DISCLAIMER. Karelian Diamond Resources 2

Transcription

1 AIM: KDR

2 DISCLAIMER This Document comprises an institutional presentation (the Presentation ) which has been prepared by and is the sole responsibility of Karelian Diamond Resources (the Company ) The content of this Presentation has not been approved by an authorised person within the meaning of the UK Financial Services and Markets Act 2000 (as amended) ( FSMA ) or an authorised investment business firm within the meaning of the Irish Investment Intermediaries Act 1995 (as amended) ( IAA ). Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. The information in this Presentation is subject to updating, completion, revision, further verification and amendment without notice. 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Notwithstanding the above, in the United Kingdom, this Presentation is only being given to persons reasonably believed by the Company to be investment professionals within the meaning of paragraph (5) of Article 19 or to high net worth individuals or unincorporated associations within the meaning of paragraph (2) of Article 49 of the FSMA (Financial Promotion) Order 2005 (SI 2005/1529), and the Proposed Offer will only be available to such persons who are also qualified investors within the meaning of section 86(7) FSMA purchasing as principal or in circumstances under section 86(2) FSMA. This Presentation is only being sent to persons reasonably believed by the Company to be investment professionals or to persons to whom it may otherwise be lawful to distribute it. Outside the United Kingdom, this Presentation is only being sent to persons to whom it may be otherwise lawfully communicated to. 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Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, Australia, Japan or South Africa, or any other jurisdiction which prohibits the same except in compliance with applicable security laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities law. The Company's ordinary shares have not been registered under the Securities Act Forward-Looking Statements. Information contained in this Presentation may include 'forward-looking statements'. All statements other than statements of historical facts included herein, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's business) are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding the Company's present and future business strategies and the environment in which the Company expects to operate in future. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of factors. These forward-looking statements speak only as to the date of this presentation and cannot be relied upon as a guide to future performance. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this Presentation to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based. Karelian Diamond Resources 2

3 COMPANY SNAPSHOT Karelian Diamonds (AIM:KDR) is focused on exploring and developing diamond projects in the Karelian craton in Finland The Company has two key projects ongoing; i) Kuhmo regional exploration; and ii) advancing the Lahtojoki diamond project. In January 2017, the company discovered a green diamond in Kuhmo this is a rare event for a till sample ODM, a leading diamond laboratory, have processed more than 50,000 exploration samples globally and recovered less than 10 naturally occurring diamonds from similar samples. The Company intends to focus on this target to discover the source of the diamond. Also, in the Kuhmo region, the Company is following up on its discovery of a new kimberlite at Riihivaara. Share Price (pence) /04/ /08/ /12/ /04/2018 Capital Structure Mkt Cap m ~1.5 Shares in Issue 34,738,110 Options Nil In August the Company published the PEA for the Lahtojoki diamond project M Carats recoverable with a gross value of US$211M, IRR 55% and NPV (@8%) US$39.1. Warrants (from 20p to 2.50) that expire from May 2018 November 2022 Shareholders 6,848,181 KDR and Rio Tinto Agreement have and agreement until 2020 whereby Rio Tinto discloses to KDR confidential information and physical geological samples relating to exploration in Finland. In consideration, Rio Tinto has the option to earn a 51% interest in any project identified by KDR in Finland by funding the development funding. Board 21.9% >3% 16.4% Other 61.7% Karelian Diamond Resources 3

4 DIAMOND SUPPLY OUTLOOK KDR is actively discovering diamonds when producers are facing depleting resources Karelian Diamond Resources 4

5 DIRECTORS AND MANAGEMENT Professor Richard Conroy Chairman Professor Richard Conroy has been involved in natural resources for many years. Professor Conroy founded Conroy Petroleum andnatural Resources which discovered the Galmoy zinc orebodies which led to the revival of the Irish base metal industry and to Ireland becoming 10 th in the world in the production of Zinc and 12 th in the world in production of lead. The Company was also a founding member of the Stone Boy consortium, which led to the discovery of the Pogo gold deposit in Alaska, now in production as a world class gold mine. An Emeritus Professor of Physiology in the Royal College of Surgeons in Ireland, Professor Conroy served in the Irish Parliament as a Member of the Senate. Seamus P. FitzPatrick Non-Executive Director Seamus FitzPatrick has worked in both corporate finance and private equity in London and New York with Morgan Stanley, JP Morganand Banker s Trust. In 1999 he co-founded CapVest of which he is Managing Partner (which has raised funds in excess of 2.0 billion). He is Chairman of the Mater Private Hospital and of Valeo Foods and is a board member of Reno Norden. Maureen T.A. Jones Managing Director Maureen Jones has over 30 years experience at senior level in the natural resource sector. She is Managing Director of KarelianDiamond Resources and was a founding director of the company. Also a director of Conroy Gold and Natural Resources, she joined Conroy Petroleum and Natural Resources on its foundation in 1980 and was a director and board member of Conroy Petroleum/ARCON from 1986 to Dr. Sorċa C. Conroy Non-Executive Director Dr. SorċaConroy was recruited to ING Bank in 2006 and whilst there was ranked second in the Extel Survey for Biotechnology Specialist Sales. She had previously been specialist sales for life sciences and institutional equities at Canaccord Adams ( ) where she ranked fourth in the2006 Extel survey and Hoodless Brennan ( ). Louis J. Maguire Non-Executive Director Louis Maguire is an auctioneer by profession and a land valuation expert with particular expertise in the purchase of mineralrights and in land acquisition for mining. He is a founding director of Karelian Diamond Resources. Karelian Diamond Resources 5

6 THE KARELIAN CRATON A WORLD CLASS ADDRESS The Karelian Craton straddles Russia and Finland Two world class diamond deposits have been discovered in the Russian sector of the Craton Lomonosov and the Grib Pipe Lomonosov & Grib The Finnish sector of the Craton with similar geology to the Russian sector also has the potential for world class diamond discoveries Kuhmo Lahtojoki KDR has a strategic land position in the Finnish sector of the craton Karelian Diamond Resources 6

7 PORTFOLIO IN FINLAND Kuhmo Regional Exploration The Kuhmo Diamond Proximity of source suggested following the discovery of the Kuhmo diamond in January 2017 Riihivaara - New kimberlite discovery Seitaperä 6.9 hectare diamondiferous kimberlite pipe Havukkasuo known kimberlite under licence Lahtojoki Development Project Adavnced diamond project PEA completed in August 2017 Additional resource potential Targeting to be the first diamond mine in operation in Europe Robust project economics based on current parameters Other targets Western region new exploration region South Eastern region exploration target region Karelian Diamond Resources 7

8 RECENT SUCCESS The discovery of a diamond in a till sample is a very rare event in diamond exploration The discovery of a kimberlite body at Riihivaara the first discovery of a kimberlite body in Finland in over 10 years The definition, at Seitaperä, of the largest known diamondiferous kimberlite body in Finland The acquisition of a Mining Concession over the Lahtojoki diamond deposit in Kuopio Kaavi region of Finland The extension of our agreement with Rio Tinto in Finland Karelian Diamond Resources 8

9 WORK PROGRAMME FOR 2018 Kuhmo Drilling at the Kuhmo diamond target to discover source of green diamond Drilling of Riihivaara kimberlite to test for micro-diamonds Lahtojoki Initiate environmental study on Lahtojoki diamond deposit Micro diamond test work on Lahtojoki drill core Till sampling to explore for diamond potential adjacent to Lahtojoki diamond deposit Karelian Diamond Resources 9

10 KUHMO DIAMOND TARGET High Kimberlite Indicator Minerals (KIM s) Count suggests close proximity to diamond source Partial alteration mantles on purple to red peridotitic garnets provide additional indicator of proximity Extensive work programme underway to find source of the Kuhmo diamond Kuhmo diamond target displaying total KIM s Karelian Diamond Resources 10

11 KARELIAN DIAMOND DISCOVERY The Kuhmo Diamond Sparkling clear crystal with clean faces Colour greenish Diameter 0.8mm Dodecahedron shape Karelian Diamond Resources 11

12 KARELIAN S SAMPLE PROCESSING Till sample 60 kg Wet screening 1 mm >1 mm Optical microscopy or stored Preconcentration Knelson Till Sampling Overflow stored Knelson Concentrator HMS d = 3.2 d < 3.2 stored LIMS Magnetic fraction stored Dry sieving Heavy Mineral Separation Carried out by the Geological Survey of Finland (GTK) on behalf of Karelian Karelian Diamond Resources Optical Microscopy <0.25 mm stored mm Optical microscopy SEM-EDS analyses EMP analyses 12

13 RIIHIVAARA: NEW KIMBERLITE DISCOVERY New kimberlite body discovered by the Company at Riihivaara in the Kuhmo region of Finland Indicator Mineral analysis indicates that the kimberlite is likely to be diamondiferous Geotherm prospective for diamonds. Kimberlite has sampled well into the diamond stability field 350m strike length indicated to date, width up to 2m, open along strike and at depth Riihivaara Kimberlite and total KIM s Karelian Diamond Resources 13

14 RIIHIVAARA KIMBERLITE DISCOVERY Kimberlite discovery pit Kimberlite discovered by Karelian Karelian Diamond Resources 14

15 SEITAPERÄ: DIAMONDIFEROUS KIMBERLITE PIPE Macro and micro diamonds from drillcore 6.9ha kimberlite defined Largest known kimberlite in Finland Abundant mantle xenoliths in kimberlite Karelian Diamond Resources 15

16 LAHTOJOKI DIAMOND DEPOSIT Lahtojoki Mining Concession acquired by Karelian Diamond Resources in 2016 High percentage of gem quality diamonds Preliminary Economic Assessment (PEA) completed in 2017; 5.6 Million tonnes; microdiamond grade (non resource) of 40cpht The Lahtojoki diamond deposit, when developed, will be the first diamond mine in Europe, outside Russia Karelian Diamond Resources 16

17 PEA HIGHLIGHTS LAHTOJOKI DEPOSIT PEA suggests 2.11M Carats recoverable with a gross value of US$211M Mining operation recommended Nine year mine life indicated: Payback year 2 IRR 55% and NPV (@8%) US$39.1M Lahtojoki Diamonds Karelian Diamond Resources 17

18 KEY POINTS LAHTOJOKI EVALUATION Exceptional Eclogite grade of 90,000 cpt (Peltonen et al 2002) Excellent infrastructure / skilled work force Existing processing facilities at Outokumpu (50km) Stockpiled bulk sample material available at surface (c.1,500t) Examples of Diamonds within Lahtojoki Eclogite Xenolith (Source GTK) Karelian Diamond Resources 18

19 LAHTOJOKI: WORK TO DATE LDD Drilling 512m 23 t Bulk Sampling 3,000 t Drilling 5,100m Estimated minimum grade 40cpht Karelian Diamond Resources 19

20 LAHTOJOKI DIAMOND DEPOSIT SITE Karelian Diamond Resources 20

21 LAHTOJOKI : ADJACENT DIAMOND POTENTIAL Lahtojoki Mining Concession The (HK) Kimberlite type boulders discovered are not derived from Lahtojoki Kimberlite the Lahtojoki (TK) Kimberlite. The ilmenite composition resembles that of Lahtojoki but indicates even better diamond preservation index (redox conditions). Kimberlite boulders A single-cpx geotherm indicates low heat flow, excellent regarding the size of the mantle diamond window Claim Reservation Karelian Diamond Resources Claim 21

22 SUMMARY KUHMO DIAMOND DISCOVERY - 0.8MM IN DIAMETER, GREENISH COLOUR AND STRONG KIM ANOMALY IDENTIFIED IN THE AREA RIIHIVAARA: NEW KIMBERLITE DISCOVERY, GEOTHERM PROSPECTIVE FOR DIAMONDS SEITAPERÄ: LARGE 6.9HA DIAMONDIFEROUS KIMBERLITE PIPE LAHTOJOKI MINING CONCESSION - PEA MINE PLAN : PAYBACK 2YRS, 2.11M CARATS RECOVERABLE WITH A GROSS VALUE OF US$211M WITH ADJACENT DIAMOND POTENTIAL CONFIDENTIALITY AGREEMENT (WITH BACK IN RIGHTS) WITH RIO TINTO IN A MINING FRIENDLY COUNTRY RIIHIVAARA KIMBERLITE LAHTOJOKI DIAMOND DEPOSIT KUHMO GREEN DIAMOND

23 Karelian Diamond Resources AIM: KDR