post year end, the drilling results from Seitaperä were announced on October 3

"Kimberlite was intersected in all five holes drilled. A new large (52 metre) zone of potentially diamond bearing mantle xenoliths in kimberlite was identified, and the scope and extent of the Seitaperä diamondiferous kimberlite pipe further delineated," said Conroy.

In a note following the results, broker XCAP, which rates the stock a "speculative buy", said there were "no surprises in the figures themselves".

"The company is pleased its drilling found a further large zone of kimberlite containing mantle xenoliths, the rocks that can hold diamonds and even now, much of the Seitaperä prospect still remains to be drilled," it said.

"The drilling results also enhance the prospectivity of the company's other diamond prospects in the area. Seitaperä's kimberlites cover an area larger than several producing Canadian diamond mines put together.

"The company and investors will obviously be looking forward with intense interest to see the results of laboratory analysis for diamonds when they become available."

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