Shares in Cambridge Mineral Resources shot up 8 per cent yesterday after the company said it had received encouraging news from a survey of areas in Ireland which might be suitable for diamond mining.

In a brief statement to the London Stock Exchange, the company said it was evaluating results from an airborne survey of areas near Inishowen, Co Donegal, which might contain diamonds and other gemstones.

"The preliminary evaluation of these results is encouraging and a further announcement will be made tomorrow when full information is available," it said.

Shares in the AIM-listed company closed up 1 1/4p, or 8 per cent, at 17 1/4p. The statement followed the arrival of heavy equipment and workers in several areas which were included in the scientific survey. Cambridge Mineral Resources, which is based at Bristol, announced in April that it was accelerating its diamond exploration project on its prospecting licence in Co Donegal.