Karelian says independent report confirms nickel and copper in Northern Ireland

Explorer Karelian Diamond Resources (AIM: KDR) said on Monday that an assessment prepared by an independent consultant confirms the potential for nickel, copper and platinum group metals presence in its licences in Northern Ireland.

The study by geologist Larry Hulbert followed Karelian’s discovery in October last year, when it found indicators for battery metals and PGMs during the course of a stream sediment sampling program over its licence area. 

The company’s chairman, Richard Conroy, said the report shows “geological similarities with areas associated with world class discoveries of nickel, copper and platinum,” in North America, Russia and China.

The independent report draws a parallel between the Eagle and Eagle East nickel, copper and PGMs deposits, in the US, recommending to follow the exploration model applied in those properties.

Karelian, best known by is quest to find a world class diamond deposit in Finland, has now applied for two licences covering about 500 km² adjacent to its existing KDR-1 licence.

“It is not unknown for nickel/copper/platinum mineralization to be discovered during the course of a diamond exploration programme, the most well-known example being the Voisey Bay Nickel discovery in Canada, and we are optimistic that this could be true here,” Conroy said.

Nickel prices dropped 40% last year and have continued to experience declines in the past weeks. Experts, including Macquarie Financial Services, say prices have likely hit a floor mainly due to the growing amount of the metal coming from top producer Indonesia. The oversupply has pushed the industry into a critical situation, as half of all nickel mines are unable to turn a profit at current prices.