AIM : KDR IEX : KDR.I Company Overview

Transcription

1 AIM : KDR IEX : KDR.I Company Overview Towards the First Diamond Mine in the European Union Professor Richard Conroy Chairman,

2 Diamond exploration projects in Finland Positive microdiamond results from Seitaperä Kimberlite Pipe Claim areas cover several other Kimberlite Pipes Executive team has demonstrable experience in producing successful mining projects Confidentiality agreement (with back in rights) with Rio Tinto

3 The Presentation Team Professor Richard Conroy - Chairman Founder of Conroy Petroleum and Natural Resources (renamed ARCON Int. Res. and later taken over by Lundin) -discovered and mined zinc orebodies at Galmoy, Ireland. Conroy Petroleum s share price increased from 23p to 705p GBP over a nine month period following the discovery Founder of Trans-International Limited, a private company, which initiated the Deminex Consortium (Ireland offshore oil exploration) and was acquired by Aran Energy for 901,830 Formerly involved in the Stoneboy Consortium, which discovered and is now successfully mining the Pogo gold deposit in Alaska Former member of Upper House of Irish Parliament, including being Government spokesperson for Industry and Commerce and Foreign Affairs Kevin McNulty Senior Geologist Previously worked at Teberebie gold mine (owned by Pioneer Goldfields, a subsidiary of Pioneer Group) producing over 350,000 oz Au p.a. At the time, second largest gold producer in Africa outside South Africa Diamond evaluation work on the Birrim River Diamonds in Ghana Exploration experience in diamonds in the Canaima Basin in Venezuela prior to joining Maureen Jones Managing Director Medical background as a radiographer specialising in nuclear medicine. Joined International Medical Corporation as manager in 1976 (an international medical consultancy, owned by Professor Conroy andhis brother, Dr. D. Conroy) Joined Conroy Petroleum and Natural Resources in 1980 and was appointed Executive Director and a member of the Board in 1986 Played a major role as a senior member of the management team which took the Galmoy zinc orebodies through from exploration to production, including pre and full feasibility studies, land acquisition, planning and mining permissions. Was also a director of ARCON Mines Ltd, the mine development company, and of other subsidiaries of Conroy Petroleum and Natural Resources. Involved with the Stoneboy Consortium that led to the discovery of the Pogo orebodies now in production as a major gold mine Richard Kevin Berry Senior Geologist Over 30 years experience in the mineral exploration and mining industry including project management and consultancy experience in open-pit, grass roots exploration, prospecting and feasibility studies Worked on diamond prospecting programmes in Africa and South America on both kimberlite and alluvial ore bodies Worked at senior level on producing diamond mines in Africa

4 Diamond Prospectivity in Finland The Karelian Craton, which straddles Finland and Russia, is larger in area than the diamond rich Canadian Slave Lake Craton Highly prospective geological conditions for diamonds with numerous diamond-bearing kimberlites Two world-class diamond mines are under development in the Russian sector of the Craton (Lomonosova -Alrosa; and Grib Pipe -DeBeers) The objective of is to make a major diamond discovery in Finland comparable to the world class discoveries already made on the Russian side of the Karelian Craton

5 Mining in Finland Potential for World Class Diamond Discoveries: Similar geology to Russian sector of the Karelian Craton, known diamondiferous kimberlites Excellent physical and legal infrastructure, quality workforce Politically and economically stable Finland is a mining friendly country. There is no significant anti-mining lobby, and mineral legislation is clearly set out and land tenure is stable. Environmental-permitting procedures conform to modern best practice. Finland has excellent geological databases, good infrastructure and readily available exploration services. These factors make operations infinland attractive and cost-effective. In October 2008, Resource Stocks magazine ranked Finland as the safest place to spend exploration dollars. The mining and minerals industry is very important to the country, and plays an increasing role in our economy, both domestically and outside Finland Mauri Pekkarinen, Minister of Economic Affairs, February 2009 (Mining Journal Supplement)

6 Key Target Areas Kuhmo Target Area Seitaperä Kimberlite Pipe Largest known kimberlite in Finland (6.9ha) Diamondiferous-Positive macrodiamond results Positive Mineral Chemistry Kimberlite to over 115m in depth Moving to evaluation stage Other Kuhmo Targets Havukkasuo and Lentiira kimberlite pipes under licence Riihivaara and other targets in the area Joensuu Area A new Finnish target area

7 Location of Claim Areas on the Karelian Craton Lomonosova (Alrosa)

8 Karelian Craton Model

9 Land Position : Kuhmo Municipality Kimberlite pipes identified within Seitaperä, Havukkasuo and Lentiira Licence areas Major evaluation project - Seitaperä Riihivaara at advanced stage of exploration

10 Seitaperä - Diamondiferous Kimberlite Pipe Geological interpretation based on available information.

11 Seitaperä - Positive Signs 1500m of drilling in 24 drillholes - 6.9ha Kimberlite defined Largest known kimberlite in Finland, on same craton as producing Russian pipes at Lomonosova (Alrosa) and Grib (DeBeers) Frequent Mantle Xenoliths in Kimberlite Repeated success in targeting mantle-rich material including harzburgite and lherzolite mantle peridotite containing G9 and G10 garnets Material Originates from Diamond Stability Field in the Upper Mantle Results demonstrate capacity to carry diamond-bearing material Information Source: After Lehtonen and O Brien 2009 and

12 Seitaperä - 67 Diamonds from Initial 100kg Sample Included 6 macro-diamonds >0.5mm Good white diamond colour, clarity and preservation Indicating magma chemistry favourable for preservation Confirms Seitaperäis diamondiferous, in keeping with mineral chemistry results Mantle xenoliths outlined in white

13 Seitaperä Infrastructure High quality road network Large population centre of Kuhmo nearby Domestic air and rail links in Kajaani, approximately 120km by road from Seitaperä Seitaperä road access

14 Havukkasuo and Lentiira- Kimberlite Pipes Confirmed kimberlite occurrences located to the north of Seitaperä Previous operator drilling: Havukkasuo - five drill holes intersected kimberlite Lentiira - eleven drill holes intersected kimberlite Due to positive results at Seitaperä and overall prospectivity of the Kuhmo area these kimberlites are being reassessed by Karelian

15 Riihavaara Target area located to the south of Seitaperä Glacial till sampling has identified an indicator mineral train Frequent G9 and G10 garnets (diamond indicator minerals) found in the area Exploration is underway to identify the source/sources for the diamond indicator minerals in the area

16 Land Position : Joensuu Municipality A possible new kimberlite field High G10/G9 ratios (diamond indicator minerals) - Group 1 kimberlite affinities? Reconnaissance programme underway

17 Rio Tinto Agreement Confidentiality agreement (with back in rights) with Rio Tinto Mining and Exploration Ltd. Confidential information and geological samples relating to exploration in Finland made available by Rio Tinto Rio Tinto will have the option to earn 51% interest in any project identified by the Company in Finland subject to the following conditions: For diamond projects the option will be triggered if the Companycompletes 10 tonnes or more of bulk sampling for diamond exploration For all other minerals the option will be triggered if Karelian discovers a resource with an in situ value that is equal to or greater than the in situ value of 3 million ounces of gold in a JORC compliant resource calculation

18 Strategy Moving Forward Integration of Rio Tinto data and geological samples into Company database Surface sampling and delineation drilling of Seitaperä diamond-bearing zone following positive micro-diamond results Extensive glacial tillsampling atriihivaarato quantify up-ice kimberlite indicator mineral density in the mineral train Evaluation to start on other kimberlite pipes(havukkasuo and Lentiira) Further micro-diamond analysis and (if subsequently warranted) a +500 t mini-bulk sample at Seitaperä

19 AIM:KDR, ESM:KDR.I For further information, you can us at - info@kareliandiamondresources.com or visit our website -