Shares in Karelian Diamond Resources jumped 25% in Dublin trade today after the company said that analysis on samples from the Riihivaara kimberlite in Finland are likely to be diamondiferous.
The company said garnet population analysed by Rio Tinto Mining indicated diamond potential.
Karelian said the geotherm in Riihivaara is similar to that in the Kaavi-Kuopio kimberlite field in Finland and to kimberlite fields in Southern Africa.
The company's chairman Professor Richard Conroy said the news that the Riihivaara kimberlite is likely to be diamondiferous is exciting.
"It is very encouraging for our diamond exploration programme in Finland, which we believe has the potential to become a new diamond province - the first in Europe outside Russia," he added.
