Karelian Diamond Resources PLC (AIM:KDR) said the presence of pink diamonds can substantially increase the profitability of its Lahtojoki project in Finland.
Pink diamonds are highly sought after and are extremely scarce, it added, typically commanding a price up to 20 times that of normal colourless diamonds.
Based on the presence of pink diamonds, Karelian commissioned an update of the Lahtojoki PEA (preliminary economic assessment) from broker First Equity.
Its amended PEA indicated a value of US$69m, representing a 77% increase on the 2017 PEA of US$39 million.
A full mining permit to enable the development of the deposit is currently being processed, added Karelian, although delays have occurred due to COVID-19 restrictions.
The overall outlook for diamonds is encouraging with demand currently strong in China and the US, the two biggest diamond markets, with supply and inventories down.
Professor Richard Conroy, chairman, said: “The focus remains on delivering the diamond mine at Lahtojoki but work has also continued on the exploration acreage and other potential diamondiferous areas.
“The presence of pink diamonds in the Lahtojoki diamond deposit could substantially increase the potential profitability of any future mining operation and this is reflected in the amended PEA.”
Losses for the financial year ended 31 May 2021 were €422,000 (2020: €446,700).