Karelian Diamond Resources said the outcome of initial exploration work on the Kuhmo prospect in eastern Finland has been "encouraging".
Company chairman Richard Conroy gave the news to shareholders at the group's AGM today.
Mr Conroy told shareholders that a heavy mineral survey near Kuhmo, carried out on behalf of Karelian by the Geological Survey of Finland, indicated the presence of a number of kimberlitic materials in the area.
"The first phase of the trenching programme is nearing completion and results to date are encouraging," Mr Conroy said.
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Karelian will start drilling "as soon as a rig becomes available this winter and field conditions permit," Mr Conroy said.